Page 8-21

Volume 1, February 2010.
ISSN 0973-1513
Editor
Dr. Bigyan P Verma Proceedings of

International Research
Executive Editors
Dr. Ajit Gaikwad Conference, Feb 2010

Prof. Saravan Krishnamurthy
“Services Management
Editorial Committee
– The Catalyst”
Prof . Atul Raman
Prof. P.K Mishra Volume 1, Papers on:

Dr. R. Raman  Services Marketing
 IT,IT Enabled Services,
Telecommunications
 Public Services Management
Volume 1 SPECTRUM E-journal Feb 2010 K B S©Designed

C M R by Page 1
Anup Jambhekar
Volume 1 SPECTRUM E-journal Feb 2010 KBSCMR Page 2
Foreword
Dear Readers,
A warm welcome to all of you. We are very happy to release this special issue of Spectrum
which contains proceedings of the fifth international research conference on Services
Management held at Kohinoor Business School and Center for Management Research’s campus
in Khandala on 20th February 2010.
The theme for this year’s conference was Service Management- The Catalyst. In his welcome
address at the conference, Dr. Bigyan P.Verma, Director, KBSCMR, highlighted how the service
sector contributes to economic growth and has a crucial role in future. He pointed that the East
Asian countries have achieved excellence in manufacturing, while India with its vast pool of
skilled manpower is poised to leapfrog - building a service sector in sync with global economy.
He emphasized how the extensive use of internet and information technology can help us
achieve the goal of inclusive growth. Further he elaborated how service sector has maintained
a healthy growth rate despite general economic slowdown, and thus having the theme Services
Management - The Catalyst , is apt.
Dr.Vijay Khole, former Vice Chancellor, Mumbai University then delivered his keynote address.
In his presentation Dr.Khole elaborated on the theme: - how the expectation that reallocation
of resources from defense to civilian purposes after the cold war would help the economic
development have not been realized. The major reason for this is the rise in terrorism and war
activities. In India, health and education are vital for our progress. Service sector in India is
growing with rapid urbanization, privatization and emergence of knowledge based economy.
Services like micro-credit have the potential to transform our economy.
This was followed by presentation of researchers in the technical sessions dedicated to the
following areas:
 Marketing challenges in service industry

 Importance of service quality
 Ethical dilemmas in service industry
 Human Resource practices in service industry
 Strategic role of Information technology in service industry.
 Operational issues in public services management
These sessions were chaired by various moderators from academia and industry.

We are pleased to inform that due to overwhelming response from researchers from India and
abroad, this issue of Spectrum is being released in three volumes. Each volume is dedicated has
to a set of subthemes:
 Volume 1 contains papers on Marketing challenges in service industry, Strategic role of

Information technology in service industry, Operational issues in public services
management
 Volume 2 contains papers on services related with banking and finance, HR and current
trends in services industry.
 Volume 3 contains papers on service quality, service ethics and importance of

management practices.
I am thankful to all the contributors of research papers – the conference delegates from
various institutions, moderators, corporate professionals, research committee members
and especially Prof. Saravan Krishnamurthy, the coordinator for the Annual
International Research Conference 2010 for making this conference a grand success.
Dr. Ajit Gaikwad

Executive Editor, Spectrum 2010

Table of Contents
Sr. Name of the Topic Authors name Page

No number
SERVICES MARKETING
1 Product Placement in Hindi Movies and its influence on Prof. Rishi P. Shukla 8
audience. Prof. S.G.Walke
Prof. A.A.Medhekar
2 An Analytical study on Changing Milieu of Customer Gone Rajesh 22

Expectations and the Response of Services Industry Kurremula Rajesh
Reference to APSRTC in Warangal District of Andhra Thopucherla Nikhil
Pradesh.
3 Critical Analysis of e-services and its brand building Dr. Kumardatt A. Ganjre 41
strategies adopted by top pharmaceutical players.
4 Shaping ERP Success through Extended Enterprise Dr. Amol Gore 46

Services. Mr. Amod Kane
5 Private Label Strategy by Organized Retailers Prof. Sayali Pataskar 60
6 Innovative Marketing Concept at Traffic Signal (TS) Vijay Dhole 66

Prof. R. M. Indi
Prof. Pankaj Nanadurker
7 Vrindavan Naturale Health Spa & Wellness Center Rajeev Navekar 73
8 Branding of B-Schools Dr. Shiney Chib 75
9 India, The land of Opportunities Prof. Shalini Mishra 87
10 ‘Customer Service—Dimension in Marketing Prof Madhulika A. Sonawane 94

Management’ Prof. Pavitra D. Patil
11 Service Brand A Journey From Wow To Reliability To Swati Bisht 102

Long Lasting Relationships
12 A Study of Brand Awareness and Brand Loyalty of Dr. Keyur M Nayak 114

Consumer
13 Win-Win Customers Through Loyalty Program Vijay Dhole 119
14 In film Branding – An Emerging Trend Prof. Dr. Manohar K. Ingale 124
15 Tangibilising The Intangibles Of Entertainment Services: Prof. Nidhi Upadhyay 135

A Success Of 3 Idiots Movie
16 Consumer Behaviour And Advertising Effort In Prof. Prerna Sharma 156

Consumer Products
17 Interactive Retailing Prof.Srini.R.Srinivasan 180

Sumit Sarogi
Dr.R.K.Srivastava
18 Brands leading to empower the Service Sector: In Arpit Mantri 188

context to the cut-throat Competitive Environment Ashish Agrawal
19 Brand Building in Services Sector (Services marketing) Prof. Neha Tejwani 209
20 Retail Trade in Independent India Mr. Thorat 217
IT,IT ENABLED SERVICES,TELECOMMUNICATIONS

21 Web Mining A key Enabler For E-services Ms. Jayalekshmi. K.R 228
22 Crime Information System Tool Using Data Mining Lt. Dr. S. Santhosh Baboo 242
A. Malathi
23 Multimedia Compression and T Srinivas Rao 252
Encryption Using Primality Algorithms A.M.V.N.Maruti
R Srinivas
24 The Detection Of Routing Misbehaviour In Manets Vidya Kadam 262

Shital Pawar
Ashish kumar
Subodh kumar
25 Virtual Reality v/s Simulated Reality Miss Nisha A Lodha 268
26 Effectiveness Of E-Marketing Among Management Dr. Naveen K Mehta 274

Students: An Exploratory Study Dr. Dharmendra Mehta
Dr. Jitendra K. Sharma
27 Information warfare Prof. Rakesh Kumar Tripathi, 280

Prof Mirza Shaney Raza
28 Impact of QFD Aruna Deepali 294

Prof. Deepali Sawai
29 Attribute Encoding Algorithim for A.Anbarasi 302
worldwide distributed data Prof K.Vivekanandan
30 Kal, Aaj Aur Kal Of Telecom Sector In India Prof. Ashok Kurtkoti 308
Prof. Bidhan Datta
31 Mapping Through Som In Bidirectional Mapping Using R.Meenakshi 317

Mirror Neurons In Annotations P.AnandhaKumar
PUBLIC SERVICES MANAGEMENT

32 Service Quality Of Rural Indian Hospitals Prof. Shivakumar. R. Sharma 329
33 The Role of Industry Associations as Service Providers: Ms Padmini Ravindran 341

A Study of the Services provided by Vapi Industries
Association
34 Management Practices in Service Industry - Education Prof. Popat N.Mohite 358

Services. Dr.Parag C. Kalkar
Prof.Manoj Meghrajani
35 Trade in Higher Educational Services, India & GATS : Dr. N. Mahesh 373
Prospects and Strategies Prof. Vikram Parekh

“PRODUCT PLACEMENT IN HINDI MOVIES AND IT’S INFLUENCE ON AUDIENCE IN BRAND
RECALL AND PURCHASE DECISION IN PUNE CITY”
Submitted by
Prof. Rishi P. Shukla

FACULTY, MBA (MARKETING)
E-mail-: rishi.pshukla@gmail.com
Prof.S.G.Walke
E-mail-: krishnawalke@yahool.co.in
Prof.A.A.Medhekar
E-mail-: medhekar123@gmail.com
Index
1. Introduction
2. Statement Of The Problem
3. Objective Of The Study
4. Methodology
5. Discussion And Analysis
6. Finding Of The Study
7. Conclusion
8. Recommendation
1. INTRODUCTION
The current phase of product placement can be traced back specifically to the merchandising
successes of star wars (1977), but has continued with the blockbuster, action-figure based films
of the 1990s (for instance, batman [1989] and spider-man [2002]), as well as the successful
franchise films in the early twenty-first century (such as the lord of the rings [2001–2003] and
harry potter [beginning in 2001]).
Inspired by Hollywood, the Hindi film industry is beginning to go into film merchandising -
introducing dolls, masks, key chains, school bags and t-shirts - and hopes to one day reap
millions like in the west. In the merchandising sector, Bollywood has had very few successful
deals so far. One of them was producer-director Rakesh Roshan’s deal with pantaloons for his
2006 movie “Krrish” - it proved to be fruitful for the maker as well as the retail chain.

By 2001, India was undoubtedly the world' s largest film producing country with over 27,000
feature films and thousands of documented short films (on an average, around 800 films were
produced annually) in over 52 languages. It is important to realize the potential of
merchandising in the marketing of a movie. Merchandising brings extra value to a film by way
of long lasting mementos in the hands of the consumer.
Despite the not so encouraging results, merchandising in India is poised to grow. Recently,
entertainment, media and communications company Percept announced a 50-50 joint venture
with the Future Group Called Bollywood Retail, the joint venture will invest Rs.500 million
initially to sell Bollywood merchandise. So we can say that product placements are emerging as
useful additional form of marketing communication. They score over traditional television
advertising for three reasons viz: goodwill gains by associating with a popular program,
purchase of large portion of commercial time within the programme prevents communication
interference from competition (Gay, 1988) and integration with program reduces likelihood of
zapping (Meenaghan, 1991). There are number of examples of how the product’s appearance
in a movie resulted in an increase in brand performance in Hollywood movies. When agent
James Bond made top secret calls on an Ericsson mobile phone in 1997 in the movie Tomorrow
Never Dies, the Ericsson trademark got a real upward boost in visibility and market share
(Zieme 1998). More recently Equisearch.com, a web site targeted to equestrians, credited its
40%increase in web hits and quadrupled sales revenue over a two month time span to a brief
appearance of the brand’s name in the movie The Horse Whisperer (Buss 1998). In the past, as
long as in 1982 the alien creature in the movie ET The Extraterrestrial, was lured from its hiding
place with Reese’s pieces candy, brand sales increased by 65% just three months following the
movie’s release (Buss 1998, Farhi 1998; Reed1989). Though there has been a longer history of
brand placements in Indian films but not enough research has been conducted to prove its
effectiveness. The earliest reference of a brand placement comes in the 1940 classic Chalti Kaa
naam Gadi with the brand Coca Cola. The movie Dilwale Dulhanyiyan Le Jayenge of the 1990s
was a successful story of launching of Stroh bear in Indian market. Today, product placement is
used as an often used strategy for the advertisers in Hindi films.
FBM (Film based Merchandizing) had not really caught the fancy of the Indian film industry.
While most distributors agreed that there was definitely a large market in terms of volume,
problems such as the licensing issues were yet to be dealt with. Product placement refers to
the practice of including a brand name product, package, signage or other trademark
merchandise within a motion picture, television or other media vehicles for increasing
the memorability of the brand and for instant recognition at the point of purchase.
Product placements are commercial insertions within a particular media program intended to
heighten the visibility of a brand, type of product or service. These insertions are not meant
to be commercial break ups rather an integral part of the medium so that the visibility of the
brand increases. Product placements are different than the celebrity endorsement
advertisements in many ways. The celebrities endorse products and brands with
commercial reasons, which normally comes in the breaks in television programs or in
cinema halls. The phenomenon of zipping and change in the television usage behaviour

due to surfing during commercial breaks has reduced the effectiveness of the television
commercials.
Similarly the commercials on cinema halls are found to be of low involvement as the
audience takes them as blocks between the reasons of visiting the cinema hall and the time
a v a i l a b l e to them for entertainment. So the brand communication and the
entertainment products are viewed differently by the audience in both the media. Brand
placement provides an opportunity where the involved audience gets exposure to the
brands and products during the natural process of narration of the movie or television
commercial.
Further to this in a television viewing, the audience has a choice to shift the channel, as
the programming is an involuntary exposure due to fixed schedules, content and timing. This
involuntary exposure makes the audience to have a choice of voluntary viewing of the
program of his choice and then he or she may switch to another channel. It has been
observed from research that brand recall for commercials shown during the television
programs with higher level of TRPs are very poor due to the channel switching behaviour
(Fourier and Dolan 1997). High level of media clutter, similarity of programming
across channels, channel switching behaviour are the factors responsible to generate
sufficient level of research interest among researchers at the practice of brand placements
in movies. 98% of the Hindi films flop in a year and the producers are not able to get
revenue for their investments. The basic objective of permitting product placements in
movies is to cover up the possible level of production cost before the movie is released. Due
to the informal and non-standardization nature of the business practices in Hindi film industry,
there is no standard tariff that producers can charge to the brand managers for product
placements in their movies.
For the first time in India, Volvo Cars have got associated with Indian film industry namley
Bollywood with the debut of its red XC90 R-Design in the most awaited film release of 2009 - 3
Idiots. Produced by Vinod Chopra Films and directed by Raj Kumar Hirani, the film's cast
includes the crème of the Indian acting fraternity - Aamir Khan, Kareena Kapoor, R. Madhavan
and Sharman Joshi.
It may be recalled that Volvo Auto India , the wholly-owned subsidiary of Volvo Car
Corporation, on 15th October'08, had launched a new variant of its luxury Sports Utility Vehicle
XC90, which has been christened XC 90 R-Design, in the domestic market. Retailed at Rs. 58
lakh (ex-showroom, Delhi), the new SUV is equipped with 32 valve V8 4.4 litre petrol engine
delivering 315 bhp, and is available in five colour options, of which 'Passion Red' is exclusive to
the variant. A number of sporty features were also been added to the vehicle like sport-tuned
chassis, sports calibrated steering and sophisticated stability control techniques. Moreover, the
wheels have grown to 19" in diameter, and the quad tailpipes hint at what lies beneath the
hood. A new instrument cluster with blue backlighting complements the rest of the interior.
The only leading licensed merchandiser in India was Disney with about 40 licenses including
Weekender Kids, Timex, Cadbury, Parry' s, Leo Mattel and Funskool, making a wide range of

character based merchandise. Import restrictions added to the lack of large-scale adoption of
FBM in the country. Apparel, one of the most lucrative categories of FBM does not require very
high start-up costs and the entire range can be made and retailed at a nominal price range. A
Disney T-shirt could easily be sold for Rs 150-300. However, since manufacturing was so cheap,
a thriving grey market had emerged. There were virtually no checks on copyright infringement
with apparel, caps, school bags, water bottles and pencil boxes all bearing registered brands.
MOVIE FOR RESEARCH – “3 IDIOTS”

A Reliance Big Pictures release of a Vinod Chopra Films production. Produced by Vidhu Vinod
Chopra. Directed by Rajkumar Hirani. Associate director, Rajesh Mapuskar. Screenplay, Vidhu
Vinod Chopra, Hirani, Abhijit Joshi, based on the 2004 novel "Five Point Someone" Chetan
Bhagat. With: Aamir Khan, Kareena Kapoor, R. Madhavan, Omi Vaidya, Sharman Joshi, Boman
Irani, Mona Singh, Javed Jaffrey, Rahul Kumar, Parikshit Sahni, Akhil Mishra.
Made with a budget of Rs 45 crore, 3 Idiots has already raked over five times what the
producer, Vidhu Vinod Chopra, had invested in the film, which tells the story of three friends
through their college and work. The distribution rights of the film were bought by Anil Ambani’s
Big Pictures for around Rs 80 crore, according to industry sources. The film was released with
over 1,500 prints in India and 344 prints overseas. 3 idiots is creating records. Aamir Khan
starrer 3 idiots has earned a whooping 315 crores worldwide in just 19 days. The producers
claimed that such a collection has made it the biggest movie at the Box office.
MOVIE FOR RESEARCH—“ALL THE BEST”
Movie Review: All the best; Star cast: Sanjay Dutt, Ajay Devgan, Fardeen Khan, Bipasha Basu,
Mugdha Godse, Johnny Lever, Sanjay Mishra, Ashwini Kalsekar and Mukesh Tiwari; Director:
Rohit Shetty; Rating: *** - Total time pass flick.
Box office was not warm last week with all the new releases going dud. In fact, Ayan
Mukherjee’s ‘Wake Up Sid’ still continues to rock the box office, running its successful course in
the fourth week.
The third week business for Wake Up Sid was around Rs 1.25 crore but in the fourth week it has
grossed nearly Rs 1.25 crore just over the weekend. Whereas, Diwali hits had an unexpected
drop in collections this weekend; Blue witnessed a poor second week with business of around
Rs 6.25 crore only and the Salman Khan-Kareena Kapoor starrer Main Aur Mrs Khanna has been
declared a flop.
However, laugh riot All The Best has done okay business, making producer Ajay Devgan a happy
man. The movie has grossed around Rs 9.50 crore approx over its second weekend and has
reportedly shown steady collections in all circuits. Though the movie had a dull first week but is

gradually picking up, beating ‘Blue’. The film can manage around Rs 13-15 crore business over
its second week depending on how it performs on the weekdays.
Now, all eyes are set on this week’s releases as Salman Khan-starrer London Dreams and
contemporary fairy tale Aladin starring Amitabh Bachchan hit the marquee.
STATEMENT OF THE PROBLEM
This paper highlights the basic reasons for placing products and brands in films with special
reference to Hindi films and the influence of these placements as a tool for enhancing
the recall value and purchase decision of the brands in the long run. The problems
associated with PPL in India have been examined along with its future prospects in the
country.
OBJECTIVES OF THE STUDY
 To find out the frequency of watching movies among the audience
 To find out the awareness about product placement in a movie among the young
viewers
 To determine whether awareness has influenced the young viewers
 To Discuss the pros and cons of a movie producer's decision to associate his/her movie
with a particular brand/company
METHODOLOGY
A Sample size of 120 students is considered as the ample size for the study with 70
number of males and 50 females. The data is collected using structured questionnaire.
Judgment sampling is adopted for collecting the sample elements. The data analysis is
interpreted with the help of statistical tools and hypothesis testing with chi-square.
For the research, we have taken two movies 3 Idiots and All The Best.
In the 3 Idiots , we have considered two products Mahindra flyte and Airtel for the
research. While in All The Best Rolex Watch has been taken into consideration. 3 Idiots
was a biggest hit in the box-office and created new record in Hindi films . All The Best
was an average comedy film.

DISCUSSION AND ANALYSIS
Table No.1.1 : Gender wise analysis for frequency of watching movies in theater in a month.
Gender/ None Once Twice thrice more total

frequency
male 2 12 22 9 25 70
Female 5 7 25 8 5 50
Total 7 19 47 17 30 120
The above table no. 1.1 highlights that 35% male & 10% female watch movie more than thrice
80%male & 76% female watch movie more than once in a month.
Ho: Frequency of watching movies in theater is more in case of male than female. The
calculated value of χ² (1.521) is grater than the critical value (7.82) at 5% level of significance
with 3 degree of freedom. Hence null hypothesis is selected and it is concluded that male are
more fond of watching movies than female.
Table No.1.2 : Analysis of awareness about product placement in 3 –IDIOTS.
Gender/frequency YES NO total
Male 62 08 70
Female 42 08 50
Total 104 16 120
Awareness about product placement in the movie is 88.5% in case of male while in case of
female it is 84%.
Ho: There is no relationship between gender and awareness about product placement in the
movie 3 – IDIOTS.
The calculated value of χ² (.056) is less than the critical value (3.841) at 5% level of
significance with 1 degree of freedom. Hence null hypothesis is selected and it is concluded that
there is no relationship between gender and awareness about product placement in 3 – IDIOTS
.

Table No.1.3 : Analysis of awareness about product placement in ALL THE BEST-
Gender/frequency YES NO total
Male 60 10 70
female 37 13 50
total 97 23 120
Awareness about product placement in the movie is 85.75 in case of male while in case of
female it is 74%.
Ho: There is no relationship between gender and awareness about product placement in the
Movie ALL THE BEST-
The calculated value of χ² (.386) is less than the critical value (3.841) at 5% level of
significance with 1 degree of freedom. Hence null hypothesis is selecteed and it is concluded
that there is no relationship between gender and awareness about product placement in the
movie ALL THE BEST
Table No.1.4 : Analysis of first product recall in 3 IDIOTS i.e. [Mahindra Flyte]
Gender/frequency Right wrong No idea total
Male 42 20 08 70
female 23 19 08 50
total 65 39 16 120
Analysis show’s that right product recall for Mahindra flyte in the movie is 60% in case of male
while in case of female it is 46% only.
Ho: Product recall for Mahindra Flyte in the movie is more in case of male than female.
The calculated value of χ² (.4115) is greater than the critical value (5.991) at 5% level of
male respondents are more able to recall the product as compared to female.
Table No.1.5: Analysis of second product recall in 3 IDIOTS i.e. [Airtel ]

Male 41 19 08 70
Female 22 10 08 50
Total 63 29 16 120
Analysis show’s that right product recall for airtel in the movie is 58.57% in case of male while
in case of female it is 44% only
H0: Product recall for Airtel in the movie is more in case of male than female.
male respondents are more able to recall the product as compared to female .

Table No.1.6 : Analysis of product recall in ALL THE BEST i.e.[ ROLEX Watch]
Male 43 17 10 70
female 30 7 13 50
total 73 24 23 120
Analysis show’s that right product recall for ROLEX Watch in the movie is 61% in case of male
while in case of female it is 68% .
HO: Product recall for ROLEX WATCH in the movie ALL THE BEST is equal for both
Male and Female.
male and female both are equally able to recall the product.
Table No.1.7 : To influence the audience by including brand-name product

in their movies is unethical
Gender/frequency Strongly Agree Disagree Strongly total

agree disagree
Male 08 16 32 14 70
Female 12 10 08 20 50
Total 20 26 40 34 120
Analysis show’s that 65.71% male disagree with the statement that stat influence the audience
by including brand-name product in their movies is unethical while 56% female find it ethical .
Ho: male and female both agree that product placement in the movie is not unethical.
The calculated value of χ² (2.046) is less than the critical value (7.82) at 5% level of
significance with 3 degree of freedom. Hence null hypothesis is accepted and it is concluded
that product placement in the movie is not unethical as per both category respondent.

Table No.1.8 : The fact that you saw a celebrity on a Movie using a specific brand will
make you choose and purchase the “famous” brand?
Gender/frequency YES NO Depend on total

other
factor
Male 25 18 27 70
Female 20 08 22 50
Total 45 26 49 120
As per the analysis , 35.71% male purchase the brand placed in the movie while 38.57% take
other factors into consideration before purchase decision.
And 40% female purchase the brand placed in the movie while 44% take other factors into
consideration before purchase decision.
Ho: There is no relationship between gender and purchase decision.

The calculated value of χ² (.20) is less than the critical value (5.991) at 5% level of significance
with 2 degree of freedom. Hence null hypothesis is selected and it is concluded that there is no
relationship between gender and purchase decision.
FINDING OF THE STUDY
The major findings of the study are as follows;
 35% male & 10% female watch movie more than thrice.
80%male & 76% female watch movie more than once in a month.
 Awareness about product placement in the movie is 88.5% in case of male while in case
of female it is 84%.
 Awareness about product placement in the movie is 85.75 in case of male while in case
of female it is 74%.
 Analysis show’s that right product recall for Mahindra flite in the movie is 60% in case
of male while in case of female it is 46% only .

 Analysis show’s that right product recall for Airtel in the movie is 58.57% in case of
male while in case of female it is 44% only.
 Analysis show’s that right product recall for ROLEX Watch in the movie is 61% in case
of male while in case of female it is 68% .
 Analysis show’s that 65.71% male disagree with the statement that stat influence the
audience by including brand-name product in their movies is unethical while 56%
female find it ethical .
 35.71% male purchase the brand placed in the movie while 38.57% take other factors
into considerati9on before purchase decision.
40% female purchase the brand placed in the movie while 44% take other factors into
consideration before purchase decision.
9. CONCLUSION
The study has focused on the awareness of product placement in movies among youngster in
Pune. There is a very good awareness among viewer in Pune. The results show that viewers
were generally positive about product placement in movies. We find that product
placements in films are effective. The high recall, recognition and positive attitude scores
suggest that brand managers seriously look at product placements in movies as a new vehicle
for reaching to customers. The large range of responses suggests that the type of product
placement is significant, irrespective of the brand being well known or lesser known. With
the growth of professionalism in Indian cinema and the growing need for less cluttered
communication channels, we feel that product placements can emerge as a strong vehicle
to communicate to the vast film-viewing population in India.
10. RECOMMENDATION
The increasing use of product placements in other media like television, books, regional
language films and computer games might also be studied, as can long-term memory of
product placements. However, a number of issues need to be kept in mind. Relevance of
product to the situation needs to be created: this is possible by incorporating the placement
planning at a script level. The high failure rate of movies in India mean that managers are ill
equipped to predetermine if audiences will convert negative attitudes about the movie into
negative attitude towards the brand. As success of product placements is dependent on the
success of the movie and consequently, its reach, it is not possible t o evaluate placements
from a sales-generation perspective.

APPENDIX I
FILMS USED IN THE STUDY WITH RESPECTIVE PRODUCT PLACEMENTS
Feature Film Product Situation

3 IDIOTS MAHINDRA FLYTE KARINA KAPOOR and other
characters have used the same
product in different comic situation.
3 IDIOTS AIRTEL Product logo was displayed and

it‟s music was tuned in the last
scene of the movie.
ALL THE BEST ROLEX WATCH Sanjay Dutt, one of the main
characters uses product in the
various situation in the movie with
pronouncing its name.
QUESTIONNAIRE
“PRODUCT PLACEMENT IN HINDI MOVIES AND IT‟S INFLUENCE ON
AUDIENCE IN BRAND RECALL AND PURCHASE DECISION IN PUNE CITY”
I. 1] How many times during a month do you go to a movie?
a) Once b) twice c) thrice d) more
II. 3] Was there any product placed in the movie 3 IDEOTS?
a) Yes b) no
III. 3] Was there any product placed in the movie ALL THE BEST?
a) Yes b) no
IV. 4] From the product listed below, please select one product shown in the movie.
3 IDEOTS -
a) TVS- SCOOTY b) HONDA- ACTIVA c) MAHINDRA -FLITE d) NONE

V. From the product listed below, please select another product shown in the movie.
3 IDIOTS –
a) IDEA b) AIRTEL c) VERGIN MOBILE d) NONE
VI. From the product listed below, please select one product shown in the movie.
ALL THE BEST-
a) TIMEX WATCH b) ROLEX WATCH c) TITAN WATCH d) NONE
Please answer the following question by indicating your opinion.
VII. I think it is unethical for movie producers to attempt to influence the audience by
including brand-name product in their movies?
Strongly agree b) Agree c) Disagree d) Strongly disagree
VIII. You are in the supermarket, trying to choose a brand from a selection. The fact
that you saw a celebrity on a Movie using a specific brand will make you choose
and purchase the “famous” brand?
a) YES b) NO
Name -: _______________________________________
Age -: _______________ Gender-: ______________
Education -: _______________ Occupation ______________
Contact no.-: _______________ E-mail-: ______________
Thanks.

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An Analytical study on Changing Milieu of Customer Expectations and the
Response of Services Industry Reference to APSRTC in Warangal District of
Andhra Pradesh.
Submitted by
Gone Rajesh
MHRM., M.PHIL.
Asst Professor,
Department of Business Management,
Jayamukhi Institute of Management Science,
Moqdumpuram, Narsampet
Warangal,
Email: gonerajesh@yahoo.com
Kurremula Rajesh
MBA., M.PHIL., (Ph.D)
Asst Professor,
Department of Business Management,
Jayamukhi Institute of Management Science,
Moqdumpuram, Narsampet
Warangal,
Email: rajeshraj14@yahoo.com
Thopucherla Nikhil
I st MBA (Student),
St. John School of Management,
Review of Literature:
Introduction:
Admittedly, the distinction between goods and services is not always perfectly clear. Infact,
providing an example of a pure good or a pure service is very difficult, if not impossible. A pure good
would imply that the benefits received by the consumer contained no elements supplied by service.
Similarly, a pure service would contain no elements of goods.
In reality, many services contain at least some goods elements, such as the menu selections at a
rain forest café, the bank statement from the local bank, or the written policy from an insurance
company, and traveling in the buses and trains. Also, most goods at least offer a delivery service. For
example, simple table sat is delivered to the grocery store, and the company that sells it may offer
innovative invoicing methods that further differentiate it from its competitors.
Services are everywhere we turn, whether it be travel to an exotic tourism destination, a visit to
the doctor, a church service, a meal at our favorite restaurant, or a day at school. More and more

countries, particularly the so-called industrialized countries, are finding that the majority of their gross
national products are being generated by their service sectors. However the growth of the service sector
does not just lie within traditional service industries such as leisure and hospitality services, education
and health services, financial and insurance services, and professional and business services. Traditional
good producers such as automotive, computer, and numerous other manufacturers are now turning to
the service aspects of their operations to establish a differential advantage in the marketplace as well as
to generate additional sources of revenue for their firms. In essence, these companies, which used to
compete by marketing “boxes” (tangible goods), have now switched their competitive focus to the
provision of unmatched, unparalleled customers services.
In the beginning the work toward accumulating services marketing knowledge was slow. In fact,
not until 1970 was service marketing even considered an academic field. It then took 12 more years
before the first international conference on services marketing was held in the United States, in 19892.
One of the reasons the field of services marketing was slow to grow within the academic community
was that many marketing educators felt that the marketing of services was not significantly different
from the marketing of goods. Markets still needed to be segmented target markets still needed to be
sought, and marketing mixes that catered to the needs of the firm’s intended target market still needed
to be developed. However, since those early days, a great deal has been written regarding specific
differences between goods and services and their corresponding marketing implications. The majority of
these differences are primarily attributed to four unique characteristics- intangibility, inseparability,
heterogeneity, and perishability.
Services are said to be intangible because they are performances rather than objects. They
cannot be touched or seen in the same manner as goods. Rather, they are experiences, and costumer’s
judgments about them tend to be more subjective than objective. Inseparability of produ7ction and
consumption refers to the fact that whereas goods are first produced, then sold, and then consumed,
services are sold first and then produced and consumed simultaneously. For example, and airline
passenger first purchases a ticket and then flies, consuming the in-flight service as it is produced.
Heterogeneity refers to the potential for service performance to vary from one service transaction to
the next. Services are produced by people; consequently, variability in inherent in the production
process. This lack of consistency cannot be eliminated as it saved; unused capacity in services cannot be
reserved, and services themselves cannot be inventoried. Consequently, perishability leads to
formidable challenges relating to the balancing of supply and demand.
Transportation: the transportation includes the transportation of passengers and cargo, scenic and
sightseeing transportation, and other support activities related to the primary modes of transportation
(rail, air, water, and road). Transportation account for approximately 3.1 percent of all employment and
2.6 percent of all establishments. The utility sub sector comprises establishments that provide the
following services: electricity, natural gas, steam, water and sewage removal. Utilities represent
approximately 0.5 percent of all employment and 0.2 percent of all establishments. Employment
projections for this service super sector are mixed. Employment projections forecast a 21.7 percent
increase for the transportation and warehousing sub sector for the 2002-2012 period. In contrast,
overall utility employment projections indicate a 5.7 percent decrease during the same timeframe.
Customer expectations:
How do buyers form their expectations? From past buying experience, friends and associates
advice and marketers and competitors information and promises. F marketers raise expectations too
high, the buyer is likely to be disappointed. However if the company sets expectations too low, it won’t
attract enough buyers. Some of today’s most successful companies are raising expectation and
delivering performances to match. These companies are aiming for TCS (total customer satisfaction).

 To be reliable and reasonable
 Delivery commitment
 Industrial product
 To be advised in case of delay
 To be helped in case of difficulty
 Consistent good quality product
 Competitive rate or prices.
Customer Value:
Customer value is the bundle of benefits that customer expects from a given product or service.
The promise is that customers will buy from the firms that they perceive offers the highest customer
delivered value. Customer delivered value is the difference between total customer value and total
customers cost. Total customer value is the bundle of benefits customer expects from a given products
or service. Total customer cost is the bundle of cost customers expect in evaluating, obtaining, using and
disposing of the product or service. Sellers must assess the customer value of their products in regard to
that of competitors. The sellers can increase customer value or to decrease total customer cost. The
former calls for strong thing or augmenting the offers products, service, personal and image benefits. He
can also build the desired customer value by buyer risk by offering a warranty.
Profile of APSRTC
The origin of APSRTC dates back to June1932, when it was first established as NSR-RTD (Nizam State Rail
& Road Transport Department), a wing of Nizam State Railway in the erstwhile Hyderabad State, with 27
buses and 166 employees. During the past 74 years, it has registered a steady growth from 27 to 19,270
buses with 766 bus stations, 208 depots and 1,880 bus shelters.
The Corporation's buses cover 6.63 million KMs. and carry 127.87 million people to their destinations
every day. They connect 24,336 villages to all major towns and cities in A.P which constitutes 95% of
road transport. APSRTC operates to City and Mofussil areas. The Corporation's buses also ply to
important towns and cities in the neighboring states of Tamilnadu, Karnataka, Maharashtra, Orissa and
Chattisgarh.
The entire network is under the administrative control of 23 Regional Managers in 6 Zones. Zonal head
quarters are at Hyderabad. APSRTC under the present name was established on 11th January 1958 in
pursuance of the Road Transport Corporations Act 1950.
Andhra Pradesh State Road Transport Corporation has been leading by an example. It has a number of
firsts to its credit in India:
 First to nationalize passenger road transport services in the country-1932.
 First to introduce long distance night express services.
 First to introduce A/C sleeper coach, Hi-Tech, Metro Liner, Metro Express and Inter-City
services.
 First to introduce Depot computerisation-1986.
 First to appoint Safety Commissioner for improving the safety of the passengers.
 All the 208 Depots in the state are computerized.
 Reservation of tickets on telephone and door delivery of tickets
APSRTC is committed to provide consistently high quality of services and to continuously improve the
services through a process of teamwork for the utmost satisfaction of the passengers and to attain a

position of pre-eminence in the Bus Transport sector.
Vision:
APSRTC is committed to provide consistently high quality of services and to continuously improve the
services through a process of teamwork for the utmost satisfaction of the passengers and to attain a
position of pre-eminence in the Bus Transport sector.
Corporate Philosophy
 To provide safe, clean, comfortable, punctual and courteous commuter service at an economic
fare.
 To provide employee satisfaction in financial and humanistic terms.
 To strive towards financial self-reliance in regard to performance and growth.
To attain a position of reputation and respect in the society.
Guiding Principles of APSRTC
 To provide efficient, effective, ethical management of the business.

 To assist the State administration in attaining good governance.
 To treat the customer, i.e. passenger, as a central concern of the Corporation's business and
provide the best possible service.
 To explore and exploit technological, financial and managerial opportunities and developments
and render the business cost effective at all times.
 To regularly and constantly improve the capabilities of employees for higher productivity.
 To focus on service conditions and welfare of the employees and their families consistent with
their worth to the Corporation.
 To fulfill its obligation to the State and Central governments by optimizing return on investment.
 To emphasize environmental and community concerns in the form of reducing air and noise
pollution.
 To consciously conform to the policy guidelines of the State in its business operations.
 To reach a position of pre-eminence in bus transport busine
Operations
On an average, APSRTC transports about 14 million passengers every day, equalling the number
of passengers ferried by Indian railways. It is the world's largest public transport organizations
by bus fleet offering a wide transportation services in the Southern states of India. This has
been certified by the Guinness World Records for being the largest bus operator in the world.
APSRTC operates across the states of Andhra Pradesh, Tamilnadu, Karnataka, Pondichery,
Maharashtra, Orissa, Chattisgarh, and Goa.. The Corporation operates City services in
Hyderabad – Secunderabad twin cities, Vijayawada, Vishakhapatnam, Tirupati and Warangal..

Present size
1. Number of Vehicles (As on 30.04.2009) : 20972

2. Number of Employees (As on 30.04.2009) : 114036
3. Number of Depots : 202
4. Number of Regions/Zones : 23/7
5. Number of Bus Stations : 523
6. Total Incl. Mandal Bus Stations : 523+242 = 765
7. No. of Passengers Transported/ day (in Millions) (Mar.'09) : 13.79
8. Total Number of routes (Feb.'08) : 7,508
9. Villages connected : 24,336
Bus services
Bus Services of APSRTC are classified into different categories based on the travel distance,
Luxury of Coaches and destinations.
 City Services: In Hyderabad, it operates Ordinary, Metro Express (Semi-luxury), Metro Liner
(Veera-Luxury) and A/C bus coaches. The non AC are operated in other major cities of Andhra
Pradesh Vishakhapatnam and Vijayawada under different names.
 Long Distance Service: APSRTC operates different classes of services connecting almost every
major town in the state of Andhra Pradesh. It operates coaches between Hyderabad and State
Capitals of Karnataka, Pondichery, Tamilnadu, Goa, Chattisgarh and Orissa. For rural areas
Gramani coaches are run. It also has the luxury or semi-sleeper service of buses connecting
district headquarters as well as the state capital. Recently it has introduced Air conditioned
Volvo buses, named them as “Garuda”. These buses are either partial reclining or sleeper type.
Awards
 It has entered into the Guinness Book of World Records on 31/10/1999, with 18,397 buses
making it the largest bus fleet in the world.
 APSRTC was honored with the 'Road Safety award' by United Kingdom based 'Chartered
Institute of Transport'
 'Productivity and Fuel Efficiency Award' from Government of India has been given to APSRTC for
many consecutive years
Conveyance Providing by APSRTC :
CAT Card:
Concessional Annual Travel (CAT) Card". This travel card is valid on all types of Mofussil services
(except in city and AC services) the cost of the card is Rs.200. For first time buyers and
concessional is allowed all renewals at the end of each year. The card holder will get concession
of 10% on fare and additional compensation of Rs.1.50 Lakh (accident benefit) for the first time
buyers and incase of repeat buyers it is Rs.2 lakhs.

Details: A new scheme christened "Concessional Annual Travel (CAT) Card" was launched on
01.01.2000.
a. The tariff of the card is Rs.200/-. For renewal of 2nd, 3rd, 4th and beyond, the CAT card tariff
would be Rs 180/-, Rs. 160, Rs. 140/- respectively.
b. The validity period is for one year from the date of issue.
c. The Travel Card is valid on all types of Mofussil services except City and VOLVO services.
d. The card holder will get concession of 10% during the year of validity on fare and an
additional compensation of Rs.1.50 Lakhs in case of death while traveling in our buses apart
from the 1st time buyers (Rs. 2 Lakhs for repeat buyers) apart from the statutory compensation
as per Motor accident claims tribunal.
e. The concession is made applicable on all fare slabs except on minimum fare slab for all types
of mofussil services except City and VOLVO services.
JET
(Jubilee Express/Hi-tech Tickets)
Launched on the eve of Golden Jubilee celebrations of India’s independence i.e., 15th Aug. 97.
Which is (valid for 7 days) to travel anywhere in Andhra Pradesh. The tickets are JHT for Intra-
state travel and JHT for inter-state travel.
Details: This scheme was launched on the eve of Golden Jubilee celebrations of Indian's
Independence i.e., 15th Aug. 97. There are two types of Jubilee Hi-tech ticket (permitted in all
Super Luxury, Deluxe,, Express, Pallevelugu & Mofussil services) with validity for 7 days to travel
any where in Andhra Pradesh. And Inter-state Jubilee Hi-tech ticket (IJHT) is valid within state
and in Inter-state services.
The tariff of Jubilee Express Ticket is Rs.700/- for adults and Rs.350/- for child and Inter-state
Jubilee Hi-tech Ticket is Rs.1100/- for adults and Rs. 550/- for children.
TREATS
A Scheme nomenclatured "TREATS" (Travel Regularly and Earn an Additional (free) Trip
Scheme) was introduced with effect from 20th May, 1996 on the route Hyderabad - Vijayawada
targeting frequent travelers. Basing on demand the scheme is extended to Hyderabad route
also from Mar ' 2001.
Details: A Scheme nomenclatured "TREATS" (Travel Regularly and Earn an Additional (free) Trip
Scheme) was introduced with effect from 20th May, 1996 on the route Hyderabad - Vijayawada
targeting frequent travelers. Under this scheme, a member of frequent plier programme will be
extended a free trip after performing 5 fare paid single trips in a period of 60 days, thus, giving
a concession of 16.66%. Subsequently the TREAT Scheme was extended to Hyderabad -
Bangalore route w.e.f. 01.03.2001 as there is considerable number of frequenters on this route.
‘Travel as You like Tickets' for utilization at Tirupati

‘Travel As you Like' and Return Journey Tickets are designed for the convenience of passengers
visiting Tirupati. Following three (types of) package tickets have been designed duly covering
the important pilgrim places around Tirupati.
Route Tariff
Adult Child
A. Tirupati-Tiruchanur-Tirupati Rs.6/- Rs.6/-
B. Tirupati-Tirumala-Tiruchanur-Tirupati Rs.15/- Rs.8/-
Monthly Season Tickets:

To provide concessional travel to the daily commuters in mofussil area, SEASON TICKET SYSTEM
was introduced. Under this system, a commuter can pay fare for 20 days and travel for entire
month. These tickets are made available on all days throughout the month and valid for 30 days
from the date of purchase. Thus, giving a concession of 33.33%.
Concession given on Bus Passes extended to various sections of society are:
i) Students below 12 years of Age extended 100% concession.
ii) Free travel bus passes to girl students studying up to class X and below are extended 100%
concession.
iii) Student passes in cities/towns - slab rate concession working out to 75% fare concession.
iv) Students of High-schools/colleges in mofussil areas - slab rate concession working out to
75% fare concession.
v) Special general bus tickets - slab rated passes - concession working out to 40% concession.
vi) Exclusive trips to special schools - slab rated bus passes - working out to 60% concession
fare.
vii) Physically challenged bus passes - 100% concession extended on city routes, whereas 50%
concession only on mofussil areas.
viii) Greater Hyderabad Pass - 75% concession extended only to students.
Free Travel in City Services:
Free travel facility is city services 2 Hrs. before scheduled departure and 2hrs. after scheduled
arrival is provided to passengers holding long distance (250 KMs and above) computerized
reservation tickets, tickets issued through TIMs and RTC-131 from their residence to boarding
bus station and alighting bus station to their residence respectively.
As a passenger friendly measure, the long distance passenger is allowed to travel free up to
peripheral localities (even beyond the main Bus Station) through the fare collected is only up to
the main Bus Station. In case of Twin Cities, the free limit is 40 KMs (up to BHEL) from MGBS for
long distance services.
Value Addition (Shirdi):

Accommodation linked facility is provided duly having tie up with hotels at Shirdi on routes
HYD-Shirdi, VJA-Shirdi and Kurnool - Shirdi by extending 10% concession in fare for both up and
down journeys. 10% concession is also available for those passengers who purchase to and fro
tickets without accommodation. Fares from Hyderabad are as follows.
VOLVO (GARUDA) SUPER LUXURY
UP & Down fare (with accommodation) Rs. 1300/- Rs.911/-
Only up journey fare (with accommodation) Rs. 611/- RS. 411/-
Hail & Board:

All the Pallevelugu buses will be stopped wherever the passengers hails with an intention to
board the bus.
REQUEST & ALIGHT:
All the buses will be stopped on request at the passenger's convenient place en-route to alight.
Authorized Ticket Booking Agency System in Districts:
To strengthen the Booking system in districts and also to provide the facility of ticket booking at
the residential localities, the Authorized Ticket Booking (ATB) Agency system in Districts has
been introduced from the year, 1995. As of now about 855 booking agents are functioning
through out the state.
Computerized Ticket Booking Points in Twin Cities:
Passengers to Hyderabad and Secunderabad were having APSRTC advance reservation at
MGBS, JBS and Dilsukhnagar. To extend ticket reservation facility to the doorsteps of the
customer and to improve the sale of tickets in twin cities, the scheme of computerized
reservation system was introduced during the year, 1998. About 89 Computerized ticket
booking centers are available apart from MGBS, JBS and Dilsukhnagar.
This facility is also given in the cities like Vijayawada, Vishakhapatnam, Bangalore, Mumbai,
Chennai and towns like Ongole, Kurnool, Ananthapur, Kadapa, Tirupati, Nellore, Guntur and
Rajahmundry.
Telephone Reservation:
The system of reservation of tickets on telephone has been introduced from the year 1995. This
facility is offered in 25 cities/towns like Vijayawada, Hyderabad, Guntur , Ananthapur,
Bangalore , Kadapa, Eluru, Kakinada etc.
passenger response cards, advance reservation of tickets through credit cards, prepaid post
cards, free travel bus passes to girl students studying up to class x and student passes in cities /
towns below, special general bus tickets, physically challenged bus passes, greater Hyderabad
pass, bus passes to ngo's, free bus passes to youth attending interviews, monthly season ticket
(mofussil), mla's., their spouses and mp's, freedom fighters of Andhra Pradesh, employees and
children.

TOURIST SERVICES IN WARANGAL REGION
Tourism Bus Station Servce Adult Child KMs

Timings
Service Type Fare Fare
Pakhala Lake Narasampet Pallevelugu 05.30, 06.00, 07.10, 07.30, 08.00, 08.15,6.00 3.00 15
08.20, 09.40, 10.30, 11.00, 11.15, 11.30,
12.00, 12.20, 12.30, 13.30, 14.00, 14.15,
14.30, 15.20, 15.45, 16.00, 16.30, 16.40,
17.30, 18.00, 18.30, 19.20, 19.30, 20.30.
Ramappa Mulug Pallevelugu 08.10, 09.10, 10.10,11.40, 12.40, 14.00,6.00 3.00 15

Temple 15.10, 16.30, 18.00.
Parkala Pallevelugu 06.30, 07.30, 8.30, 10.00, 11.00, 12.00,12.00 6.00 30
13.30, 14.30, 15.10, 17.30,19.30
Thousand HanmakondaCity Bus Within City Limits 1

Piller Temple
Bhadrakali Warangal City Bus Within City Limits 4

Temple
Planetarium&Warangal City Bus Within City Limits 4

Musical
Garden
Warangal Warangal City Bus Within City Limits 6

Fort
Objectives of the study:

The main objectives of the study will be to obtain the customer Expectations with this (APSRTC)
service industry, in Warangal of Andhra Pradesh,
 To find out the opinions of passengers about Road Transport service in Warangal,
 To know the extent of passengers awareness regarding RTC,
 To study the services provided by RTC to the passengers with regard to conveyance,
 To enquire the different types of conveyance passes provided by RTC,
 To draw conclusions on the overall performance of APSRTC,
 To offer suitable suggestions in order to improve the services of APSRTC,

 To study about the Frequency of using the Service.
Limitations of the Study:
 The present study covers 100 Respondents,
 The study is limited to Warangal city only,
 As it is a small sample of respondents, the data represented may not be appropriate,
 The sample collected from, students, business men’s, private & public employees and others
who travels in RTC.
Research methodology:
Research methodology is the process of solving the problem systematically by research .the objective
of the research is to solve the problem by using available data
Sources of data
Primary data: The Primary data consists of original information generated /gathered for specific purpose
.primarily collected by the survey method by using a comprehensive questionnaire.
Secondary data: This consists of information that already exists some other purpose. It provides starting
point for research reports, periodicals, magazines catalogues, Industry profile, industry (APSRTC)
website, broachers; newspapers were used in the study.
Research approach
The research approach used in this comprehensive study of “An Analytical study on Changing Milieu of
Customer Expectations and the Response of Services Industry Reference to APSRTC in Warangal District
of Andhra Pradesh” was survey
Research instrument
The research instrument for the study used was questionnaire
Questionnaire
It consists of a set questions presented to the respondents for their answers. The questionnaire
was prepared for their answers. The questionnaire was prepared in a structured form; some of the
questions had multiple-choice answers .in these both open and closed ended questions were addressed
to the target respondents to collect the information regard to the concern
Sampling plan
Sampling was done to eliminate any bias to the greatest extent possible, with stratified.
Sampling unit:
Sampling unit is the “Passengers of APSRTC in Warangal”.
Sampling size: for this particular study a sample of 100 passengers of APSRTC, have been selected at
randomly from Warangal. The Warangal Population consisted of around about 8, 00,000.
Sampling procedure: the method selected is convenient random sampling, in which the chances of
respondents being selected are not known. In this convenient sampling is chosen for experience, as the
sample was random.
ANALYSIS
Interpretation: Table: 1, From the Above table it reveals that 40% of respondents are Students,
22% are Businessmen, 18% are Private employees, and remaining 20% are the Government
Employees who answered the questions in the study. .
Interpretation: Table:2, From the above it is evident that the Passengers who are traveling in
RTC, 38% of the sample are traveling by part 2 years, 27% of the respondents are traveling by
past 2 to 4 years, 19% of the passengers are traveling by last 4 to 6 years, and remaining 16% of
the respondents are traveling by 6 years and above. Interpretation: Table: 3, From the above

tables it reveals that 18% of the respondents are traveling daily in RTC, 8% of the respondents
are traveling Twice in a week, 26% of the respondents are traveling Thrice in week and
remaining 48% of the respondents are traveling more than Thrice in a week but not daily.
Interpretation: Table:4, The above Table it is Evident that 48% of the respondents are feeling
inconvenience about RTC sometimes, 24% of the respondents are feeling no inconvenience,
18% of the respondents are feeling inconvenience many times, and the remaining 10% of the
respondents are feeling inconvenicine every time they travel in RTC.
Table 1: Profession of the Passenger,
% of Respondents
No. of Respondents
Student 40 40%
Businessmen 22 22%
Private Employee 18 18%
Govt Employee 20 20%
Source: Primary Data (Questionnaire)
40
35
30
25
20
15
10
5
0
Student Biz Private Govt

Table 2: Years traveling in RTC,
% of Respondents
No. of Respondents
0-2 38 38%
2-4 27 27%
4-6 19 19%
6 above 16 16%
16%
38% 0-2
4-Feb
6-Apr
19%
6 above
27%
Table 3: Frequency of Traveling in RTC,
Factors No. of respondents % of Respondents

Daily 18 18%
Twice in week 8 8%
Thrice in a week 26 26%
More than thrice 48 48%
18%
Daily
48% 8%
Tw ice
Thrice
More than Thrice
26%

Table 4: Feelings of Passengers about any inconvenience about RTC,
No. of Respondents % of Respondents

None 24 24%
Some Times 48 48%
Many Times 18 18%
Every Time 10 10%
10%
24%
18% None
Some Times
Many Times
Every Time
48%
Table 5: Affordability of Prices of tickets to the passengers,

Affordable 46 46%
To some Extent 31 31%
Not at all 21 21%
Can’t Say 2 2%
50
46
40
31
30
21
20
10
2
0
Affordable To some Not at all Can't say
extent

Table 6: feelings about the Passes provided by the RTC,

Yes 54 54%
No 14 14%
To some extent 28 28%
Can’t say 4 4%
60
50
40
30
20
10
0
Yes No To some textent Can't Say
Table 7(a): Consumption of Passes provided by RTC,
NO. of Respondents %of Respondents

Yes 87 87%
No 13 13%
.
13%
Yes
No
87%
Table 7(b): If yes, what types?

General 38 44%
Route Pass 27 31%
Sub-Urban 18 22%

Others 0 0%
0%
23%
General
45% Route pass
Sub-Urban
Others
32%
Table 8: Possessing CAT card by the Passenger,
No of % of
Respondents respondents
Yes 38 38%
No 62 62%
70
60
50
40
30
20
10
0
Yes No
Table 9: Perception on Bus Shelters in Warangal city,
No of % of
Respondents respondents
Very Good 52 52%
To some extent good 31 31%
Bad 15 15%
Can’t say 2 2%

60
50
40
30
20
10
0
Very To Bad Can't
Good som e say
extent
Interpretation: Table:5,From the above table it reveals that 46% of the respondents are feels
that ticket rates of RTC are affordable to them, 31% of the respondents are Some What
affordable, 21% of the respondents are not affordable with the pricing of tickets, and remaining
2% of the respondents among the 100% are unable to give any comment on the pricing of
tickets.
Interpretation: Table: 6, The above table is evident for, the passes provided by the RTC is
accepted by the 54% of the respondents, 14%of the respondents are against for this, 28% of the
respondents are accepting in semi manner and remaining 4% of the respondents are not saying
anything by standing as neutral.
Interpretation: Table: 7(a), From the above table it is reveals that, out of 100% of the
respondents 87% of the respondents are utilizing the TRC conveyance passes, and remaining
13% of the respondents are not utilizing these passes provided by RTC. Interpretation: Table:
7(b), from the above table it reveals that the respondents that who accepts that they are
utilizing the RTC passes are 87%. Among them 44% of the respondents are using General
Passes, 31% of the respondents are using Route Passes and the remaining 22% of the
respondents are Consuming Sub-Urban Passes provided by RTC of Andhra Pradesh.
Interpretation: Table:8, The above table is evident for, from 100 respondents only 38% were
possessing CAT card, and remaining 62% of the respondents were didn’t have any CAT cards
with them in traveling.
Table 10: Opinion on Drivers and Conductors in the Buses,

Good 46 46%
Bad 12 12%
Some what Better 28 28%
Can’t Say 14 14%

50
46
40
30 28
20
12 14
10
0
Good Bad Some Can't
Better Say
Table 11: Consumption of JET card,

Yes 22 22%
90
80
70
60
50
40
30
20
10
0
Yes No
Table 12: Opinions about the Seating arrangement in buses in Warangal city,
NO. of Respondents %of Respondents

Very Good 12 12%
Comfortable 58 58%
Uncomfortable 10 10%

Can’t Say 6 6%
.
6% 12%
10%
Very Good
14% Comfortable
To some extent
uncomfortable
Can't say
58%
Interpretation: Table:9, From the above table it reveals that 52% of the respondents were feels
that bus shelters are good to have, 31% of the respondents feels these are good to some
extent, 15% of the respondents feel these are good for nothing, and remaining 2% of the
respondents opinions that they cannot say anything on this.
Interpretation: Table: 10, The above table is evident for, the 46% of the respondents feels that
Drivers and Conductors are good in the buses, but 12% of the respondents against to this
statement, and 28% are saying better but not good, the remaining 14% are not giving any
comments on this.
Interpretation: Table: 11, From the above table it is reveals that, out of 100% of the
respondents 78% are do not have any JET cards with them, whereas only remaining 22% are
having and consuming JET cards in traveling.
Interpretation: Table:12, The above table is evident for, from 100 respondents only 58% were
satisfied with the seating arrangements in the buses, 12% are feeling very comfortable, 14% are
to some extent and remaining 6% are neither satisfied nor dissatisfied. They were neutral in
giving the answer.
Conclusions:
From the above research it is found that, Majority of the respondents who are the
passengers of APSRTC are not using all these conveyance providing by the industry. And also
the hospitality provided by the industry also not in acceptable manner according to the
responses found in the study. Still people are traveling in the RTC because they do not have
any alternate.(Except private vehicles). Even though the APSRTC is providing lot of good
packages and conveyance passes still it need to improve their bus shelters, buses, code of
discipline to their employees, and affordability in ticket fares. If this industry accumulate all
these definitely it can achieve more awards than what it was achieved by foreign countries
and India. And also satisfying the customers is the main motto of any company or industry.

Reference:
K.Douglas Hoffman, John E.G. Bateson, Services marketing, Thomson, 2007,
V.S.Ramaswamy, S.Namakumari, Marketing Management,
G.C.Beri, Marketing Research, Tata McGraw Hill Publishing Company Ltd, 2005,
Suja .R. Nair, Consumer Behaviour, Himalaya Publishing House,
Suja .R. Nair, Consumer Behaviour in Indian Perspective, Himalaya Publishing House, 2007,
C.R.Kothari, Research Methodology, Wishwa Prakashan, New Delhi,
Schiffman, Leo.G, Consumer Behaviour, Prentice Hall of India Pvt Ltd, New Delhi, 2004,
S.A.Chunawalla, Contemporary Issues on Consumer Behaviour, Himalaya Publishing Home, Mumbai,
2006,
Matin Khan, Consumer Behaviour, New Aage International Publishers, New Delhi, 2001.
Philip Kotlar, Marketing Management, Millennium Edition, 2000,
Donald Cooper, Pamela S Schindler, Business Research Methods, Tata McGraw Hill Publishing Company,
2006,
RTC Prastanam dec2008 journal.
Websites:
www.yahoo.com
www.msn.com
www.google.co.in
www.apsrtc.com
http://en.wikipedia.org/wiki/Andhra_Pradesh_State_Road_Transport_Corporation
www.Cia.Gov/Cia/Publications
http://en.wikipedia.org/wiki/Warangal

Critical Analysis of e-services and its brand building strategies adopted by top Pharmaceutical
players.
Submitted by
Dr Kumardatt A Ganjre
(Director, RS College of MBA, Chiplun.)
kumardatt@gmail.com
Abstract:
With changing market scenario and downsizing economy, pharmaceutical players are
opting newer strategies for prime conversion of prescriptions and to retain their key customers.
As per the market dynamics and the opportunities distinguished by these players, e-services is
an emerging concept in the pharmaceutical marketing. The growing trend amongst top
therapeutic segment calls for newer concepts and modern ways for brand conversion and
brand retention. The various modes of e-services offered by major players are e-updates of
medical knowledge, e-drugs updates, e-distribution of quick delivery of goods and e-solutions
for the medical queries. As per the field study, pharmaceutical players may achieve the
additional growth of 10-12% in the same financial year. The brand building process in these
services is much tougher than other modes of marketing because of the reach of the
technology in Indian market.
The various brand building strategies of e-services requires exact correlation between
technological reach and market requirements. For the study ‘5’ major pharmaceutical players
like Cipla Ltd, Sun Pharma, Cadila, Alkem and Wockdhardt are considered to create a Brand-
Service-Matrix for e-services. This matrix will help to understand and draw a concrete
conclusion for mapping the future challenges in pharmaceutical marketing. In addition the
critical analysis of these strategies can become the catalyst to draw a concrete plan for new
entrants in this market. This article is a modest attempt to enlighten the ‘brand building
strategies and opportunities’ in the e-services market with focus on customer satisfaction and
market development.
Key words: e-update, e-drugs, e-solution, brand building, customer satisfaction
Introduction:
Structural reforms and current trends in pharmaceutical marketing open up wide
opportunities for growth in this industry. Therefore excellence in sales turnover is essential if
the priorities of the pharmaceutical industry are to be addressed. Pharmaceutical industry has
successfully undergone through the stages of service management and stepping ahead to face
emerging challenges and emerge as a service industry in a global scenario. Pharmaceutical
industry has grown over the years and has provided millions of jobs and contributed for
strengthening of Indian economy.
The pattern of change can be expected to follow that seen in other industries with
marketing and services offered by pharmaceutical products being recognized as a unifying
theme that underpins the implementation of corporate strategy.

Emerging concept- E-services in pharmaceutical marketing:
E-services are an emerging concept in pharmaceutical marketing that focus on various
activities rendered through internet. These strategies need to understand well to define the
strategic model for brand building.
Following key statistics of major performing brands will gives ideas about growth and
performance in Indian pharmaceutical market.
Table No.1
Sale of Major brands of top pharma companies
Growth
over
Name of the company Brand Name Sale Rs. In Cr
Company previous
Standing year %
Total Pharma Industy All Brands 37,000 12.36
1 Cipla Asthalin 96 3.00
2 Ranbaxy Mox 113 10.00
3 Glaxo Augmentin 123 12.00
4 Piramal Healthcare Phensedyl 150 30.00
5 Cadilla Aten 71 10.00
6 Sun Pharma Ltd Pantocid 40 20.00
7 Alkem Taxim 120 10.00
8 Wockhardt Dexolac 52 40.00
(Source: Date on File)

Note: Companies as per sales is in descending order
It is depicted from above table that there is a weak correlation between the stronger
brand and the weak brand. As you can observe Phensedyl (Piramal Healthcare Ltd.) shows a
stronger position which is irrespective of the company’s standing. Therefore it is the need of
the hour to understand the factors which defines the success or failure of the brand.

The factors and the strategies as related to the thrust areas are defined by
pharmaceutical majors like Doctor, Chemist, Stockiest and Medical Representative will help to
draw a concrete plan for successful brand building strategy.
Thrust Matrix for e-services for brand conversion, retention and expansion:
Key thrust areas related to e-services will help to design strategy matrix for e-services in
pharmaceutical marketing:
After the through understanding of e-services adopted by various pharmaceutical
companies, researcher is able to draw following matrix to define it scientifically and
strategically.
Table No.2
Brand Service Strategy Matrix
High Modern e-promotional

Aggressive e-promotional Strategy
Strategy
For Conversion
For Retention
Promotional
Intensity
Low Mild e-promotional Strategy Focused e-promotional Strategy

For Maintenance For Expansion
Low High
Type of strategies
(Source: Field Study)

This thrust matrix as suggested by the researcher will help to draw the strategic plan for
brand conversion, retention and expansion.
The aggressive strategy is adopted by these pharmaceutical players for brand to brand
conversion is in the form of e-services is e-updates about recent advancement in medical
stream and e-cell to resolve their medical queries.
Modern and Focused approach strategy adopted under e-services will be for brand
retention and brand expansion for a specialty range of products. This strategy matrix will help
to draw the plan of action for successful brand building with the help of e-services.
Influencing Factors for brand building process in e-services:

During the research it has found that following factors are responsible for brand building
adopted under e-services by these pharmaceutical companies.
Table No. 1
Sr. No. Factors
1 Logo or Brand Image
2 Company Standing
3 Risk Factors or Safety profile
4 Positioning
5 Cluster of values
6 Relationship with customer
(Source: Field Study)
New Strategies for the Future and Implications for e-Detailing and e-Sampling
Over the last two years, use of the Internet has increased from physician’s side. Survey
found that only 12 percent of physicians are online with less than 5 percent online daily. In
coming era Internet will become a major information source for physicians, according to the
study. It is also seen that the Internet is rated as significantly more credible than detail medical
representative, roughly equal to medical symposia. Physicians using the Internet rate it very
highly on timeliness, comprehensiveness, and having the latest information on drugs and
therapy. On an average physician spend about three hours of their online time per week on
medical activities, compared to more than five to six hour a week they spend with
representative.
Study found that most of physicians using the Internet for medical-related purposes said
that it had a favorable impact on their knowledge of new treatments and drugs, and all
physicians reported it had a positive impact on their prescribing. Therefore these are some the
opportunities for pharmaceutical marketers to reach physicians, provide education, and
influence prescribing habits.
It is observed that only about 20 percent of medical representative visits lasted longer
than two minutes. Half of representative’s calls last less than two minutes and a half of visits
never get past the receptionist; at least 3 percent of physicians are not seeing medical
representative at all. New strategies, intended to complement traditional direct-to-physician
tactics, are needed. Efficient alternative channels are now available, and their potential reach
and integration with current channels will build a broader, more effective marketing platform
for the future.

For the case study, it has found that Cipla Ltd. leverages its strength by Push strategies
that specifically target the physician segments of most interest to the sponsor. Pull strategies
leverage health care professional traffic at large physician-oriented web sites, such as WebMD,
Medscape, MDConsult, and Physicians Online and its exclusive web site www.cipladoc.com.
Programs posted there are accessible to anyone who uses the site, but can be specifically
offered to desire medical specialties. Push strategies use various methods, such as such as e-
mail updates, targeted banner advertising, and phone calls and medical representative
delivered web pointers.
Conclusion:
Therefore this article is a helps to provide clear solution in brand building strategies for
new entrants and strengthen the opportunities in the e-services for customer satisfaction and
market development.
References:
1. Abhijit Dey, And Others, Pharmaceutical Marketing In India: A Microscopic View, Banarus,
Banarus Hindu University, cited at www.medical-papers.com
2. Ames Gross, Sunil Patel, Indian Pharmaceutical Industry, Pacific Bridge Inc., Research Paper,
May 2002, cited at www.pacificbridgemedical.com
3. Arvind M B, C S Shastry, Changing Trends In Pharmaceutical Markets : Impact Of WTO
Policies In Developing Countries, research paper, May 2003
4. Greg Felkar, Shekhar Chowdhari, The Pharmaceutical Industry In India And Hungery -
Policies, Institutions And Technological Development, Washington D C, The World Bank
1997
5. Rajiv G Ashitikar, Developing Employee Performance Through Motivational Techniques-A
Case Study Of Selected Industrial Units In Vidarbha, Ph.D. thesis, Nagpur University, Nagpur
1998
6. Renu K Bhuller, Overview And Future Direction For Pharma Industry : An Asian Perspective,
research article, www.pharmabiz.com
7. Susan Feldman And Ruth Winett, Solving Information Problems In The Pharmaceutical
Industry, An IDC White Paper Sponsored By Verity Inc. USA, 2003

Shaping ERP Success through Extended Enterprise Services
Submitted by
Mr. Amod Kane

Industry Professional
Dr. Amol Gore

Reader University of Mumbai
Dr. VN BRIMS Institute of Research and Management Studies
Chendani Bunder Road,
Thane-400601, Maharashtra.
Tel: 91-22-2536 4492
Fax: 91-22-2544 6554
E-mail: dr.amolgore@yahoo.com
Abstract
Enterprise Resource Planning (ERP) software systems serve many major industries and attempt
to integrate the business processes, within and beyond the corporate boundaries. ERP systems
enable managers to make decisions based on real time information and facilitate productivity
improvement at all levels. However, an ERP implementation is not just about installing software
or imparting information technology (IT) services but about providing a business solution that
has strategic significance, and therefore, the success of implementation is itself a phenomenon
that needs to be elucidated and validated. Furthermore, many companies are facing post-
implementation barriers as it has become crucial to partner as part of the supply chain and fulfil
the rising expectations of customers under dynamic conditions.
The paper attempts to examine the extended enterprise services that can effectively tackle the
barriers encountered by mature ERP systems. Moreover, this research formulates the
conceptual ERP success model based on theoretical foundation as well as knowledge gained
from practitioners. Survey research methodology was applied and ERP implementations at
various plants of a multinational company were investigated. The focus was on capturing both,
implementation and user adoption perspectives, to redefine ERP success, and help companies
reduce the ERP implementation risks and enhance the business value.

Keywords:
ERP systems, Extended Enterprise, Services, Post-implementation, SCM, Success
Introduction
The ERP concept roots in the material requirements planning (MRP) techniques of 1970s that
assisted manufacturing companies in planning and scheduling. Today, the ERP systems have
emerged as a major field with dedicated professionals and service providers. The field is in fact
evolving progressively to next generation enterprise applications and advanced services in e-
business and supply chain management. The developing ERP systems have been referred to as
business strategy and set of industry domain-specific applications that build customer and
shareholder value by enabling and optimizing enterprise and inter-enterprise, collaborative,
operational and financial processes (Møller, 2005) thereby differing from the initial description
of ERP as a software system integrating application programs in manufacturing, logistics, sales,
finance, human resources and other functions in a firm. However, the key purpose to promote
seamless integration of all information and support business decision making process is
underscored. Several authors (Chtioui, 2009; Rettig, 2007; Somers et al., 2003) have
commented on rationale for ERP implementation and reasons to follow the ERP directive, for
example, competitive pressures to become low-cost producers, ability to compete globally, re-
engineering the business, etc. Many firms deployed ERP to replace the legacy systems that had
been built on myriad of outdated technologies. Consequently, the success factors have
remained constrained to a base and although some authors (e.g. Dawson and Owens, 2008;
Gargeya and Brady, 2005) have attempted to identify the success ingredients, the phenomenon
needs to be validated since the ERP implementations have proved interdependent enabling
new capabilities that in turn could be expected to generate performance outcomes. In the light
of the fact that the ERP implementations involve considerable costs and risks, identifying the
variables that are crucial for success is essential (Nah and Delgado, 2006) and the foundation
may actually be built on comprehending what constitutes ‘success’ of an implementation. As
dictionary specifies ‘success’ to be the accomplishment of an aim or purpose, translating with
regards to ERP may imply the whole gamut of business management practices together with
technology. Hence, the key research questions that were developed for this study as part of
larger research in this field can be expressed as follows:
(1) What factors define the success of ERP implementation?

(2) How extended enterprise services are significant for leveraging the benefits?

This paper attempts to establish an ERP success model and also studies the need of ERP
implementation services in the current context of supply chain and beyond. The paper is
organized with a literature review, research methodology and findings in progressive sections.
Literature Review
Today’s global companies work with numerous countries in dynamic collaborations and
therefore, getting the enterprise information infrastructure to connect internal and external
systems seamlessly is a foremost task. The ERP systems that based on an integrated database
comprising of different modules targeting specific business functions, gained initial acclaim,
however, the hype soured due to implementation complexities and doubts regarding the
capability of the traditional ERP to effectively meet the e-business challenge. According to (Helo
et al., 2008), ERP systems saw boost in sales during the time when companies faced the Y2K
problem in their legacy systems and therefore looked forward to improved packages. Since
then, ERP has come a long way because the business requirements changed significantly as
companies reviewed their strategies along the dimensions of supply chain management (SCM).
APICS, the Association for Operations Management, USA revamped the definition of ERP in
order to emphasize the business purpose of the system, stating ERP as: “….a method for
effective planning and controlling of all the resources needed to take, make, ship and account
for customer orders in a manufacturing, distribution, or service company.” The original ERP has
even received denominations like ERP II that juxtaposes ERP with business strategy and
incorporates industry domain specific applications for building customer and shareholder value
for enabling and optimizing enterprise and inter-enterprise collaborative processes. The
componentized ERP has core corporate elements in the form of supply chain management
(SCM), customer relationship management (CRM), supplier relationship management (SRM)
and product lifecycle management (PLM). SCM systems support the planning and production of
goods whereas CRM primarily facilitates customer identification process and customer service
management. PLM enables enterprises to bring innovative and profitable products to market,
particularly in the evolving e-business environment. The software vendors who aimed to
incorporate ‘best practices’ into their off-the-shelf ERP packages deemed upgradation services
to replaced versions. Jacobs and Weston (2007) argue that early ERP was not primarily focused
on the supply chain issues and businesses had to apply ‘bolt-on’ SCM to derive the benefits.
However, from the implementation perspective this proved to be a major impact since many
companies neither developed the post implementation vision nor received services from the
software vendors that promulgated the extended enterprise concepts. The implementation
models typically followed the phased structure described by Bancroft et al. (1998) viz. focus, as
is, to be, construction and testing and actual implementation, and at best the Deloitte (1999)
edifice viz. stabilize, synthesize and synergize. However, the post implementation issues that

emerged after the stabilize stage, precluded further advancement and deemed the success
achieved with ERP systems questionable.
The critical success factors (CSFs) literature of ERP implementation has addressed some key
areas as part of planning and execution of ERP initiative (see for e.g. Plant and Willcocks, 2007;
Woo, 2007; Ferratt et al., 2006; Akkermans and Helden, 2002). They can be enumerated as
follows:
 Governance
 Package Selection
 ERP Team and Composition
 Inter-departmental Communication
 Change Management
 User Training
 Customization
 Data Management
 Performance Measurement
The top management support is crucial since the ERP implementation demands both, provision
of adequate resources and commitment. Management decisions regarding acquiring the
packages could have direct consequences for competitive advantage. Further, every
organization has to independently weigh the options whether off-the-shelf, customization, in-
house applications or outsourcing, each with its own pros and cons. Lall and Teyarachakul
(2006) have proposed data envelopment analysis for selection purposes and they have
suggested selection in stages such as initial stage, evaluation stage and final stage.
There are wide variations in what an ERP can do for companies and some tailoring is always
required although the extent of modifications is eclectic. The change that ERP systems bring in
is not only technology related but also process and job content related. Hence, resistance to
change is common since people are nor sure about their learning capabilities, fear the unknown
and risk job losses. A competency centre can play a role in managing change, providing
continued maintenance and reducing reliance on external consultants by building self
sufficiency within the organization. According to (Ifinedo and Nahar, 2009), ERP success is
ultimately linked to the utilization of the systems to enhance organizational goals and hence,
workgroup impact and organization building must be included in measuring the systems
success.
Research Methodology

This research utilized both quantitative and qualitative research traditions. The survey
methodology was adopted and the survey instrument was carefully designed and pilot tested
before the main survey. The questionnaire included at least two questions for each variable for
reliability purposes and the items were measured on a six-point Likert scale. The ERP
implementations at various plants of a multinational company were investigated and
simultaneously, a case study for one Group company was systematically developed as it was
possible to study the phenomena in natural settings. We will refer to the multinational
company as ‘PQR’ in this paper to respect the obligatory, explicit and implicit confidentiality
agreements.
Company PQR is a leading provider of marine solutions and flexible power plants for modern
energy infrastructure. PQR is in the business of manufacturing engine sets, propulsion
equipment, reduction gears and automation systems. PQR has operations in 160 locations
around the world and is listed on the European, Nordic stock exchange. The company
emphasizes technological innovation and total efficiency in order to maximize the
environmental and economic performance of vessels and power plants of its customers. The
notion of adopting ERP system was apparent as the management review meeting recorded that
the IT infrastructure of the company was perceived insufficient to handle increasing customer
orders with differing degree of complexity. PQR was growing at a substantial rate and the
legacy systems had proved weak, particularly for purchasing processes. ERP was expected to
enable timely strategic decisions by providing accurate, real time information and improved
reporting. SAP-ERP implementation at PQR was one of the biggest internal programmes that
included professional change management, information sharing and wider availability of
information needed to serve the customers better.
The web based survey research conducted at PQR to resolve the research questions, involved
plants in India, Bangladesh, Venezuela, Columbia, Peru, Argentina and South Korea. A total of
nine senior managers were contacted and they were in turn requested to widely distribute the
survey. The link to the survey was sent so as to get maximum responses. The respondents had
an average experience of more than six years in PQR.
Preliminary Findings
The impacts of IT in general are often indirect and influenced by human, organizational, and
environmental factors and therefore the measurement of ERP success is complex and illusive.
Organizations are moving beyond traditional financial measures, such as return on investment,
when measuring ERP success. The important realization is that sustainable value can be created
from developing intangible assets, such as skills and knowledge of workforce, information
technology that supports the workforce and links the firm to its customers and suppliers,

organizational climate that encourages innovation, problem solving and improvement.
However there is a need to establish more consistent success metrics. In this paper, based on
our study, we are attempting to refine a success model that specifies the factors defining ERP
success. These preliminary findings not only describe the results of the study but also establish
the factors in the form of a conceptual ERP success model.
Delone and Mclean proposed the initial taxonomy for organizing the concept of success (Petter
et al., 2008) that inherently depended on the organizational context. The six primary
dimensions included: system quality, information quality, use, user satisfaction, individual
impact and organizational impact. These dimensions were later revised as:
 System Quality – desirable characteristics of an information system

 Information Quality – desirable characteristics of the system outputs
 Service Quality – the quality of support that system users receive
 System Use – degree to which staff and customers utilize capabilities of the system
 User Satisfaction – users’ level of satisfaction with reports and support services
 Net Benefits – extent to which the system contributes on a broad scale
The ERP success particularly has to account for user related variables, project related variables,
industry implementation and post implementation parameters. The conceptual ERP success
model presented in Figure 1 depicts the factors and their inter-links. Subjective norm is
included in the intermediate constructs since ERP systems are usually used in mandatory
settings. Our analysis indicated significant differences between responses from other countries
and Korea, especially in user related variables however, there is little difference between
countries with regards to vendor agreements, system security and human resources.
Success Factors
Here, we are discerning between success factors and success indicators, and further absorbing
the ERP post implementation factors.
Output Quality
It refers to how well the system performs tasks matching the user’s job goal.
Job Relevance

It is the individual perception regarding the applicability of the target system to one’s job.
Image
It is the degree to which ERP is perceived to enhance one’s image or status in social system. An
important motivation for adoption of a system is the desire to gain social status.
Employee Retention
It refers to the retention of ERP trained, best people from all functions. The young, talented
individuals with techno-commercial skills are viewed as long-term human resources and their
loss can be a major set back in the ERP initiatives of the company.
Compatibility
This includes effects of past experiences of potential adopters, needs and ability to exchange
information with stand alone programs.

Success Factors Success Indicators
User related variables

Intention to
Output Job Use / Use
Quality Relevance
Employee
Image Subjective
Retention
Norm
User
Industry related / Post
Satisfaction
Implementation related
Perceived
Individual
Usefulness
Impact
Compatibility System
Reliability
Project
Reporting System
Perceived Success
Capability Security
Ease of Use
Communicat Upgradation
e Future / Organization
Reward Technologies Impact
Optimization
Schemes
Project related variables
Internal Software
Support Selection
Vendor Training and
Support Change
Figure 1 Conceptual ERP Success Model
System Reliability

It is the degree to which the system ensures delivery of data to users. It is an important
component of technical quality and affects how well a system performs its expected function.
Since the advantage of ERP is real-time, accurate information, lack of system reliability corrupts
that advantage.
Reporting Capability
It is the ability to generate key management reports and efficiently indicate the performance.
System Security
It is efficient and timely implementation and maintenance of security solutions. It also refers to
the management of system authorizations.
Upgradation / Technologies
Upgradation means to raise the ERP by newer versions or releases of application suites to
expand the capabilities of the system and leverage the business value. The upgrading and
appending of advanced technologies is necessary in order to remain aligned with the evolving
business needs. The enterprise solutions have to be able to reach out to the customers,
suppliers, channel partners and e-market places.
Communications
It is effective sharing of necessary plans and future directions of the enterprise. Expectations of
people have to be managed and people have to be assured that there is more to come as ERP
systems affect the entire business ambience.
Reward Schemes
It is degree to which the HR schemes recognize competence and ability to manage business
processes. The shift from compliance to competence is significant for transition to flat
organization structure with self-motivated and empowered employees.

Optimization
The optimization initiatives have to essentially consider the supply chain context as the
importance of managing the entire supply network has become apparent. By improving on the
forecasting, location, transportation and inventory management decisions, a firm is in a
position to improve on the cost and service fronts.
Internal Support
This includes top management support and project management. Top management has to
explicitly consider the project as a top priority and identify core team members. Project
planning is vital towards creating positive impact in the organization.
Software Selection
The software capabilities and needs have to match the company’s business processes. Bendoly
and Jacobs (2004) note that the underlying issue is one of alignment between corporate
operating functionality and IT architecture. Software selection can have direct consequences
for competitive advantage.
Vendor Support
It refers to the support services of the vendor / consultant at all stages along with post
implementation engagement. This is also associated with vendor selection and prior
agreements with the vendor.
Training and Change Management
This denotes investment in training and change management programmes. The training
expenses are high and specific management initiatives are needed to encourage organization
learning since ERP implementation could be more appropriately considered as a broad program
of transformation. The participative approach can reduce the resistance to change.

Success Indicators
The ERP success model shows intention to use / use, user satisfaction, project success,
individual impact, and organizational impact as success indicators.
We find that the user satisfaction is highly correlated with the intention to use / use as well as
project success. The amount of use can have a positive impact on the degree of user
satisfaction and vice versa.
Possible indications that the ERP system has positive individual impact include: better
understanding of decision context, improved decision making, enhanced productivity and so
on, that would eventually lead to some organizational impact. The degree of project success
nonetheless has to be assessed in terms of time, cost, quality and scope.
Extended Enterprise Services
The qualitative findings suggested that the post implementation related factors play an
important role in the ERP success. The plants in Company PQR initially focused on improving
internal processes and then one Group company took the lead in examining how ERP and the
internet can help them in improving processes that extended beyond the enterprise to their
suppliers and customers. The top management of the Group Company charted a road map for
implementation that envisioned the scenario after the go-live phase and therefore engaged the
vendor early on for providing post implementation services. The extended enterprise services
provided by the vendor included organizational change and training, upgradation, system
security, new technologies and applications integration. These services were substantiated by
competent ERP team members, inter-departmental joint committees and the apex review
body. The extended enterprise services were crucial for developing understanding between the
suppliers and internal entities with regard to collaboration issues. In the e-SCM setting,
information visibility across the supply chain has to be managed with established policies and
disciplines, and although at PQR the motivation was cost reduction, there was positive impact
on both customer service and network relationships. There was also less resistance to change
and people were willing to share information in an atmosphere of trust. Thus, the extended
enterprise services laid the foundation for real business benefits of ERP systems besides the
technological edge over competitors, or rather over competing chains. Furthermore, the Group
Company also delved forward to explore the supplier and channel member connectivity aspects
and optimization of processes.

Limitations
This research has limited validity since the data was collected from various plants of one
multinational company and not spread across various industry sectors. However, we deem that
it is possible to generalize since the ERP implementation of a major solutions provider was
studied over substantial period with complementary rigour. The data collection was time
consuming and language barrier was encountered in some cases that might have a bearing on
the responses. Although the data was sufficient for analysis, the statistical significance remains
contentious.
Discussion and Conclusion
This study brings to fore the significance of extended enterprise services that are often
implored at the post implementation phase of ERP systems. The ERP success is not analogous to
project success and is more about achieving real business benefits through transformation. The
findings underscore the strategy of early negotiation with software vendors for providing post
implementation services and more so about selecting a prominent vendor and preferring to
make even investments at various milestones.
Once a company becomes convert to the ERP philosophy, it has to start looking ahead to the
advent of e-commerce and hence some authors (see for e.g. Búrca et al., 2005) use the term
‘Extended ERP’ or ‘Extended ERP services.’ Extended ERP refers to the inclusion of additional
modules such as CRM, supply chain planning, sales force automation, business intelligence, and
decision support systems. Moreover, the low cost and ease of use of the internet has greatly
enhanced attempts to connect supply-and-demand chains across organizations, and providers
are hinging on solutions of service oriented architecture (SOA) that builds web access into each
application. According to Krishnan et al. (2007), digitally enabled extended enterprises will
increasingly depend on interconnections that are innovative in their functionality, well
architected and well managed. ‘Extended Enterprise’ more aptly describes a firm’s supply,
production, logistics and distribution networks and the extended enterprise services model
signifies the post implementation scenario in companies from the current and future
perspective, that has potential to enhance competitive advantage by impacting not only
operational excellence and efficiency, but also customer relationships, product / service
offerings, and revenue growth. As organizations are crossing the corporate boundaries and
collaborating for satisfying customer orders or achieving innovation objectives, ERP success
would have restricted sagacity in the face of overall deployment to leverage resources and

capabilities in the unprecedented, uncertain and dynamic business environment. Owen et al.
(2008) even suggest that the increase in the extended enterprise services could be an indication
of urgency for collaborative innovation that is becoming harder to manage successfully.This
paper attempted to investigate factors that define the success of ERP implementation and
present a conceptual ERP success model. The particular aspects of post implementation related
factors were discussed in the view of developments in extended enterprise services that
leverage the benefits achieved. The extended ERP services go beyond mere appending of
applications to re-examining or redesigning as necessary, to take advantage of the new
technology.
References
Akkermans, H. and Helden, K. (2002) ‘Vicious and virtuous cycles in ERP implementation: A case
study of interrelations between critical success factors,’ European Journal of Information
Systems, 11(1), 35-46.
Bancroft, N., Seip, H. and Sprengl, A. (1998) Implementing SAP: How to introduce a large system
into a large organization, Manning Publications.
Bendoly, E. and Jacobs, F. (2004) ‘ERP architectural/operational alignment for order-processing

performance,’ International Journal of Operations and Production Management, 24, 99-
117.
Búrca, S., Fynes, B. and Marshall, D. (2005) ‘Strategic technology adoption: Extending ERP
across the supply chain,’ The Journal of Enterprise Information Management, 18(4), 427-
440.
Chtioui, T. (2009) ‘Understanding the impact of ERP standardization on business process

performance,’ International Journal of Business, 14(2), 151-162.
Dawson, J. and Owens, J. (2008) ‘Critical success factors in the chartering phase: A case study of
an ERP implementation,’ International Journal of Enterprise Information Systems, 4(3),
9-24.
Deloitte Consulting (1999) ERP’s Second Wave, Deloitte.
Ferratt, T.W., Ahire, S. and De, P. (2006) ‘Achieving success in large projects: Implications from a
study of ERP implementations,’ Interfaces, 36(5), 458-469.
Gargeya, V.B. and Brady, C. (2005) „Success and failure factors of adopting SAP in ERP
system implementation,‟ Business Process Management Journal, 11(5), 501-516.

Helo, P., Anussornnitisarn, P. and Phusavat, K. (2008) „Expectation and reality in ERP
implementation: Consultant and solution provider perspective,‟ Industrial Management
and Data Systems, 108(8), 1045-1059.
Ifinedo, P. and Nahar, N. (2009) „Interactions between contingency, organizational IT factors

and ERP success,‟ Industrial Management and Data Systems, 109(1), 118-137.
Jacobs, F.R. and Weston, F.C. (2007) „Enterprise resource planning (ERP) – A brief history,‟
Journal of Operations Management, 25(2), 357-363.
Krishnan, M.S., Rai, A. and Zmud, R. (2007) „The digitally enabled extended enterprise in a
global economy,‟ Information Systems Research, 18(3), 233-236.
Lall, V. and Teyarachakul, S. (2006) „Enterprise resource planning (ERP) system selection: A
data envelopment analysis (DEA) approach,‟ The Journal of Computer Information
Systems, 47(1), 123-127.
Møller, C. (2005) „ERP II: A conceptual framework for next-generation enterprise system?‟
Journal of Enterprise Information Management, 18(4), 483-497.
Nah, F. and Delgado, S. (2006) „Critical success factors for enterprise resource planning
implementation and upgrade,‟ Journal of Computer Information Systems, 99-113.
Owen, L., Goldwasser, C., Choate, K. and Blitz, A. (2008) „Collaborative innovation throughout
the extended enterprise,‟ Strategy and Leadership, 36(1), 39-45.
Petter, S., Delone, W. and Mclean, E. (2008) „Measuring information systems success: Models,
dimensions, measures and interrelationships,‟ European Journal of Information Systems,
17, 236-263.
Plant, R. and Willcocks, L. (2007) „Critical success factors in international ERP implementations:
A case research approach,‟ The Journal of Computer Information Systems, 47(3), 60-70.
Rettig, C. (2007) „The trouble with enterprise software,‟ MIT Sloan Management Review, 49(1),
21-27.
Somers, T.M., Nelson, K. and Karimi, J. (2003) „Confirmatory factor analysis of the end-user
computing satisfaction instrument: Replication within an ERP domain,‟ Decision
Sciences, 34(3), 595-621.
Woo, H. (2007) „Critical success factors for implementing ERP: The case of a Chinese
electronics manufacturer,‟ Journal of Manufacturing Technology Management, 18(4),
431-442.

Private Label Strategy by Organized Retailers
Submitted By
Sayali Pataskar
Lecturer, Bharati Vidyapeeth University’s AKIMSS, Solapur, India
(sayalipataskar2007@yahoo.co.in)
Abstract
Organized retailers are widely selling their own store brands which are known as ‘Private
Labels’ to earn higher profit margin. A common sight in many retail stores in India and abroad is
the presence of the retailer’s own brand often sharing shelf space with major national brands.
Private label brands exist in a wide variety of products from apparel to food to health and
beauty products. Private labels are brands owned by large retailers that can be sold at lower
prices without harming profit margins because they do not entail large marketing and
advertising costs. Private labels are growing faster than manufacturer brands. Traditionally,
private labeling has been strongest in low-emotional involvement goods such as butter, eggs,
flour, and sugar. Still as the private label industry grows, the threat to branded product rises. In
fact, the private label industry suffers by not taking itself seriously enough as a branded
category. Most significant advantage that a private label allows a retailer is that of earning level
of margin which is higher than what is offered on other brands. This paper focuses on the
various strategies adopted by organized retailers while launching private labels. It is also very
interesting to know success of private labels and attitude of customers towards the same.
Keywords: Organized retailers, Private labels, Profit margins, Manufacturer brands.
Introduction:
Retailing is the largest private service industry in the world. Retailing in India is at Crossroads. It
is one of the fundamental blocks of Indian Economy. Indian retail has emerged as one of the
most dynamic and fast paced service industries. It has undergone immense transformation in
the post liberalization period. The future of Indian retail is promising as market is growing in
leaps and bounds.
Organized retail or Modern retail is chain stores, all owned or franchised by central entity. The
relative uniformity and standardization of retailing is the key attribute of modern retail. Major
Industrial houses like Tata, Birla, Reliance, Bharati etc. have entered this area and have
announced very ambitious future expansion plans. Multinational Retailers are also coming to
India to set up retail chains in collaboration with big Indian companies. Modern retail formats
such as hypermarkets, superstores, discount stores, convenience stores are widely present in
major cities of India.
Organized retailers are widely selling their own store brands which are known as ‘Private
Labels’ to earn higher profit margin. A common sight in many retail stores in India and abroad is
the presence of the retailer’s own brand often sharing shelf space with major national brands.

There is a strong competition for manufacturer brands by these private labels. Private labels
may be different than manufacturers brand in terms of price, quality as well as promotional
offers.
What is Private Label?
Private labels were traditionally defined as generic product offerings that competed with their
national brand counterparts by means of price value proposition. A private label is more than a
product with the name of the retailer and it is seen by end consumer as a different product.
There is perception that it is produced by the retailer. Private label were started out of
economic necessity for providing a cheap alternative for low emotional involvement goods such
as sugar, flour, butter etc. Private label brands exist in a wide variety of products from apparel
to food to health and beauty products. Private label can be of these different types:
1. Individual Brand – Here the specific name is created for specific market segment.
E.g. Feasters ( More)
2. Store Brand – This carries retailer’s name.

E.g. Food World
3. Umbrella Brand – Here common name is used across multiple categories.

E.g. Bare ( Pantaloon)
Private labels are brands owned by large retailers that can be sold at lower prices without
harming profit margins because they do not entail large marketing and advertising costs.
Private labels owned by the retailers themselves, which are also known as store brands or own
labels.Most large retailers in India such as Pantaloon Retail (India) Ltd, Aditya Birla Retail Ltd,
Spencer’s Retail Ltd and Reliance Retail Ltd are pushing private labels to capture a larger share
of consumer spending in their stores.
Private labels are growing faster than manufacturer brands. They are ubiquitous across
categories and they now compete on quality — in fact, they are now brands! Private label share
is expected to grab almost 22 per cent of sales in developed markets by 2010. It is very
interesting to know how private labels have evolved from ‘cheap and nasty substitutes’ to the
real thing. Indeed, ‘copycat’ private labels still remain a strong strategy for retailers. However,
the copycat no longer depends on the price advantage to fight the branded product; it has
improved on quality and offers a value proposition to the consumer. Similarly, the earlier
theory that that recessions fuelled private labels while an economic boom resulted in growth of
brands no longer holds good.
Private labels are large in developing markets — they account for 40 per cent of Wal-Mart sales
($126 billion or Rs 5,16,600 crore), 50 per cent for Tesco ($36 billion or Rs 1,47,600) and are
eating into a larger chunk of the organised retail sale in developed markets. In Germany, for
instance, private label has shot up from 12 per cent of sales to 34 per cent. This has, in effect,
changed the balance of power between brand manufacturers and retailers, giving the latter a

decided advantage when negotiating terms with the brand manufacturers. And apart from the
multibrand retailers, a category of private label-only retailers has also been created — Ikea,
Toys ‘R’ Us, Zara — who sell only private label brands.
With the amount of branded product these huge retailers move each day, there’s no doubt that
their outlets are a valuable asset to brand owners. However, their objectives might at the same
time be considered at cross purposes with the branded product they retail. That is because
each of these outlets has private label product, which competes at a lower price, side by side
with branded products.
Because private label products are less expensive, one might be tempted to think of them as a
lower quality alternative. Indeed early ventures in private labeling yielded inconsistent quality
and tarnished the overall image of a private label concept. Retailers found that consumers,
faced with uncertainty, weren’t going to experiment with a non-brand name item. A large part
of growing the private label market involved improving the product’s quality. To ensure that
quality, private labelers began to analyze the contents of a leading brand and then, based on
those findings, recreate that item step by step. Now most leading private labelers take an active
role in the manufacturing specs of the product and no longer slap their logo on whatever comes
off the assembly line. The result is that often the only thing separating one product from the
other is the name on the label.
In fact, the private label industry suffers by not taking itself seriously enough as a branded
category. The industry has tried to implement category management, which is a take off of the
brand category management from the national brand manufacturers. Still as the private label
industry grows, the threat to branded product rises. After all brands are now competing for
shelf space with the store’s own product and sometimes, like in the case of A hold, that product
may have one, two or three different levels of varying degrees which procures even more shelf
space. What’s more the branded product has an added burden of a large advertising-marketing
budget, which can substantially impact the bottom line, particularly on low-margin goods.
Traditionally, private labeling has been strongest in low-emotional involvement goods such as
butter, eggs, flour, and sugar. Most often, such products are staple ingredients of larger recipes
and individual performance becomes unidentifiable in the resultant mix. However as the
private label market matures, it takes on more diverse products and services. Because private
label products are less expensive, one might be tempted to think of them as a lower quality
alternative. Indeed early ventures in private labeling yielded inconsistent quality and tarnished
the overall image of a private label concept. Retailers found that consumers, faced with
uncertainty, weren’t going to experiment with a non-brand name item. A large part of growing
the private label market involved improving the product’s quality.
Retail players and Private Labels
Private Label in India is in a growing stage. It will be difficult to get the details of sales in India
because of the highly unorganized structure of Indian retailing. But still it contributes a turnover
of Rs.700 Cr in the organized structure. Though the margin of Rs.700 Cr is considered as low
when compared to other countries, India is expected to achieve a sizeable volume in the

coming 3-5 years. Moreover in India the products come under store brands include mainly food
and apparel industry.
Some of the retail players having Private Labels in India are as follows:
FOOD AND GROCERY FASHION OTHERS
Spencer's Daily Shoppers' Stop Vivek's
Adani- Rajiv's Westside Planet M
Subhiksha Lifestyle Music World
Nilgris Piramyd Crossword
Ebony Gautier
Globus Lifespring
Each of these retail stars has identified and settled into a feasible and sustainable business
model of its own. Rather surprisingly, each has developed a unique model. Westside has very
successfully emulated a Marks & Spencer model (of 100 per cent private label, very good value
for money merchandise for the entire family). Spencer's Daily and Nilgris have successfully
shown the viability of the `supermarket' format in India and its ability to co-exist with the
ubiquitous Kirana store. Pantaloon has demonstrated the potential of speciality retailing in
India.
Big Bazaar: Private Label Push
Big Bazaar, the hypermarket of Pantaloon Retail, has come out with a breakfast cereal range
under its private label, Tasty Treat. Big Bazaar already sells noodles, pasta, vermicelli, soups,
namkeens, chips, toast, khari, papads, jams, pickles, carbonated drinks and ketchup and fruit
beverages under the brand. It has now added breakfast cereals to the range. In spite of the
presence of a large number of players in the branded packaged food segment, Tasty Treat is
growing at about 70 per cent. This perhaps has given Big Bazaar the confidence to try its luck in
breakfast cereals as well.
In a recent development, Pantaloon Retail, promoted by Kishore Biyani, has boycotted Kelloggs
at all its retail formats for turning down its demand for higher margins. Not surprisingly, Big
Bazaar is pushing its own brand of cornflakes now. This is not the first time Big Bazaar is doing
this. A while back Cadburys and PepsiCo owned snack food brand Frito Lay had to bear the
brunt.
Wal-Mart’s Private Labels
Bharti-Walmart has already introduced eight of Wal-Mart’s private labels in India, which it sells
at the company’s sole wholesale retail outlet in Amritsar and at about six dozen Easy Day stores
owned by Bharti Retail Ltd, which directly cater to retail customers. The private labels on offer
in India include the popular Great Value brand, which offers tea, local snacks, ketchup, dish-
washing bars, and toilet and glass cleaners.

Wal-Mart has been sourcing products from suppliers in India for at least 20 years for its global
operations. Major categories sourced from Indian suppliers include home textiles (including
towels, shower curtains, bath mats, accessories, bedding sheets and kitchen linens), apparel
(including wovens, knitwear and leather footwear), fine jewellery, tableware and home decor
products.
Equate, a brand for pharmacy and health and beauty items, has been introduced only in the
handwash category as of now in Easyday stores. Other Wal-Mart private labels introduced in
India include Home Trends (home furnishing), Mainstays (plastic containers, kitchen
accessories), Kid Connection (toys, clothing), Faded Glory (footwear) and Athletic Works
(athletic shoes, equipment).
Tesco’s Customer Focus
With India on the cusp of a retail revolution, some of the case studies should provide food for
thought. Among the leading retailers of private labels is Tesco, which has a large portfolio
spanning the entire price range. So from a ‘pile it high, sell it cheap’ approach, Tesco has moved
into a more consumer-focused chain where private label offerings are the core of the strategy.
Food Bazaar’s – Differentiation Strategy
Food Bazaar positioned its private salt brand as premium health salt which is available in the
price of the ordinary salt. It enjoys 40 - 45% market share in its category among all the Food
Bazaar outlets. Thus it has used the differentiation strategy and got success. Examples of a high
quality differentiation strategy where retailers introduce high quality differentiated brands that
differentiate them from the national brands include Sam's Choice from Wal-Mart. Alternatively,
the retailer may differentiate by offering a white-label generic or a low quality store brand
targeted to low quality oriented customers.
Conclusion:
As retailers become more sophisticated and competitive, the role of private label changes from
price-fighters to value added marketing differentiator. Private label brands are starting to
diversify their offering beyond the expectations enabling them to compete more effectively
with existing product categories and foray into new and different product categories. Most
significant advantage that a private label allows a retailer is that of earning level of margin
which is higher than what is offered on other brands.
The power of private labels is being explored by most retailers today as they do not want to be
at the mercy of the big manufacturers. At the same time they also realize that it’s not going to
be easy as it takes time and money to build private labels. The more market share a retailer has,
the greater the opportunity to create a strong private label offering and the greater the
leverage a retailer can put on a supplier. Private labels can accomplish that but at the same
time they must have a strategic positioning more than merely developing a product.
References:
Batra Rajiv and Indrajit Sinha, Consumer level factors moderating the success of private label
brands, Journal of Retailing, Volume 76 (2), 2000

Dunne David and Chakravarthi Narsimha, The New Appeal of Private Labels, Harvard Business
Review, May-June 1999, pp.41-52
Indian Retail Sector Analysis (2008- 2009)
Iyer Ravi, Big Bazaar: Private Label Push, Business Standard, Dec. 1 2009.
Malliswari M N, (2007),”Emerging Trends and Strategies in Indian Retailing”, Indian Journal of

Marketing, Nov., pp. 21- 27
Niramay Kumar and Jan-Benedict E.M. Steenkamp, Private Label Strategy, How to meet the
store brand challenge, Harvard Business Press.
Sukanya Ashokkumar and Shilpa Goyal, Diffusion of Innovation in private labels in Food
Products, The Icfai University Journal of Brand Management, Vol.VI No.1 2009, pp.35 -56.
The Financial Express, Time to re-strategize marketing of national brands, October 22, 2007

Innovative Marketing Concept at Traffic Signal (TS)
Submitted by
Prof. Vijay Dhole
MPM, DLL, PGTT, DHMCT, BHTM
Research Student ( Tilak Maharashtra Vidhypeeth)
Sinhgad Institute Of Business Administration Kondhwa Pune.
Mob No: 9422020034, E-mail- vijay_dhole2000@yahoo.com
Prof. R. M. Indi
Sinhgad Institute of business administration Kondhawa , Pune
Mobile No- 9922210560, E-mail- rmindi1@rediffmail.com
Prof. Pankaj Nanadurker

pankajnandurkar@yahoo.com
Introduction:
To make product and price known and acceptable to the target consumers, the
salesmen at traffic signals at busy street are manipulating various tactics. The same are
interesting to observe. The salesmen at traffic signals, though they are untrained and illiterate,
they know that it is essential to communicate, persuade, and motivate peculiar type of
consumers from the elite group of society who mostly are traveling in cars.The present paper
discusses the nature and importance of personal selling and attempts to outline the selling job
form the self-employed category of the weaker section of the society. It then discusses various
aspects of sales management skill emerged without training, namely, sales and selling objective
formulation, self-recruitment, self- training, self -compensation and motivation of sales-force
engaged at the traffic signals on busy street.
Nature:-
In personal selling, company's sales persons often referred to as salesmen/sales

representatives, who are on its payroll, communicate with the target consumers/ customers so
as to make an offer of sale, motivate them to positively respond to it and finally clinch the deal.
It has been defined as an "oral presentation in a conversation with one or more prospective
purchasers for the purpose of making sales".1 The same definition may be translated for
identifying the personal selling at TS as "In a personal selling the self inspired sales persons,
who are not on payroll of any company communicate with the target consumer or customers so
as to make an offer of sales, motivate them to positively respond in significantly short spell of
time to it and finally clinch the deal. It may be defined as an "Verbal and physical presentation
in a conversation with one or more prospective purchasers sitting in the cars around TS for the
purpose of making sales".

"Personal selling at TS is a highly distinctive form of promotion. Like other forms of
promotion, personal selling is basically a method of communication, but unlike others it is a
two-way, rather than unidirectional, communication. It involves not only individual but social
behaviour: each of the persons in face-to-face contact— salesman and prospect—influences
the other. The outcome of each sales situation depends importantly upon the success both
parties experiences in communicating with each other and in reaching a common
understanding of needs and goals."2
Fig. 1: Process of Communication
The Concept of Communication-Mix:-
Communication, therefore, is the crux of the personal selling exercise at TS. It is the
process by which a verbal or non-verbal extort is made by a source to send a message through a
channel to establish a 'commonness with the receiver'. This process is composed of five stages,
namely, source, encoding message channel, decoding, and receiver (Fig. 1). In all marketing
communications including communication at TS, the source is naturally the seller—the self
inspired self employed individual belongs to weaker section—whereas the receiver is the
person from the elite social group prospective target consumer. Before the source transmits
any message, it is encoded. Encoding involves translation of the source's ideas into a systematic
set of symbols, language or some form of expression in order to express the purpose of
transmission; in our case, arousing positive buying response is the purpose. The encoded mes-
sage then passes through the message channel which may be composed of personal and non-
personal media engaged in transmitting either verbally or non-verbally or both ways the in-
tended message.
Feedback is another important element of effective communication at TS. In the
feedback process is between elite group prospective customer and salesmen from the weaker
section at TS. Both salesmen and customer are from the diverse cultural group of society.
Under this circumstances the responsibly of salesmen is to make know the customer, the
element of consumer surplus procurable to him (customers). Truly speaking the salesmen is not
aware of this economic terminology. However with the help of his experience and skill he
endeavors to feel the customers that he gets more than the price he is offering for the product.
The total feed back process is of two to three minutes duration and that is to be materialized on
the busy street and that too under the threat of traffic police
.

The marketing of product at TS, personal selling skill and little advertising are the media
through which an individual seller usually communicates with consumers. These two
components, by and large, constitute its communication-mix. The relative importance of these
media in a communication-mix depends on a variety of factors such as products, nature of the
customers i.e. officers of Pvt. /Public institutions, tourist customers, students, and consumer
behaviour and company policies. Unlike the company the salesmen at TS, the composition of
the mix and the expenditure levels budgeted for them are almost nil and they have a no bearing
on the market results expected. For an effective marketing strategy, it is essential that at TS,
the communication-mix should be optimum. This optimum may be achieved when a salesmen
follows the maximizations of toil and moil, i.e. running behind the cars, hurriedly catching other
side of Red traffic signals , reveling the humbleness and beggar like personality , so and so forth
The need for optimizing communication-mix arises because both personal selling and
advertising have different' sets of functions to perform. The main task involved in personal
selling is to match specific products with specific consumers so as to secure transfer of owner-
ship. "Basically it consists of the interpretation of product and service features in terms of
benefits and advantages to the buyer and of persuading the buyer to buy the right kind and
quantity of the product".3
Strengths and Limitations of Personal Selling:-
Strengths of Personal Selling
The task of interpreting product features is done by advertising also. But unlike
advertising, personal selling is present in all the three phases of buying, namely, pre-
transactional, transactional, and post-transactional. Advertising and sales promotion are
commonly used to cultivate market during the pre-transactional phase and used to reduce
post-purchase dissonance in the post-transactional phase. Personal selling, on the other hand,
is present in all the three phases (Fig.2). Being a two-way form of communication, it cultivates
the marker, negotiates the transaction, and reduces post-purchase dissonance. However, it is
the negotiation of transaction that distinguishes it from advertising and makes personal selling
an effective medium of selling. Besides, there are other strengths of personal selling also. Some
of these include the following4:

FIG. 2: Advertising and Personal Selling: Relative importance
1) Personal selling is more flexible and adaptable to the varying purchase situations. It is
possible for a salesman to adapt himself to the needs, motives, impulses and other
behavioral traits of the prospective consumers so as to communicate the message and
clinch the deal.
2) In personal selling at TS, the possibility of wasted effort is minimal because, unlike
advertising, the whole effort is focused on a qualified target consumers waiting for
green traffic signal. Also, there is minimum possibility of message diffusion and
distortion. In communication, diffusion arises when a message goes to a large number
of unintended audience and distortion arises when there is a " traffic noise' owing to a
plethora of messages being transmitted or flashed at consumers. The salesman is better
placed to focus only his message on qualified consumers sitting in cars or on two-
wheeler auto bike and undo distortions by suitably maneuvering the message.
3) It is possible for a salesman to detect less of consumer attention and interest and
regenerate them by frequent repetitions and reinforcements.
4) In personal selling at TS, it is possible for the salesman to carry the qualified target
consumer through a logical and persuasive reasoning process so as to consummate sale.
5) If there are regular travelers going through TS, a relatively durable relationship may be
developed between salesman and consumers which makes future sale exploration much
effective. This, for example ' is frequently the case of flowers sellers at TS. "The
salesman can help his endeavor achieve the objective of perpetuity for ever, by
establishing a lasting, mutually profitable relationship with his customers." 5
6) The salesman acts as a marketing researcher also. He gathers and promptly transmits
relevant market information which often helps the producers in making timely strategic
and tactical adjustments. Because of these and other similar reasons, Levitt has aptly
remarked that "selling is as basic to our society as metabolism is to life", and further
adds that it is the salesman because of whom "the wheels of industry are made to hum,
income is generated, standards of living are raised, and in the process even leisure time
is generated".6
Limitations of Personal Selling:-
However, personal selling is not without its share of limitations. Some of these include
the following:
1) Personal selling at TS is though not expensive but it is fatiguing because the cost of
running behind the customers more nutritious meals and the same is not in the fate of
salesmen who are mostly from the economically poor category.

2) It is difficult to see the right kind of salesmen who have the potential and ability to sell
and be remained append to truth, moral etc.
3) Consumer loyalty built up around a good salesman is usually lost since there are little
incidences of coming to salesmen the consumer at TS.
Conditions Favoring Personal Selling at TS:-
In certain marketing situations personal selling provides ready and effective answers to
many selling problems. Following are some of those situations when personal selling in a
company becomes more relevant.
1) Market Situation:-
Personal selling at TS is relatively more economical and effective when:
a) A salesman sells in a small local market at TS,
b) Although the market is wide, consumers are concentrated in small geographical
areas i.e. at TS,
c) A direct channel of distribution is used facilitating selling to direct consumer
only, and
d) Desired salesmen are available at low cost or almost no cost.
2) Product Situation:-
Personal selling at TS is relatively more economical and effective when
a) Product is in the introductory stage of its cycle necessitating creation of core
demand without giving a chance to purchaser to spend the time in thinking.
b) Product is of a low unit value,
c) Product requires demonstration.
d) Product needs personal attention to match specific consumer needs, e.g. sales of
National Flags on 26th January
e) Product requires no after-sale servicing, and
f) Product has no brand or very poor brand loyalty.
3) Consumer Behaviour:-
Personal selling is more effective at TS when
a) consumer purchasing involves a deliberative process, i.e. it is not impulsive,
b) consumer needs instant answers to his questions,-
c) consumer requires persuasion and follow-up in the face of competitive
pressures, and
d) Purchases are infrequent but not so valuable.
4) Salesman Situation:-
Personal selling is relatively more economical and effective when

a) A person is self employed and also a salesman cannot afford a consistent and
even a little advertising outlay, and
b) The salesman is unable to identify and use suitable non-personal
communication media.
While using personal selling at TS, the question of economy has to be thought of in
terms of matching of cost of personal selling and the sales revenue generated relative to other
components of the communication-mix. Likewise, the question of effectiveness has to be
similarly thought of in terms of growth of sales revenue, building up of consumer loyalty and
containment of competition.
Status of Selling at TS
In the communication-mix of business, personal selling occupies an important role.
Although no data are available to indicate its importance, it is in fact the selling job at TS which
may be referred to as marketing.7
The importance of personal selling in the communication mix at TS may be attributed to
many factors, some of which are described below:
1) Barring exceptions, weaker section entrepreneurs are not big enough and financially
competent to apportion consistent big outlays for advertising; even a small outlays.
2) The availability of an efficient and economical distribution system even to salesman

discourages the use of advertising and encourages personal selling at TS.
3) The illiteracy of salesman, particularly at TS, makes many weaker section entrepreneurs
depend on the word-of-mouth communication through personal selling.
4) Consumer's buying process is very deliberative owing to low marginal value of the
Rupee which necessitates salesman's persuasive intervention so as to influence this
process.
All these factors individually and in combination make personal selling at TS an

important component of the communication-mix.
References :
1. American Marketing Association, Marketing Definitions: A Glossary of Marketing Terms, 1960.

2. Webster, Jr., F.E., “Interpersonal Communication arid Salesman Effectiveness”, Journal of
Marketing, July 1968. pp. 7-8.
3. Hass, K.B., Professional Salesmanship, New York: Holt, Rinehart, and Winstoo, 1962, p. 3.)

4. Based on: H.C. Cash and W.J.E. Crissy, •Comparison of Advertising and Selling', in: E.J. Kelly
and W. Lazer (cds.), Managerial Marketing: Perspectives and Viewpoints, III.: Richard D. Irwin
Inc.. 1967, p. 556.
5. Crissy, W.J.E. and H.C. Cash, "Managerial Functions in Selling", in: R.F. Gwinner and EM. Smiih
(eds), Sales Strategy, New York: Applelon-Cenlury-Crofts, 1969, p. 401
6. Levitt, T., Innovation in Marketing. New York: McGraw-Hill, 1962, p. 2.
7. Gandhi, J.C., "Marketing Management in the Cotton Textile Industry of Rajasthan", Unpublished
Doctoral Dissertation, University of Jodhpur, Jodhpur, 1968, p. 145)

Vrindavan Naturale
Health Spa & Wellness Center
Submitted by
Rajeev Narvekar
Asst. Professor
Saraswat Vidyalaya’s
S.C. College of Commerce and Management Studies,
Khorlim, Mapusa ,Goa.
One of the popular beliefs has it that the origin of spa dates back to the Roman era, when
soldiers of their legions fatigued by wars, would take to rejuvenation, relaxation and treatment
of sore wounds through water. Tired Muscles and wounds when subjected to hot water from
natural spring gave great relief to these soldiers. Naturally, baths were build near the area and
thus the foundation of modern day spa was laid.
‘Sanus Per Aquam’ – of which SPA is considered to be an acronym - meaning health by or
through water.
Over the centuries, the Spa has turned into an industry which is set for exponential growth.
Key findings (International) from the 2009 Spa Industry Update include:
Overall industry revenues continued to grow at an annual rate of 17.8 percent, while at a per
spa level revenue experienced a slight decline.
Day spas continue to dominate the industry at 79 percent of total spas
The spa and wellness industry in India is estimated at Rs. 11,000 crores and growing at 25-35%
annually, according to a 2009 Ernst and Young report for the Federation of Indian Chambers of
Commerce and Industry (FICCI).
The rise in the annual disposable income among individuals coupled with the growing level of
health awareness has created strong opportunities for existing and new entrants in this sector.
Conceptualized in 1994 by Dr. Digambar Naik, VRUNDAVAN HOSPITAL & RESEARCH CENTRE,
stands for quality health services under one roof in Mapusa Goa. The idea of starting a spa in
Vrundavan Hospital and Research Centre Calangute was put forward to the doctor and thus a
partnership came into existence, wherein it was decided to start the spa ( Health Spa and
Wellness Center) which would be managed by Radiant Hotels, Resorts and Spa namely Mr.
Pimenta himself who is the CEO.
After the liberation of Goa, Calangute in the north has been the first beach to become famous
nationally an internationally. Approximately 12 kms from capital city panjim and 45 kms from
the only airport it is today the epicenter of domestic as well as international tourists.
Vrindavan Naturale thus is in very strategic location to command the attention of tourists. It
became operational from Jnuary 12th’09.

The CEO of Radiant looked forward to tap the tourists and the locals as well by offering the
state’s first authentic Health Spa and Wellness Centre.
Its one year since the Spa has become operational…..
Did it take the course it was intended?? Was there any lacuna in promotion? Pricing? What
should be the future course of action??
An attempt is made to analyze the above situation and to come up with suggestions.

Branding Of B-Schools
Submitted By
Dr. Shiney Chib

Assistant Professor
Datta Meghe Institute Of Management Studies (DMIMS)
ABSTRACT
Many of us have a notion in mind that a fame institute name like IIMs, IITs, NIT or REC will bring
a quality education in the state. Yes it’s true this institute have special status and recognition
both in national and in international level. If we are looking for quality product we must
customized the system that suits to the present world. Many of the course syllabus remains
same for so many year in the state. But to a rapidly growth global world we need change
accordingly to suits the present scenario. To bring a quality education we need to strive from
both share holder and from stake holder. Share holder, means to say the government and
private body and the stake holder includes the student, parents, faculties and many social
organization. A proper rapport must be exist between these two holders and must also have
intra rapport of the holders. If we have to bring quality system of education, we can’t just bring
by setting up premier institute like IIT, IIMs, we must create a system which can bring quality
against the prevailing system. The well brand players of private education institute are not
permitted to come in the state. Many private educational institutes are leading far ahead then
Govt. or AITCE approval institute. They are well recognized in the market. Every corporate
knows their brand. So a government must also encourage a well brand private educational
organization must come and function in the state. When the strategy is clear and the creative
and communication consistent and supportive of the strategy, branding is powerful and can
benefit a university greatly. Research has tied good branding to attracting students, faculty, and
staff as well as to achieving success in fundraising and in getting media coverage.
“Institutional branding is meant to help propel an institution from its mission to its vision by
creatively conveying the powerful strategy that will take it from where it is to where it wants
to go.”
--- Barbara O’Malley

INTRODUCTION
The Masters of Business Administration (MBA) credential originated in the United

States at the Wharton School of the University of Pennsylvania in 1881. As the US model MBA
developed in the late 19th and early 20th century its legitimacy as a post-graduate degree and
particularly the significant differences between expectations by students and actual outcomes
as seen by their future employers has been controversial. Therefore the nature, scope, and
consequences of studying for this degree are as important to the individual who is seeking to
graduate with a meaningful addition to her/is credentials. The words 'teaching' and 'learning'
project different images to different people. Conventionally, these actions were perceived as
dull and tedious tasks, but that is far from the truth, especially now. The world over, there are
academicians, who thrive on making the whole procedure of teaching and learning, a
stimulating and inspiring experience. To them, innovation is the name of the game and they
strive to bring excitement into the everyday classroom with their novel methods.
Education in India is seen as one of the ways to upward social mobility. Good education
is seen as a stepping stone to a high flying career. Education System in India currently
represents a great paradox. On the one hand we have IIMs & IITs that rank among the best
institutes in the world and on the other hand there are number of schools in the country that
don't even have the basic infrastructure. Even after more than 50 years after independence we
are far away from the goal of universal literacy. But on a positive note, Indian professionals are
considered among the best in the world are in great demand. This signifies the inherent
strength of Indian education system. Indian government and Indian corporate sector has
recognized the importance of management education in the changing global scenario. Today
under the reforming economic conditions, integration of the Indian economy with world
economy presupposes efficiency and competitiveness in the domestic front as well as in the
international arena. As the process of globalization is technology-driven, and knowledge-driven,
the very success of economic reform policies critically depends upon the competence of human
capital. Globalization leads to challenges and threats also. The major concern is to deliver
world class education with updated curriculum and practical exposure. Management education
in India really took off after economic liberalization in 1991 and ensuing structural changes in
the country's business scenario. India is already known for its large pool of engineers. There will
be a time in the near future when the country will also be known for its managerial talent.
Relying excessively on the lecture method rather than on class participation, case studies,
presentations, role plays, material related articles, industrial experience stymies growth of the
students as leaders or executives, as is happening in India, he says. In India, there is a
considerable hope and expectations regarding the value of management education and its
potential contributing largely to nation's economic growth. This paper throws light on the
various measures those results in the branding of B-schools and thus resulting in quality and
credibility in management education.

Objective Of Study : Role & importance of Branding of B-Schools .
Hypothesis :
1 Branding of B-schools results in reputation and credibility of the institute.

2 Branding of B-schools attracts quality students
3 Branding of B-schools attracts good placement.
Universe Of Study : Nagpur City.
Sample Size : 50
Research Methodology : Field Survey & Interview with placement agencies, HR

consultants and B-schools.
TYPE OF RESEARCH
This paper includes both descriptive and exploratory study.
THEORITICAL APPROACH
The very variety of the formal structure of MBA programs on offer might be based on a
standard program of content, of subject matter, for the MBA student. However the necessary
content for a quality MBA program is continually under review, but subject, as noted later in
this paper, on nine principle disciplines. As at tertiary educational institutions the quality of the
subject matter from class to class is rarely compared directly if only to preserve academic
freedom. To some extent the subject matter can be measured by a careful analysis of the
textbooks in use, particularly in the hard disciplines. Yet even in the hard disciplines the
required textbooks in use differ significantly and faculty and student use of those required texts
varies from institution to institution. The measure of the quality of programs is made even
more difficult since Instructors of courses will often have their own text material and their
personal selection of supplementary handouts. Further the subject matter covered will
inevitably depend on the experiences and research focus of the Instructor. Thus the public
measure of the quality of the MBA classroom experience depends on the quality of the faculty,
the reputation of the business school, and the perceptions, at least privately, of student
evaluations
Entrants to MBA programs come from a broad range of undergraduate disciplines so
that the degree is seen as a generalist interdisciplinary degree. Peter Drucker went further and
established that “management is a liberal art.” The approach therefore requires students to
take part in a multi-perspective interactive classroom. Mastery of business management
requires the integration of a many subjects, just as business integrates those subjects in the

workplace. For this reason the best MBA programs require a minimum period of employment
experience before accepting entrants to the program. The best programs offer a number of
pertinent case studies, related visiting practitioner speakers, outside and overseas visits, and
even work placements. Specific details of each programs experience providing these essential
links with business should be made available to potential entrants to that program. One
measure of anyMBA program must be the premises and learning infrastructure available to
students enrolled in that MBA program. Modern classrooms at the MBA level are said to be
“Smart” when equipment is available in the classroom to provide students with the sort of
Information Technology (IT) which they might expect when working for a Multinational
company.
There are degrees of “Smart” classroom, from those equipped with standard overhead
access to commercial software, searchable databases, and the Internet to others which have
mock Trading Rooms, proprietary software for research and databases for financial analysis. In
the world of global business students will also be required to search sites for information which
may affect strategic planning. Selective MBA programs include case studies which provide such
experience often using their own proprietary version of specialized databases. Another
measure of any MBA program will be the Library resources. The good news is that reputable
MBA programs have excellent library and research resources which are available to students
who are in their program. These information resources include search engines for many
indexes and databases. The not-so-good news is that many Internet financial websites are no
longer free and that “the quality of the data and analysis of a service usually goes up when
you pay for it.” The best MBA program will provide access to costly databases and indexes,
many of which may be accessed online by students.
MBA information technology resources can extend to integrated online event calendars
and class assignments, to sophisticated computer simulations and the seamless logistics of
exam schedules and conferences so that students are able “effortlessly” to manage their
demanding academic and extracurricular lives. The efforts behind such flawless coordination
are indiscernible, but when facilities staff members arrive without fail at set times each day to
clean the chalkboards and deliver coffee and bottled water, one cannot help but be impressed.
Another measure of MBA programs is the number and quality of professional faculty employed
to deliver courses and the number and quality of supporting staff available to support students
working in the program. Measurement of the number of faculty is relatively easy. There are
simple measures relating student numbers to faculty and data on class size. The relevance of
these measures inevitably depends on the quality of faculty teaching, research, and service
loads. Quality of teaching varies significantly. “Faculty teaching at the MBA level must be
appropriately qualified and credible.” Measurement of the appropriate level of faculty
qualification usually includes a minimum percentage of instructors holding a PhD, an academic
qualification, in a management subject. Measurement of practical experience is less clearly
measured so that in many cases the faculty may have little or no practical management
experience. Clearly continuing consultancy experience and leave of absences from academia
actually working in an executive role in the commercial world provide a more exacting business
experience than is available in academia. Indeed the absence of “real world” experience is

seen as a major weakness in many programs. Particularly in the areas of human capital
management and strategic planning, an instructor with little or no real world practical
experience of the application of the theoretical material may not provide students with useful
experience. For this “real world” knowledge, there is a danger that instructors may rely too
heavily on the amalgam of experience provided by the experiences of the teams of students in
their responses to case studies.
Recently there has been a trend to recognize that an up-to-date understanding of
business management may be gained by recent consultancy, actual managerial experience, and
to some extent the provision of specific courses to senior executives. Applicants for an MBA
might well enquire of the program they are researching for examples of faculty employed in
recent consultancy or having a history of actual managerial experience. Traditional two year,
Intensive and Executive MBA programs tend to expect their faculty to publish research in major
journals. Accreditation of MBA programs depends on program faculty meeting minimum
standards of research publication, presentation and attendance at recognized professional
conferences. Traditional schools also value interaction with the corporate world. The size of
faculty also provides a measure of quality since the interaction within an MBA faculty and the
competition for tenure provides an incentive to continually attain high standards.
Support Staff:
Every academic program requires a critical mass of core staff to make sure that the
administration of the program is in accordance with promises to students. Program
administration includes maintenance and provision of Information Technology equipment and
the everyday work which is needed to ensure that students receive appropriate notification of
status and deadlines. While the measurement of student faculty ratios is often published, the
measure of student support staff ratios is not. Again enquiry about support services will be
important for students, especially those in a Distance Education program. Human resources are
directly linked to institutional funding. Where classes lose money an additional source of
revenue is needed by the MBA program to fund the shortfall. Such funding may be provided at
colleges with a dedicated endowment for that purpose. In addition additional fees may be
charged for a range of “extras” which applicants to MBA programs need to be aware of. Where
MBA programs are “for profit,” particularly in the absence of any endowment, the cost of the
program is even more closely linked to the quality of program and the incidence of “extra” may
be higher than in traditional programs.
The overall objective of MBA degrees is still to improve the quality of management. The
MBA adds value to the undergraduate degree by integrating the activities within and external
to an organization and making students critically aware of the process of these interactions.
The purpose of the MBA may be summarized as follows:
 To study the contexts, internal and external, within which the management of business
organizations must operate.

 To be prepared for a lifelong career in business management acquiring the skills and
experience to undertake appropriate research and study of matters that come before
management.
 To develop self-confidence and the ability to deal with complex issues in a systematic yet
creative manner.
 To seek continuous improvement in individual learning skills and personal development
and to work with confident self-direction and originality so as to make a meaningful
contribution to society.
An important feature of the research process is to provide MBA students with
experience of the research process. We know that there is a lead time for knowledge to
provide knowledge-based innovation. By sharing the research process with MBA students
MBA faculty provide MBA students with solid experience of the research process and in so
doing contribute to innovation and to the realization of the process whereby knowledge can
contribute to the changes that are inevitable as our commercial knowledge-base grows
globally.
The Top ranked schools “do not necessarily offer the best teaching, facilities, or
curriculum.” Program reputation, as with the value of trademarks and success in independent
market surveys, plays a significant part in their status. Perhaps of significance, the most mature
programs have managed what Porter described as “the strategic pitfalls in transition” from
their founding of MBA program to MBA program leader. Indeed the mature programs appear
to recognize the implications of such transition, to negotiate the aggressive marketing moves of
competitors successfully, and to enable the MBA originators to retain their industry leadership.
As Drucker has written “modern management and modern enterprise could not exist without
the knowledge base that developed societies have built.” Drucker has coined the modern
employee as “a knowledge-worker” and he notes that knowledge once “an ornament and a
luxury” is now seen as the “true capital” of 21st century multinationals. Degrees are black-and-
white but knowledge-workers require judgment and the synergy of the best MBA programs are
their ability to foster the post-graduate judgment that ensures career success.
RESEARCH FINDINGS
Competency-based learning is an education practice that measures and demonstrates what
a student is capable of accomplishing as a result of what he or she has learned. Related to
competency-based learning is learning outcomes, which are the clearly stated capabilities or
desired results of a learning experience.
Three broad capacities that students should develop at the Master’s level:
• Capacity to lead in organizational situations.
• Capacity to apply knowledge in new and unfamiliar circumstances through a conceptual

understanding of relevant disciplines.
• Capacity to adapt and innovate to solve problems, to cope with unforeseen events, and to
manage in unpredictable environments.”

Competency-based learning and learning outcomes emphasize practical knowledge that
MBA students can apply to their work immediately. An example might be an accounting course
where a student must demonstrate his or her ability to post a double-entry bookkeeping
ledger, which, in essence, is a visible manifestation of knowledge gained. Another example
might be based on a case-study teaching and learning method where a team of students
analyzes a business challenge and comes up with a solution that includes a business and
marketing plan that requires them to create a detailed financial section with spreadsheets
showing income and cash-flow forecasts. So, in general, how are schools building their
curriculums to measure up to these kinds of standards?.
“We want to make sure MBA learners leave our program and then go back to the job and
immediately have an impact,” said Barbara Butts Williams, faculty director of Capella
University’s Online MBA program. “We try to build our projects around relevant problems that
they can solve immediately.” The business market is experiencing and encountering
organizational transformations at all the times. This is creating challenges and opportunities for
the organizations and management professionals. Therefore, today’s management
professionals require an overall understanding of the challenging business environment of both
internal and external. They will have to respond quickly and effectively when they face
challenges in the business market. It also inculcates and train students about the science of
running a successful business enterprise. The department always takes students’ beyond the
academics and provides hands-on experience right from the first semester. It also teaches the
students on how to manage the businesses during its tricky situations. Students are being
trained to have better human & survival skills and emotional balance to react to crises. These
areas are specifically taken care by the department.
Curricular Aspects:
MBA education aims to build a strong student force bearing robust character and the
strength of the mind to stand firm and to be counted in any place or country they move on to.
The goals and objectives of the college are applied simultaneously with the syllabi, academic
activities, co-curricular and extra curricular activities which are conducted by each department,
collegiate and inter collegiate level. The college is duty-bound to follow the common core
syllabi prescribed by the University of Nagpur. It follows semester systems giving more
importance to inter-disciplinary programmes. The system of the college offers electives for
students. In addition to the minimum programmes laid by the University the college has
instructed each of its departments to encourage research so that the students can learn to
think originally. As part of common strategy, every student of the college is given special
training in computer education. The assessment of teachers by students has been introduced
in all the programmes. The college takes special care for slow learners and especially students
who have less knowledge of written or spoken English language to begin with. The programme
of assessment of teachers by students has been introduced and done annually. The feed back is
obtained from students, alumni, parents, staff, academic peers and industry. A pro-forma was
prepared to get the opinion of each student about his lecturer.
Teaching –Learning and Evaluation.

Students are selected for various courses strictly on the basis of merit. Contract faculties
are engaged in those vacant posts to engage classes. All the posts of non- teaching and
technical staff are filled. Few teachers served as resource persons in various seminars. The
institutes has an academic programmme prepared at the first meeting of teaching staff held in
the month of July/August at the beginning of each academic year. The teaching program of
both the semesters, the conduct of examinations, internal assessment, work-shop, group
discussions, project work, visits to industries etc., are well planned in detail and circulated to all
concerns and also notified in the notice board for the benefit of the students. Accordingly, the
teachers maintain work dairy, academic teaching plan and continuous assessment record. The
teaching learning evaluation schedule is reflected in the annual academic calendar prepared by
the Dean-Academics in consultation with staff in the beginning of the academic year.
Assignments and student projects are entrusted to make learning process student - centered.
The method predominantly selected for teaching is lecture. In addition to lecture method,
several learner-centered programmes like, guest lectures, seminars and presentations,
industrial visits, debates, work-shops, project assignments, specimen collections, group
discussion, chart, models, slide projectors are also used. The modern teaching aids like audio
visual aids, Computers, CDs, OHPs, LCD Projectors, TV, VCRs etc are used for the instruction. A
Language lab is also available in institutes.
In addition to giving special care of recruiting best faculties, best teacher award is given to
the outstanding teacher every year in some institutes. Due appreciation of staff and students is
accomplished through incentives and awards at individual, class, and departmental levels by
the college management. For evaluating students, both internal and external methods are
used. The semester system provides ample opportunity for internal evaluation of students
periodically through tests, seminars, assignments, workshops etc. Other evaluative measures
like self-appraisal of faculty, student assessment of faculty performance are seriously followed.
Research, Consultancy and Extension

The institutes has constituted a research committee to facilitate and monitor research
activity. Although the college is not a research center, it encourages the teaching faculty and PG
students to undertake research projects. To give more impetus to research activity, the
institutes applies for recognition as centre for Ph.D. The institution has research collaborations
at the national level. Teachers have published research articles in national and international
journals.

Infrastructure and Learning Resources
The institutes contain well-lighted and airy class rooms, up-to-date office facilities for
administration, canteen, auditorium, seminar halls, well equipped and ventilated computer labs
with internet facilities. Some institutes have Wi-Fi campus. Facilities for indoor games, large
foot ball ground, rest rooms for girls and women staff and common room for other teachers are
provided. Institutes has well equipped college library. An advisory committee on library
functions effectively. The working hours of library is 8 am to 8 pm on all working days. The
services / facilities provided in library are circulation, clipping, reference, photocopying and
printing, computer and internet access, inter-library loan, power backup, information display
and notification and user orientation / information literacy.
Student support and Progression
To make the aims and vision of the college to come true, the institution ensures all kind of
support both to students and staff The prospects and hand books are published to make the
students aware about the courses offered, eligibility requirements, fee structure and other
details like hostels and other facilities available in the college. The college does provide
financial assistance to the deserving students. SC-ST students are provided free-ship from the
government by which 10 students are benefited during the last three years. Apart from this, the
university provides separate book banks for the SC/ST students. Faculties undertake academic
and personal counseling to students. Special care is taken to deal with issues of girls and
grievances of all kinds are recorded in the ward counseling register. The placement officer looks
after the welfare of the students and takes special care in giving them placements.
The college also has a Grievance – Redressal Cell which looks after the problems among
both, students and teachers. Suggestion boxes are provided in the campus and hostels and
timely actions are initiated. There is also a cell to prevent sexual harassment. The counseling
center functions effectively. In addition to these, students are encouraged to participate in
various inter-collegiate, state level and national level competitions. National festivals are
observed. Special prizes are given to the students, who bring honors to the college by securing
place in various events.
Organization and Management
Important decisions are taken after due consultation with all the HODs. Everybody is kept
informed of the college activities. There are sub committees functioning in the college. The
process of admissions, examinations, financing etc. are co-coordinated by the respective
committees. As part of welfare schemes for academic community, loan and medical facilities
are given. Special attempts are made to evaluate both the teaching and non-teaching staff.
Staffs are recruited only on the basis of merit. Self-appraisal method is effectively adapted to
evaluate the performance of teaching staff. The regular conducting of workshops gives enough
opportunity for skill up-gradation of non-teaching staff. They are also encouraged to use

computers, internet etc. Periodical analysis of audits ensures proper management of funds
allocated for different agencies.
Healthy Practices
 One committee was constituted to ensure the quality of academic and administrative
efficiency.
 MoUs with industry / other agencies and internship with industries are obtained by the
institute.
 The college has introduced innovative courses like, BCA, MCA,MBA so on.
 Special lectures are arranged to get students in touch with the existing value systems.
 The college celebrates national functions to promote nationalism and respect for the
country.
 To ensure the overall development of the college, teachers, alumni, and parents are
kept in touch constantly.
 An effective women empowerment cell is functioning.
 Top rankers at the examination are encouraged by the management by giving incentives
such as fee exemptions, financial supports etc.
 The dedication of teaching and non-teaching staff
 Judicious financial management

 Boldness of institutes to introduce recent innovative academic programmes.
 For having effective, well structured and well planned feedback mechanism.
 Self-appraisal by staff, students’ assessment of teachers.
 For the effective learner-centered learning process.
 For ensuring quality of both teachers and non-teaching staff.
 Considering merit as the sole criterion for admission and recruitment.
 Constant efforts to undertake research projects.
 Having sufficient infrastructural facilities.
 The success rate of the college in getting student placements soon after the completion
of the courses.
 Constituting different committees and distributing responsibilities for smooth
functioning of the college.
 Secular credentials of the college.
 Dress code for both staff and students.
 Awards and incentives given to the Best Teachers by the management.
Recommendations
 As part of faculty improvement, teachers should be encouraged to take part in refresher
or orientation programmes conducting by the UGC Academic Staff Colleges.
 The Alumni Association formed recently, may be strengthened.
 Teachers may be encouraged to obtain M.Phil or Ph.D degrees.
 Teachers may be encouraged to participate in seminars and conferences and present
papers.

 More funds may be allocated to the library for purchase of books.
 More care should be given to value based education.
CONCLUSION
Technology is reshaping the process of learning. Technology has the potential to change the
learning paradigm. With technology we can transcend the time and distance barriers. The role
of technology in helping the education process is increasing everyday. We are discovering new
ways of teaching and learning with the help of technology. B-Schools cannot ‘teach’
entrepreneurship but can certainly contribute to the process by sharing skills and knowledge
about businesses and people. We can see entrepreneurs and business leaders having two sides
to their thinking: the left side which involves logic and thinking, and the right side which
involves inspiration and passion. The objective underlying the ranking of B-schools is an effort
to address the challenges of delivering quality business education apart from fulfilling the
growing needs, aspirations and expectations of key stakeholders. In the contemporary global
environment, if Indian brands should compete with global brands, Indian companies with global
companies, then perhaps there is a compelling logic that Indian B-schools should compete with
global ones, at least within the confines of a geographical region viz. Asia-Pacific or South-East
Asia and the like. To attain global standards, B-schools need competitive pressure.
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Emphasis on Teaching, Research and Service to Industry: Does Where You Sit Determine
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India, the Land of Opportunities
Submitted by
Prof. Shalini Mishra
Introduction
Where there are challenges, for sure there are opportunities. That is a mantra well-known to
every entrepreneur. That immediately implies that India is truly the Land of Unlimited
Opportunities. The challenges have been created by a persistent attachment to a certain
method of thinking and doing the tasks. As Einstein astutely noted, the significant problems we
face cannot be solved at the same level of thinking we were at when we created them.
Transforming the challenges into opportunities requires a different way of believing.
The greatest opportunity that India have – of building from scratch – which is not available to
any developed economy. Take for instance the US. US cities are the infamously inefficient in
terms of resource use and sustainability. Practically all Americans live in cities and if Indians
were to build new, more efficient cities, you will have the greatest difficulty populating them
because people will be reluctant to move from their home cities. Their legacy urban centers will
burden the transition to living in more sustainable cities. Contrast that with India. Most Indians
living in villages would love to have the chance of living in well-designed efficient cities.
What we in India need is not so much hard resources as we need a bold compelling vision. We
need the vision to look beyond the here and now, and see the future. If we have a bold,
coherent, inspiring and realistic vision of the future, it will serve as the guide to purposeful
action.
India’s economy
India's large service industry reports for 54% of the country's GDP while the industrial and
agricultural sector contribute 29% and 17% respectively. Agriculture is the paramount
occupation in India, contributing for about 60% of total employment. The service sector makes
up a further 28% , and industrial sector around 12% the labor force. The agricultural products
mainly include rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes, cattle, water buffalo,
sheep, goats, poultry and fish. Industries mainly include telecommunications, textiles,
chemicals, food processing, steel, transportation equipment, cement, mining, petroleum,
machinery, information technology enabled services and software.
Service sector is the lifeline for the social economic growth of a country. It is today the most
prominent and fastest growing sector globally contributing more to the global output and
employing more people than any other sector.
The real reason for the growth of the service sector is due to the increase in urbanization,
privatization and more demand for intermediate and final consumer services. Availability of
quality services is life-sustaining for the well being of the economy.

In advanced economies the growth in the primary and secondary sectors are directly
dependent on the growth of services like banking, insurance, trade, commerce, education, real
estate, defence, entertainment etc.
Service Sector in India today accounts for more than half of India's GDP. According to data for
the financial year 2007-2008 GDP by sector, the share of services, industry, and agriculture in
India's GDP is 53.7 per cent, 29.1 per cent, and 17.2 per cent respectively. The fact that the
service sector now accounts for more than half the GDP marks a turning point in the evolution
of the Indian economy and accelerates it to the fundamentals of a developed economy. Despite
the global economic slowdown, the service sector in India has contributed 56 percent to the
GDP during 2008-09, according to an expert.
Services or the "tertiary sector" of the economy covers a wide gamut of activities like trading,
banking & finance, infotainment, real estate, transportation, security, management & technical
consultancy among several others. The assorted sectors that combine together to constitute
service industry in India are:
 Hotels , Restaurants and tourism

 Railways
 Retail
 Other Transport & Storage
 Communication (Post, Telecom)
 Banking
 Insurance
 Dwellings, Real Estate
 Business Services
 Public Administration; Defence
 Personal Services
 Community Services
 Information technology
There was marked speedup in services sector growth in the eighties and nineties, especially in
the nineties. While the share of services in India's GDP increased by 21 per cent points in the 50
years between 1950 and 2000, nearly 40 per cent of that increase was concentrated in the
nineties. While almost all service sectors participated in this boom, growth was quickest in
communications, banking, hotels and restaurants, community services, trade and business
services. One of the reasons for the sudden growth in the services sector in India in the nineties
was the liberalization in the regulatory framework that gave rise to innovation and higher
exports from the services sector.
The rise in services share in GDP has not accompanied by proportionate increase in the sector's
share of national employment. Some economists have also cautioned that service sector

growth must be supported by proportionate growth of the industrial sector; otherwise the
service sector grown will not be sustainable. In the current economic scenario it looks that the
flourish in the services sector is here to stay as India is fast emerging as global services hub.
Indian Service Sector
India ranks fifteenth in the services output and it provides employment to around 23% of the
total workforce in the country. The various sectors under the Services Sector in India are
construction, trade, hotels, transport, restaurant, communication and storage, social and
personal services, community, insurance, financing, business services, and real estate.
In coalition with the global trends, Indian service sector has witnessed a major boom and is one
of the major contributors to both employment and national income in recent times. The
activities under the purview of the service sector are quite diverse.
Amongst the various sectors which contribute to service sector few of them are discussed
below:
1. Hotels, Restaurants and Tourism

The opportunities ready for the taking in the food and other service areas related to hotels and
restaurants. As the per capita incomes of Indians are increasing and the pattern, lifestyle and
standard of living is changing diversely the demand for better hospitality is in great demand.
Families and friends love to go out and have a good time in hotels. This gives more
opportunities to National and International Players. Amongst the most interesting ones in the
food sector are the following:
 Indian fast food/finger food

 Family diners restaurants
 Sandwich & salad parlours
 Bread and other bakery product outlets:
 Multi-cuisine food courts:
 Ice-cream and juice/beverage parlours
 Indian "desserts" and "snack food" chains
The term hotels include restaurants, beach resorts, and other tourist complexes providing
accommodation and/or catering and food facilities to tourists. Tourism is the largest service
industry in India, with a contribution of 6.23% to the national GDP and 8.78% of the total
employment in India. Tourism related industry include travel agencies, tour operating agencies
and tourist transport operating agencies, units providing facilities for cultural, adventure and
wild life experience to tourists, surface, air and water transport facilities to tourists, leisure,
entertainment, amusement, sports, and health units for tourists and Convention/Seminar units
and organizations. India witnessed more than 5 million annual foreign tourist arrivals and 562

million domestic tourism visits. The tourism industry in India generated about US$100 billion in
2008 and that is expected to increase to US$275.5 billion by 2018 at a 9.4% annual growth rate.
Certain services which can be undertaken in hotels, restaurants and tourism field are as follows:
 Personal grooming salons.

 Career counseling centres.
 Chain of repair and maintenance services for electrical/electronics products.
 Document preparation, imaging, and storage centres
According to World Travel and Tourism Council, India will be a tourism hotspot from 2009-2018,
having the highest 10-year growth potential. According to the Travel & Tourism
Competitiveness Report 2007 India is ranked 6th place in terms of price competitiveness and
39th in terms of safety and security. Despite short- and medium-term setbacks, such as
shortage of hotel rooms, tourism revenues are expected to surge by 42% from 2007 to 2017.
2. Information Technology Industry
The Information Technology industry has achieved extraordinary growth after liberalization.
The industry has performed exceedingly well amongst tough global competition. Being
knowledge based industry; India has been able to leverage the global markets, because of the
huge pool of engineering talent available. Information technology (IT) is amidst the fastest
growing sectors in the country. Growth of Indian IT industry has been forced by the IT software
and services (IT services) and IT enabled services (ITES). The software and services (IT services)
industry of India has been moving up the value chain, giving India is extremely impressive in
strength or excellence brand equity in the global markets.
ITES sector
The ITES sector has also leveraged the global changes positively to emerge as one of the
prominent industries. Some of the services covered by the ITES industry would be:
 Customer interaction services -Non voice and Voice.

 Back office, revenue accounting, data entry, data conversion, HR services.
 Medical Transcription.
 Content development and animation.
 Remote education, market research and GIS
3. Retailing
As per the available estimates, of the Rs.1,330,000 crore retail market, food and grocery retail is
the single largest block estimated to be worth Rs.7,92,000 crore (with 59.5 per cent share), but
the share of organised sector in this is miniscule. Clothing, textiles and fashion accessories
constitute the second largest block with a 9.9 per cent share at Rs.1,31,300 crore. But the
largest segments as far as organised retailing is concerned are the timewear (48.9 per cent
share) and footwear (48.4 per cent share) sectors. The growth in modern retailing is linked to
several factors particularly, the increasing purchasing power; rapid global interaction and

integration as well as the changing consumer needs, lifestyle and attitude. Further, shopping
centre business alone is estimated to become a Rs.40,000 crore business by 2010-11.
Also, India is one of the most captivating markets for retail investment. Many national and
global players have been investing in the retail segment and have ambitious plans for further
expansion. The vast middle class with rising purchasing power are attracting global retail giants
into the almost unexploited retail industry. Some of the international players already present in
the Indian market include fast food chains like McDonalds and Pizza Huts, Dominos, Levis, Lee,
Nike, Adidas, Benetton, Sony, Sharp, Kodak etc. Wallmart word’s top most retailing brand has
already entered in India in cash and carry format in partnership with Bharti.
The investment opportunities in the domestic retail industry lay in most of the product
categories particularly, food and grocery (the largest category), home improvement and
consumer durables, apparel and eating out, supply chain infrastructure (cold chain and
logistics) etc. India also has significant potential to emerge as a sourcing base for a wide variety
of goods for international retail companies.
4. Financial Services-Banking and Insurance

The financial sector in India has become more substantial in terms of capital and the number of
customers. It has become globally competitive and diverse aiming, at higher productivity and
efficiency.
Exposure to worldwide competition and the act of freeing from regulation in Indian financial
sector has led to the emergence of better quality products and services. Regeneration have
changed the face of Indian banking and finance. The banking sector has improved manifolds in
terms of capital adequacy, asset classification, profitability, income recognition, provisioning,
exposure limits, investment fluctuation reserve, risk management, etc.
Broadening into investment banking, insurance, credit cards, depository services, mortgage
financing, securitization has increased revenues. As large number of players in various fields
enters the market, competition would be intensified by mutual funds, Non Banking Finance
Corporations (NBFCs), post offices, etc. from both National and International players. All this
would lead to increased worldliness and technology in the sector. Corporate governance would
come into the picture and other financial institutions would have to reach global standards.
Also the limit for FDI in private banks is increased to 74% and the limit for FII is 49%. There are
many challenges ahead for the banking sector such as technology, consumer satisfaction,
corporate governance, risk management, etc. Some of the major players in this sector are
HDFC, ICICI, HSBC, State Bank of India, Punjab National Bank, Ing Vysya, ABN Amro Bank,
Centurion Bank, City Bank, etc.
The insurance sector has opened up for private insurance companies with the personation of
IRDA Act, 1999. A large number of companies are competing under both life and general

Insurance. Some of the major players in this sector are LIC, Max New York Life Insurance, Bajaj
Allianz, ICICI Prudential, HDFC Standard Life, Metlife Insurance, Birla Sun Life Insurance, etc.
Various types of policies and instruments are coming up in the market to attract more
customers. Most of the population of India is not insured, hence there is a lot of scope in this
sector and a number of companies are planning to enter the sector. Every futuristic individual
would want himself to get insured. In all of this, the sector could generate employment to the
tune of 1.5 million compared to 0.9 million today.
5. Telecommunication
The Indian telecom market has emerged as one of the fastest growing telecom markets in the
world. India's subscriber base has crossed 440 million and the telecom operators are adding a
whopping 8-10 million new subscribers each month. There is still substantial scope for further
growth in this sector considering that the tele-density is only 37% in India. Telecom sector being
the one of the fastest growing sectors in India and the fastest growing telecom market in the
world, with a compound annual growth of 34% over the last decade. Today, India has nearly
490 million subscribers and with an annual addition of more than 125 million over the last
couple of years, India will reach 500 million subscriber-bases in 2010. Among the various
segments, wireless or mobile segment has been the key contributor, especially the prepaid
services, offering a wide range of opportunities to provider and services to customers. Greater
demand for better services and speed has made the market more competitive. Going forward,
the sector is likely to achieve greater growth rates with a whole range of new services expected
over next few years with the coming of 3G.
Future Trends
1. Globally outsourcing industry would continue to grow.

2. Following the success of US and UK, more countries in the European Union would
outsource their business.
3. Technological power shift from the West to the East as India and China emerge as major
players.
4. Political backlash over outsourcing would come down as companies reap the benefit of
outsourcing.
The contribution of the Services Sector has increased very rapidly in the India GDP for many
foreign consumers have shown interest in the country's service exports is the main reason for
the growth of the Services Sector.
Conclusion
Apart from the various components of service sector discussed above there are certain other
areas of service sectors like Railways, other Transport & Storage, Dwellings, Real Estate,
Business Services, Community Services, Personal Services and Public Administration Defence
which have potential growth opportunity. One of the key service industries in India would be

health and education. They are vital for the country’s economic stability. A robust healthcare
system helps to create a strong and diligent human capital, who in turn can contribute
productively to the nation’s growth.
All this shows that services hold immense potential to accelerate the growth of an economy
and encourage general well-being of the people. They offer infinite business opportunities to
the investors. They have the capability to produce substantial employment opportunities in the
economy as well as increase its per capita income. Without them, Indian economy would not
have acquired a strong and dominating place on the world platform. Thus, service sector is
considered to be an integral part of the economy and includes various sub-sectors spread all
across the country.
References:
Websites
1. www.mckinsey.com
2. Business Portal of India
3. www.moneycontrol.com
4. Wikipedia
Newspapers
5. Times of India
6. Economics Times

Customer Service—Dimension in Marketing Management
Submitted by
Author:Prof. Pavitra D. Patil
Co-author-Prof Madhulika A. Sonawane
Department Of Management Studies, North Maharashtra University, Jalgaon.
Patilpavitra25@yahoo.com, mssonawane@nmu.ac.in
Abstract
The trend in marketing toward building relationships with customers continues to grow, and
marketers have become increasingly interested in retaining customers over the long run.
Although several writers have drawn attention to Customer Service as a vital ingredient for
success in marketing there is still confusion over what is, how to measure it and hence how to
manage it. Yet examples continue to emerge which suggest that Customer Service is the
essence of the marketing concept in practice and therefore a source of differentiation and
competitive advantage. It is also suggested that the way firms deal with customer service is a
more accurate Reflection of their marketing orientation than organizational or other
characteristics. A useful reminder that business is about creating and providing customer
satisfactions would therefore seem appropriate and ways to improve Customer Service are
suggested based on several case study examples.
INTRODUCTION
The recent British Rail and British Airways promotional campaigns are visible reminders of a
growing awareness by service industries that one of the fundamental principles on which
business success is built is the achievement of customer satisfaction by providing a product
or service in line with user requirements. This attention to serving customers however is not,
and never has been, confined to the service sector and the context in which customer service
(CS.) is discussed in this paper will be as one element of the firm's offering, whether a
physical product or a service. Wider acceptance of the marketing concept has encouraged
decision makers to assess customer needs more closely and to respond accordingly, rather
than giving customers "what's good for them”. While this ideal may have been preached for
several decades in the more enlightened Business. The trend in marketing toward building
relationships with customers continues to grow, and marketers have become increasingly
interested in retaining customers over the long run. s Schools and has been incorporated by
firms in their strategic policies and product/market decisions, it is often restricted in practice
by the exigencies of production or financial necessity. In other words, there is general
agreement in principle and at top management level of the need for marketing orientation
but the marketing concept fails to fulfill the need of consumer. Satisfaction is the
consumer's fulfillment response.

It is a judgment that a product or service feature, or die product or service itself, provided (or
is providing)a pleasurable level of consumption-related fulfillment, including levels of under-
or over fulfillment," Another traditional definition of satisfaction that is often used comes
and Wilton (1988. p, 204): "The consumer's response to the evaluation of the perceived
discrepancy between prior expectations [or some other norm of performance] and the actual
performance of the product as perceived after its consumption,"
DEFINITIONS OF CUSTOMER SERVICE
Koder (1984) states "C.S. is another element of product strategy" and suggests its
importance will vary depending on which of the following four categories the product suits:
(a) a pure tangible good such as soap, toothpaste or salt where little or no service is
required;
(b) a tangible good with accompanying services such as a warranty on consumer durables or
training provided by the supplier of machine tools;
(c) a major service with accompanying minor goods and services such as meals provided with
air travel.
(d) a pure Immediately one possible reason for the difference between theory and practice
can
be found.
In the case of a pure tangible good the importance of customer service may be crucial
between manufacturer and retailer although not important at all between manufacturer and
user.Oxenfeldt (1966) on the other hand defines C.S. as including " . . . all offerings of value
to a firm's customers beyond the product itself”. Therefore, it is all the added value benefits
such as availability, reliability or risk reduction, performance enhancement, convenience,
status and so on the company incorporates into its product. This definition is further
extended by O’Shaughnessy (1984) who suggests C.S. to be "Any back-up the firm gives to
customers to maintain their custom or secure a sale”. Most writers consider C.S. as part of
the output of the physical distribution function (Lambert and Lewis 1983; Hutcbinson and
StoUe1968) and seek to explain its significance in terms of products delivered or of
customers satisfied particularly speed and reliability of delivery. "C.S.has conventionally was
recognized as tbe quality of tbe performance of the physical distribution system" (Scary
1983). The concept of C.S. therefore
Becomes embedded in PDM {physical distribution management) or as part of a marketing
logistics problem. For some products in some markets, this may be entirely appropriate.
Cunningham and Roberts (1974) show that the ability of suppliers to meet quoted delivery
dates was the most frequently mentioned and most important service quoted by buyers in
the Pump and valve industries.Realising the inadequacy of current definitions of C.S., several
writers

CUSTOMER SERVICE-THE MISSING DIMENSION
A better understanding of this concept by considering C.S. as a process with several elements
and therefore providing time, place and form utilities for the customer (Christopher 1984). In
a widely quoted studyLalonde and Zinszer (1976) suggest C.S. can be dealt with as
pretransaction,Transaction and post-transaction phases of the exchange process. Customer
service in the pre-transaction phase might include sales policies which provide reassurance
for potential customers by reducing the risk involved in the purchase decision. For example,
the John Lewis Partnership’s price pledge that they are "Never knowingly undersold" and will
refund the difference if the same item can be bought cheaper elsewhere.Datapost's deliver)'
pledge to guarantee a 24 hour postal delivery is another example. Perhaps the best example
of all is Marks and Spencer's reputation for replacing or exchanging goods. In the transaction
phase C.S. is expressed more as part of the distribution function such as stock availability, or
reliability and consistency of quoted deliver times. At this stage C.S. can be viewed negatively
if delivery promises are not kept or if supplies are seen to impose penalties for small orders.
In the post-transaction phase C.S.could be an expression of the speed and efficiency This
wider description of C.S. as a process containing elements of economic significance,
customer benefits and competitive advantage must lead to the conclusion that to consider
C.S. as a minor dimension of distribution or product, is inadequate. If this is so, where then
does C.S. fit in the marketing mix and how do we approach its management? One approach
is lo consider C.S. as fifth element in the marketing mix alongside the "4 Ps" and therefore a
variable to be managed in response to customer wants and competitive activity. This is the
approach often taken by writersdeahng particularly with service industries but perhaps a
better way is to treat customer service as relating to each element in the mix not just one, in
much the same way as marketing research has utility for product, price, place and
promotional decisions so too does C.S. in enhancing the "4 Ps" as individual elements and
especially the synergistic benefits. For example:
PRODUCT—C.S. can enhance products. An example of this might be the brick company that
identified the high cost of on-site damage and Therefore by protective packaging and
mechanical handling reduce breakage on site offering real benefits to customers. Other
product service elements might be the adequacy of product testing (technical and
commercial) prior to sale, the product enhancing information given with the product or the
quality control specification stipulated for the buyer.
PRICE—penalties imposed for small orders or frequent reveries are negative aspects of
service whereas delayed account settlement or credit facilities are positive service elements,
both of which affect true price levels.
Whatever service element is added there is no such thing as "free service “and the suppliers'
decision will be whether to incorporate this element in the product price or to price
separately as an option. For the supplier the service must be cost effective.

PROMOTION—the various aspects of C.S. can be in the form of promotional guarantee or
sales support activities. A crucial element here may be the conduct of sales or other staff
who present a superior feature of the firm's offer not easily or readily duplicated by
competitors and who Contribute to the corporate image of the organization.
PLACE—traditionally this bas been the focus of attention for C.S.particularly in industrial
markets or with intermediaries to reflect features such as delivery time, availability,
rehabilitee of delivery etc. The importance of C.S. depends on how you define it and will vary
by the type of product and market. If, for example, C.S. is part of the physical distribution
system a list (Schary 1983) can be drawn up containing features such as:
 time between shipment and receipt of order
 minimum order size and assortment limits
 "o out of stock at any one time
 proportion of customers' orders filled accurately
 % of orders served within a certain dme
 % filled immediately on receipt of order
 proportion of goods arriving undamaged
 elapsed time between order and delivery
This approach is however a production oriented way of tackling C.S. The true value of each
element has to be assessed by how important it is to the customer and the relative weight to
attach to each. To compound the problem customers' views are rarely the same.
Comparethe following things
Items of Customer Service In order of Importance.
Product availability Delivery reliability

Prompt quotation Promotional activity
Representation T technical advice
Order status Discounts
Distribution system After Sales Service
Delivery time Representation
Pricing Ease of contact Replacement guarantee
Product positioning Wide range
Invoice accuracy Pattern design
New product introductions Credit
Advertising
Interestingly, with the exception of those factors marked with most of these items are out
with physical distribution although those that are a part are high on the rating list.
THE IMPORTANCE OF CUSTOMER SERVICE

The difficulty with a wider description (rather than a definition} of C.S. is that the differences
between C.S. and marketing become less clear. In deed the danger from this, as pointed out
elsewhere, {Baker 1985) is that they are two aspects of the same concept. Marketing being
used in the wider sense as the management function which matches the assets of the
enterprise to its markets at a profit and customer service as the operational implementation
of the marketing
concept by matching or allocating specific resources to customers in a cost effective way.
Marketing aims at target markets, customer service at the individual. The harsh realities. of
economic recession in the eighties has re-directed attention to the basic functions of an
enterprise in getting and keeping customers within cost restraints and therefore growth
strategies have to be
tempered by other more pressing priorities, namely sourcing, processing, and satisfying
individual orders. Strategic decisions taken by a company on its current and future
product/market position are crucial for long run survival but management must also concern
itself with the exigencies of day-to-day trading conditions. C.S. contributes to the corporate
well-being without usurping the marketing concept. Indeed it is a missing element in the
marketing management mix Certainly, C.S. cannot be restricted to the product itself although
often with high cost, technically complex physical products C.S. does take on added
significance (Bleul and Bender, 1980). Other more service-related suppliers such as British
Rail and British Airways are finding the C.S. element not only enhances profitability but has
positive effects on customer satisfaction and therefore corporate image by reducing friction
at the customer/supplier interface .The importance of customer service is further enhanced
by dint of its uniqueness. That is, where product, price, place and promotional programmers
offer no lasting advantage or are readily imitated, C.S. may not be so easily duplicated nor so
short-lived. This is achieved by protecting
the customer base, by enhancing the salability of the product and generating income as a
separate benefit. C.S. should be product, company and customer specific and the only true
measure of the importance of C.S.is that expressed by customers themselves (Sabath 1975).
For the supplier its importance will also be affected by its potential. In this respect the costs
associated with C.S. activities are relatively easy to assess but the revenue accruing benefits
very difficult. Service involves the human element and is less standard and uniform in its
application than for example product performance or price.
THE MANAGEMENT OF CUSTOMER SERVICE

One of the tasks of marketing management is therefore to take a systematic; research based
and planned approach to C.S. in the same way as any other business activity such as product
development or promotional campaigns. This pro-active approach is a reflection of the
marketing concept in practice and might be considered the classic customer-oriented
method of dealing with a crucial element of marketing management, (see Fig. 1).Certain
benefits of this process should now become apparent. First, it is market-research based.
Secondly, it should incorporate flexibility between departments in the organization and
between different customers or groups of customers. Thirdly, ii takes account of the

costs/benefits of C.S.programmes and shows the inter-related nature of this process
between
Stage 1 Establish corporate and marketing strategy.
Stage 2 Assess customers' purchase decisions.
Stage 3 Define the specific elements of customer
Stage 4 Design and implement the C.S. package.
Stage 5 Cost these proposals using minimum maximum levels, trade-off analyses or
Other techniques. Evaluate the economic significance to customer and to the
firm
Stage 6 Assess performance vis a vis competitors.
Stage 7 Promote the C.S. package.
Stage 8 Evaluate and modify, including performance against standards set and
Variance
FIGURE 1
Stages in the process of managing Customer service.

External and internal requirements. The reader may recognize a more formal expression of
this process in the customer service audit (see Lambert and Lewis 1983, for example).
Examples of external assessment might include:
1. What is service as perceived by customers?
2. How important is C.S. vs. product or price?
3 How important is product C.S. vs. price C.S.?
One of the problems of the outcome of this process may be the plethora of factors which
emerge. Levy (1981) found 71 examples of such measures; Christopher (1979, 1985) lists 23
measures from an earlier study and reduces these to a list of 6 important factors. The choice
of which factors to service should not be set arbitrarily but must be customer-based taking
cognizance that some elements are important to some customers, not to others. Not all
customers need or expect high service levels. Such a process also reveals the relative
importance of customer service as
a separate element in the marketing mix and the organizational implications for the firm.
Further, such is the power of C.S. applied in the appropriate context that it can be used as a
basis for segmentation by identifying:
(a) If customer needs differ;
(b) If service requirements vary in proportion to the size of order;
(c) What is the cost of services provided?
(d) Should all buyers receive all services at the same level?
In some cases it may be appropriate to price the service element entirely separately from the
physical product. Whatever the outcome of these deliberations, three questions need to be
Asked:
1. Has the firm the resources to increase investment in customer service
And will such investment yield a competitive advantage?
2. What procedure will be most effective for developing a potentially
Beneficial C.S. package?

3. Which methods of evaluation should be established to assess actual net benefit to the
company? The C.S. package prior to full-scale Introduction? It is a board level
responsibility
to express C.S. as part of a firm's strategic Objectives. In practice C.S. must also permeate
all
functions and personnel within the company, not just one department.
THE BENEFITS OF MANAGING CUSTOMER SERVICE

A pro-active approach to C.S. yields mutually satisfying benefits for the company and its
customers. Specifically for the company these benefits might include greater existing
customer loyalty and inertia, attracting new business by reputation or word-of-mouth, the
ability to charge a premium price or at worst reducing vulnerability to low price competition.
For the
Customer, the risk of making the wrong purchase decision is reduced. At the same time
greater product satisfaction should result arising from the advice and guarantees offered by
suppliers.
Hartley shows how this problem can remain hidden in the short run because the number of
customers lost may be compensated by new customer’s growth markets
CONCLUSION
CS. means different things to different people. There is therefore a need for a clear definition
of CS. in relation to the operations of an enterprise which inevitably will be product/market
specific. New theoretical constructs are required to establish the C.S. role in the marketing
mix and a great deal more empirical research to evaluate its importance as a resource and to
measure its effect on marketing performance.

References
Kotler Philip. 2005, Marketing Management, New Delhi, India Pearson publication
Baker, M. J. (1985), Marketing Strategy and Management, London, Macmillan, p. 344.
Banting, P. G. (1976), "Customer service in industrial marketing: a comparative study^",
European Journal of Marketing, 10(3), p. 140.
Bleul, W. H. and Bender, H. E. (1980), Product Service Planning: Service j Marketing!
Engineering
Christopher, M., Shary, P. and Skjott-Larsen, T. (1979), Customer Service and Distribution
Strategy, London, .Associated Business Press.
Christopher, M. (1984), "Improving the quality of service". International Journal of Quality
and
Reliability Marketing, 1(3), pp. 62-69.
Christopher, M. (1985), Tke Strategy of Distribution Management, London, Gower Press.
Cunningham, M. T. and Roberts, D. A. (1974), "The role of customer service in industrial”

SERVICE BRAND A JOURNEY FROM WOW TO RELIABILITY TO LONG LASTING
RELATIONSHIPS
Submitted By
Prof. Swati Bisht

Assistant Professor and Head PGDM,
Institute of Management Studies, Makkawala Greens,
Mussoorie Diversion Road , Dehradun Uttarakhand
Email: swatibisht@gmail.com , hodpgdm@ims.edu.in
Abstract:
‘One can never get a second chance to make the first impression’
Anonymous
The above statement is true for pure services for they can never be truly replicated
in identical. A strong brand is the basis for success of all companies especially a pure
service company. Brands do not get built overnight and when it comes to services, a
whole lot of factors contribute to the overall brand name apart from just the
physical component (like in products). It is normally said that companies cannot
make all their customers happy .In pure services it is humans who serve humans
and therefore customer satisfaction is always a relative term. Customers perceive
the same service and the same service provider differently depending on their
mood and attitude and also to a great extent depending on the mood and attitude
of the service provider. Keeping mood and attitude aside, there is one factor that
rules the heart and mind of the customer and that is reliability of the service
provider. There should definitely no scope for the word sorry in the dictionary of the
service provider and the ones who keep a scope for this word may get prepared to
lose their customers forever. It does not just end with losing customers but also
leaves enough room for the dissatisfied customers who encountered a service
failure to spread negative word of mouth to the other potential customers allowing
the business to loose revenue and dilute its brand name. Service branding is all
about communicating experiences. It is about to a strong service orientation,
employee orientation and a penchant for the extraordinary. Developing service
leadership will become the key to developing service excellence and retaining
customers for a life time.
Key Words: Word of Mouth publicity , Unique emotional Value, perceived service
quality, service profit chain, customer expectations ,WOW factor, customer
retention, employee satisfaction
Introduction:
It is said that a customer will be satisfied if there is no gap between what the service
provider promises and what the customer receives. Every customer wants value for
money in all terms .Value which is a subjective term may encompass the strength &
positioning of the brand, promise fulfilment capability, quality service, timely

delivery, reliable delivery and a lot more. Each customer may give his own definition
to the term value. The less tangible the service is the greater the importance of the
“corporate brand” emphasis. A familiar and trustworthy name seems therefore
essential to reduce the level of risk perceived by the customer in acquiring the
service.Apart from the other tangibles it is the service provider i.e the employee
delivering the service who helps the customer shape his perception about the
quality of the service delivered. In the simplest case, employee behaviours influence
customer responses.Research has shown that high overall service quality leads to
enhanced customer satisfaction and improved customer retention.
Employees shape customer’s experience

As Jim Collins said, “The old adage, ‘People are the most important asset’ is wrong.
The right people are your most important asset.’ Wrong employee at the right
position may result in poor service delivery and hence make the retention of both
the employee and the customer difficult. A right employee at the wrong place may
feel frustrated sooner or later.
Employee behaviours influence customer responses, which in turn, further

influence employee attitudes and behaviours. For example, an employee who has a
positive “customer-oriented” or a simple ‘Yes I Can’ attitude might act in ways that
satisfy the customer and make him happy. Negative attitude in employees may
result in negative behaviour and a poor service encounter with the customer. The
customer’s positive reactions (“thank you”, a smile or a simple cheerful disposition)
are likely to reinforce positive attitude, or the lack of a positive reaction from the
customer could negatively influence this employee’s attitude. Imagine a customer
who treats the employee as a ‘purchased property’ may display an unruly behaviour
towards the employee . Organization should respect the self esteem of its
employees and should not encourage them to keep the customers happy after
compromising on their self esteem. Such employees will not be happy for a long
time. This will definitely not give positive vibes to the service employee and the
employee may also not ooze very positive vibes though will still try and wear an
artificial smile on the face. Therefore it is all about reciprocation. In most cases,
barring some exception cases one gets back what one gives.
But since in services we consider customers as Kings and Queens , the organizations
have to keep their employees happy and motivated to make the employees deliver
the best. It is important for the employee to keep the customer happy and in a good
mood. Best quality service will be ridiculed by the customer if the employee has
spoilt his mood.
Employee Satisfaction key to Customer Satisfaction:

A happy employee may do everything to make a customer happy.
There is a strong co-relation between profit, customer loyalty, customer satisfaction

and employee satisfaction, employee productivity and loyalty.
Both common sense and research (e.g. Rafaeli, 1989; Rafaeli & Sutton, 1990) testify,
however, to the fact that customers and employees influence each other’s attitudes
and perceptions.
An employee who is loyal to the service organization will be more productive and
deliver the service in the best way which will result in a happy customer. A happy
satisfied employee will not just wear a happy face but will also carry with him a
positive aura that will make customers happy. Happy customers spread a positive
word of mouth which will eventually lead to more growth and revenue for the
organization.
Service Quality
It is the ability of the service provider to deliver promises Gronroos had identified
two service quality dimensions –functional quality and technical quality. Functional
quality represents the perception of the manner in which the service is delivered it
has more to do with the psychological aspect of the customer.It will be viewed on
an emotional platform.Technical quality, on the other hand represents, the
outcome of the service act or what the customer receives in the end. It is evaluated
on a rational parameter. It is imperative for the service provider to balance
functional and technical quality to deliver optimum quality to the customer so that
the customer can perceive it to be a value oriented delivery.
The customer expectations are a result of the societal and cultural influences that
govern their life. Also the service has to be delivered keeping in mind the service
receiver’s frame of reference. Word of Mouth can shape our expectations. We
always listen to people especially when they are talking about something we are in
need of. For e.g. if a person is in need of education for his children he would listen
to ,hear and over hear all possible conversations on education at common
gatherings and will also like to listen to people who have already experienced that
service .Personal Needs also create expectations. We buy services to fulfill a set of
needs and only when there is a need we have expectations to fulfill those needs.eg.
only when we fall sick we think of a doctor and start expecting from the doctor
otherwise we do not think of a doctor otherwise when we are fit .Past Experience
plays a vital role in shaping our expectations. For eg our previous visit to a resort
that fulfilled our expectation then ,will shape our expectations in the next visit. We
normally expect the same or a higher level of service than the previous level.
Gr ö nroos (p. 37) defined perceived quality as:

… the outcome of an evaluation process *whereby+ the consumer compares his
expectations with the service he perceives he has received, i.e. he puts the
perceived service against the expected service.
It is simply the perception developed by a customer at the time of service delivery

or post service delivery. Services are experiential in nature and a customer can give
his judgment on the basis of certain parameters predominantly after experiencing
it. Quality is judged on the basis of reliability, empathy, assurance, tangibles and
responsiveness. Apart from these dimensions the customer may have his own
parameter for judging the service quality.
One is happy when expectations are met, super happy when expectations are
exceeded and unhappy or angry when they are not met or when we receive services
below or much below of what we expected.
Customer Expectations are also shaped by Brand name and the price one pays to
acquire the service. The higher the standing of the brand ,the greater will be the
expectations from the brand. Also higher the price paid by the customer to acquire
the service higher will be the expectations. Higher the acquisition price, lower will
be the risk associated to it by the customer. This could be especially true with
medical services. Expensive services are perceived to be less risky compared to less
expensive services. Apart from this, customer satisfaction is expected to result in
important customer outcomes such as the belief that they received good value for
their money, future customer loyalty (e.g. repeat business), and in customers
recommending the firm to others (word of mouth).
The customer is right even when he is wrong, the service organizations can’t just
control his way of thinking and what he will say to the rest of the world when he
leaves the service premise. It is not very easy to mould their thought process
positively towards the provider but the provider can alteast ensure that the
customer goes out of the premise with a positive frame of mind. For this a regular
indirect monitoring of the employees by the management is required and loop
holes should be identified. Quality has to be reviewed and inspected at every stage.
A recent quote on quality by a senior management level person of a service
organization reads ‘You get what you inspect, not what you expect for you need to
check and review at every stage to ensure that quality is upto the requirements of
the service organization’

PERCEIVED SERVICE QUALITY
Word of Personal Past
Mouth Needs Experience
Service
Quality Expected Service Quality Assessment
service
Dimensions 1. Expectations exceeded
Reliability ES<PS (Quality surprise)
Perceived
Responsiveness service 2. Expectations met
Assurance ES~PS (Satisfactory quality)
Empathy 3. Expectations not met
Tangibles ES>PS (Unacceptable quality)
Measuring Service Quality:
Services are ‘ intangible ’ i.e. they cannot be touched, seen, tasted, heard, or
smelled before purchase. Lack of trial means higher consumer risk because services
as performances are difficult to assess before a purchase; moreover, consumers’
perceptions of service quality are not only influenced by objective performance but
also by other intangible components of the service experience. Pure services have
to be customized according to the need to the customers and since no two
individuals are the same, no two service encounters between the same set of
customer-service provider will exactly be the same.
Service quality dimensions:
Five dimensions of service quality as defined by Parasuraman are as

follows:(Parasuraman et al., 1988):
1) Reliability: Reliability is the ability of the service provider to perform the said task
efficiently, accurately and without a mistake the first time. Imagine one goes to a
dentist and after a dental treatment the dentist informs the customer that by
mistake the tooth that had decayed and was meant to be extracted could not get
extracted but the one which was next to it got extracted by mistake. You as a
customer do not realise it for you were already under the spell of injected

numbness. A sorry cannot replace the loss neither can a complaint on a legislative
forum replace the loss with any substantial gain. But what the dentist lost is not just
one customer but probably a lot a potential customers through negative word of
mouth from one dissatisfied customer. Services cannot be replaced. There is always
a risk involved in service delivery and customers perceive high level of risk in service
delivery compared to product delivery. Reliability is the ruling factor in the mind of
the customer before taking a decision on service provider .No customer would like
to invest money on a service provider who has a past record of service failures.
2) Assurance: ‘The eyes say it all’. An assurance that you are in safe hands can be
extremely soothing and comforting. It is simply the ability to convey trust and
confidence to the customer. Assurance comes through people, brand name and
reputation. Reputation takes years to build. For e.g. AIIMS Hospital in New Delhi
over the years has assured its customers and instilled enough trust and confidence
in the customers both present and potential.
3) Tangibles: appearance of physical facilities; equipment, personnel, and written
materials in short a combination of Physical facilities and facilitating goods. The
buildings, the furniture the paint in the building to the surrounding facility can make
the service a memorable one. Cheerful looking buildings furniture, curtains and
color on the walls can all uplift the spirit of the customers. The first impression can
be a long lasting one but surely has to be complimented with a good service
experience. Consumers rely on tangible cues to draw quality inferences since
services are predominantly intangible.
4) Empathy: ‘Put yourself in the shoes of your customer and only then will you
understand what they want and expect’ .The service provider has to be
approachable and should empathize. A non empathizing approach at the service
provider’s end may lead to losing customers. Pure Services need a human touch and
this touch can touch the heart and mind of the customer and leave the customer
happy.
5) Responsiveness: willingness to help customers and provide prompt service.
Something to do with the speed at which the service is delivered .Every customer
has his level of expectations with respect to speed from the service provider .If the
service provider makes him wait beyond a specific point it may irritate the
customer. Service which is delivered before the expected time will be perceived
more positively than the one which is delivered late beyond the expected time
period.

The WOW Expression:
An expression by the customer expressed the moment he enters a service premise
A factor that rules the mind and senses of customers for a long time and helps
shape his perceptions of service quality. It is an expression of surprise ,happiness
and ecstasy the moment the service provider sees the service provider’s physical
facility, its surroundings or even tangible component like advertisements and
banners. A normal expression which does not come when the provider finds a
dilapidated service organization building , half painted walls ,or when one would
sees a facility which is almost ready to fall off but is an expression which comes out
after witnessing magnificence in the building, a unique innovation ,a technology
which is different or vibrant colours on walls, furniture, nice fragrances around and
serene ,picturesque environment that simply will make the customer smile and say
WOW. A WOW simply means the impression has been a good one. But his WOW
what a look may work for long only when it is complemented with the WOW what
an experience that comes after the service has been experienced i.e. after the
delivery of the service. The WOW factor is the factor that comes into picture even
before the service has been practically delivered and experienced.
WOW what a look expression + WOW what an experience =

WOW what a Service

Service Profit Chain
Internal External
Operating strategy and Service Service concept
Delivery System Target market
Loyalty system
service delivery
Customers REVENUE
Satisfaction GROWTH
Productivity
&Output Service
Employees Satisfaction Loyalty
quality
Capability value
Profitability
Service
quality
The service profit chain reveals how the right person at the right place through the
right training program and motivation tools will add to the service value and this
value will create satisfied customers. More the number of service encounters that
satisfy customers higher the probability of creating loyal customers. Loyal
customers will spread a positive word of mouth about the service provider. This will
mean a larger customer base for the service provider and hence more revenue and
profitability for the provider.
Ahmed and Rafi and Manville and Ober said an increase in satisfaction levels of
employees translates into higher perceived service quality and value for external
customers. This will further help retain trust and commitment among customers by
significantly impacting the customer defect rate (which will expectedly come down),
create loyalty and positively affect the profitability of the organization.
Internal service encounters between employers and employees must be effective

before a firm can successfully compete in the external market. Employee grievance
should be redressed on time. If it gets delayed this may frustrate the employee who
will take this frustration out on the end customer. Internal marketing should
therefore be implemented strategically. Internal marketing is generally considered
to be the application of marketing-like tools to the employee market (which is
internal to a service organization) to support and promote customer consciousness

and sales-mindedness; to create, at least, a stable workforce committed to
customer service and to see employees as customers indeed. It is wooing the
employees like wooing the external customers.
Since services are risk propositions, a customer would not like to take chance again
and again. Rather if the service provider is satisfactory, the customer will continue
to stay with him rather changing for a new or different service provider. In services,
a known devil could be better than an unknown saint.
Customer Retention (Long Lasting Relationships):

The foundation for true loyalty lies in customer satisfaction which comes when the
customer gets service quality required. Highly satisfied or even delighted customers
are more likely to become loyal brand ambassadors of a firm, consolidate and
substantiate their buying with one service provider, and spread positive word of
mouth. Dissatisfaction, in contrast, drive customers away and is a key factor in
switching behavior. Switching factor is common in the advertising agency business
where account transfer is seen with the transfer of employees at different levels
from one agency to the other. Though switching over from one service provider to
the other is not an easy task, dissatisfaction of any kind may facilitate this.
Service Brand Image

Service Brand Image is defined as the image an employee or a customer carries in
his mind about the service provider. A brand image can be defined on the basis of
the brand personality it possesses. Brand personality is a set of human
characteristics associated with a brand (Aaker 1997, p. 347). It must have five core
dimensions of sincerity, excitement, competence, sophistication, and ruggedness.
Brands of today should not just have a Unique Selling Proposition but also should
have a Unique Emotional Value (UEV). Emotions rule people knowingly or
unknowingly .Any service brand that touches people emotionally can position itself
strongly in their mind. Unique emotional Value is the emotional connect an
individual has with a brand. Emotional connect of the brand with its target decides
the fate of the brand vis-à-vis its positioning and length of the stay in the mind of
the customer and the market eventually.
Every marketer should understand before building a marketing plan for the service
that customers will react according to their need state not according to the
marketer’s need state. Brand Building which takes place through a regular and
uniform promotional communication mix elements therefore should address both
USP and UEV to ensure its strong presence in the market. Communication mix
elements important to establishing the service brand are advertising, publicity and
personal selling. Personal selling is of importance in the financial service sector.
These elements can complement the overall brand image but the most important
component of this image formation will be word of mouth publicity. Since services

are experiences, word of mouth publicity will help in making the service brand
image more believable.
Every customer is equally important to a service organization can act as a source of
word of mouth publicity. Word of mouth publicity will be spread by people who
have experienced the service and in services, experiences speak more than
advertisements. Positive word of mouth will help increase the brand equity whereas
negative word of mouth will dilute the image .
How to Deliver a Strong Consistent Service Image:

1. Right Employee at the right position doing the right job at the right time.
2. Regular feedbacks from the Internal Customers i.e. employees of the
organization: Employees are directly dealing with customers and may understand
customers better than Management who sits in cabins and rarely interacts with the
end customer. The feedback of the employees should therefore be also taken into
account before taking a decision (This way the employees will feel happy and next
time every other employees will also try and give their constructive feedback on
external customers)
3. Employee Grievances handled on time: If employees are aggrieved, their
grieviance should be addressed immediately to ensure high motivation levels. It is
the ‘employee’who is the organization for the customers and not the management.
An employee is that interface that connects the customer with the
organization.Therefore it is important to keep them motivated so that an overall
good image of the organization goes to the other world.
4. Employee centric and employee customized training programs: Each employee is
differently skilled and therefore will have different training needs. It is therefore
important to customize training programs according to the specific employee need.
This customization should start with need assessment of the employees.
5. Use Motivators to ensure self motivation amongst employee: Both intrinsic and
extrinsic motivators will be required to motivate the employees from time to time.
Employees at all levels need encouragement to keep morale high and deliver
excellence.
6. Deliver what was promised (or give more than what was promised) to both
employees and customers: this will encourage a positive word of mouth within the
employee and customer fraternity.
7. Develop a clear understanding of the service concept amongst all employees at
all levels: Any employee at any level can make the service a memorable one or even
make it a disaster. All employees are directly or indirectly involved the process of
service delivery. For eg a gatekeeper if he is rude and does not show enough
respect towards the customer entering a service premise may leave a negative
image in the mind of the customer.
8. Evolve Uniformity in all ways of communicating: Advertising and publicity on
hand and employees through personal selling on the other should convey a uniform

message about the service. Also every employee should also understand the vision
,mission ,culture and values of the organization he is representing.
9. Take regular feedbacks customers: This could be closed box feedbacks where a
customer can drop suggestions, expressions or criticism in a box. Any complaint
should be redressed and the customer be finally be informed about the redress.
10. Employees should be taught to customize requests of the customers:
customization means empathizing with the requirements of the customer and
tailoring the service accordingly .For e.g. Starbucks’ employees are encouraged to
learn their regular customers’ preferences and customize their service accordingly.
11. Encourage personal touch: A personal touch by the service provider goes a long
way. Customers feel bonded with the service employees and not the buildings.
Remembering customer names, their preferences will lead to customer delight.
Who doesn’t like to be given importance .This is simply giving the customer the
importance that will surprise him and make him feel bonded with the organization.
12. Database Marketing: Remembering customer on his special days will again give a
special touch to the customer. Many large hotel chains capture the preferences of
their customers through their loyalty program databases, feedback forms so that
when customers arrive at their hotel, they find that their individual needs have
already been anticipated and taken care of, from preferred drinks to preferred
rooms, the preferred room view, preferred fragrances to the kind of pillow and
bedsheet they like and the newspaper & magazine they want to receive in the
morning. Giving special offers on birthdays and anniversaries is another way of
saying ‘We Care’.
Conclusion:
Services are acts and performances that cannot be evaluated objectively. Evaluation
of services depends on the mood of the service provider and the service receiver
both. A service delivered in a perfect fashion by a happy employee will still not be
perceived by the customer as good if the mood of the customer is not good. But an
averagely delivered service can also be evaluated as excellent if the mood of the
receiver is good. Companies should train their employees from time to time and
keep them motivated so that they deliver excellence and value to the customer.
This will lead to the customer satisfaction and motivate the customer to spread a
positive word of mouth. Positive word of mouth is the biggest form of publicity and
promotion for a service organization. In the growing cut throat competition where it
is time for the survival of the fittest; the organizations need to compete for almost
the same set of customers. The company that will focus on customer consciousness
and sales mindedness and the ones that will stay focussed and create customer
loyalty will succeed. In a service organization every employee at all levels is equally
important and every service encounter is equally important for no service
organization can get a second chance to create that first impression.
References:

1) Ahmed , P . and Rafi q , M . ( 2003 ) Internal marketing issues and challenges .
European Journal of Marketing 37 (9) : 1177 – 1186 .
2) Appiah-Adu , K . and Blankson , C . ( 1998 ) Business strategy, organisational
culture, and market orientation . Thunderbird International Business Review 40 (3)
: 235 – 256
3) Anderson , J . and Narus , J . ( 1998 ) Business marketing: Understand what
customers value . Harvard Business Review 76 : 53 – 65
4) Ballantyne , D . ( 2000 ) The Strengths and Weaknesses of Internal Marketing . In:
R.J. Varey and B.R. Lewis (eds.) Internal Marketing: Directions for Management .
London: Routledge , pp. 43 – 60 .
5) Berry, L.L., & Parasuraman, A. (1994). Marketing services: Competing through
quality. New York: Free Press.
6) Gronroos , C . ( 1982 ) An applied service marketing theory .European Journal of
Marketing 16 : 30 – 41
7) Hales , C . and Mecrate-Butcher , J . ( 1994 ) Internal marketing and human
resource management in hotel consortia . International Journal of Hospitality
Management 13 (4) : 313 – 326 .
8) Manville , B . and Ober , J . ( 2003 ) Beyond empowerment: Building a company of
citizens . Harvard Business Review 81 (1) : 48 – 53 .
9) Parasuraman , A . , Zeithmal , V . and Berry , L . ( 1988 ) SERVQUAL: A multiple
item scale for measuring customer perceptions of service quality . Journal of
Retailing 64 (1): 12 – 40 .

A Study of Brand Awareness and Brand Loyalty of Consumer
Submitted by
Dr. Keyur M Nayak

Assistant Professor
Laxmi Institute of Management
Sarigam
E-mail: keyurdhuya@gmail.com
ABSTRACT
The focus of this paper is to study brand awareness and brand loyalty of consumer belong to the
fast moving consumable goods in the buyers market. This paper presents a strategic framework
for building strong brands in FMCG products and providing various strategies to increase
awareness and loyalty of the customer. It aims to study whether consumers can differentiate
between brands or not and clearly measures the brand loyalty across product categories in
FMCG products common to both genders and are used from morning to evening and also for
individual brands. Based on the outcome, certain conclusions that the marketer faces in the
intense competitive market are portrayed at the end. A primary data collection has been done
to test the market on the above parameters specified and thereby results are solely interpreted
on the survey.
Keywords: Brand loyalty, Brand awareness, Competitive market, Individual brands, Strong
brands, FMCG-Fast Moving Consumer Goods
Introduction
Branding is more than simply putting the company’s name on a product and advertising the
name to its target customers. Branding is a multidimensional construct which includes not only
how the customers view the basic physical product but also the distribution, quality, purity,
package, company image and brand image. The success of the commodity brands mainly
depends on the brand strategy based on effective use of product, price, place and promotional
tools to retain the customers. The growing competition makes customer loyalty mandatory for
any organization.
Literature Review
The most cited conceptual definition of brand loyalty comes from Jacoby and Chestnut (1978, p.
80)i “The biased, behavioral response, expressed over time, by some decision-making unit, with
respect to one or more alternative brands out of a set of such brands, and is a function of
psychological (decision-making, evaluative) processes.” Brand loyal consumers are less price
sensitive.ii. Selling to brand loyal customers is far less costly than converting new customers.iii
The benefits of making customers loyal are building a strong market share, making higher

profits, providing a greater resistance against brands of the competitors and reducing the
marketing costs. Customer satisfaction is one of the factors for bringing about loyalty, but not
always the main one. Dissatisfaction guarantees switching, but satisfaction does not always
promise loyalty.
Methodology
The survey method was used to evaluate brand awareness and brand loyalty of consumers in
buyers market. Primary Data were collected from the respondents using a questionnaire in the
city of Valsad. Chi Square Test and Percentage were also used for analysis as statistical tools.
Objectives
1. The objective of this research is to know the consumer’s awareness and loyalty.
2. It also aims to examine whether there is a switching/shifting brand behavior exhibited.
Significance of the study
The study results will be of a great help to the marketers, customers and manufacturer of
various products. It will also be useful to the students of marketing management.
Limitations
The project is restricted to FMCG sector, essentially taking the products that both genders use
in a ‘normal day’ life. Packaged food and apparels have not been taken into account as they are
not suitable either to the sample.
Sources of data The source of data for arriving at a conclusion is primary data. The primary data
has been collected from the respondents in city of valsad.
Data Collection Data has been collected by using a questionnaire and the interactions with the
respondents were personal to avoid any ‘misconception’ of the questionnaire.
Sampling method The sampling method adopted was Convenient Sampling.
Sampling size & plan: The sample size is 175 of which 84 are men and 91 women. The sample
plan distribution is presented in table 1 and 2 at the end.
Hypothesis
1. There is no significant difference between the loyalty of two genders.

2. There is no significant difference between the loyalty of two income groups.
3. There is no significant difference between age groups.
Findings of the survey
Brand awareness and brand loyalty of consumers
The total sample is aware of a minimum of 06 brands to a maximum of 15 brands depending

upon the product category. The outcome of the survey clearly indicates that consumers are
aware of a number of brands in the respective product category.

A Chi square test was run and null hypothesis was rejected and hence it may be concluded that
gender plays a crucial role in loyalty.
A Chi Square test was run and null hypothesis was rejected. Hence it may be concluded that
income plays significant role in loyalty. In other words
Two age groups were arrived at-(20-40) and adults (41-60). A Chi Square test was run and null
hypothesis was rejected and hence it may be concluded that age also plays a significant role in
loyalty.
Sources of awareness
69% of the consumers got awareness about their brand through television and 11% got
awareness from print media, 14% of the customers got awareness from television
advertisements and 06% got awareness from relatives and friends.
Reasons for switching behavior
The following table lists the reasons for the switching behaviour which in itself is not significant
(14%) as compared to the loyalty. The reasons are given as percentage of total number of
switchers in each product category.
The primary reasons for variety seeking behaviour as found from the survey are for the want of
a change’, non-availability, offers or price and quality. Of the four factors, it may be further
noted that consumers are switching brands more for the non-availability and for a change
rather than for any offers or for a lower price. Quality also does not seem to be a relatively
important factor.
Conclusions
 Consumers are fewer brands loyal.

 Multi- brand loyalty has not played any significant role.
 Loyalty varies for gender, for income groups and age group.
 It is hard to influence loyalty by promotions or offers.
 Price cuts or promotional offers cannot attract the loyal customers.
 The search for new markets or new products is the need of the hour since penetration
of competitor’s share is very difficult.
 Distribution should be strengthened and products made available.
 Television advertisement is the major source for awareness while posters, print media
and friend and relatives were least preferred as the sources of awareness.

Suggestions
Keeping in the view of the above buying behavior, the following strategies are recommended to
the marketers to build strong brand awareness and brand loyalty.
As health and convenience continue to be key themes for customers, food and beverage
products that support healthy diets are getting the patronage of the customers. So marketers
can capitalize this growing concern of sound health among customers. They can also highlight
ISI and ISO certifications on the package which confirm the quality of the brand. The price
should be adequate as compared to the price of our competitors.
 Factors which enhance the quality like purity, the method of processing etc. must be
highlighted in communicating to the customers.
 Marketers can also obtain feedback on a regular basis to modify the branding strategies
as per the customer need.
Display allowances and display contests may be used as dealer-related sales promotional tools
to increase the visibility of the brand among shoppers.
References:
1 Jacoby, J. and R.W. Chestnut (1978). Brand Loyalty: Measurement and Management
, John Wiley and Sons, New York,
80.
2 Krishnamurthi, L. and S.P. Raj (1991). “An Empirical Analysis of the Relationship between Brand Loyalty and Customers Price Elasticity,”
Marketing Science, 10, 2, 72-183.
3 Reichheld, Frederick (1966). The Loyalty Effect. Boston, MA: Harvard Business School Press. Rosenberg, L.J. and J.A. Czepi el (1983). “A
Marketing Approach to Customer Retention,” Journal of Consumer Marketing, 2, 45-51.
Table 1 Age –wise classification of respondents
Sample
Size
Sample – Target
Age Group 20 to 40 100
Age Group 41 to 60 75

Table 2 Income wise classification of respondents
Income No of respondents
Less than 50,000 27
50,001-1,00,000 33
1,00,001-2,00,000 63
2,00,001-3,00,000 and above. 52
Total 175
Table 3 Reasons (in percent) for switching brands
Product Category Not Available Offer/ Price For a Quality

Change
Toothpaste 32 % 28 % 30% 04 %
Toothbrush 06 % Nil 59 % 12 %
Bathing Soap 49 % 17 % 05 % 21 %
Talcum Powder 27 % Nil 29 % 17 %
Detergent Bar 08 % 15 % 63 % 12%
Detergent Powder 43 % 3%l 46 % 08 %
Hair Oil 23 % 16%l 67 % 06 %
Shampoo 28 % 27 % 10% 30 %
Deodorant 70 % Nil 20% 20 %
Health Drink 22% 77 % 12 % 10%
Average Percent 30% 16 % 34 % 14 %

WIN-WIN CUSTOMERS THROUGH LOYALTY PROGRAM
Submitted by
Prof. Vijay Dhole

MPM, DLL, PGTT, DHMCT, BHTM
Research Student ( Tilak Maharashtra Vidhypeeth)
Sinhgad Institute Of Business Administration Kondhwa Pune.
E-mail- vijay_dhole2000@yahoo.com
Prof. Ram Chavan

ram_chavhan@rediff.com
Abstract:
In today's highly competitive market, retaining the customers and converting them into repeat
buyers is a challenge for the company. In this context, many companies have introduced
different loyalty programs to retain their customers, as well as attracting new customers. This
research paper discusses how loyalty programs can really benefit customers and convert them
from trial buyers into repeat buyers.
Customer loyalty is a win-win situation for customers as well as organizations. Loyalty is the
mantra through which organizations make a strong positioning in the hearts and minds of the
customers. A well-planned loyalty program creates a bond between customers and
organizations. So customers need to be kept always on the top in all strategic planning because
irrespective of the management, infrastructure etc. at the end the customer is the king.
Keywords: Customer Loyalty, Organizations, Loyalty program, delighted Customers
WIN-WIN CUSTOMERS THROUGH LOYALTY PROGRAM

Modern marketing scenario, with its new technological developments, changing customer
preferences and intense competition, demands developing strong customer relationship in
order to have a long-term customer lifespan which in turn, results in a firm's long-term
profitability. Traditional marketers give importance to customer loyalty and hold the concept
that customers who are brand loyal tend to spend more on the brand; will bring in more
business by word-of-mouth by being the goodwill ambassadors.
Customer loyalty is about the retaining customers. The late management guru Peter Drucker
said, "Customers are profitable only from the second year” this is because in the first year, the
company spends a lot of money to attract the potential customers and convert into customers.
So retaining customers means more and more revenue. Various other researches also suggest
that companies need to focus more on customer retention than grabbing new customers. And
it is indeed more difficult retaining a customer than getting a new one.

The customer loyalty programs in the recent years are not getting the results as they used to in
the past. The new age marketing calls for customer retention than acquiring new customers as
cost of acquiring customers has become 5-10 times higher than retaining the existing ones.
Brand loyalty of customer ensures their long-term relationship with the brand and elicits repeat
purchases besides leading to new references for increasing the customer base of the company.
But managing the highly changing customer needs with their access to the new avenues of
purchase experience has proved to be a Herculean task for the present day marketers. The
Getting a new customer is comparatively easier than to retain an old customer. Any
organization earns profit in the real sense only from repeat business. Therefore, retention of
the customer is very important. Creating a loyal customer is a long process. The organization
has to understand the customer and the factors that drive the customer. The starting point is
always customers and their data. There are multiple sources throughout the organizations from
where data can be collected. Organizations need to explore all these sources. These are various
customer touch points that organizations need to understand. Such touch points are existing
customer database, website interaction, kiosks, mobile hand-held activity, market surveys, POP
display, etc. Through all these touch points, data pertaining to customers can be collected, their
buying behavior and accurate profiling of the same can be done. Only then is it possible for the
organizations to target and position the customers with accuracy.
A comprehensive analysis of customers based on collected data will allow organizations to
prioritize their needs, determine the customer behavior required to meet those needs, classify
the customers in different segments like high value, high growth, etc. These will lead the
organizations to use behavioral motivators that will attract customers. Here, the most critical
point is what value organizations deliver and this particular aspect can make or break a
successful loyalty program. Always, loyalty program should be based on customers'
preferences.
Traditionally, a loyalty program focuses primarily on five goals. These are:

• Enrollment: Attracting more and more customers.
• Customer Activation: Keep the customers always delighted and ensure repeat purchase.
• Customer Retention: Transition of first-time customer to a loyal customer.
• Maximize Wallet Share of Customer: More benefits to the customer apart from delivering
good value products/services, lot of other gifts/rewards, etc.
• Customer Reactivation: Activate the sleeping customers and bring them to the organizations.
Through all these measures the main aim is the same invest in customers, build strong
relationship, and get revenue back to the organizations.
To completely capture customers' loyalty and convert it into growth in revenue and
profitability, the following points are to be kept in mind:
• Any organization can start a loyalty program.

• The loyalty program needs to be simple so that customers can understand it very easily.
• Customers look at the loyalty programs in terms of benefit/rewards they get. And
rewards/benefits can be a combination of soft and hard benefits.
• Organizations can conduct a market survey on the types of benefits/rewards that motivate
customers more and, based on the finding, effective loyalty programs can be designed.
• Any new loyalty program is copied in the very next moment. Therefore, to keep the
customers delighted, innovative loyalty program is to be designed every moment.
• Loyalty program is designed based on the customer's profile in different regions for a
geographically diverse company.
Once a customer joins the loyalty program, the actual process begins. Today, most of the
companies offer some or the other benefit. Whenever any offer/extra benefit is advertised,
customers will purchase the product and once it is stopped, customers also look for other
products with some kind of offer or extra benefits. This dilutes brand loyalty. That is why loyalty
program is a strategic decision and extreme care has to be taken while designing it. It has to be
changed continuously keeping track of the changed customer needs and preferences.
There is a lot of scope for the companies to come out with various innovative schemes. Creating
this relationship is not an easy task. As mentioned earlier, it takes the company to understand
the customer behavior, their buying style, buying process, attitude, etc. Once the organization
is successful in knowing these areas, it becomes easy for it to design strong loyalty programs.
In today's market space, there are many ways to develop customer relationships apart from
meeting them personally. With the advancement of technology and Internet capabilities, there
are now various innovative ways at the disposal of the organizations to interact with their
customer base. Loyalty marketing definitely has reaped benefits out of these advancements.
Marketers now have instant access to data. Results can be obtained real-time. Now more than
ever, organizations have data about the customers in their fingertips. This has dramatically
changed the organizations' strategy as far as customer management is concerned and they are
coming out with innovative marketing efforts every day.
Opinion leaders can do miracles in case of loyalty programs. Word-of- Mouth is a very strong
medium and good loyalty program generates strong awareness through word of mouth
(popularly known as WOM) advertising. Strong WOM can bring new customers to the
organizations without investing much on the marketing expenses. Loyal customers will go out
of the way to use a company's products and services. They become the opinion leaders for the
company and bring new customers as well in the long-run. Generally, customers' attitude is to
save in money as far as loyalty program is concerned. That is the reason why most of the loyalty
programs are money-saving schemes. ‘Enroll today and save as you buy', `Early bird prizes'
these are the most common themes of customer loyalty programs. Nothing attracts more
customers than saving benefits and rewards those customers loyalty programs carry with them.

All types of organizations can offer loyalty programs, whether it is a college, a restaurant, a
casino, a sports team, a theme park, a museum, a zoo, a boutique shop there are dozens of
hard and soft rewards that can be passed along to customers.
Loyalty programs can open up a plethora of options for the customers. It can offer the
customers to avail themselves of the benefits or gather benefits for a bigger bonus in future. A
holiday trip for two in an exotic tourist spot for a specific bonus point may encourage
customers to add up the bonus and avail themselves of the opportunities in future. As the
business has moved on Internet, companies must think of web-enabled loyalty programs like
seeing points, claiming awards, making suggestions, etc. Telephone is another means to make
customers happy. Toll-free numbers are where customers can call up free of cost and get the
details of loyalty programs. Companies use various means to inform the customers about their
offerings, like snail mail, e-mail, SMS.
Pareto's Optimality Theory of 80-20 holds good in the case of business also and 20% customers
who contribute 80% of the companies' business, bring revenue to the company and they need
to be rewarded with some benefits the goal of loyalty programs.
How to Sustain Customer Loyalty
Another challenge for the marketers is to sustain the customer loyalty built by them over the
years. Lifelong customer loyalty is the ultimate objective that a marketer should have in today's
competitive marketplace. The various customer marketing strategies like price cuts and sales
promotions have helped the marketers in building customer loyalty, but they do not seem to
have helped in sustaining them. These activities surely help attract customers in the short run
but it does not elicit lifetime brand loyalty.
Sustaining customer loyalty is more important as it ensures that the customers stay loyal to the
brand for a longer term and pass on the loyalty down the line, to their offspring and relatives as
well. Many studies have shown that customers tend to use certain products as they have been
using it from their childhood and were passed on to them by their parents who were strong
brand loyal. The perfect examples to be cited here are the Pears soap and Johnson's baby soap
that have a large customer base of hard core loyal and have stayed in their customers' families
for many years.
While there are no easy steps for either of these, the need of the hour is for the marketers to
be proactive in their marketing strategies. There are many initiatives coming up in market for
sustaining brand loyalty like Customer Relationship Management and Customer Experience
Management which combines state-of-the-art technologies with proactive business strategies
which enable the organizations to understand their customers' buying decision process and
their experiences which help them formulate state-of-the-art loyalty programs to build and
sustain brand loyalty.
Conclusions:
The optimum blend of the stated factors and the appropriate timing of the strategies is the
current challenge which marketers need to address in an environment where loyalty is slowly
eroding. There are no shortcuts for building customer loyalty and customer retention. They

should be built on value, trust and innovations. Brand quality, benefits and value form are the
core drivers of customer satisfaction; but to have customers delighted and emotionally involved
with a brand requires a proactive understanding of the unstated needs of the customers.
Customers need to be kept always on the top in all strategic planning. Customer Loyalty
programs should be always an integrated marketing approach to win the customers and build
long-term relationships with them. Loyalty programs are an effective way to build and sustain
customer loyalty in today's challenging marketplace.
Bibliography
Books:
 S. Shahajahan, Relationship Marketing, Tata McGraw hill

 Kevin lane Keller, Srategic Brand Management, Second edition, Pearson education
 ICFAI’s Journal, Advertising Express , April 08
Websites:
 www.jimnovo.com, “Customer Loyalty "How To" site teaches techniques”

 www.businesstown.com, “Strategize For Customer Loyalty, Small Business Marketing “
 www.allbusiness.com, “Ten Tips to Build Customer Loyalty”
 www.businessweek.com, “Customer Loyalty: Dos and Don'ts”
 www.thewisemarketer.com, “The Wise Marketer - Customer loyalty, customer
retention”
 www.adamssixsigma.com, “customer satisfaction, customer loyalty, customer
retention”

In film Branding – An Emerging Trend
Submitted by
Prof. Dr. Manohar Keshav Ingale

Dean (Academic Affairs), MIT school Of Management, Kothrud, Pune 411 038.
Email – buvaingale@yahoo.com
Miss Maithili Chandorkar

Student, PGDM Semester IV, MIT School Of Business, Kothrud, Pune
Email - maithili.chandorkar@gmail.com
Introduction :
The Indian media and entertainment (M&E) industry is one of the fastest growing industries in
the country. Its various segments—film, television, advertising, print media and music among
others—have witnesses tremendous growth in the last few years.
According to a report jointly published by the Federation of Indian Chambers of Commerce and
Industry (FICCI) and KPMG, the media and entertainment industry in India is likely to grow 12.5
per cent per annum over the next five years and touch US$ 20.09 billion by 2013.The
performance of the Indian entertainment and media industry has surpassed the performance of
the Indian economy and most other industries in 2007.
In the last four years (2004-07), the industry recorded a cumulative growth of 19 percent on an
overall basis. The direct product placement market in India (which also includes branded
entertainment) in 2005 was pegged at Rs 700 million . Entertainment & Media Industry is
expected to reach 3000 crores by 2012. In the west branded entertainment contributes to
about 50% of the advertising industry. Filmed entertainment grew 14% & is expected to
maintain that for the next 4 years.
The Indian film industry is the largest in the world in terms of number of films produced per
year. The study values the Indian film industry at US$ 2.11 billion and projects its growth at 9.1
percent till 2013. The cinema-viewing experience is also undergoing major changes. One
perceptible change has been the rapid growth of multiplexes, which meets consumer demand
for quality entertainment and has also helped boost production of niche films targeted at niche
audiences.
The television industry in India is currently at its prime, contributing the largest share in the
total media and entertainment industry. While India is the third largest cable television market
in the world, the penetration level of pay TV is still low, which promises a huge untapped
potential for growth.
According to the study the television industry, which is currently valued at about US$ 4.63
billion will expand by 14.5 percent between 2009 and 2013.
The Indian music industry, which until recently was overwhelmingly dominated by film music,
is now being driven by non-film music. However, piracy and advent of radio channels which
constantly play hit music leading to loss of sales of music, has affected the industry.

Industry experts estimate that the current size of the industry is about US$ 149 million,
calculated on the basis of legitimate unit sales of compact discs (cds) and music cassettes of
around 15 crores. And according to the study, the music industry is likely to grow by 2 per cent
over the next five years and will be a US$ 164.56 million industry by 2012.
As the growth potential of these industries is high and the reach and impact on the spectators
are also very high. Therefore, advertisers have to look to these media for promoting products
and services.
However, traditional ways of using these media may not get very good returns as there is a big
clutter of advertising through them. Innovative ways of reaching and impressing customers will
have to be thought of for getting a share of the customers’ mind and pocket.
‘In Film Advertising’ (Product Placement) is not very popularly used so far for promotion. There
appears to be a new trend of using this method of promotion, not only for the products or
services but also for promoting films along with the products.
The authors have tried to research into this trend and its impact on the customers.
‘In Film Advertising’ (Product Placement)
A step ahead of traditional method of advertising, product placement is an effective and well
established way of developing brand recognition by getting the product featured before the
public on prime time television and in feature films. A supplemental source of brand awareness,
it can be a catalyst in generating enormous amounts of impressions as a part of brand
advertising and marketing mix.
The benefits of company marketing the product depends on how well his product is placed and
how much exposure it receives in the film as well as how well the film does in the box office.
Product placement has developed as an additional source of revenue and a boon for
filmmakers.
One of the earliest product placements - the Rishi Kapoor-Dimple Kapadia teen romance Bobby
way back in 1973. The Rajdoot motorbike the two lovers cavort around on in the film became a
rage with a nation's bedazzled youth.
Advertisers are now looking at in-film advertising for more than just presence. They expect the
brand to naturally weave in with the story. Just being there in the film is not good enough,
there has to be thematic connect. The brand's message has to be crafted into the story in the
most subtle way possible.
The film "Fashion" got an 'A' certificate that limited the audience size, but director-producer
Madhur Bhandarkar had some reason to smile - of the Rs.220 million investment in the movie,
it had already earned as much as Rs.85 million (Rs.8.5 crores) from in-film advertisement alone.
A co-production of UTV Motion Pictures and Bhandarkar Entertainment, "Fashion" had six
prestigious brand placements - clothing brands Kimaya and Reebok, Lenovo laptop, Sunsilk
shampoo, Cellucom and LG Electronics.
In-film advertising has been gaining momentum in Bollywood. The sole reason is that while the
products get visibility at a premium price, serving the purpose of their advertisers, filmmakers
also earn handsome revenues by letting the brands get screen space in movies.
According to reports, film placements are currently raking in anything between Rs.500,000 to
Rs.50 million for the producers.
The advertising agencies have of late realised that product placements in movies starring

Bollywood's top stars bring the brands instant visibility and it is much cheaper than hiring
individual stars to endorse them.
Associative Marketing (co-branded Promotions)
Giving your brand a strong base.
As brands increasingly look beyond just having a wallpaper presence in movies and the usual
entertainment platforms, A change is witnessed a change in the way branded content is being
perceived by marketers. Brands are trying to ride on the euphoria of films and are scaling up
their budgets to latch on the entertainment quotient across multiple platforms. This is where
the concept of associate marketing comes in. the process includes getting a brand associated
with a firm outside. The activities include co-branded TVC, contest around the brand and the
film, POPs, outdoor, radio and press ads. The benefit of associate marketing is that the brand
can ride on the film’s hype and get media mileage.
Statement of the problem :
In-film advertising, of course, is not going to do away with brand endorsements by stars. The
strategy of placing some select brands in movies is to give them an additional marketing push,
even though the stars featuring them may not be directly endorsing these brands.
As the Indian Entertainment Industry is growing rapidly , today new methods and tools are
being used to promote and advertise the brands as well as the movies. The most recent and
fast growing methods are IN-FILM BRANDING and CO-BRANDED ASSOCIATION. However while
making use of this method, advertisers need to understand how these methods are influencing
the perception of the consumers towards the brand. They also need to understand how the
buying pattern of the consumers are affected and influenced.
Need for study :
The need of study was basically to get a better understanding of in-film branding and co-
branded association as a tool of advertising. As more and more film makers as well as brands
are opting for this method , it was important to understand its impact on the minds of the
consumers. At the same time it was also important to understand what the consumers and the
viewers felt about the brands and movies after they saw a particular brand in a movie or saw
an association of a brand along with a movie.
Scope of the study :
The scope was limited to study the awareness and impact of in film branding and co-branding
on the cinegoers. The survey was conducted in two multiplex theatres in Pune city.
Objectives of the study :
1. To study how much the consumers are aware about in film branding and co-branding.
2. To study the perception of the consumers towards these methods.
3. To study the impact of this tool on consumer behavior.
4. To study perceptional difference due to gender difference.
Research Methodology :
Secondary data was used to know the history and mechanism of in film branding and co-
branding.
Primary data was collected from 60 cinegoers each at the two multiplex theatres in Pune city
namely, INOX and E-Square by survey method. Also, 60 male and 60 female respondents were
selected to study the perceptional differentiation amongst them.

A pre tested questionnaire and a pilot survey were used for collecting the data with help of fine
tuned questionnaire.
The data was analysed using simple percentages of respondents answering the various options.
The presentation was made with the help of tables and charts.
Conclusions were drawn on the basis of findings related to observations after the analysis of
the data.
Limitations of the study :
However, there were certain limitations to this survey. They are as follows:
a) The survey was conducted in Pune only. Hence , we could not get information about the
cinegoers in other parts of the country.
b) Only two multiplexes were visited and therefore we could not get the responses of
cinegoers visiting the other multiplexes.
c) Single screen theatres were not visited. Hence information and responses of the
cinegoers there could not be obtained.
d) Some respondents were reluctant to fill the questionnaire.
e) As they were in a hurry , it cannot be said for sure that all the answers given by the
respondents were carefully thought over by them.
Data Analysis and interpretation :

In all eleven questions were asked to get the responses from the respondents.
The analysis is shown below.
Q.1 . Do you notice the products shown in the movies?
Option Male Female Total

respondents respondents respondents
Always 6 6 12
Mostly 24 24 48
Sometimes 18 24 42
Rarely 12 6 18
Never 0 0 0
Observation 1 : 90% of the female viewers noticed brands in the movies as compared to 80%
male viewers. ( combined figures of almost, mostly and sometimes).
Observation 2 : 20% of the male viewers rarely noticed brands in the movie as compared to
10% of the female viewers. ( figures from rarely).
Q2: Does product placement disrupt the flow of the movie and irritate you?

Always 6 3 9
Mostly 6 3 9
Sometimes 12 24 36
Rarely 12 6 18
Never 24 24 48
Observation 3 : 40% of the male respondents felt that product placement disturbed the flow of
the movie as compared to 50% of the female respondents. ( combined figures of almost ,
mostly and sometimes.
Observation 4: 50% of the female respondents felt that it did not diturb the flow in the movie
as compared to 60% male respondents. ( combined figures of rarely and never).
Q3: Did you know that product placement is a type of method of advertising?

Yes 40 36 76
No 20 24 44
Observation 5 : Only 60% of the female respondents were aware as compared to 40% of the
male respondents.

Q4 : Do you prefer real brands over imaginary brands in movies?
Always 24 12 36
Mostly 12 18 30
Sometimes 15 6 21
Rarely 3 9 12
Never 6 15 21
Observation 6 : 85% of the male respondents preffered the real brands over the imaginary
brands shown in the movies as compared to 60% female respondents. ( combined figures of
almost , mostly and sometimes)
Observation 7 : 40% female respondents did not prefer the real brands as compared to 15%
male respondents. ( combined figures of rarely and never)
Q5: Are you influenced by the brands shown in the movies while purchasing the products?
Always 18 30 48
Mostly 24 18 42
Sometimes 3 6 9
Rarely 9 3 12
Never 6 3 9
Observation 8 : 90% of female respondents were influenced by the brands shown in The
movies as compared to 75% of male respondents.(combined figures of almost , mostly and
sometimes).
Observation 9 : 25% of the male viewers were not inlfuenced as compared to 10% female
viewers.( combined figures of rarely and never)

Q6. Do brands shown in music videos influence you while making a purchase?

Always 6 6 12
Mostly 12 9 21
Sometimes 24 18 42
Rarely 15 21 36
Never 3 6 9
Observation 10 : 55% of the female respondents were influenced as compared to 70% of

male respondents. ( combined figures of almost , mostly and sometimes).
Observation 11 : 45% of the female respondents were not influenced by the brands in the
music videos as compared to 30% of male respondents. ( combined figures of rarely and never)
Q7 Do the brands shown in the movies influence you while purchasing the product?
Always 39 24 63
Mostly 9 6 15
Sometimes 6 15 21
Rarely 3 12 15
Never 3 3 6
Observation 12 : 90% of male respondents find that brands in talk shows are influential as
compared to 75% of the females. ( combined figures of almost , mostly and SOMETIMES).
Observation 13 : 25% of female respondents do not find it influential as compared to the 10%
male respondents. ( combined figures of rarely and never).

Q8 Are you influenced by the brands shown in theatre and drama?
Always 6 3 9
Mostly 3 6 9
Sometimes 18 15 33
Rarely 6 12 18
Never 27 24 51
Observation 14 : 40% of females and 45% of males feel that brands shown in theatre and
drama are influential. (combined figures of always , mostly and sometimes).
Observation 15 : 60% females and 55% males feel that it is not influential. (combined figures of
rarely and never).
Q9. Are brands shown in soaps / serials influential?
Always 3 24 27
Mostly 6 12 18
Sometimes 6 15 21
Rarely 18 6 24
Never 27 3 30
Observation 16 : 85% of the female respondents feel that brands shown in serials are
influential as compared to 25% of the male respondents.(combined figures of always, mostly
and sometimes)
Observation 17 : 15% of female respondents feek that brands shown are not influential as
compared to 75% of the male respondents. (combined figures of rarely and never).

Q10. Do you discuss the brands shown in the movies with others after you see the movie?
Always 18 24 42
Mostly 30 18 48
Sometimes 6 12 18
Rarely 3 3 6
Never 3 3 6
Observation 18 : 90% of male and female respondents discussed the brands with others.
(combined figures of always, mostly and sometimes)
Observation 19 : 10% of both male and female respondents did not discuss the brands with
others. ( combined figures of rarely and never).
Q11.which products have you purchased after seeing them in the movies?
Electronic goods 24 9 33
Automobiles 3 3 6
FMCG 3 15 18
Food and beverages 15 30 45
Others 15 3 18
Observation 20 : 45% of the males have purchased electronic goods and automobiles as
compared to 20% females who have purchased them.
Observation 21 : 80% of the females have purchased food & beverages , fmcg goods as
compared to 55% of males.
FINDINGS: (F=Finding, O=Observation)

F1: Almost all the respondents notice the products placed in the movie.
It was seen that the female viewers noticed the products in the movie more than the male
viewers.(O1)
F2: Most of the respondents feel that product placement does hinder the flow of movie.

More male respondents felt that product placement disturbed the flow of the movie. The
female respondents were also of the same opinion.(O3,O4)
F3: Almost all respondents are aware that product placement is a type of advertising.
It was seen that the male respondents were more than the female respondents.(O5)
F4: The respondents have ranked soaps i.e serials to be most influencing medium. The next
influencing medium is talk shows followed by movies and music videos. Theatre and Drama is
the least influential medium.
Serials- female respondents were more influenced than the male respondents.
Talk shows- male respondents were more influenced than female respondents.
Movies- more female respondents were influenced by movies than the male respondents.
Music videos- more male respondents were influenced by music videos than female
respondents.
Theatre and drama- both male and female respondents felt that it Was not an influential
medium.(O8,O9,O10,O11,O12,O13,O14,O15,O16,O17)
F5: It is inferred that females always discuss with others as compared to males .
It is also inferred that percentage of males discussing it sometimes with others is more than
that of females.(O18, O19)
F6: It is inferred that male respondents usually buy electronic goods , and is then followed by
FMCG, Food and beverages and other products.(O23)
F7: It is seen that female respondents give first preference to food and beverages. It is then
followed by FMCG. Automobiles and electronic goods are the least proffered.(O24)
F8: It is seen that most of the respondents prefer real brands in place of imaginary brands in
movies.
The male respondents preferred real brands more over imaginary brands in movies as
compared to female respondents.(O6,O7)
CONCLUSIONS: (C=Conclusion, F=Finding)

C1: The research results indicate that consumers are aware about product placement being a
method of advertising. They are influenced by the placements and have bought products that
had been placed in movies and other media. Thus product placement seems to have gained
acceptance as a form of advertisement and can be continued to be used. ( F1 , F3)
C2: Most do not feel that product placements are irritating and interrupting the flow of the
movie. People are generally expressing a positive attitude toward product placement and are
influenced by it. ( F2)
C3 : A conclusion drawn from the research was that products placed prominently in films
were better recognized than those placements placed subtly within the context of the film.
Another aspect closely considered in this research was the effect product placements have on
the realism of the film. ( F3)
C4: The research shows that product placements in films are a viable alternative to traditional
forms of advertising. The reason for this is that product placement (especially prominent
product placements) is readily recognized by viewers.( F4, F9)
RECOMMENDATIONS: (R=Recommendation, C= Conclusion)

After conducting the survey , certain observations were made, based on which the findings and
conclusions were drawn. Based on the findings and conclusions certain recommendations can
be made. This research has only investigated a small part of this area of research. Investigating
a large sample through a quantitative research could shed a better light on some of the points
revealed through this research. The recommendations are as follows:
R1: Further in-depth studies can be conducted into the nature of consumers’
recognition of product placements.
R2: Like other promotion tools, managers must actively assess product placement
opportunities to ensure the product’s appearance works in synergy with its image and
competitive positioning in the market. ( C4)
R3: In future it should also be attempted to recreate an authentic cinema experience
in order to see whether consumers remember product placements to the same extent
when they are in a normal cinema-viewing environment.( C4)
R4: Research in future should examine audience attitudes towards, or interest, in
brands and branded goods to gain a more thorough understanding of an individual’s
tendency to be influenced by branded images. (C1)
R5: In order to avoid the bias introduced by individual recognition, future research
should investigate utilizing a research design where association between placement
exposure and reported behavior is framed more definitely (for example by the time
period and event). (C2)
Suggestions for further research :

Product placement is an immense field of research within which much is yet to be discovered.
Hence further research shall be carried out on the various aspects of product placement and
co-branding such as cost-benefit analysis, recall tests, brand loyalty, brand equity, brand
confusion, brand conflict etc.
Webliography
The authors referred to the following websites:
www.agencyfaqs.com
www.bollywoodhungama.com
www.businessof bollywood.com
www.marketing practice.blogspot.com
www.mates.com
www.percept.com
www.p9int.com

TANGIBILISING THE INTANGIBLES OF ENTERTAINMENT SERVICES:
A SUCCESS OF 3 IDIOTS MOVIE
Submitted by
Nidhi Upadhyay
Core Faculty- Marketing
St. Francis Institute of Management and Research, Mumbai
E Mail: vyasnidhivyas@gmail.com
Namrata Tapaswi
Asst. Professor- IT & Management
Patel Institute of Technology and Management, Indore
E Mail: namratatapaswi@rediffmail.com
ABSTRACT
Service industry or Service sector or the "tertiary sector" of the economy deals in “Intangible
goods” and covers a wide gamut of activities like trading, banking & finance, infotainment
(Information and Entertainment), real estate, transportation, security, management & technical
consultancy among several others. There are 4 Characteristics of Services called 4 I’s of services,
these are as follows –
Intangibility
(Services can not be touched, tested.)
4 I’s of
Inseparable
Inventory
Service
(Services can not be
(Services can not be stored)
separated from the service
provider)
Inconsistency
(Variability and heterogeneity

characteristics of services)

Services being intangibles, it is difficult for the prospective customers to evaluate it in advance
as there are no features of services that demonstrate the existence of benefits. Therefore the
benefits of the services can not be communicated or displayed directly.
It has been found that the more difficult it is to evaluate a service compared to quality of
goods- the greater the role expectations play in determining the customer satisfaction.
Therefore, greater the degree of Intangibility- more important is to build the strong positive
expectations about the service quality.
Performance of services can be judged only after its consumption as compare to

products. Because end product of services are advice (consultancy services),
experiences & entertainment (movies), attention (hospitality industry like hotels and
restaurants), and discussion (interactive TV or radio programs).
The intangible nature of service make consumers more concerned about their providers. In
order to create trust marketers have to provide tangible evidence. This known as
TANGIBLISING THE INTANGIBLES.
Films continue to remain a popular way to reach the people and a form of mass entertainment.
End product of any film is experience & entertainment. Viewers can not judge or evaluate any
movie before watching it, because it is a kind of entertainment services.
The Indian media and entertainment (M&E) industry is one of the fastest growing service
industries in the country. Its various segments like—Film, Television, Advertising, Print and
Digital among others—have witnessed tremendous growth in the last few years. According to
a report jointly published by the Federation of Indian Chambers of Commerce and Industry
(FICCI) and KPMG, the media and entertainment industry in India is likely to grow 12.5 per
cent per annum over the next five years and touch US$ 20.09 billion by 2013.
A maker of film’s promotional effort must show the good experience and entertainment to be
derived from its film. Intangible aspect of entertainment services can be converted in to
tangible evidence through effective marketing strategies like Promotion on Web, TV, Radio
,through Multiplexes, Association, Documentation, Branding etc.
Makers of 3 Idiots explored innovative marketing strategies like Alternative Reality Games
contest done by the Aamir Khan, Pucca Idiot Faceboook profile, creating website called
www.idiotsacademy.com on internet, Auto Rickshaw Branding, several Public relation activities
like auction of chanderi sarees made by poor weavers of Chanderi region in MP during the
premiere of the movie, Association with Reliance Life insurance, Pantaloons, Converse, and
Reliance Big Pictures, Zapak.com, Youtube.com etc for the promotion of the movie. They even
also endorsed Sachin Tendulkar for the promotions. The film's publicity was also assisted by
the controversy raked up by Chetan Bhagat, writer of the best-selling novel Five Point
Someone, from which the film is inspired, alleging that proper credit was not given to him. This

controversy created lot of Buzz and curiosity among the audience. Because of all innovative
strategies, 3 Idiots is the biggest Bollywood movie in 2009 and earned huge profits.
This paper explore the success story of 3 Idiots film , which is a lesson for any service provider
that how innovative promotional strategies can convert intangible aspect of services into
tangible evidence ,so viewers can evaluate, judge, and make their positive attitude towards the
film before watching it.
3 Idiots
3 Idiots is a 2009 biggest Bollywood comedy
directed by Rajkumar Hirani, with a screenplay by
Abhijat Joshi, and produced by Vidhu Vinod
Chopra.. 3 Idiots stars Aamir Khan, R. Madhavan,
Sharman Joshi, Kareena Kapoor, Omi Vaidya,
Parikshit Sahni and Boman Irani. It is also the
"highest grossing Bollywood movie of all time."
The film set a box office record for the industry,
grossing Rs 315 crore ($70 million) worldwide within
19 days of release. 3 Idiots" is also being touted as
the highest grossing Indian film ever to release in
the US, Middle East, Australia, South Africa,
Pakistan, Kenya and Fiji.
Directed by: Rajkumar Hirani
Produced by: Vidhu Vinod Chopra
The film has retained its position in the top 10 film at Written by: Abhijat Joshi, Rajkumar Hirani
the British Box Office and is also Aamir's biggest Novel: Chetan Bhagat
grosser so far and highest box office grosser of Starring: Aamir Khan, R. Madhavan, Sharman Joshi,
Kareena Kapoor
2009. The screen count in the US for "3 Idiots" has Boman Irani, Omi Vaidya
increased by 25 percent by the third week. Parikshit Sahni, Javed Jaffrey
Music by: Shantanu Moitra
Cinematography:Muraleetharana
The paid previews of the movie also garnered over Editing by: Rajkumar Hirani
Rs 9 crore worldwide, above those of the paid Distributed by: Reliance Big Entertainment
Release date(s): 25 December 2009 (India)
preview collections of "Ghajini" that were Rs 7 crore Running time:164 minutes
globally. Language:Hindi
Budget:Rs 45 crore
Gross revenue:Rs 315 crore ($70 million)

TANGIBLISING THE INTANGIBLES OF 3 Idiots
MOVIE
Makers of 3 Idiots explored innovative strategies

through Association, Branding, Promotion and
Documentation and provided more tangible
evidences about the movie to viewers to generate
awareness and build positive image of the movie
before watching it.
ASSOCIATION
Association of services with tangible goods, objects, places, persons or company gives more
awareness, recognition and reliability to customers.
 WITH RELIANCE LIFE INSURANCE
There could not have been a better strategy to market an Insurance product (which is an
intangible by nature) than by using the punch line of the hit song from the film 3 Idiots, "All is
well". Reliance Life Insurance has entered into a tie up with the movie, 3 Idiots, and used the
thought 'All is well', which is one of the mainstay themes in the communication of the film.
Vidhu Vinod Chopra Films, the makers of 3 Idiots, and Reliance Life Insurance are jointly
promoting the concept.
“All is well” with Reliance Life Insurance’s

new brand proposition

The campaign, spanning television, radio and outdoor, talks about Reliance Life Insurance's
assurance of taking care of its consumer's financial worries and enabling them to live life to the
fullest. Outdoor for the campaign includes innovations on hoardings, bus shelters, bus backs,
platform signages and mobile vans. Primesite has executed the outdoor campaign by creating
cut-outs of the star cast, which have been put up across Mumbai, Delhi, Kolkata, Hyderabad
and 500 towns across India.
Result: Win Win strategy for both parties i.e. 3 Idiots and Reliance Life insurance. Created
more awareness and curiosity with “All is well” promotional punch line among public.
 WITH PANTALOONS
Future Group's Pantaloons India has collaborated with Vinod Chopra Films to launch the 3 Idiots
apparel and accessories collection. In his spare time during the shooting of the film, Khan was in
the habit of scribbling. The designers at Pantaloons were handed over the pages on which Khan
scribbled and the designs were executed on T-shirts. Starting at Rs 399, the T shirts are
available in 45 Pantaloons stores across the country. Besides, the collection also includes
replicas of T-shirts, garments and jewellery worn by Khan, Madhavan, Joshi and Kapoor in the
film.
It is very exciting for Pantaloons to associate with a movie like 3 Idiots and an actor of the
caliber of Aamir Khan. Such a unique film required a new approach to replicate its irrepressible
spirit.” said Mr. Sanjeev Agrawal, CEO, Pantaloons.
Result: Association of 3 Idiots with pantaloons apparels and accessories collection

gives more tangible clues to movie viewers, who can predict uniqueness, good
experiences, enjoyment of the movie after watching it.

Design of T shirt by Pantaloons
 '3IDIOTS' SKETCHES ON CONVERSE
Converse and Vidhu Vinod Chopra Films have collaborated to

launch a special collection inspired the film, '3 Idiots'.
The range has been named the 'Converse 3 Idiots
Collection' as it is inspired by the characteristics of the movie.
'3 Idiots'. The collection has three styles, which have been worn
by the lead star cast of the movie. This is a fresh publicity stunt
for a feature film.
“It is our proud privilege to be associated with 3 Idiots and

a bollywood youth icon. I am sure our shoppers would get
to experience the unique blend of youthfulness, fun and
vividity through our collections, which is an inherent part of
the movie and its stars”, said Mr. Ravdeep Singh, CEO,
Winner Sports Pvt Ltd.

Producer Vidhu Vinod Chopra added, "The 3
Idiots Converse Collection shoes that have
Aamir's doodles on them reflect the personality of
the uber-cool Indian youth. The designs are funky
and vibrant. We are happy to be associated with
Converse for this special edition collection."
Result: Fresh publicity stunt for the film
 WITH RELAINCE BIG PICTURE
The Anil Ambani-promoted Reliance Big

Pictures distributed 3 Idiots movie.
In India, the movie was released with
1,550 prints in over 1,760 screens, while
abroad it was released in over 366
screens across 40 countries. Incidentally,
the multiplex operators had also
increased the ticket prices by 25-30 per
cent for evening shows and almost
doubled it in the morning. The movie was
made on a budget of Rs 35 crore, with
Big Pictures buying the distribution rights
for Rs 80 crore.
Ramp Show
The movie has raked in Rs 240 crore within 10 days, surpassing collections of Ghajini (Rs 225
crore), Gadar (Rs 175 crore). According to producer Vidhu Vinod Chopra, the movie is going
strong overseas in the US and Canada.
Result: Great vision of Reliance Big Pictures, because it is the largest international release for
a Hindi film (released about 2,000 prints across 40 countries). Also press conferences were
beamed in seven countries. Huge profit earned by the Big pictures and makers of the movie.

DOCUMENTATION
Service providers used Documentation to tangibilise their intangibles aspect of services. They
cite facts and figures in their promotions to support the claim of their performance in terms of
dependability, reliability and responsiveness (Rampal &Gupta, Services Marketing)
 CRITICAL RECEPTION:
Critical reception is very important in for movie marketing, because positive critic’s opinion
build good image among viewers especially for Early and Late Majority types of consumers, who
generally watch movie after intense deliberation/ references/recommendations and after wide
acceptance.
For 3 Idiots rating given by the following generated favorable image among viewers-
Times of India Critic's Rating :

Economics Times Critic's Rating :
Bollywood Hungama. com Critic’s Rating: ½
Merinews.com Critic’s Rating: ½
Mid Day Critic’s Rating: ½
By Taran Adarsh Critic’s Rating: ½
Hindustan Times Critic's Rating : ½
IBN Live.com Critic's Rating : ½
NDTV Movies Critic's Rating : ½
Opinion of famous critics about the movie are as follows-
Subhash K. Jha (film critic and author of The Essential Guide to Bollywood) states: "It's not
that 3 Idiots is a flawless work of art. But it is a vital, inspiring and life-revising work of contemporary
art with some heart imbued into every part. In a country where students are driven to suicide by their
impossible curriculum, 3 Idiots provides hope. Maybe cinema can't save lives. But cinema, sure as
hell, can make you feel life is worth living. 3 Idiots does just that, and much more.
Nikhat Kazmi of the Times of India gave it four and a half stars and suggests that, "The film is a
laugh riot, despite being high on fundas [...] Hirani carries forward his simplistic `humanism alone
works' philosophy of the Lage Raho Munna Bhai series in 3 Idiots too, making it a warm and
vivacious signature tune to 2009.

Mayank Shekhar of the Hindustan Times gave the film three and a half out of four stars and
comments that this "this is the sort of movie you‟ll take home with a smile and a song on your lips."
Kaveree Bamzai of India Today gave 3 Idiots five stars and argues that "it's a lovely story, of a
man from nowhere who wanted to learn, told like a fairy tale, with the secret heart carrying its coded
message of setting all of us free."
Is „3 Idiots‟ the new „Sholay‟?

Trade analyst Amod Mehra agreed: “It took 34 years for a film to reach Sholay‟s level. This film is
set a new benchmark for the film industry. The film will earn revenue of nothing less than Rs 150
crore net in India and the business in the Bombay circuit will be about Rs 30 crore. The maximum a
film has done in the past in this circuit has been Sooraj Barjatya‟s „Hum Aapke Hain Kaun‟ (Rs 20
crore).”
 AWARDS:
3 Idiots won many awards in “2010 Star Screen Awards”. It also gives some tangible facts &
figures about the movie.
 Won: Star Screen Award for Best Film - Rajkumar Hirani

 Won: Star Screen Award for Best Director - Rajkumar Hirani
 Won: Best Actor in a popular category (Female) - Kareena Kapoor
 Won: Star Screen Award for Best Villain - Boman Irani
 Won: Star Screen Award for Best Comedian - Omi Vaidya
 Won: Star Screen Award for Best Screenplay - Abhijat Joshi, Rajkumar Hirani, Vidhu
Vinod Chopra
 Won:Star Screen Award for Best Dialogue - Abhijat Joshi, Rajkumar Hirani
 Won: Star Screen Award for Best Editing - Rajkumar Hirani
 Won:Best Choreography Bosco- Caesar - Zoobi Doobi
 Won:Star Screen Award for Most Promising Newcomer – Male- Omi Vaidya
 Nominated: Actor - Aamir Khan
 Nominated: Supporting Actor - R. Madhavan
 Nominated: Supporting Actor - Sharman Joshi
 Nominated: Background Music - Shantanu Moitra, Atul Raninga, Sanjay Wandrekar
 Nominated: Playback Singer (female) - Shreya Ghoshal - Zoobi Doobi
 Nominated: Story - Abhijat Joshi, Rajkumar Hirani
 Nominated: Sound - Bishwadeep Chatterjee, Nihar Ranjan Samel

 Nominated: Art Direction - Acropolis, Rajnish Hedaa, Sumit, Snigdha Basu
 Nominated: Cinematography - C.K. Muraleedharan
 Nominated: Choreography - Avit Dias - Aal Izz Well
 Nominated: Best Child Artist - Rahul Kumar
PROFIT EARNED:
When your service product (film) will have high quality (in all aspects) then you can earn good
profits and this success will give tangible evidence to customers about good experience,
entertainment, which they can have after watching the movie. 3 Idiots is "the highest grossing
Bollywood movie of all time." As of 8 January, 2010, it has earned 1.5 billion rupees in the
combined international and domestic markets since it opened. In the United States, it has
earned $5.6m dollars since its opening. The film has grossed Rs 315 crore ($70 million)
worldwide within 19 days of release, setting a record for the industry. It is also "the highest
grossing Indian film ever to release in the US, Middle East, Australia, South Africa, Pakistan,
Kenya and Fiji.
PROMOTION
The goal of promotional strategies for services is to make them tangibles- to dramatize their
benefits. To promote the movie, the makers have come up with some unusual marketing ploys.
 ALTERNATIVE REALITY GAME (ARG) OF AMIR KHAN- “CATCH- ME- IF- YOU- CAN”
Amir Khan launched a novel two week nationwide “Catch- me -if –you- can” promotion for 3
Idiots before it released. It was Hide and Seek game with the audience where he’d be going to
undisclosed locations anywhere in the country. Audience has to trace him down within 2
weeks.
He traveled incognito across part of India like Varanasi, Chennai, Nagpur, Faridkot in Punjab,
Kolkata etc., and given clues which would help in finding which city Khan is located in. The first
clue would be given by none other then Sachin Tendulkar The idea for Khan's nationwide
journey came from the story of the film, where his friends go in search of him. The difference
here was that media and fans were trying to spot Khan.

Obviously, this journey was captured by many news and entertainment channels and became
free publicity for the film. By this new idea, Aamir is out to prove himself to be “ Pucca Idiot”.
This is what we call getting into the skin of the characters.
ARG, is a first of its kind of in

Bollywood and I am sure no
star has done this in
Hollywood either,” said Vidhu
Vinod Chopra who has
produced this film
Pictures of Aamir
Khan during the ARG
 AAMIR KHAN ‘DARES’ MODI, ENTERS GUJRAT FOR 3 Idiots PROMOTION

Aamir Khan also entered the territory of the very man, Gujarat chief minister Narendra Modi,
he had strongly criticized for failing to control the 2006 violence in Vadodara, inviting a ban on
his movies “Taare Zameen Par” and “Fanaa”. He paid a surprise visit for the promotion of movie
to Lok Niketan, a small school run on Gandhian principles at Palanpur village, about 135 km
from Ahmedabad in Banaskantha district.

A source at the school said: “Aamir took a
bold step to visit Gujarat, a state he hadn’t
visited since the backlash he faced for
supporting Narmada Bachao Andolan and
criticizing Modi. Since he is in disguise, he
cannot take along bodyguards or seek police
help. It shows his courage.” (Source: DNA)
Aamir khan in School of Palanpur Village
 CHANDERI IN MADHYA PRADESH (Public relation activity for movie promotion):
Aamir Khan visited with Kareena Kapoor, to the weavers of the famous Chanderi sarees in
Chanderi, Madhya Pradesh. Both actors shared meals with the weavers, bought sarees and
discussed problems of the weavers. Later, Kareena attended a press conference clad in a
Chanderi sari gifted by Khan and spoke about her experience with the weavers.
Aamir Khan promised the weavers to auction sarees designed by them at the premier of 3
Idiots in Mumbai. It was a novel idea of making public relation for the movie promotion.
Aamir and Kareena with weavers Kareena in chanderi saree

 WEB PROMOTION
PUCCA IDIOT FACEBOOK-
On Facebook, a profile called Pucca Idiot has

been created that has more than one lakh fans.
The profile has videos and pictures of Khan‟s
journey. By this profile you can become friend of
Aamir and can chat with him.
There is one lucky contest on this profile i.e.

“Go to a special screening of 3 Idiots with
Aamir, Sharman and Madhvan if you get
lucky” attracted attention of many viewers
before movie released.
YOU TUBE.COM
The makers of 3 Idiots has partnered with “youtubee” to bring in its online campaigns. This
websites contain videos (trailers/proms) and images (wallpapers) of the movie in order to
enhance the enthusiasm of surfers interested in the movie and downloading its contents.
"This is the first film ever that can be downloaded and viewed on YouTube. But, we are
yet to take a decision as to when it should be allowed for downloading legally after 8-12
weeks or later," Vidhu Vinod Chopra said on the premiere of the movie.

3 Idiots PARTNERS ZAPAK.COM FOR DIGITAL MARKETING
3 Idiots, has tied up with Zapak.com. Zapak has developed the film's official website. The online
destination for the movie is www.idiotsacademy.com, which offers content in line with the
theme of the movie targeting the youth. The website will take the user to different rooms of
Idiots Academy like director’s office, lab, hostel, canteen, class room and also the toilets!
"Internet and mobile are increasingly

becoming the preferred destinations
for the youth of Today. With over
50% of India below the age of 25
years, I believe that it is imperative
for movies to have a strong and
concerted Digital strategy. In this
association with Zapak we have
jointly created the most clutter-
breaking and innovative movie
website." Aamir Khan said.
Zapak Digital Entertainment COO Rohit Sharma said, "We are delighted to partner with one
the most prestigious Production houses – Vinod Chopra Films. This coupled with the fact that
Aamir Khan is an extremely creative marketer, we have created the first of its kind digital strategy
for any Bollywood, which we believe fits very well with the theme of the movie and will connect
with the Youth of India
Zapak also launched the ARG (Alternative Reality Game) done by the Aamir. (It was Hide and
Seek game with the audience where he’d be going to undisclosed locations anywhere in the
country. Audience has to trace him down within 2 weeks.).Official Website of this game is
http://www.idiotsacademy.zapak.com/arg/.

 TV PROMOTION
Apart from promoting the movie through teasers and trailers and playing the superhit songs
like “All is well” of the movie in various TV channels, the makers also aired short videos of
Aamir Khan Alternative Reality Games , where he’d be going to undisclosed locations anywhere
in the country. Audience has to trace him down within 2 weeks. This is very innovative concept
done by 3 Idiots, which all TV channels promoted to generate curiosity about the movie among
viewers.
Controversy of the movie with Chetan Bhagat novel 5 point someone: TV Channels also
covered controversy between the film's and Chetan Bhagat,who is the writer of the best-selling
novel Five Point Someone, from which the film is inspired, alleging that proper credit was not
given to him. This controversy also attracts the attention of many viewers who want to know
the truth. This controversy created lot of Buzz in market.
 PROMOTION THROUGH FM
With TV promotions pumping up 3 Idiots’s promotion, FM channels
were equally enthusiastic with 3 Idiots. Radio Mirchi 98.3 FM, India’s
hottest radio station, has promoted 3 Idiots’s promotional campaign
ARG.
Vidhu Vinod Chopra, Sharman and Madhvan

promoted, 3 Idiots before its released. Going
along with the whole market strategy, the
third idiot, Aamir Khan is still missing and
cannot be found! His friends Madhavan and
Sharman expressed that they had
been looking for him all over but he was

untraceable!
It was a contest, that whosoever will find

Aamir will get attractive prizes.
 PROMOTION THOUGH MULTIPLEXES
The makers of 3 Idiots along with Aamir Khan have left no stone unturned to promote their
movie. They launched the movie through various new innovative promotional ideas covering
the major multiplexes in the country were targeted. These included Washroom Advertisement,
through they even gone to the extent of putting the posters on the walls of washroom, saying
“You are the fourth idiot.” In many multiplexes like Cinemax, Big Cinema across the country.

They also placed special bum shaped stools in the lounge area of multiplexes caught many
eyeballs and users. Chair of the same design appear in the film and have been used in posters
of the film, with Khan, Madhvan and Sharman Joshi sitting on them.
Reliance Big Pictures also used innovative off screen consumer connect options like pillar
branding, audi and exit door branding, floor stickers, ticket jackets, seat branding, washroom
mirror branding, staircase and waterbody branding for the promotion of the movie.
According to BIG Cinemas business head - cinema sales Arun Tyagi , "Cinema
advertising is an extremely effective low cost and high impact advertising medium with
unique advantages like an engaged and seated audience with a leisure mindset offering
local, regional, and national capabilities.
Special bum shaped stools in Washroom mirror branding of the

Multiplexes movie
 BUZZ MARKETING:
“Hey Marketer gives me a reason to talk …..And let me talk about your stuff!”
To get free publicity many producers take help of BUZZ Marketing. +ve as well as –ve talk
(controversy) can attract attention of people. According to AIDA Model of communication, if

you are able to attract attention of consumers, then simultaneously interest will raise and
finally appropriate decision and action will be taken by consumers (finally purchase your
products/services). 3 Idiots utilized above model of communication effectively, by controversy
with Chetan’s Bagat Novel “5 POINT OF SOMEONE” and side by side positive impact of this
movie, that it raised several academic issues in current educational system and also teaches
good management lesson to society created lot of buzz in market.
3 IDIOTS FREE PUBLICITY DONE BY THE CONTROVERSY:
The film's publicity was also assisted by the controversy raked up by Chetan Bhagat, writer of
the best-selling novel Five Point Someone, from which the film is inspired, alleging that proper
credit was not given to him. By this controversy both parties got benefits.
Since the release of 3 Idiots, the book has witnessed a 15-20 per cent jump in sales across
various book shops in the capital and across the metros, book shop executives claim - a fact
vouched by Rupa & Company, the publishers of Bhagat's book.
The publicity has helped the multiplexes, too, which have increased the number of shows by
20 per cent in the second week - something unheard of considering that 60 per cent of the box
office collections come in the first week and occupancies dip in the second week. "Even in the
second week, the advance bookings are strong. Occupancies, too, have not dropped," Ashish
Sakena, COO, BIG Cinemas, said.
GOOD LESSON TO EDUCATION SYSTEM:
The movie shows flaws in current education system. It represent a lot of ideologies through the
thoughtful dialogues touching several academic issues from grading systems, parental pressure,
student suicides, and conformist coaching to theoretical knowledge, without getting preachy at
any instance. Sample a straightforward gem that says, “Even a lion learns to obey his
ringmaster. But you call him well-trained and not well-educated”.
“3 IDIOTS” NOW BE PART OF MANAGEMENT LESSONS-
‘Aal izz well’ made it’s entry in management lessons. Ahmedabad Management Association
plans has organised a management session “Passion leads to excellence: Management Lessons
from 3 Idiots” based on the film on 20 Jan 2010.
Mangement Trainer Dr. Shailesh Thaker Said: “Bollywood is not about just masala
entertaining flicks but a few films also depict lessons for life. Some of them are great
inspiration for us and also act as an unflattering mirror to our ever-changing society. Like „3
Idiots‟, which contains great lessons for life as well as management.”

LEARNING THE IDIOTIC WAY
-Never try to be successful, excellence always creates success
-Live every moment to the fullest
-Passion leads to excellence
-Learning is very simple, teachers do fail
-Current education system causes pressures among students
-Life is emotion management, not intelligence optimisation Industrial
leadership
-Love is time & space free
-Importance of a word in communication
-Necessity is the mother of invention
-Simplicity is life
BRANDING
Branding also added tangibility to intangibles. Brand helps in differentiating the services from
its competitors, and forms an important component of communication mix.
 PERSON AS A BRAND: AAMIR KHAN

Amir Khan is an Bollywood superstar who has given number of big hits like Ghajini, Taare
zameen par, Rang de basanit, Dil chahta hai, Lagaan etc. 'Aamir Khan is the highest-paid brand
ambassador in India who is endorsing various brands like Samsung Mobile, TATA Sky DTH, Coca
coland now he is endorsing Incredible India Campaign.

 PERSON AS A BRAND: VIDHU VINOD CHOPRA
Vidhu Vinod Chopra is an Indian director and producer. He is considered to be one of the most
talented and path breaking Indian filmmakers. MUNNA Bhai Series was the biggest hit given by
him to Indian Cinema.
 AUTORICKSHAW BRANDING
As part of another innovation, stickers reading Capacity: 3 Idiots were pasted on the back of
10,000 auto rickshaws that moved in cities such as Mumbai, Hyderabad, Jaipur, Kota, Lucknow,
Kanpur, Patna, Kolkata, Bhopal, Indore, Bengaluru, Chennai and some cities of Gujarat.
Speaking on the efficacy of auto rickshaw

branding, producer Vidhu Vinod Chopra
said, "Auto rickshaw is the most popular
mode for commuting and works as a
wonderful reminder medium. We have
used this sticker in all the cities where
rickshaw is one of the common modes for
commuting."
 ENDORSEMENT OF SACHIN TENDULKAR WITH 3 Idiots
Sachin Ramesh Tendulkar is an Indian cricketer widely regarded as one of the greatest batsmen
in the history of cricket. As a part of promotional campaign of 3 Idiots ARG done by the Aamir,
Sachin Tendulkar is endorsed to disclose first clue that in which city Aamir is located in.
Sachin Tendulkar is always among the first to watch Aamir Khan’s films, watched 3 Idiots, along
with his family and friends.
CONCLUSION
Marketers and manufacturers companies can take inspiration from the “3 Idiots” case to gear
their effort through innovative promotional and service packages in the uncertain business
environment. Although the business scenario might not be very encouraging in the present
economic scenario, “winning the customers mind” would emerge to be the most valuable
factor providing competitive edge to organization plying in highly competitive markets. It is
worth mentioning here that 3 Idiots was sold to the audience as an experience & learning which

was emotionally owned by them, rather than its marketers selling a story that most of
Bollywood’s movie had repeated over the years. Perhaps this is where 3 Idiots has had left its
mark as a key differentiator.
Organization directly and indirectly related to the media and entertainment industry would
perhaps be more encouraged to adopt strategies successfully implemented by 3 Idiots’
sponsors, associates. With big corporation like the Reliance Anil Dhirubhai Ambani Group (R-
ADAG), Zapak.com, You tube, Pantaloons, Reliance Life insurance and T series already been
proudly associated with 3 Idiots success, which is the new Sholay after 34 years, who knows
movie making and marketing could emerge as one of the most profitable investment for the
Indian and Global Corporate Giants.
REFRENCES
Service Marketing, Rampal & Gupta, Galgotia Publishing Company

Services Marketing, Harsh V Verma, Pearson Education
Services Marketing, Lovelock, Wirtz and Chatterjee, Pearson Education
Marketing Management, Kotler,Kellar, Koshy and Jha, Pearson Education
http://www.iloveindia.com/economy-of-india/service-sector.html
http://www.marketingaims.com/docs/Services_in_new_millennium.doc
http://www.economywatch.com/world-industries/service sector.html
http://www.afaqs.com/main1.html
http://en.wikipedia.org/wiki/Cinema_of_India
http://www.ibef.org/artdispview.aspx?in=49&art_id=24875&cat_id=124&page=2
http://en.wikipedia.org/wiki/3_Idiots
http://economictimes.indiatimes.com/Entertainment/3-Idiots-grosses-Rs-315-cr-in-19-
days/articleshow/5437995.cms
http://economictimes.indiatimes.com/news/news-by-industry/media/entertainment-
/entertainment/3-Idiots-will-soon-be-part-of-management-lessons/articleshow/5416455.cms
http://www.bollywoodhungama.com/movies/review/13910/index.html
http://www.hindustantimes.com/Review-3-Idiots/H1-Article1-490233.aspx
http://timesofindia.indiatimes.com/moviereview/5373913.cms
http://ibnlive.in.com/news/masands-movie-review-3-idiots-satisfying-but-not-the-
best/107739-8.html
/entertainment/3-Idiots-is-one-of-the-most-entertaining-films-of-the-
decade/articleshow/5372493.cms
http://movies.ndtv.com/movie_Review.aspx?id=464
http://www.merinews.com/article/three-idiots-movie-review---aal-izz-well/15792209.shtml
http://www.mid-day.com/entertainment/2009/dec/231209-3-Idiots-Movie-Review.htm
http://www.bollywoodhungama.com/movies/review/13910/index.html
/entertainment/3-Idiots-is-one-of-the-most-entertaining-films-of-the-
decade/articleshow/5372493.cms

/entertainment/Aamir-launches-Alternative-Reality-Game-of-Three-
Idiots/articleshow/5328434.cms
http://www.afaqs.com/perl/news/story.html?sid=25872
http://www.idiotsacademy.zapak.com/arg/
http://despardes.com/?p=11002
http://en.wikipedia.org/wiki/Aamir_Khan
http://business.rediff.com/interview/2009/may/01/aamir-khan-is-the-highest-paid-brand-
ambassador-today.htm
http://ibnlive.in.com/news/aamir-khans-latest-endorsement-brand-india/70726-3.html
http://en.wikipedia.org/wiki/Vidhu_Vinod_Chopra
http://www.imdb.com/news/ni1255449/
http://www.businessofcinema.com/news.php?newsid=15048
http://www.pantaloon.com/3_idiots_merchandise.asp
http://www.thehindubusinessline.com/2010/01/06/stories/2010010651361500.htm
Emerging trends of aggressive movie marketing: lesson learned from Ghajini, Indian Journal of
Marketing, March 2009
http://blish.in.com/prabhuraja/post/3_idiots_film_promotion_a-190540.html
http://www.neytri.com/is-3-idiots-the-new-sholay/
http://www.businessofcinema.com/news.php?newsid=13936
http://www.imagesfashion.com/NewsDetails.aspx?Ntype=1&id=84

CONSUMER BEHAVIOUR AND ADVERTISING EFFORT IN CONSUMER PRODUCTS
Submitted by
Prof. Prerna Sharma

Mahatma Education Society’s
Pillai’s College of Arts, Science & Commerce
1 INRODUCTION
“Doing business without advertising is like winking a girl in the dark, you know what you
are doing but nobody else does”. Advertising is multidimensional. It is a form of mass
communication a powerful marketing tool. A component of the economic system, a means
of mass media a social institution, and art form an instrument of business management. A
field of employment and profession.
Since adverting is all about targeting consumers, Consumer Behaviour essentially forms its
core. Consumer behaviour deals with the psychological process of decision making by
consumers in a social context which also exerts group pressures on them.
The topic which I have chosen deals with And therefore it is very important to study first of
all the core of consumer behaviour and then the role of advertising affecting consumer
behaviour.
For a common man it may appear that advertising is a common type of advertisement- all
advertising belong to the same category i.e. the recipe is the same. However, this may not
be true, if one looks deeper into the classification of advertising. Advertising to a majority
of people appears as an activity of creating ads. In real practice, and advertising is much
more than creating ads. It is a business and it must be managed efficiently and effectively.
Today, we are exposed to a larger number of commercial messages. Not only had the
quality increased even the quantity of advertising has improved considerably over the past
couple of years. Other means of advertising such a Radio, Television the Cinema and
billboards etc. have also amply contributed to the growth of this industry.
A consumer buying a brand of soap for e.g., is motivated by a need to own category and
the particular brand (based on functional and emotional benefits) and buy the brand from
an outlet.
This buying behaviour involves several psychological factors. These factors govern the
individual thinking process(like motivation, personality perception and attitude) decision
making steps involved buying, (decision making process) interaction of the consumer with
several groups like friends, family and colleagues(group oriented concepts) and selection of
the brand and outlet depending on price features and emotional appeal (marketing mix
element in a given environment).
Good Advertising, it has been said, builds sales. But great advertising builds factories. It’s
not enough to come up with good advertising, but with great advertising like Colgate
Toothpaste Cadbury Dairy Milk Nestlé’s Nescafe and The advertising that approaches the
audience with warmth, wit and wisdom can be successful, even on a smaller budget.
However, we often come across dull and boring ads created by the so called creative
people. If you meet a new person and you are struck by his/her warmth and wit, you many
tend to like him/her very much, whereas if you come across a dull, boring, arrogant and

imposing person, you may not want to spend any time with him/her. The same is the case
of advertising.
Advertising which has become a marketing force helping mass selling and distribution is
also the object of much criticism some justified and some not. It has been claimed that
much advertising false, deceptive and misleading and that it concede information and
comparatives disadvantage of the item advertised.
Advertising of consumer product is an art as well as science and therefore its study has to
be based on two approaches- a geographical and structural approach and managerial
approach, which are blended together to generate a result oriented ad copy and ad
campaign.
Culture is a way of life of a particular society. So all advertising which are made are done
keeping in mind also the culture of a particular society. For e.g. India belongs to Traditional
culture so advertising showing our Traditional values will be shown. U.S.A belongs to
western values similarly advertising will reflect there culture. So culture is a combination of
tangible aspects include music, architecture, building literature clothing etc. and the
intangible aspects includes the ideas, knowledge, skills , morals, laws and customs. The
cultural aspect are transferred or passed on from generations to another in a particular
society. There is often a debate that advertising affects cultural values.
The standard of living is also of the influential factor in shaping the advertising. Standard of
living refers to the quality of life enjoyed by the people. It is the sum total of economic,
social, cultural and educational development of a society.
The more the society is developed and advanced the higher is the standard of living vice-
versa. For instance the citizens of U.S.A Japan, Germany, u.k and other European nations
enjoy higher standard of living as such nations are highly developed and advancement in
the field of Industry commerce and education.
It is to be noted that advertising is not always the cause, and standard of living the effect of
it. In advanced countries where the standard of living is high, people expect advertising of
new and better goods. After being exposed to ads of new and better goods and services,
the people make efforts to purchase such goods and services. This helps them to enhance
their standard of living.
The supporters of advertising also argue that advertising stimulates demands which in turn
generate economies of large scale due to large scale of production and distribution. The
consumers can be benefited by way of lower prices as part of the economies would be
passed on to the consumers. Again, advertising offers a variety of choice of products and
services. Also, due to competition, the marketers introduce innovative products, which in
turn can make available new and better quality of goods and services to the consumers.
Indian advertising is witnessing several trends which the advertising people – the
advertisers, the advertising agencies people and the media should take note of. A deeper
understanding of the trends would help the advertiser in terms if sales and objective, as
well as the media by way of higher advertising revenues.
Advertising of consumer goods has witnessed a rapid growth in the last five years.
Consumer goods are those which satisfy our personal wants and needs such as food,
clothing and household items behind the glamour glitter of advertising world, there is

planning organizing,staffing,directingand controlling of number of task- creative as well as
non –creative which contribute to the attainment of the marketing objectives of the
sponsoring organizations.
Advertising of consumer goods is a potent tool of marketing and a component of overall
activities. The marketing operation of any business is guided by its market plans which have
the best possible mix of four variables namely the nature of the distribution which takes
the product to the consumer from the producer and the promotional activities. Most of the
consumer goods manufacturing companies are in the highly competitive field and engage
in advertising.
Creating a good advertising need a lot of intelligence, imagination and bit of luck. Creating
good ads need ideas, and it is not easy to get them. Alyque Padamsee once remarked
“Great ideas don’t come overnight. You are lucky if they come at
all.” So if one is lucky to get a good idea, it has to be made to work commercially in the
right advertisement format- be it a large or small print advertisement a poster, a TV or a
radio commercial. Ideally it will need to be capable of working in all these media and of
being extended that will run for years and really worth their weight in gold.
Consumer behaviour was a relatively new field of study in the mid –to late 1960’s with no
history or body of research if its own, the new discipline borrowed heavily from concepts
developed in other scientific disciplines, such as psychology (the study of individual),
sociology (the study of groups), social psychology (the study of how an individual operates
in groups), anthropology (the influence of society on the individual), and economics. Many
early theories concerning consumer behaviour were based on economic theory, on the
notion that individuals act rationally to maximize their benefits (satisfaction) in the
purchase of goods and services.
The initial thrust of consumer behaviour was from a managerial perspective; marketing
managers wanted to know the specific causes of consumer behaviour. They also wanted to
know how people receive, store, and use consumption-related information, so that they
could design marketing strategies to influence consumption decisions. They regarded the
consumer behaviour discipline as an applied marketing science; if they could predict
consumer behaviour, they could influence it. The approach has come to be known as
positivism, and consumer researches primarily concerned with predicting consumer
behaviour known as positivists.
Given the interdisciplinary background in which the consumer behaviour discipline is
rooted, it is not surprising that academicians from variety of contributing discipline,
including marketing itself, have become interested in the study of consumer behaviour not
necessarily from the managerial or applied perspective, but simply to understand the
consumer better.
The study of consumer behaviour is the study of how individuals make decisions to spend
their available resources (time, money, effort) on consumption related items. It includes
the study of what they buy, why they buy it, when they buy it, where they buy it how often
they buy it, and how often they use it. Take the simple product toothpaste. Consumer
researchers want to know what types of FMCG products for e.g. toothpaste consumer buy

(gel, regular striped, in a tube): what brand (national brand, private brand, generic brand):
Why they buy it (to prevent cavities, to remove stains, to brighten of whiten teeth, to use
as a mouthwash): and how often they buy it? (Weekly, biweekly, monthly).
In addition to studying consumer uses and post purchase evaluation of the products they
buy, consumer researchers also are interested in how individuals dispose of their once new
purchase. For example after consumers have used a product, do they store it, throw it or
give it away, sell it rent it, or lend it out? The answer to these question are important to
marketer, because they must match their production to the frequency with which
consumers buy replacements. However the answer is also important to society as a whole,
because solid waste has become a major environmental; problem that marketer must
address in their development of new products and packaging.
The term consumer is often used to describe two different kinds of consumer entities: the
personal consumer and the organizational consumer. The personal consumer buys goods
and services for his or her use (e.g., shaving cream or Shampoo), for the use of the
household (a VCR), or as a gift for a friend (a Book). In each of these contexts the goods are
brought for the final use by the individual, who are referred to as end users or ultimate
consumers.
The second category of consumer- the organizational consumer- includes profit and not for
profit business, government agencies (local, state, and national), and institutions (e.g.
School, hospitals prison), all of which must buy products equipment, and services in order
to run their organization. Manufacturing companies must buy the raw materials and
components needed to manufacture and sell their own equipments necessary to render
the services they sell. The person who makes a product purchase is not always the user, or
the only user, of the product in question. Nor is the purchaser necessarily the person who
makes the product decision. A mother may buy toys for children (who are the users) she
may buy food for Dinner (and be of the user): she may buy a handbag and be the only user.
She may buy a magazine. So the buying behaviour is diverse.
Marketers must decide at whom to direct their promotional effort; the buyer or the user.
For some products, they must identify the person who is most likely to influence the
decision – who may be neither the buyer nor the user.
Just as the consumer and the marketer are diverse, the reasons why people study
consumer behaviour are also diverse. The field of consumer behaviour holds great interest
for us as consumers, as marketers, and as students of human behaviour. As consumers, we
benefit from insights into our own consumption- related decision; what we buy, why we
buy, how we buy, and the promotional influences that persuades us o buy,. The study of
consumer behaviour enables us to become better and wiser, consumers.
As marketers and future marketers, it is important for us to recognize why and how
individuals make their consumption decisions, so that we can make better strategic
marketing decisions. If marketers understand consumer behaviour, they are able to predict
how consumers are likely to react to various informational environment cues, are able to
shape there marketing strategies accordingly. Without doubt, marketers who understand
consumer behaviour have great advantage in the marketplace.

How individuals learn is a matter of great interest and importance to the academicians, to
psychologists, to consumer researchers, and to marketers. The reason that marketers are
so concerned with how individuals learn is that they are vitally interested in teaching them,
in their roles as consumers, about products, product attributes and potential consumer
benefits; about where to buy their products, how to use them, how to maintain them, even
how to dispose of them.
Marketing strategies are based on communicating with the consumer: directly, through
advertisements and indirectly through product appearance, packaging price, and the
distribution channels. Marketers want their communication to be noted, believed
remembered, and recalled. For these reasons we are interested in every aspect of the
learning process.
However the fact that learning is all pervasive in our lives, there is no single, universal
theory of how people learn. Instead there are two major schools of thought concerning the
learning process. One consists of behavioural theories, the other of Cognitive theories.
Cognitive theories view learning as a function of purely mental processes, while,
behavioural theorist focus almost exclusively on observable behaviours (responses) that
occur as the result of exposure to stimuli.
The field of consumer research developed as an extension of the field of marketing
research to enable marketers to predict how consumers would react in the marketplace
and to understand the reasons they made the purchase decisions they did. Consumer
research undertaken from the managerial perspective to improve strategic marketing
decisions is known as positivism. It is generally quantitative in approach, and tries to
identify cause and affect relationship in buying situations. It is often supplemented with
quantitative research.
The consumer research process- whether quantitative or qualitative in approach- generally
consist of six steps: defining objectives, collecting secondary data, developing a research
design, collecting primary data, analyzing the data and preparing a report of the findings.
For every purchase there is a critical process. A consumer gets an idea about buying a
product, actually buys it after relevant considerations, and uses it. And based on the
experienced derived out of the consumption process he begins the cycle again.
While no two people follows the same process of buying, or even the same person may
vary the sequential process under varying situations, yet a general framework of buying
process has to be taken into consideration.
The basic elements of consumer behaviour are what consumer buys, how she/ he buys,
when and where she / he buy, how much she/ he buy, when and where she/he buy, how
much she /he buy is understood by interaction of different factors associated with
consumer behaviour.

Consumer
Behaviour
Marketing mix
Psychological Consumer Decision- Elements for the
Making Target segment
factors
(In a given
environment.)
Group factor
So with the help of the above diagram we can understand that the consumer behaviour is
guided by many factors. Consumer behaviour depends upon many things it’s not always his
own decision to buy a given product. And therefore advertising plays a vital role in shaping
the consumer behaviour and then he is directed to buy a particular product.
Chapter 2-Review of Literature
Product :
A customer views the products as a 'bundle of satisfaction' & not merely the physical object.
He gives more important to both tangible & intangible attributes of a product. Intangibles
provide psychological & social benefits for buyer. If products attributes don't benefit the
customer, they have no significance for him. Thus, in India low tar cigarettes have not
succeeded. Similarly, cigarettes designed for woman flopped here.
According to my topic of study my main emphasis lies on the FMCG products
that a consumer purchases. The FMCG product is the product which satisfies the day to day
need of the consumer. So with the help of studying the consumer behavior I can identify the
needs that can be fulfilled by offering the consumer the required product. So the first step
towards my research is the customer focus. A customer views product as a
bundle of satisfaction and not always a physical object. A customer tries to
focus on the tangible and the intangible aspect and the attribute of the product. Intangible
aspect provides psychological and social benefits for the buyer. The customer is buying a
particular product to satisfy himself or may be his family members. Especially when it comes to
FMCG products. Consumer is very particular in choosing each and every item.
(Book-Marketing management Philip Kotler, year 1996)

Advertising plays a very crucial role in shaping the consumer behaviour. As my topic deals with
the advertising effect on consumer behaviour specially the FMCG products, lot of data is
collected with the help of primary as well as the secondary method. It was generally found that
consumer of today is quite well versed with the advertising of the product they purchase. it is
believed that the consumer is not much interested in advertising, which one can say as
somewhat true also but somewhere in back of the consumers mind the advertising is there for
the product they want to purchase. Specially if the advertisement is done by using the famous
personalities then the young consumer is much more interested in that product. for. E.g. the
advertisement done by Amitabh bachchan for the product Cadbury is quite famous among all
age groups of consumers. As FMCG products are specially purchased by all age group people
except the children it is having a special place in the minds of the consumer because say every
fortnight or every month the consumer has to do the purchasing of FMCG products.
With the help of various methodologies data was collected and then analysed, the following are
the results that came to light.
Emerging Imperatives
Customer of today is the arbiter of corporate destiny. He is insistent, demanding & choosy. He
wishes to fulfill his needs in the most cost effective manner. Consumer spending rising rapidly,
while saving rates in India are falling. Aleque Padamsee says: This is the land of karma, where
everything is work out for you, your destiny, and your kismet. But the generation now feels,
'The hell with waiting for reincarnation!' they are breaking the karma handcuffs. They are
deciding what they want is a better life now. It they have money they want to spend it now".
But they are spending indigently, not indiscriminately. Today customer is exposed to
international quality, thanks to entry of more players- from within India & abroad - in the
market in post liberalized India. So he dictates specification, quality standards, and chargeable
price. He wants everything here & now. Both budget shoppers & high spenders are demanding
better return for money they spend. This is turn have several lessons for the marketers.
 A marketer has to act like long term investor.
 He has to be prepared to accept water thin profit margins.
 He has to track the customer needs & respond to them promptly.
 Hence all the planning processes & the people of the organization have to
be reconfigured around the central character.
In my view customer of today has become very choosy, the reason behind this is, many number
of brands the consumer is exposed to for a particular product and this is due to the 1991
industrial policy that the government has adopted. The government has allowed the entrance
of foreign brand, due to which there is lot of change in the buying pattern of the consumer.
Consumer is exposed to all these brands through various media, due to which he has a large
choice to be made. There is lot of competition between the sellers too. The seller is trying to
push his brand with highest quality and also competitive price, in the process the consumer is
getting the benefit of the above process. The consumer is not only getting the best quality
product but also the product at a reasonable price. Therefore many number of sellers are today

are able to sustain in the market place with there product this is due to varied choice of
consumers. Consumer’s choice cannot be predicted. On one month he may choose the brand
Hindustan Lever in another month he may choose a different brand.
(Book:- Consumer behaviour in marketing research by Suja Nair, year 1990)
It is also important to view in my research work, how advertising plays a vital role in shaping the
consumer behaviour. So it is very essential to make a study of advertising.
The word Advertising originates from the Latin word “advertera” which means to turn
around. Advertising thus denotes the means employed to draw attention to any object or
purpose. According to American Marketing Association (AMA) Advertising is defined as
“any paid form of non-personal presentation and promotion of ideas goods or services by
an identified sponsor.” Through advertising the advertiser intends to spread his ideas about
his products offerings among his customers and prospects, popularization of the product is
the basic aim of advertising activity. Advertising as a means of mass communication has
therefore, made mass communication channel. Marketers and firms engaged in selling
their products and services throughout the country and or in other nations are fully aware
of the necessity and importance of advertising, as means of mass forceful communication,
advertising promote the sale of goods, services, images and ideas through information and
persuasion. But one thing may well understand that advertising by itself cannot sell the
product. It cannot sell products of poor quality, products which are too costly, or items,
which do not come up to the expectations of the consuming public. Advertising only helps
in selling.
Some advertisement today still does just that: provide information about the ‘birth,
deaths’, engagements, with little or no intention to persuade. The majority of classified
advertisement provides useful information about jobs, accommodation, sale of second
hand vehicles and furniture, etc. An advertisement is a form of persuasive communication
with the public. The communication is usually one sided, in one direction from the
advertiser and to the public. The members of the public are free to respond to it their own
way; the response is at an individual or family level. There is little or no dialogue with the
public: advertising forces itself upon the public. At the same time, especially in democracy
with a market economy. Such communication is required so that intelligent choices are
made.
In my view advertising plays a very important role in shaping the

consumer behaviour. Advertising in Today’s world has become very important for the seller
as well as the buyer. For the seller it is very important for him to inform consumers the
various attributes of the product. Especially in case of FMCG products, where the consumer
is having varied choices and alternatives. It has also become very important for the seller to
give a suitable display of his product. So that the consumer is able to know about the
various attributes derived from a particular product. In the above paragraph we can
witness the definition given by American Marketing association (AMA), which says
advertising as any paid form of non-personal presentation, that means advertising is not
done free of cost, there must be some sponsor for it. It is the promotion of ideas, goods or

services. So the advertisement should be such that it should appeals the consumer. When
a consumer goes for shopping of FMCG products weather in a Mall or a small retail Shop he
should be able to remember the USP that is displayed in advertisement. If the consumer is
able to recall what he has seen in the advertisement he will be much more interested in
buying that product and we can say that the advertisement is successful .The consumer is
much more proud of buying that particular product because he will think that the product
he is buying is recognised internationally or nationally by much number of consumers. So
therefore he feels proud about it.
(Book- Essentials of advertising by Amita Shankar, yr.1994)
NEED FOR ADVERTISING COMMUNICATION

In the market, there is always a communication gap between the seller and the buyer.
There are sellers who have products or services, which they want to sell. Similarly, there
are consumers who want to buy the product or services. It is the function of the seller to
make known to the public about the availability of the product or services. It is the
advertisement of consumer communication vehicle to inform the existence of the product
or services and able to supply them. This information brings the buyers and sellers together
to effect exchange of goods. Through there are many advantages from advertising of
consumer products is the means by which we make known what we have to sell that we
want to buy. In the market, there is always a communication gap between the seller and
the buyer. It is the advertisement of consumer product as a communication vehicle to
inform the existence of the product or services and able to supply them. This information
brings the buyers and sellers together to effect exchange of goods. Through there are many
advantages from advertising of consumer products as a communication vehicle to inform
the existence of the product or services and able to supply them. This information brings
the buyers and sellers together to effect exchange of goods. Though there are many
advantages from advertising of consumer’s products it is the means by which we make
known what we have to sell and what we want to buy.
Communication always requires at least four elements the source (sender), the message,
the medium, and the destination (receiver). Advertising is a form of communication it takes
the form of who says what, in what channel, to whom and with what effect.
Who- refers to the advertiser
What- refers to advertising message in what channel – refers to the media channel such as
TV, radio etc. with what effect –refers to response that is desired this can be explained with
the help of a table.
(Diagram in the next page)

ADVERTISER
(sends)
Advertising
MESSAGE
Through
MEDIA
To the
AUDIENCE
So with the help of the above table we can have an idea of the communication process that
takes place between the producers and the final consumers. Without any variable above
the process is incomplete.
There are many reasons why on may go for advertising of consumer products. The
following are the specific reasons for advertising:-
 It helps to remind the people; reminder advertising encourages sticking to a consumer
product.

 Many benefits accrue to the manufacturers, retailers and community, through informal
transmission.
In my research it is important to know the advertising effort that has been done on FMCG
products that the consumer purchases. So how the communication takes place between the
consumer and the buyer is important aspect that is to be studied. Communication is very much
required between the buyer and the seller. In my view communication process starts with the
person who wants to communicate something to the target group. So the person who starts
the communication can be called as communicator, if it is a advertising agency then the person
is called as the advertiser, who wants to inform the consumer about the product he has
launched in the market. Now he can do this by using suitable message, how he will deliver this
suitable message? May be by using suitable media of his choice or according to the choice of
target market for the product. Now finally the audience received the message by suitable
media. If the audience responds to the message by buying the product, then we can say that
the communication process is effective. We can take an example of the above process.
For e.g. launching of new FMCG product say Facia Soap.
This is a new kind of soap that the advertiser or say the producer wants to launch in the market
along with other branded soaps. The target group chosen for this product are specially the
females. So now the producer or the advertiser will follow the communication process.
First of all the advertiser will send message to the consumer that a new type of soap has been
launched by which, females can do facial everyday. The message is send by using Television,
newspaper or it can be the female magazines like Femina Grihashobha etc. which the females
read. So the medium is also decided. Now the forth step is receiving the message by the target
audience. If the sale of the product starts in the market then we can say that the target group
has respondent to the product and the communication process is complete.
(Book – Advertisement Management by David Aakker year1992)
Consumer Perception Process.
Physical Data Physiological NON -

(Stimuli) Screen AWARENESS
Sponsored. (Sensory) (INEFFECTIV
 Sight E MESSAGE)
 Advertising  Hearing
 Sales  Taste
Promotion  Smell
 Displays COGNITION
 Price tag Physiological (AWARENES
Non-sponsored Screen S)
 Media News (Emotional)
 Conversation  Personality
 With other  Self concept PERCEPTION
 Belief & MEMORY
Attitude
 Learning &
habit
This is the model which pertains to my work of study
The above model tells us that customer gets a stimulus through physical data, which is
evaluated by the customer by applying physiological screens. Suppose we see an ad for perk
chocolates. Physiologically, we hear & feel about the taste, the pleasant experience post
consumption, etc. we also see (if it was a T.V. commercial) someone enacting this pleasurable
feeling of being satisfied. While all this happening on screen, we perhaps visualizing ourselves
being in the position of the T.V. model. However, suppose at the psychological level we have a
strong held belief that eating chocolate cause tooth decay or weight gain, or it's a childish act or
a waste of money. Then we may not buy the chocolate perk. But if we are physiologically screen
that we very much like the taste, smell of perk chocolate we may buy it.
Involvement & consumer behaviour.
Factors High involved Lowly involved (passive)

(active)consumer customer
1.Information Seeks out information from Passively gathers
search various commercial & information that's comes
noncommercial sources his way.
2. Processes the information Learns the information in
Information carefully random fashion
processing
3. Choose that brand which is Subject to minimum
Expectation expected to provide maximum acceptable level of
satisfaction satisfaction, the customer
chooses that brand which
is likely to give the least
problem
4. Influenced Group norm & value dictate Group norms don't exist.
on product choice; so preference So reference group
customer group act as a source of influence does not wok
of information here
group
norm
5. Influenced Behaviour influenced by Personality & lifestyle as
of personality & lifestyle influences are not very
relevant
personality &
lifestyle
6. If perceived as sponsored Since all information
Marketers information (say, advertising) including advertising
role as the impact is limited since all claims are accepted

information is processed uncritically, advertising
information carefully to avoid risky proves to be effective
provider decision here.
For a passive information gatherer, on the other hand, there is no attempt to analyze or retain
information. In fact any complex looking/ sounding message are likely to be ignored. One has
to generate interest in his offering by giving short, repetitive message (say 10/20/30 second
T.V. commercials) that will help induce trial. In my view the consumer who wants to buy a
particular product is very highly involve in purchasing that product and vice-versa. Also he
processes the information very carefully looking all aspects of the product. Then there are
certain expectations that the consumer is having from the product. Such as product may give
him certain known benefits. If the consumer is satisfied with the benefit he is getting from the
product also he gets influenced with the peer group, his standard of living, personality also
social status, and then he may be interested to buy a particular brand of product. Here the job
of the marketer should be to provide the consumer with the relevant information so that all his
doubts are clear. On the other hand there is very less involvement of the consumer who is not
much interested in a particular product of his choice. He is not much interested to collect the
information. Whatever information he gets is through passive involvement also here there is no
group influence. So we can say that FMCG products which are not at all required by the
consumer have very low involvement and vice-versa.
(Book-Consumer bhaviour by G. Schiffman and Kanuk year 2000)
MEDIA FOR ADVERTISING

Advertising media are the vehicles used by an advertiser for communicating his message to
potential consumers. There are different media of advertising and advertiser has to select
one or two out of different media available. Different media available on each type are as
noted in the following table.
DIFFERENT MEDIA USED FOR THE PURPOSE OF RESEARCH
SR. NO. CLASS OF MEDIA TYPES INCLUDED
1. Print Newspapers, Magazines, Journals and other
publication
2(I) Broadcast Radio, T.V(National Network), star T.V DD Satellite
Channels and Prasar Bharti
2(II) Non- Broadcast Video, Cable/ Closed Circuit T.V and Cinema
3. Outdoor Posters, hoardings, Neon signs, Sky Advertising,
Etc.
4. Transit/ vehicular Railway, Trains, Buses and Trams, Taxis and Auto

rickshaw, Private Vehicles, etc.
5. Point of Purchase Banners, Hanging Packaging, stielers, Painted
signs, window display
6. Specialty media T-shirts, Buttons, Caps, Stickers, Badges, Diaries,
Calendars, Key Chins etc
7. Miscellaneous Direct Mail advertising, Trolleys At airport etc.
In my research the above Medias are very much necessary for the purpose of understanding
the behaviour of the consumer. There are variety of media available are essential for the
consumer in one way or the other. In my research work mainly it is concerned with two main
media the Television and the Newspaper also involvement of other print media like magazine
was also there.
TYPES/ CLASSIFICTAION OF ADVERTISING OF CONSUMER PRODUCT (FMCG PRODUCT)
Advertising activity can broadly be classified on the basis of certain considerations such as area
covered, media used, audience covered, functions undertaken and the life cycle of a product.
The chart given below shows classification of advertising of consumer product:

Types/ classification of
advertising of consumer
product (on the basis of)
Area Covered Media Used Audience Functions Product life

Covered undertaken cycle
1. Local Advt. 1. Print
2. Regional 2. Outdoor 1. Consumer 1. Direct& 1. Pioneeri
3. National 3. Broadcasting 2. Industrial indirect -ing
4. International. 3. Professional 2. Primary/ 2. Compet
4. Trade Advt. Secondary -itive
3. Retentive
In my view the advertisement for the consumer products mainly the FMCG products can
be given in all kinds of Area, media, to all audience and at all stages of the product life cycle of
the product. The FMCG Product forms the basic necessities of the consumer and therefore it is
very easy to launch the FMCG product in any of the above category.
(Book-Advertising by Michel vaz, year 2001)
Marketing and consumer buying process
So the job of the marketer is to identify the kind of problems the consumer is facing, the stage
at which the consumer is and then prepare the marketing pitch as summarized below after
having asked relevant questions:
Buying stage and marketing task

STAGE RELEVANT QUESTION MARKETING TASK
 Needs and  What motivates the  Think of link between
motivation customer? product attributes, benefits,
and motivation to avail of the
benefits.
 Stimulus  Type of purchase :  Show case the problem (if
Frequent/infrequent; negative motivation) or
low/high involvement opportunity (for positively
motivated customer)
 Examinatio  What are the options  Relate product attributes
n available to the to needs and wants and then
customer? motives so that brand enters
the choice set

 Explore  Does customer need  Provide adequate
more information for information in comprehensive
decision? form.
 Select  What is the actual  Make sure that our brand
range of information/ has silence.
option available?  Talk about relevant
 What is the basis of motivator/discriminator.
choice?  Make sure that favorable
 What are other influences are reinforced and
influences? negative ones are countered
through effective
communication.
 Purchase  How final selection is  Promote the marketer's
made. offer heavily while weakening
the other marketer's offers.
 Experience  Have expectation  Reduce the cognitive
been met. dissonance while increasing
satisfaction.
 Repeat  What about loyalty  Keep reminding the
purchase customer.
 Constantly claim market
leadership.
In my research work it is very much essential to know how the consumer buys the particular
product. What stimulates him to buy a particular brand? As my Topic deals mainly with the
consumer product (FMCG product) it is very essential to know about the involvement of the
consumer in buying a particular product. So the above table is very much useful in knowing the
involvement of consumer in buying the FMCG product. So before a product is launched in the
market place research has to be conducted that which member of the family is going to buy the
product and how that person is going to buy the product. So it is very essential for the
marketing to have a sound knowledge about the various stages involved in buying of a product.
(Book-Consumer bhaviour by G. Schiffman and Kanuk year 2000)
CHAPTER 3 – METHODOLOGY
The Methodology used in my Research depends upon the objective of study,

hypothesis taken and also certain limitations.
The Objectives of study are as follows:-

1. To find out the buying behaviour of the consumer that is reflected in buying the FMCG
products.
2. To find out what influences the consumers to buy a particular brand.
3. To find out the life cycle of FMCG products that is famous since 10 years.
4. To find out the strategies used for advertising different kind of brands.
5. To find out that how the long serving brands survives in the market.
In this section the overall typology of research i.e. experimental, survey, case study or action
research is used and the data collection method (observation, questionnaire) is described.
The methodology forms the main part of the research activity.
So therefore I have taken into consideration of both types of Data i.e. Primary data and
Secondary data.
SAMPLE SIZE
Sample of around 500 respondents were taken. Other than the consumers the two companies
were also visited for the purpose of the data collection.
Both the groups were given a questionnaire which they need to fill and give back immediately.
For the 500 respondent the sample is drawn from Areas in Thane (west) and also Thane (East)
In Thane (west) following areas were visited
Vasant leela
Vijay Nagari
Vijay Annex
Vijay Park
Hiranandani Thane
In Thane (east)
Kopri Area
Mithbunder Road
Data play an important role in research. Facts, information or premises systematically collected
and formally presented for the purpose of drawing inferences may be called as Data. Statistical
information collected, complied and presented for the purpose of establishing relationships
between variables can be included in the data.
Data can be collected from the Primary or Secondary sources.
PRIMARY DATA USED
This is the first stage of collection of Data. Because it relates to human behavior and
motivation. Primary data are created data and it is obtained either by asking questions to
respondents or by observing behaviour or through experimental research. Here I have
interviewed the respondents personally and through mail questionnaire. In the modern times,
video conferencing is also used as means of gathering information form different groups in

distinct locations. Similarly, e-mails Websites and internet chatting also facilitates collection of
Primary data.
As my research pertains to the consumer behaviour and advertising effect on consumer
products. It’s necessary to collect the data with the help of both methods. So the stress was
given more to the collection of Primary data, with the help of a questionnaire. Also the
observation techniques are used so that the relevant information can be obtained.
METHODS USED IN COLLECTING PRIMARY DATA
Observation
QUESTIONNAIRE METHOD USED Method
Questionnaire are and efficient data collection mechanism when variables of interest.
Questionnaire can be administered personally mailed to the respondent or electrically
distributed.
In my research work I had made two sets of questionnaire
 One for the Consumers
 One for the Respective Companies
Questionnaire is usually sent through post with a covering letter and without further
assistance.
But I have personally visited each and every respondent and collected the relevant data
through questionnaire.
The questionnaire method is generally cheap way of collection of data not much of
expenses are to be made under this method.
Large number of sample population can be covered with the help of this method.
There is less personal bias and in this method so the method seems to be authentic.
The only problem with this method is it cannot be used with the illiterates but if the
questionnaire is read in front of them and if they are told to respond after listening to
answer then this method is useful.
As there is physical appearance in this method, the questionnaire method can be combined
with the observation techniques.
I have also visited two renowned companies and met their managers. The company I
visited are
 HINDUSTAN LEVER LIMITED (HLL)
 PROCTER AND GAMBLE
These two companies are of international standard. The main aim of visiting these companies
was to know about the various strategies the make to persuade consumer to buy a particular
method.
How do they motivate consumer to buy a product.
What are there promotional strategies?

What media of advertisement they use to advertise there product.
Why advertising is really necessary.
Limitations of advertising of FMCG products.
How do they conduct the Market research survey.
So basically to get an overview of all these question the visit to these companies
was very much required.
OBSERVATION METHOD USED:-
In observation method I had made three kinds of observation
 Television observation
 Observation done in the Shopping malls
Television observation was done to know the various type of advertising used for the same king
of products say two different brands of Soap, or say two different brands of Shampoo.
Observation done in the shopping malls is done to know which the most popular brand of
product among consumer is. How does a consumer choose a particular brand?
What influences him to buy a particular brand of product?
SECONDARY DATA USED:-This is the second phase of data collected for the purpose of
research. Dr. A.L Bowley states that “it is never safe to take published statistics at their face
value without knowing their meaning and limitations”
SOURCES FROM WHERE THE SECONDARY DATA IS COLLECTED
Internal sources External
Thethe
o the
Company (Details given in
records(Hind Bibliography)
ustan Lever,
Procter and o Newspaper
Gamble) o Magazines
o Company o Trade
trade journals journals
o Company o Specialized
magazines libraries
o Other
sources
In my research it was necessary to collected data also by the secondary sources because
only Primary data is not only sufficient. Therefore it was necessary to collect the secondary
data.
The secondary data was collected by the two sources:-
 Internal sources used:-

Here the data was collected from the internal sources of the company. I have visited
two companies they are Hindustan Lever and Procter and Gamble) Other than the
questionnaire given to them, the various data collection was done form there internal
records, trade journals maintained by them and also company magazines.
 External sources used :-
Data was also collected from the external sources i.e. from the various magazines like
 India Today
 Business world
 Outlook
 Femina
Newspapers like
 Times of India
 Business standard
 Indian express
 DNA
Other than these sources the data is also taken from the various libraries the trade journals the
publication the articles.
Thus above methods give us a clear idea about the methodology used in conducting the
research.
HYPOTHESIS:-
1. Consumer behaviour is not much affected by advertisement.
2. Advertisement used for FMCG products are more or less of same type.
3. There is a direct relationship between consumer behaviour and advertising.
Limitations of study :-
1. My research work involves large number consumer under study. It is not possible to collect
the data of such large number of consumers because consumers are scattered all throughout
the country.
2. The secondary data taken in my research has been taken from the Profile of only two major
companies doing FMCG business whereas there are 100’s of such companies in the country
which was not possible to take into account.

CHAPTER 6 FINDINGS AND CONCLUSIONS
Advertising as it is said by William F.Arens “Advertising is the structured and composed non-
personal communication of information, usually paid for and usually persuasive in nature about
products (goods and services and ideas) by an identified sponsor through various media.”
So we can say that without the help of advertising, any product in the Market cannot
move. As my topic – Consumer behaviour and Advertising effect on consumer product deals
with consumer behaviour i.e. behaviour of consumer specially on buying the goods and services
they require, how the behaviour of consumer takes shape to buy a particular product , how do
they reach to a decision to buy a product is a crucial thing to answer.
The main aim behind this project was to know about how the advertising plays an important
role. Consumer goods, which satisfy our personal wants like, food, clothing, household items. It
is the primary want of human being.
Advertising is an essential ingredient in successful marketing to determine the promotional
strategies used by the Indian retailers. The study was conducted in media in which most of the
retailers advertise their product. Either it is a consumer product or services. And it was found
that T.V and Radio are nowadays found to be the most successful of all because of the there
popularity. Also because of the advertising customer get specific and accurate information
about the product. Most of consumer goods manufacturing companies are also engage in
advertising. Advertising of consumer goods is a potent tool of marketing and component of
overall promotion activity.
This may be due to the fact that the majority of retailers in India are located within walking
distance, from the potential market segment. It is therefore, fair to conclude then Indian
retailers consider advertising as an important.
Another aspect of my project deals with the consumer behaviour. In this project we look at the
various aspects of the consumer behaviour. The study of the consumer behaviour is very
important marketing function not only to start any sort of business but to expand the scope of
the consumer base and achieve new consumer for the product. Many factors are contributed in
the consumer behaviour but many methods of market research are playing their role more
significantly.
The selection of target consumer by applying, number of segmentation factors is
the most crucial stage in the marketing process than any other stage. It gives the base for
analysing the consumer of target consumer. There are always certain changes in the consumer
behaviour over the period of time. In such kind of situation it becomes necessary to keep track
with the changing consumer behaviour.
The selection of market research firm is also important from the company’s point of view and
selection of the research field. But more than any other thing is the objective of the market
research is most important. There are many objectives behind the consumer behaviour study
but basic thing is to analyse the behavioural pattern of the certain section of the consumers.
In practical research no single factor contributes in the selection
of target consumer it is contributed more than any other factor. The selection of the market
research firm is also important from the completion and secrecy point of view. But the study of
consumer behaviour is the foundation of any marketing strategy.

Consumer behaviour is the oxygen of the marketing. One cannot prepare any marketing
strategy or plan, policy without considering the findings of the consumer behaviour. It gives us
a clear perception of the target consumer. We can say that it is the science of the consumer
because in this s research we study so many factors that maybe shaping up or influencing the
consumer behaviour.
No product can be successfully designed/manufactured to effect sales, without knowing the
perspective of the buyer. Again, among the given study/tools available, a study of consumer
behaviour generally provides the best bet to marketing companies. To influence any consumer
first we must know the various factors that influence the consumer or persuade or motivate the
consumer in making a buying decision-making process.
Some products are purchase by the consumer for their daily necessities. On the other hand,
some products are purchased by the consumer for the purpose of luxury, also known as the
lifestyle products. The behaviour that leads to purchase of each of these product categories is
different from each other. A person who is a single, his/her buying decision-making is based on
a certain set of priorities, and this is different compared to his/her decision-making when
he/she is married and is responsible for a household.
FINDINGS
1. My first hypothesis was taken as Consumer is not much affected by
advertisement.
As I have collected data about the buying behaviour pattern of consumer buying behaviour, it is
proved that consumer does get affected by the advertisement. So I can say that my first
hypothesis is rejected.
Consumer is affected by advertisement this statement can be
supported by the graph given in the previous chapter about the consumer buying behaviour
and advertising. When a consumer watches the advertisement he may not register the
advertisement at that point of time but somewhere in the back of his mind there is always a
memory of that advertisement. For e.g. a consumer watches and advertisement of a shampoo
say a Dandruff proof shampoo HEAD AND SHOULDERS. When the consumer sees the
advertisement of head and shoulders in the Television he may not give much importance but
when he faces the problem of dandruff himself and goes to buy a dandruff proof shampoo, the
advertisement he ahs seen before for the product head and shoulders will be flashed to him at
the time of purchase. So I can say that consumer does get affected by advertisement.
Advertisement does play a crucial role in shaping the behaviour of consumer. Imagine the world
without advertisement. The consumer will not be aware of any product and services, how he is
going to make the purchase for the same. So indeed advertisement is an important element of
consumer behaviour.
2. My second hypothesis was taken as Advertisement used for FMCG products are more or
less of same type.
With the support of data collected for the various types of advertisement given in the
previous chapter I can say that, advertisement used for different product is different. It has
to be different because consumer than, is not able to distinguish between two brands. So I
can say that the above hypothesis is rejected.

According to the rules prescribed in ASCI and DOORDARSHAN CODE, no
two advertisements can be of same type or one can say that the recipe cannot be the same.
It’s an offence if one products advertisement is similar to another. There are copy rights
prescribed for each and every advertisement. If the two products of same category
advertised are of the same type indeed the consumer will get confused. For e.g. there are
two FMCG products say washing powder, TIDE and SURF EXCEL. Now both these products
are of same type. But, the advertisement used for both the products are different. TIDE
depicts the punch line as iss se saffed aur kuch nahi while surf excel says that daag acche
hai. So both the products though FMCG product s the strategies, the way of posing the
advertisement is different. So I can say that the advertisement used for FMCG product is
different for different kind of products.
2. My third hypothesis is there is a direct relationship between consumer
behaviour and advertising.
I can say that the above hypothesis is accepted because as the advertisement changes the
behaviour of the consumer is also changes. No consumer can behave in the similar manner as
far as buying of FMCG products are concerned. As the trend, the fashion, the style changes
similarly the behaviour of the consumer changes. If we compare the advertisement of 80’s and
that of today we will witness lot of difference. In 80’s advertisement there was no inclusion of
special effects, colour advertisement were very few. But nowadays the scenario has completely
changed. Today we see advertisement of special effect for e.g. the PEPSI advertisement
showing a man falling from a mountain, earlier all these things were not possible. So I can say
that there is a direct relationship between the advertisement and the behaviour of the
consumer.
SUGGESTIONS
1. It is suggested to the advertising agencies to make more reliable advertisement. The
advertisement shown in the media includes lot of exaggeration that should be avoided.
2. When it comes to FMCG products it is suggested to the manufacturing companies to
provide consumers with proper packaging. Packaging in India is not given much of
importance. The packaging should be very comfortable for the consumer to unpack the
product. For e.g. the packaging of PICKLE bottles or JAM bottles is very hard to open. So
that should be avoided.
3. It was observed in my research that there is unhealthy competition between the
manufacturers of FMCG products that should be avoided as far as possible.
CONCLUSION:

1. Finally it is concluded that FMCG products are of very important element to consumers.
The behaviour of the consumer does make a lot of difference in shaping the
advertisement of the product.
2. Consumer behaviour changes as the advertisement of the product changes.
3. Young consumer is much more affected by the advertisement depicting the bollywood
celebrities.
4. Broadcasting advertisement is much more effective among Indian Consumers, specially
the Television advertisement.
5. In India the sale of FMCG products increases during any festive season.
References
Books :-
1. Essentials of advertising by Amita Shankar, yr.1994
2. Advertisement Management by David Aakker year1992
3. Consumer bhaviour by G. Schiffman and Kanuk year 2000
4. Advertising by Michel vaz, year 2001
5. Consumer bhaviour by G. Schiffman and Kanuk year 2000
Companies :-
HINDUSTAN LEVER LIMITED (HLL)
PROCTER AND GAMBLE
Websites :-
www.google.com
www.yahoo.com

Interactive Retailing
Submitted by
Sumit Sarogi , Prof. Srini.R.Srinivasan & Dr.R.K.Srivastava
Abstract:
Despite the arrival of the Internet and alternative sales channels, point-of purchase displays
continue to play a critical role in retail settings. The changing retail landscape is driven by the
various needs of the four key stakeholders: brands, creative agencies, retailers and consumers.
Traditional point-of purchase solutions can no longer meet the demands of a marketplace
characterized by rapid product revisions, feature proliferation, high sales employee turnover,
and evolving customer demographics and attitudes. These factors have significantly altered the
ability to effectively communicate to the customer on the retail floor. New technologies are
being developed to create interative retailing solutions that address the shortcomings of the
traditional point-of-purchase approach. These new solutions must have the compelling
power of interactivity, industrial design, software, and applications flexibility required by retail
environments, and the ability to influence buying behaviors if the point-of-purchase is to drive
the future of interactive retailing.
Retailers realize they have to move forward to keep consumers' attention. Product-centricity will
only have a limited growth. If it remained about the assortment, it would not continue to grow.
If retailers invite customers into the process and give them an environment that is experience-
based - where customers can share, play, create--they will build loyalty. By building an authentic
relationship, customers will trust retailers as the place that helps them find solutions for their
lifestyle. Thus Interactivity develops loyalty, and as loyalty grows, profits grow.
Key Words: Interactive Systems Design, Experiential Retailing, Self-Service, Interactive Retail
Environments
Introduction
Remember when a retailer's mantra was, "The customer is always right"? Now it's, "Get the
customer involved." Hence, the industry's new buzzword: "customer-centric." Interactive stores
are considered a new direction the retail industry is taking around the customer-driven,
experiential retail concept.
Interactive retailing here refers to the major advances in systems and services designed to
revolutionize the shopping experience for consumers, expand brand reach for retail products,
and help retailers to increase sales.
The retail sector is only just beginning to number the infinite applications that self-service
technology can bring to the store environment. It's a very animated environment, with a lot of
sight and sound. Consumers actively participate in testing, experiencing and seeing benefits of
products before they buy. Graphics of Interactive stores include lifestyle images, showing
products in use, and invitations to come in and participate in specific activities. Interactives also
have step-by-step graphics explaining how to use equipment.

Figure 1: Consumers are becoming increasingly independent. They don’t want to rely on a
salesperson to get the information they need; they want to find it themselves.
The Changing Retail Communications Landscape

To understand the problems with current retail stores, it is important to consider the dynamics
of today’s retail landscape and its four primary players: brand marketers, creative agencies,
retailers and consumers. In an ideal world, the retail messaging process would work like this:
1. The brand marketer works with an agency (or an in-house marketing communications
department) to create product collateral, packaging, print ads, broadcast ads, and promotions
all aimed at getting customers to the store. These efforts are all designed to push shoppers to
the stores.
2. The brand marketer creates stunning store displays that embody its marketing messages and
presents the customer with the critical information he/she needs to make a “correct”
purchasing decision.
3. The retailer sets up the store display (supplied by brand marketer) with the help of either
regular sales personnel or teams of specialized “fixturing” or “detailing” experts as needed.
4. Primed and educated by advertising, publicity, and promotions, the consumer arrives at the
store and the store display clinches the buying decision. If the consumer needs more product
information beyond what is available from the display, these details would be supplied by a
well informed and easily available salesperson.
5. Satisfied customer returns and buys again and – voila – brand loyalty is achieved.
In the real world, retail communications actually works more like this:
1. The brand marketer and its agency create product collateral, packaging, print ads, broadcast
ads, and promotions to drive consumer awareness. Static POP displays – shelf cards, banners,
posters, toppers, end-cap installations -- complete with fixturing, are provided to retailers.

2. Young, often inexperienced retail managers decide whether or not to bother with POP
displays. Some larger or more complex displays get left in the storeroom and are never set up
at all. Those that reach the retail floor are often set up incorrectly or are taken down after a few
weeks because the store’s floor staff has a “feeling” that they aren’t working. In some cases
they are removed because they’re taking up too much floor space.
3. The consumer arrives at the store, armed with high expectations and/or educated by
Internet
research. They navigate the aisles only to wind up being overwhelmed by the myriad of product
choices or disappointed to learn that the specific model/features they wanted is not available
on the shelf.
4. The consumer spends several minutes trying to collar a salesperson for help. The salesperson
– all too frequently a minimum-wage teenager who has been employed for only a few weeks
and has had almost no training in the store’s inventory or sales techniques -- is completely
unhelpful.
5. Frustrated, the consumer either chooses a product at random, leaves to go home and order
on
the Internet, goes to a competitor, or abandons the purchase altogether.
Obviously, there are many retail situations – particularly at the high end of the value chain –
where the shopping experience is very different, but the scenario described above is becoming
more and more frequent. Chances are, you’ve even encountered it yourself.
To frame the problems with the current approach to traditional retail stores in the context of
each player:
• If you’re a brand manager, you’re increasingly frustrated by your growing inability to keep
abreast of product introductions and control messaging at the most critical point in the buying
decision cycle;
• If you’re at an agency, you’re tired of seeing your creative efforts buried or lost in the clutter
and cacophony of the traditional retail floor. You’re also looking for ways to develop new
business solutions that enhance and leverage the value of your clients’ marketing budgets;
• If you’re a retailer, you’re stymied by the problems of finding enough shelf and floor space to
accommodate all the products your customers want. This is compounded by the prospect of
keeping young, short-term employees up-to-date on product features and prepared to provide
good customer service.
• If you’re a customer, you experience nothing but frustration in your attempt to distinguish
between dozens of products whose complex mix of features cannot be explained by a simple
card with three bullet points or untrained salespeople.
The Limitations of Traditional Retail Stores

There are a number of factors that have emerged over the last decade that have diminished the

effectiveness of traditional Retailing strategies, but six major trends stand out:
Rapid Product or Feature Proliferation

Advances in manufacturing have made products cheaper and more feature-rich than ever.
Retailers don’t have the floor space to stock all the models and can’t keep up with product
features. Customers frequently stand slack-jawed in front of shelves, unable to get a fix on
which
models best fit their needs, yet sure in their hearts that somewhere the right combination of
features is there, right in front of them -- if only they can figure it out. Then add the fact that
competitive pressures have reduced typical product revision cycles to a matter of months. This
means traditional product displays are outdated almost as soon as they hit the stores.
The “Self-Service Economy”

Most consumers have quietly come to grips with the fact that the great oxymoron of our age is
the phrase the “service economy.” Like it or not, we live in a world of chain stores and big boxes
where the greater selection and lower prices demanded by consumers translate into slimmer
profit margins. Lower profits means fewer resources to devote to training and retaining
qualified sales help. This has resulted in a retail environment that is largely dominated by a
teenage sales staff with an average employee turnover rate of more than 30% per quarter.
If you’re a customer, this means that the “service economy” is really the “self-service
economy.”
You may have some idea of what you want when you walk into a store, but if you have any
questions once you reach the aisle you’ve been looking for, you’re generally left to figure it out
on your own.
New Customer Demographics

As much as the landscape of retailing has changed over the last decade, the profile of the
typical
customer has also evolved. In the past, there were three primary customer archetypes:
• The brand loyalist – Faced with competitive brands with similar products, they will always
seek and buy their favorite brand.
• The price-point shopper – They pay no attention to brand. They will always go for the least
expensive option available.
• The educated value seeker – They come to the store after doing their research online. They
know precisely what they’re looking for and what it should cost, and they will leave if they don’t
find it in stock or priced correctly.
Traditionally, brands have developed channel strategies with products and promotions
designed to reach each of these groups in a compelling way. But with the advent of the Internet
and an

explosion of consumer information channels, the customer has become a moving target. On
any
given day, each of us can fall into all three categories – a brand loyalist for this, a bargain
shopper for that, or a value-seeker at a certain price point. So for traditional retail stores – with
all their limitations – effectively reaching all three with the right messaging is almost
impossible.
Expanding Cycle of Retail “Seasons”

Based on the very nature of retailing, most POP efforts are driven by a seasonal bias. There are
the four seasons of the year, and then the growing cycle of promotional sub-seasons – Diwali,
Christmas, Holi, Valentine’s Day, etc – that all require tailored promotions and stores. Then
there are specialized efforts designed to support new product introductions. In every case, new
displays are continually created, installed, broken down and removed in an ongoing sequence
that burns through marketing budgets and saps the limited resources of retailers.
Lack of Control
If you’re a brand manager, your expensive, creative, painstakingly crafted POP displays that
took
months of development time and a large portion of the marketing budget are now in the hands
of 20-something department manager. Depending upon the appeal of the POP design or their
personal biases, these people will make the key decisions about whether to even use your POP
display. Often they decide on their own that the display isn’t working and move it to the back of
the store or even throw it out altogether. In short, the brands who are spending billions each
year to create and deliver consumer-direct messaging wind up having almost no control over
how their efforts are deployed on the retail floor.
This shifting landscape has limited the power and reach of traditional POP and led to an
increase
in customer frustration. Since frustrated customers can create lost revenues and erode brand
loyalty, it is not surprising that both brand managers and retailers are actively looking to digital
technologies to move beyond static designs and into the realm of interactivity to help them
solve
these problems.
Sales Employee Turnover

These days the average big box store deals with annual employee turnover rates that can vary
between 100-300 percent. In an environment where the average job tenure can be a matter of
weeks, there is little hope of keeping the sales people on the floor effectively trained on
proliferating products and features.
Interactive Stores : Digital Desires

American brands spent billions on their Point of Purchase programs. Given the factors listed
above, it is reasonably safe to conclude that a certain percentage of that money didn’t generate
the results desired. Despite the ineffectiveness of current approaches, retail store remains a

critical cost center because it is one of the most important elements in generating the purchase
decision cycle in consumers.
Instead, brands have begun exploring a variety of digital alternatives. They are looking for an
engaging, compelling informative front-end sales tool that is easy to use and easy to update. In
a perfect world, they would have a solution that:
• Extends or replaces a low-capability sales force
• Provides the ability to consistently communicate a product’s features and benefits
• Leverages the investment in, and reach of, existing marketing assets
• Increases customer satisfaction and productivity per-square-foot
• Helps to integrate product marketing, promotions, and brand messaging
A New Era In Retailing
In an age where increasing product complexity and diminishing customer service frustrate
brands, retailers and consumers alike, new technologies are being developed to deliver an
entirely new way of communicating in a variety of retail settings. These solutions have the
potential to be easy to install and even easier to operate, enabling customers to locate and
virtually handle a product, check a price, experience a demonstration, customize options, order
out of stock items, and even make a purchase – all at the touch of a finger!
Retail-Ready Design
Unlike traditional digital signage or kiosk solutions, new solutions must be compact enough to
embed in virtually any standard or custom product display. Keyed access to controls provides
security in unsupervised environments, while integrated peripheral options such as a card
swipe,
bar code scanner, or a printer support a variety of service applications. Retail environments
require high bright displays that are visible in changing lighting conditions. The diversity of
technology infrastructures in retail settings requires both standalone and networked
operations.
Applications Flexibility
Interactive Stores can deliver the ability to support a wide range of sales, service, and support
functions. These include:
 Point-of-purchase
 Point-of-sale
 Pre-sales support
 Customer service
 Lead generation
 Sales of custom or out of stock products
 New product introductions
 Market research
 Promotional testing

 Product testing
 Employee training
 Event and tradeshow support
 Membership services
Advantages for All

The new generation Interactive stores meets the desires of everyone in the retail
communications landscape:
• Brand Marketers – A newfound degree of control over the POP, providing a clear and
consistent articulation of product features and benefits. Software that leverages creative and
production budgets, allowing existing ads, catalog copy and marketing materials to be
repurposed quickly. The ability to schedule and change content locally or remotely.
• Agencies – A new venue to display creative work in a customer-facing environment. The

process of re-purposing assets creates a new revenue stream from the design of content sets,
and the ability to save time and money while integrating multiple marketing efforts in a single
form factor right at the Point of Purchase makes marketing budgets easier to justify and
support.
• Retailers – Perfect for low/no service environments, interactive stores offsets a lack of
expertise or service from the floor staff. Its ability to offer a greater range of products than a
store would typically carry due to space constraints provides an interactive set of “elastic walls”
that enable customers to review all models and features even if they are not in stock.
• Customers – Receive exactly the information they are seeking right where they need it – at
the
Point of Purchase. Rather than another frustrating shopping experience, interactive stores
provides immediate and easy access to a compelling presentation of the latest product features
and promotions at the touch of a finger.
The customer can have immediate access to the brand’s entire line of products, make their
selection and either pay for their purchase at the register or with the simple swipe of their
credit card. No longer is the brand manager’s bottom line tied to stock on hand, the risk of an
untrained clerk or any of the many new realities of today’s retail landscape. With the next
generation of solutions, the point-of-purchase will continue to play a vital role in the future of
interactive retailing.
Challenges
Interactive stores face significant challenges. They represent a high cost, complex solution that
typically requires an ad hoc assembly of pieces and significant deployment efforts. Their
relatively large size and connectivity requirements limit placement options on the retail floor
plans and the ability to develop and manage content typically requires third-party expertise.

Although Interactive retailing has been growing along with the trend towards self-service, it still
takes up valuable floor space and require levels of maintenance that most retailers are
reluctant to support. Also they are too expensive for many retailers.
Conclusions
Companies are still testing, changing, refining and streamlining concepts in their interactive
stores. But both designers and retailers are extremely proud of the results so far. One of the
distinctions of the interactive stores are they not only look good, but works well. They are
efficient, they can be changed out easily--but the store also has a new set of effective tools that
enhance the bottom line of the store. The format represents the next generation of retail.
Limitations & Future Scope of the Study
The research is limited in scope to examine the Interactive retail store formats in the Mumbai
region only, which can limit the results from being generalized to other Interactive retail store
formats.
References
1. Hu Catherine and Lau Lawrence (2009), Interactive Systems Design in Retail
Environments: Dramatic Structure as Sense-making Strategy, Design Principles and
Practices: An International Journal.
2. Byrnes Tom (2004), The Future of Interactive Retailing, Planar Systems, Inc.
3. Kircher Travis (2009), The Benefits of Retail Kiosks, Kiosk Marketplace
4. Minnick Robert (2004), Interactive retailing solutions for the 21st century, The Retail
Edge, LLC.
5. Bickers James (2009), Shaping the Customer Experience with Digital Signage,
DigitalSignageToday.com
6. Wollenhaupt Gary(2009), Small-Screen Displays in a Retail Enviornment,
DigitalSignageToday.com

Brands leading to empower the Service Sector: In context to the cut-throat Competitive
Environment
Submitted by
Ashish Agrawal
Arpit Mantri
Services are intangible and they can experience only at the various points of delivery, in real
time, as they are being delivered. There is also significant variability in service delivery that a
customer experiences even from the same service provider at various points in time.
Perceptions of service differentials are built more through actual experience than through
advertising. Hence the task of branding services is not to add more intangibility through
advertising emotional benefits and brand personality.
The critical task of services branding is to bring tangibility to the intangible. It is to create
markers at each point of service delivery that highlight the brand differentiators. These markers
when noted remembered and talked about by consumers build perceptual differences between
service brands. Thus, the task of service branding is the very opposite of product branding.
Jet vs Kingfisher, Spice Jet vs Go Air, Barista vs Café Coffee Day, Pizza Hut vs McDonalds,
Lifestyle vs Shopper’s Stop, LIC vs ICICI, Airtel vs Hutch (Vodafone)… there is another set of
brands that are also battling it out for consumer share of wallet and share of heart. Some of
these service brands are battling it out on experience while others are focusing on advertising
image.
In the Kingfisher vs Jet instance, the King of Good Times brand concept of Kingfisher has been
translated into a number of tangible differentiators at all stages of service delivery. From
referring to passengers as guests to greeting passengers upon entry to the airport and carrying
their luggage, from the glamorous red uniforms of the stewardesses to the in-flight
entertainment, there are markers to be noted, remembered and discussed.
* State Marketing Manager (MP CG), Parle Agro Pvt Ltd.

** Management Trainee, Indore
There is far greater variability in service delivery creating mismatch between advertising claims
and actual service experience. This leads a number of service brands to focus on broad
emotional theme-led communication which doesn’t make any specific claims related to service
quality. As with products, the expectation is that such advertising will build salience and affinity
for the service brand, but the ROI of such investment for a service brand will certainly be far
lower than for a product brand.

While advertising is relevant and can be helpful for service brands, there are many powerful
services brands that have been built with little or no investment in advertising. Starbucks and
Google immediately come to mind. This is because, service brands are best built bottom up –
leveraging experiential differentiators rather than top down, via advertising campaigns.
The services characteristics imply that the customer has a high need of reassurance that the
right brand choice is being made, which ought to bring forth the role of trust in the relationship
between the customer and the service brand.
Based on this, the purpose is to analyze the process of building a service brand and the key to
success of different service sectors. A sequential, iterative process for building and sustaining
brands is overviewed.
The service sector is today dominating the World. More people earn their living by producing
services rather then manufacturing goods. Branding in practices used less in services marketing
than for tangible goods.
Branding is linked to the customer loyalty to get a higher stability in sales. Brand loyalty in
service marketing has a traditionally been less important.
The intangibility of services and the difficulties for customers to distinguish one service from
another gives the reasons to build strong service brands. A strong brand helps the customer to
identify the company’s offerings. The role of branding has gone through changes in many
sectors. The hotel industry is an example; branding service was once regarded as insignificant,
but is today highly important, with many strong brands like Holiday Inn.
The high perceived risk associated with service purchases highlights the importance of
branding. High perceived risk-level cause the customer to seek further information before
deciding on purchase. This information usually comes from three sources:
Internal, External Word of Mouth and External from the selling company
Internal Information is the customer’s earlier experiences of the product. External word of
mouth information comes from individuals who have experiences of the particular service.
External information from the selling company’s efforts is usually advertising

Services Characteristics and the Brand Building Process
In the frame of references, it was suggested that the emphasis of the elements in the brand
building process could differ due to the specific characteristics of services. Our intention is now
to further develop this reasoning by taking into consideration the empirical findings of this
study. Thus, we will begin by discussing the elements of the internal perspective of the brand
building process, followed by a discussion regarding the external perspective.
The Brand Building Process of Services: Internal Perspective

Regarding the first element, product attributes, we indicated in the frame of references that the
unique features of a service could make the use of this element more difficult. However, it was
argued that as a means to make the service more tangible, as many physical elements as
possible could be used. It was also mentioned that due to the heterogeneity of a service, using
quality as a product attribute could be difficult. The issue of the difficulty of using product
attributes when it comes to services was brought up by several of the interviewees. About the
need to tangiblise a service, the Director of Publicity at SEB, strengthened this reasoning when
she indicated that since the service cannot stand for itself in the same way as goods, it has to be
made tangible. Moreover, a Financial Advisor at SEB stressed the heterogeneity aspect by
pointing out that if you buy a product, it is easier to know the quality, but in the case of
services, it is more difficult since it depends on the service brand deliverer how the quality is
perceived.
In the frame of references, we suggested that the element brand identity ought to be the most
prominent element when it comes to the brand building process of services. The reason for this
was argued to be that since services are heterogeneous and intangible in their nature, there is a
need to put particular emphasis on the existence of a coherent corporate culture. The Brand
Consultant stated that culture is a particularly important aspect when it comes to services
brands, since this is the only aspect that the company is able to work with to portray what the
brand is about. Also the Regional Manager at SEB Tryggliv addressed the issue of the
importance of a coherent corporate culture and a common backbone when it comes to services
brands. He indicated that unclear corporate values could imply that the staff behaves
differently each time they meet the customer, which in turn could result in an unclear service
brand (ibid). As is indicated by the interviewees, the existence of a coherent culture is due to
the services unique characteristics essential in the brand building of services. By developing a
coherent corporate culture, the brand can be portrayed in a consistent manner despite its
heterogeneous and intangible nature.

Regarding the elements core values, positioning and market communication we indicated in the
frame of references that the execution of these elements could be somewhat different when it
comes to services brands. It was pointed out that in the case of services brands the staff
becomes more active participants in the positioning process since there are more points of
contact involved than in the case of product brands. Furthermore it was stated that it is
therefore crucial to get the staff to understand and be committed to delivering the core values
of the brand.
Some of our interviewees pointed out the issue of a service brand involving many points of
contact. A Financial Advisor at SEB pointed out that when it comes to services brands, the
experience of the customer could be different every time depending on whom you meet within
the organization. Her colleague presented a similar reasoning stating that when you think about
a service brand you think more about the people behind the brand while in the case of products
you think more about the actual product. The statements indicate in our opinion that in the
case of services brands, the positioning has to be well anchored in the culture and in the
identity while for example when it comes to positioning products, the marketing department
can direct the positioning more since there are fewer points of contact involved in the process.
About the element internal brand loyalty, we suggested in the frame of references that the
importance of maintaining the legal and commercial status of the brand could also be applied
to services brands. However, it was suggested that internal brand loyalty in the case of services
brands ought to be related to the existence of a coherent corporate culture where the values of
the staff are aligned with the brand values. The Brand Consultant emphasized this issue
pointing out that when it comes to product brands, it is easier to fill the organization with
enthusiasm with the help of technical product features and design but in the case of services
brands, the culture becomes essential regarding this matter. This reasoning indicates in our
opinion, that when it comes to services brands it is important to build internal brand loyalty
having a strong corporate culture as a basis.
The Brand Building Process of Services: External Perspective

In the frame of references, we indicated that the element commitment could be applied in the
same manner in the case of services brands. Moreover, it was suggested that there ought to be
the same type of continuum as when discussing product brands, reaching from services in
which the consumers act more like passive recipients of information to services in which the
consumers seek out information actively. A Financial Advisor at SEB addressed the issue of
different levels of commitment when it comes to services brands. She stated that
it is for example not as bad choosing the wrong hairdresser than choosing the wrong bank,
since there is more at stake on a personal level in the latter case and then it is more important
to check the brand before. This statement regarding service brands reasoning about how low
and high commitment to an offering gives rise to different levels of information searching. A
financial service provider such as a bank requires high commitment and consequently a more
active search of information about the service brand, while a hairdresser service requires lower
commitment and then more passive information seeking.
Regarding the element brand sensitiveness we indicated in the frame of references that the
reasoning could also be applied when it comes to services brands. However, since services are

often bought before they are experienced; more emphasis is put on the importance of
reputation when choosing a service brand. Some of our respondents commented on the issue
of reputation being especially important in the case of services brands. The Director of Publicity
at SEB pointed out that when it comes to services it is difficult to form an opinion about what
you are buying, therefore instead one forms an opinion with the help of how well known the
brand is and what it is famous for.
“A good reputation strengthens the service brand especially when it comes to insurances since
it is the clients that have experienced the offering can tell others that it works”.
About brand awareness, brand associations and value added we suggested in the frame of
references that when it comes to services brands, these elements could also be applied.
However, it was suggested that brand associations and consequently value added could imply
some difficulties in the case of services brands since keeping a persistent quality is reliant on all
staff acting consistently. As mentioned when discussing product attributes, a Financial Advisor
at SEB pointed out that in the case of services brands it is more difficult to know the quality
since how the quality is perceived by the customer depends on the service brand deliverer. In
our opinion, creating brand associations in the consumer’s mind ought to be more dependent
on the staff acting consistently and less on using for example Spokespersons. Consequently, as
mentioned before, in order for the staff acting consistently it is essential to have a strong
coherent corporate culture.
Regarding the element brand loyalty it was argued in the frame of references that value added
creates brand preferences that in the long term will be transformed into brand loyalty.
Furthermore, it was pointed out that since brand loyalty creates a base for profitability and a
stable market share, it is highly desirable for the brand-owner that the consumer is strongly
attached to the specific product brand (ibid) and in our opinion achieving brand loyalty is
emphasized in the same manner in the case of services brands.
Ways to Build Your Brand through Customer Services

When it comes to brand building, customer service is often the last and most-ignored piece of
the puzzle. This is a big mistake and big missed opportunity. Aligning customer service and your
brand is an essential but under-used way to attract and retain customers, differentiate the
business, and boost brand loyalty. Done right, it can create a truly sustainable competitive

advantage. Here are six ways we've seen to use customer service to reinforce brand identity.
These methods can be used to align customer service with established brands or to build a
brand through customer service.
1. Brand-oriented customer service intent Established and executed
Successful companies formulate a strategic intent and execute to that intent for market
success; savvy organizations map that strategic intent to a brand intent. While businesses often
capture brand intent in their advertising, they ignore it in delivering customer service, whether
it is through their websites, contact centers, stores, or branches. This could result in damage to
the brand. It is therefore important for C-level executives to launch a brand-aligned customer
service initiative to make sure it is implemented across customer-facing and back-office
operations.
2. Building brand-oriented processes
Customer service processes often involve multiple steps, tasks, people, and organizations. For
instance, contact center customer service includes call routing, interactions, resolution, and
fulfillment, and could also include proactive outbound communications, based on pre-
determined business rules. High-touch brands should design processes that emphasize human-
assisted customer service over self-service, whether it is in a brick-and-mortar environment or
in a contact center setting (e.g., phone and web chat). It is also important to ensure that
promised service levels are met through robust customer service process management tools.
Non-intrusive brands should refrain from aggressive in-person or live chat customer service.
3. Deliver brand-oriented human-assisted services
Human-assisted service is here to stay- complex customer service requests and certain
transactions require human involvement. Moreover, some customer segments prefer the
human touch. As such, it is important for companies to hire and retain brand-aligned people for
customer service. HR organizations could match the personality of the brand to the desired
personality of frontline reps to ensure brand-aligned agent recruitment and retention.
The knowledge and conversational styles of "role model" (i.e., the most brand-aligned) call
center agents can be captured in customer service management systems in the form of
knowledge base content and interactive guidance to agents at the point of customer
interaction, and even in customer self-service systems. Forward-looking retail and financial
services companies are extending such systems to brick-and-mortar stores and branches to
improve the effectiveness and brand alignment of in-person customer service.
4. Provide brand-oriented self-service
Self-service provides a great opportunity to further build the brand. For example, sophisticated
guided-help knowledge base systems and online chatbots modeled after the company's
multimedia advertising spokespersons can orchestrate brand-aligned self-service interactions
with customers. A hypothetical example would be chatbots modeled after the gecko or the
"cavemen" for GEICO and William Shatner for priceline.com. In fact, a leading financial services

company in Japan has used a chatbot, modeled after an actor featured in its television
commercials.
5. Use brand-oriented metrics
A critical misstep in customer service management is the misalignment of brand strategy and
service metrics. For instance, force-fitting Wal-Mart metrics to Nordstrom brand intent is not a
good strategy. High-touch brands should not emphasize throughput metrics such as average
call handle times.
6. Brand-align all touch points
Most businesses still have interaction, data, and knowledge silos in phone call centers, online
service centers, and self-service systems, where the left hand does not know what the right
hand is doing. Of late, many companies have started unifying customer interactions and
knowledge bases into common platforms as the first step to unify customer experience across
channels and service agents. However, most companies have yet to brand-align customer
service across communication channels. A unified platform approach to cross-channel customer
service and brand alignment can help them get there quickly, and their customers won't have
to face Dr. Jekyll and Mr. Hyde as they go from one communication channel to another or from
one agent to another.
Top 50 Service Brands

 T. R. Mendiratta, Secretary (Corporate Communications), LIC
 Anil Kumar Saxena, Additional Director General – PR , Railways
 Ajit Chaturvedi, Head – Sales & Distribution Mobile Services, Bharti Airtel
 R. Sridharan, Managing Director, State Bank of India
 Anil Kumar Singh, Zonal Sales Manager, SBI Credit Cards
 Harit Nagpal, CMO, Vodafone Essar
 Sanjeev Agarwal, CEO-Pantaloon Concepts, Big Bazaar
 Raghu Menon, Chairman & Managing Director, Air India
 Niren Chaudhary, Managing Director – Indian Subcontinent, Pizza Hut
 Ronita Mitra, Head – Corporate Brand Group, ICICI Bank
 Sanjay Behl, Group Head – Branding & Marketing, Reliance Communication
 Sachin Khandelwal, Head – Credit Cards Product Group, ICICI Cards

 Manjula Prasher, Sr. DDG GCM (Mail Business), India Post
 Abdul Khan, Head – Brand & Marketing Communications, Tata Indicom
 Mohit Khattar, President – Marketing, Subhiksha Mobile
 R. Subramanian, Managing Director, Subhiksha Retail
 Arti Mehta, Chief Marketing Officer, Essar Telecom Retail
 Bidisha Nagraj, President – Marketing, Café Coffee Day
 Shikha Sharma, Chief Executive Officer, ICICI Prudential Life
 Aditya Puri, Manging Director, HDFC Bank
 Vijay Mallya, Chief Managing Director, Kingfisher Airlines
 Parag Rao, Executive Vice President, Head – Product & Portfolio Management, Credit
Cards, HDFC Credit Cards
 R. Radha, Asst. Vice President – Finance & Commercial, Reliance Fresh (Reliance Retail
Ltd.)
 Smita Jatia, Chief Operating Officer, McDonalds
 Rajinder Mahajan, Deputy General Manager Circle Head, Punjab National Bank
 Gagan Arora, Vice President & Segment Head Citigold Wealth Management, Citibank
 Dev Amritesh, Senior Vice President – Marketing, Domino’s Pizza
 Sudeep Amodia, Manager – Brand Communication, Jet Airways
 Sandeep Bhalla, Head – Credit Card , CITI Credit Cards
 Akshay Mehrotra, Marketing Head, Bajaj Allianz
 S. S. Rao, GM-BD, BSNL & Cellone
 Bhavik Soni, Senior Manager – Marketing, Idea Cellular
 Joydeep Ghosh Roy, GM – Marketing & Sales, PVR Cinemas
***Source:- http://www.indiasgreatest.com/top_50_service_brands.html
The Brand Building of Different Service Sectors
Airways: Kingfisher Airlines
The key to building influence in the airline industry
Building brand value and influence in the airline industry means constructing communities
around the product, the service and the experiences that lead to a strong, trusted relationship.
This includes community-centric sports sponsorships, such as Emirates’s involvement with the
McLaren Formula 1 team, but also includes much more creative and often less expensive,
methods to further shared interests and drive innovation. In a time of economic uncertainty,
airline brands need to connect with both leisure and business travelers. In difficult economic
times, people are looking hard for value in everything they purchase. Rick Wilbins, Managing
Director, Brand and Advertising,
American Airlines says that part of American’s objective is to make sure that the travel
experience with American is perceived as an “improving value.” That’s a challenge, of course,
because with rising fuel costs, the airline has to cut some of their services and routes, which
puts an extraordinary burden on their people to continue to provide the best possible service.
Airlines must focus on the brand experience, because in today’s environment customers will
choose the carrier that provides the best overall value. By focusing on the brand experience,
not only will airlines retain existing customers, but they will also attract others disgruntled with

the competition. And overall, this hedges against the potential of a consumer making a
purchase decision on price only.
Influence provides a shared language for all disciplines. Instead of starting with the inputs (i.e.,
channel or brand or content), it starts with the desired outcome (i.e., influence), and works
backward. This is the ultimate form of integration, because it begins from a channel-neutral
position.
The poor aviation industry! Slobbered but questionable, Classy but money cruncher. Yet
somehow this industry never fails to excite me. The crowds pull and push factors act so strong
that their balance seems so far and high. Public and private players have tried and tested
various policies and standards but somehow fell short. Though loss bearing, there are a few
stars that need a reference for being a brand in reckoning in this fragile and super-dynamic
industry. Nonetheless, Kingfisher Airlines is the leader of the lot.
The world’s youngest airline ever to receive a 5 star rating from Skytrax is indeed, ‘the’
Kingfisher Airlines.
Vijay Mallya, the liquor baron and the owner of United Breweries and Kingfisher Airlines, is a
renowned personality, being the 42nd richest in India. What initially had begun as a venture
into the United Breweries and Kingfisher beer, later on became the India’s 28th biggest brand,
Kingfisher Airlines.
As one of the finest airlines in India, Kingfisher airlines rightly live up to the expectations of
travelers in general. The airlines, based at Bangalore, incepted its operation on May, 2005
leasing 4 airbus 320 aircraft.
With the vision to deliver value based, safe and enjoying travel experience to all its passengers
as par with its underlying values Kingfisher Airlines offers myriad exclusive deals for the
convenience of its passengers. Kingfisher Airlines assures a journey ever cozy and experiencing.
It is beyond doubt that Kingfisher Airlines got to be a key player in the luxury airline segment
given the scores of services it comes up with. The airlines presently runs a fleet of 11 new A320
aircrafts and hook up all the key business and leisure destinations with over 70 flights daily
across India. It is the first airline in India to sign a pact with Airbus for A380 and A350.
The only and first airline in India to procure the valued ‘Best New Airline of the Year' award in
the Asia-Pacific and Middle East region from Centre for Asia Pacific Aviation (CAPA). Kingfisher
also made it to bag "Service Excellence for a New Airline" award from Skytrax.
The success of the Kingfisher Airlines and the brand kingfisher itself has only been possible due
to the discerning of one man, Vijay Mallya. When his father Vittal Mallya left him United
Breweries at the young age of 25 years, he had plans to take it beyond anyone’s expectations
and that did happen. The brewery has become a multi-national corporation of more than sixty
companies, and a humungous annual turnover of 439%.
In the very beginning, Mallya had decided that this corporation will not be limited to beverages
only. That is the reason why it expanded to include chemicals, agriculture, life sciences, leisure
and eventually aviation as well in the form of Kingfisher Airlines.
Mallya’s intelligent plans and cunningness has taken his business to the apogee. His claim of
providing the best service in the Indian skies with the Kingfisher Airlines is indeed one

statement, the entire India believes in. The rest has been taken care of by the excessive awards
conferred on the airlines.
With the orders placed for Airbus A 380, Kingfisher Airlines will become the first Indian airlines
to have this aircraft.
Today Dr.Mallya is the strategic partner for the Epic Aircraft and has successfully the diverged
the original intent of his business from maintain aircrafts to actually constructing them. Until
now, operations have not yet begun, and teams are being set up to provide the blue papers
first.
Kingfisher Airlines is one of India’s most valued brands today and the success and worth has
been achieved with an unending effort by the Kingfisher Airlines team to provide fliers with an
experience that truly classifies itself as the Kingfisher Experience, unreachable and
unmatchable!
Following strategies were followed to make it one of the leading Airlines in India.
 It came up with a very appealing promotional line “Fly the good times” and it reflected
in the experience the company offered to its passengers.
 KFA is also launched Kingfisher express in order to tap into the growing LCC segment.
 It planned to re-launch its commercial air service called UB Airway again which it had to
withdraw it due to government restrictions.
 The company gave best services to its customers that were like providing world class
interiors, and in-flight entertainment systems.
 The company came up with only one class airlines rather than other airlines that had
Business Class; Economy Class the idea was to combine Business Class experiences and
Economy Class experiences in one.
Having a single class freed up more leg space for passengers when compared to normal
economy class flights.
 The company started addressing its customers as “GUEST” rather than passengers.
 The company made its mark by providing its guests with more legroom and bigger seats
so as to provide better comfort.
KFA has set its sight to become India’s largest airline both is capacity and in market share.
KFA’s Promotional Strategies
As part of its promotional strategy the marketing team of KFA showcased the airline as “the
new flying experience”. The following initiatives were taken as part of its promotional strategy…
 Advertisements hoardings at airports depicted the stylish interiors of the “Funliners”,

which conveyed youthfull, fun-filled, and world class image.

 INOX multiplexes in Mumbai publicized KFA’s special offers for a month.
 KFA was the official travel airlines for the cast and crew of “Mangal Pandey”- the movie.
 KFA made use of various fashion shows, celebrity golf matches, New Year parties all to
build its “Kingfisher” brand.
 The UB groups monthly magazine called “Pegasus” published information about KFA
along with other information related to UB group.
 KFA launched many attractive offers to promote its sales like the “King Card” in
association with ICICI Bank, in August 2005. This was ment to creat loyal customers for
KFA by providing benefits like privileged access to lounges, restaurants, free
refreshments at airports, access to 180 golf clubs across India, special invites for lifestyle
shows.
 In October, KFA launched “Chill Times Offer” in the month of August 2005 and
September 2005.
 In October they launched the “King Saver Offer” which said “Fly like a King, don’t play
like one”.
 KFA targeted the frequent fliers business traveler segment, which was dominated by Jet
Airways. By offering a “King Saver Booklet”, This booklet contained six free flight tickets
and was presented as a free gift if the passenger bought two such booklets each worth
Rs. 26,999.Passengers could avail off this offer if they showed there Jet Privilege
Member (Gold or Platinum) card.
Financial strategies:
KFA came up with many new financial strategic moves that made it one of the leaders of
aviation industry the company had adopted following strategies:
 It purchased brand new A320 aircrafts powered by the cockpit that was a paperless
environment.
 In June 2005 KFA planned to order US$ 5 billion at the Paris Air Show, for 5 new A350-
800 aircraft, and five A330-200 aircraft.
 KFA was first Indian carrier to place an order for A380s.
 In November 2005 it placed an order for 30 A 320 and 20 ATR72-500 aircraft at the
Dubai Air Show. This ATR72-500 was worth US$750.
To further its expansion plan KFA put in its bid to buy Sahara in November 2005.How ever
negotiation came to a standstill when KFA felt the valuation of Sahara Airlines of around
US$750mn to US$1 bn. was too high.

KFA has plans to make an Initial Public Offer (IPO) and raise around US$200 mn that would be
used for its fleet acquisition and route expansion activities.
KFA set up Kingfisher International Inc. (KII), a subsidiary in US for its international operations.
KFA plans to operate international routs by end of 2007. But KFA had yet to receive permission
from the Indian government.
According to Indian government domestic air carriers are not allowed to fly international routes
without five year of domestic flying experience. But Mr. Mallya said if he failed to convince the
government to change its rules, it would start an airline in a foreign country and fly it to India.
Human Resource Strategies
Prior to launch, KFA signed a “non-poaching alliance” with Air Deccan under which both the
airlines agreed not to hire each other’s employee. KFA’s flight attendants called “Flying models”
were selected through a national level model contest.
KFA also stressed the fact that its employees had to be capable enough to meet the airlines’
high service standards.
Among one of the biggest HR move for KFA was addition of Nigel Harwood as Chief Operating
Officer with effect from August 1, 2005, to strengthen its management team.
Mr. Mallya said “Kingfisher Airlines Limited has a first class management team not just at top
most level but also in the second line. This is part of the UB group’s commitment to human
resources”.
Airlines must not be distracted by economic, regulatory, safety, environmental and other
external influences beyond management’s control and must maintain a vital emphasis on
customer relationships and brand management. Airlines have many consumer touch points and
each is an opportunity to reinforce brand value and loyalty. Often these opportunities are
squandered with irritating service, petty fuel, baggage or other surcharges that can make all
airlines seem a distasteful commodity.
Marketing plays an important role in addressing the issues that have diminished brand
perception and in restoring a positive consumer experience. Marketers must understand every
stage of the customer journey and ensure that customers are engaged throughout. There is a
transformation underway in the business world as social media force companies to reinvent the
way they build brands. This has made brands more participatory. The new brand is much more
collaborative. Airlines need
to build strong brands and influence to compete in a much-changed environment. A new
approach to the challenges of the digital world – “Influence” – allows us to determine the most
successful strategies for brands in every channel.
Telecommunication: Airtel

The framework developed to analyze the brand Airtel.
The Functional Dimension
The role of the technology is to make thing easier for the consumers. Airtel has been very
successful in simplifying the use of mobile services by modifying the technology to suit the
common users. Even the simplest of the consumer can use the products and services. Airtel
says, "Your world of communication just got simpler."
The Social Dimension
Airtel is a recognized brand to be associated with. I satisfy my esteem and it gives me
opportunity to be a part of the culture. It is associated with high level of social value.
The Spiritual Dimension
"Building telecom, building relationships." It is important to be in touch with the relatives and
dear ones but this is possible today through the mobile communication. Airtel encourages
everyone to be more involved in building relationships and spread the happiness.
The Mental Dimension
Airtel gives me the opportunity to "Express Myself." The message is very clear to be open and
daring to express. The expression gives me a lot of pleasure and an opportunity to think that I
am a separate individual and have the right to communicate and express myself. 8
Airtel's marathon brand building

The telecom major is leveraging the annual half-marathon to strengthen brand salience in its
largest market
Ever since they were introduced in India in 2004, marathons have become something of an
annual event on the social calendar, not least because they provide a huge networking
opportunity for anyone who is reasonably fit – from common or garden executives to page
three and corporate celebs.
For Bharti Airtel, India’s largest telecom company by subscriber numbers, the 21.09 km Delhi
half-marathon on Sunday provides a unique opportunity to build the brand in its largest and
oldest market, Delhi.
That’s because the Delhi half-marathon, for which Airtel has the title sponsorship for the
second year running taking over from its competitor Vodafone (formerly Hutch), provides its

brand focused exposure to hundreds of thousands of people from around the world, for several
reasons.
First, with total prize money of $210,000 – men and women standing first will win $25,000 each
– this is one of the richest half-marathons in the world.
Second, because it has received the International Association of Athletics Federation (IAAF)
Gold Label Award, the highest rating the international organisation offers to road races, the
Delhi half-marathon attracts runners from around the world. (IAAF’s ratings take into account
various parameters such as participation rates, racing standards, TV coverage and organisation
standards.) Consider the numbers: Sunday’s run, organised by sports management company
Procam International, will see over 30,000 people running, up from about 26,000 last year –
and that doesn’t reflect the number of people who still want to register. The event draws
participation from 30 nationalities, not to speak of the lakhs of people who come to see and be
seen.
For Airtel, these numbers are only part of the attraction. As important is the opportunity for
brand positioning that the event provides. “All marathons, whether in Mumbai, New York,
Boston or Delhi, have three basic characteristics. One is breaking barriers by testing your
endurance with all its connotations of fitness and good health; the second is the coming
together of people from different walks of life and nationalities; and the third is showcasing the
characteristics of the city and its vibrant youth culture,” says Chandrasekar Radhakrishnan,
senior vice president-marketing, Bharti Airtel. All of these, he explains, offer a “perfect fit” with
Airtel’s tag line “Barriers break when people talk”.
The overall essence of the sponsorship, Radhakrishnan adds, is to suggest that “together, good
things happen”. Like marathons elsewhere, these “good things” are not just limited to values of
health, endurance, togetherness and so on. The half-marathon also provides a unique
opportunity to raise funds for charity with participants raising contributions, including by the
Bharti Foundation. Since 2005, over 200 NGOs have registered for the event.
The event also provides an opportunity for some internal brand-building with HR initiatives
such as a “super loser” contest that offers a prize to whoever loses the most weight ahead of
the contest and a medal of honor for whoever runs the fastest.
Last year’s event revealed that the brand return on investment were huge when measured on a
range of parameters such as recall, intention to purchase and so on, though Radhakrishnan
declines to share specifics. “We saw a clear shift in brand awareness not just in Delhi but across
the country after the event,” he says.
Accordingly, this year’s event is being packaged and marketed in an even bigger way. Apart
from the print and outdoor campaigns, Airtel has roped in its brand ambassador Shah Rukh
Khan to market the event via a TV commercial produced by Rediffusion Y&R in which he
reminisces about growing up in the city. The idea is to showcase the culture of Delhi, in which
Bharti Airtel has been present since 1995.
Earlier this year, Bharti crossed the 5 million subscriber mark in the city and NCR region, but it is
operating in a crowded market that is expected to see more competitors soon with aggressive

pricing strategies. Already, one more player – MTS – has launched services and four more are
expected by next year. In such a market, it will require a marathon effort to ensure brand
loyalty.
Strategies adopted by Airtel
 Strong network coverage area
Airtel with its network has covered almost each and every part of country, increasing
the mobility and trust in brand. It has wide and extensive presence in the remotest
of areas.
 Advertisements
Airtel has been constantly involved in various advertisement campaigns to attract
consumers.
Many famous celebrities have the brand like Shahrukh khan, Aisi Azadi Aur Kahan,
Sachin Tendulkar and A.R Rehman who composed the signature tune of airtel ,
which was well appreciated by the customers.
 Mission of Airtel
Mission of the company very well states that it caters to meet the need of its
customer’s byproviding error free service delivery, innovative products and cost
efficiency.
 Vision of Airtel
“To be the most admired brand by 2010
 Value Added Services

Airtel provides various value added services like instant balance enquiry, 24 hr
recharge facility, caller line identification, call divert, call hold, Airtel Live Portal,
Hello Tunes & ring tones, Voice mail service, GPRS.
 Schemes
Airtel has been promoting various schemes to attract various segments consumers
by launching various plans, which offer discounts and reduced rates .
 Pricing
The pricing strategy of airtel is customer based, there are various tarrif plans being
introduced to cater to flexible pricing requirements
 Airtel's strategy for getting into new areas

The company is focusing its attention towards youth, women, and senior citizens by
introducing new prepaid and post paid plans which offer lower call rates and more
value added services with affordable payment plans.

Company’s “Friendz” prepaid plan is focused on younger generation the two post
paid plans among which by name “Ladies Special” are meant for women would allow
more women to talk for longer hours as there are some attractive discounts being
given and the next for senior citizens by name “Senior”, discount will be allowed for
one STD no and one Airtel local no.
PORTER'S GENERIC COMPETITIVE STRATEGIES by Airtel

Cost Leadership Strategy A firm gains cost leadership in an industry when its cost of
production is lower than that of its competitors. Airtel has gain cost leadership by managing its
processes and resources efficiently and effectively. By bringing down its operational costs, an
Airtel has offer its products and services at lower prices. It has also earn higher profits because
either the profit margins are greater or the sales volume has increased.
Differentiation Strategy The differentiation strategy adopted by the firms needs to possess
sufficient skills and abilities to differentiate the product from that of the competitors based on
some attributes that allow the consumers to perceive the product as different from that of the
competition. Firms that adopt the differentiation strategy successfully have access to advanced
scientific research, a highly skilled labor force, effective customer communication strategies;
etc. Airtel is providing free digital EPABX with free leased lines (no connectivity charges).So the
firm is providing latest EPABX to the customer which is costing approx Rs 50,000.
1. Best service provider, good call center service esp. in local languages, good service even in
the remote areas, emphasis on “barriers break when people speak”, new initiatives like google
search on Airtel live, downloads etc
2. Long term HR strategy, Gallup Great Workplace Award, Both internal developments as well
as external hiring, development programs with iims.
Focus Strategy A firm pursuing a focus strategy tends to serve a specific segment instead of
catering to the entire market. This segment may be a special group of customers, a specific
geographic area, or a particular product or service line. The customers will also be loyal to the
company and therefore, the entry of a new competitor into that area becomes difficult.
Airtel is focusing on the customers who is having more than Rs10000 monthly landline billing.
Airtel is offering landline services which consist of PRI (Primary Rated Interface). Airtel can
provide its service to a specific geographic area i.e. from Dahisar to Churchgate in western
region & Thane to Panvel in eastern region
Insurance Sector: LIC

There is an amazing consistency in the manner in which Life Insurance Corporation of
India (LIC) has over the last five years emerged as the country’s top service brand in the
Most Trusted Brands survey.
LIC’s performance this year is all the more laudable considering it has topped the life insurance
category as well, across all four zones (North, South, East and West), all top four metros

(Mumbai, Chennai, Delhi and Kolkata), all town types (Metros, Class I and Class II), and across
SEC A, B and C respondents.
While many legacy brands appear to be suffering from the wear and tear of time, LIC has clearly
leveraged its vast reservoir of experience in the insurance business, focusing on attributes —
like customer centricity, efficient service and quick response — that have added to the brand’s
trust.
The numbers are truly staggering: LIC has over 200 million customers, uses the services of
about 10 lakh agents, and receives over 45,000 claims on an average every working day. “LIC’s
claim settlement ratio is one of the best in the industry,” adds Mehrotra. “The efforts taken by
our offices to settle maturity claims well before the due date are proof enough for this.”
The company has introduced several initiatives to improve its offerings in the last five years. For
instance, it has introduced a facilitated settlement of survival benefits without calling for policy
documents, con cessions to customers for reviving their lapsed policies, and alternate channels
for payment of premia through ATMs, ECS, the internet and even SMS.
LIC’s pan-India appeal, though, would be incomplete without its efforts to reach the ru ral
consumer. Besides regular policies, the company has supported rural markets through
innovative schemes like Bima Gram — a program wherein a portion of the premia collected
from select villages is put back into the system for the village’s development — and Bima
School, which aims to spread insurance awareness among school children.
Positions:
1. Largest insurance Company in the world in Customer Base (23 crore customers)
2. No.1 insurance company in the world in terms of agency (about 1.1 Million agents)
3. LIC is No.1 insurer in the world in Volume & Sold around 3.75 Cr.Policies in 2007-2008.
4. 2nd Biggest Real Estate Owner next to Indian Railways.
5. LIC is one of the Highest income tax playing Organization. For Financial Year 2007-08, LIC
has paid advance Tax Rs.2627. 14 Cr. & Service Tax Rs.1292. 15 Cr.
6. Has Highest insurance Professionals ( Club Member agents )
7. Only 4 countries in the world have more population that LIC`s policy holders.
Award - Recognition
8. Adjudged "The most trusted service Brand" in India, by "Economic Times and AC
NEILSEN ORG MARG" for the year 2007 for the 5th consecutive year.
9. "Golden Peacock" award for Excellence in "corporate Governance"
10. LIC adjudged as "Best life insurance Company of the year" at the "2nd"NDTV Profit
Business Leadership Awards-2007.
11. LIC adjudged the "Most Preferred Life insurance Company of the year" at the "CNBC
AWAAZ" consumer award 2007 for 3rd time in succession.

12. Awarded Reader Digest's "Trusted Brand"2006,2007&2008 (Voted by Consumers)
13. "Outlook Money NDTV Profit Award 2007"
14. "Web 18-Genius of the web Award" Conferred for the best website in insurance
Category
15. "SKOCH Challengers Award 2008" for "Jeevan Madhur".
16. "Loyalty Awards 2008"- insurance Sector.
17. Double crown for LIC in corporate Olympics 2008, Most Sporting Corporate 2) Corporate
Championship Award Winner-2008
Honoring of the Commitment - Settlement of Claims

18. No.1 insurance Company in the world in terms of claims paid.
19. LIC Settles 2.21 claims per second, LIC settled 139 lakhs claims during the year 2007-
2008.
20. Prompt settlement of claims (97% maturity claim settled on or before due date)
One of the Lowest outstanding Claim Ratio in the world ( Maturity+S B Claim-0.07%)
Advanced Technology-For better Customer Service
21. Computerized and networked 2048 branch offices and 159 satellite offices throughout
the country.
22. Use of High Tech-WAN,LAN,IVRS & EDMS
23. LIC is second largest PC user in the country.
24. EDMS to make LIC a paperless office- Enabling Policy servicing & payments through all
branchs in the country.
25. Premium Payment Facility extended through networked 2048 branches, ECS, ATM's
through internet, online portals, collecting bank (Axis Bank), AP online, through
SMS, through selected agents, Now LIC Premium can also be paid through."Suvidha
info Serve KIOSKS" all over India.
26. Policy Holder's Portal allow on line access to policy status and other details.
27. Info centre set up in 12 cities for customers to interact easily. Dial-1251 for details.
28. 45 interactive Voice Response System (IVRS) centers all over the country to provide
information on policy servicing. Facility is available 24 7, Facility can be availed on
following phone Nos. 1251 OR 020-25514248.
Social Strength
29. LIC - an institution builder promoting many financial and insurance institutes like
NSE, NCDEX, LIC Mutual Fund, Stock Holding Corporation of India, National
insurance Academy, insurance institute of India etc.

30. LIC has foreign operations in Mauritius, Fiji and London and has joint venture
operating in Sri lanka, Nepal, Bahrain & Saudi Arabia. New offices will be hortly
oprned in Australia, USA&Canada.
31. LIC is known as "Pension Provider" of the country.
32. 1st Pension company in India is floated by LIC as "LIC Pension Fund Ltd" on 21st Nov
2007.
33. First to create waves in micro insurance sector by insuring people below the
poverty line. In year 2007-2008, 8.54 lac policies sold through "Jeevan
Madhur"Plan.
34. Widest range of plans (about 48) for every need of the customer of 0 to 79 years of
age.
35. Biggest Portfolio of Group insurance schemes available.
36. "Jeevan Saral" one of the product of LIC got "Best innovation product” award from
I.R.D.A.
37. LIC has covered lick Risk of 1.13 crore citizens through "AAM ADMI BIMA YOJANA" &
“JANASHREE BIMA YOJANA".
38. Very Unique Salary saving Portfolio.
39. Highest Number of Corporate Clients in Group insurance Scheme.
40. Expending Distribution Channel through Banc assurances, Corporate Agencies, Broker
ship & Chief Life insurance Advisor (CLIA).
41. New East - Central Zonal Office opened at patina to caterto the needs of states of
Bihar, Jharkhand and Orissa. 5 new Divisional offices were also opened in 2007-08.
Pune D.O.was splited in 2 divisions, viz Pune Division (i)
and Pune Division (ii).
42. "Golden Jubilee Foundations" established for undertaking charitable activities like
education, health, relief of poverty etc.
People's Money for People's Welfare

43. LIC invested more than 11,630 crores, in infrastructure sector is Rs.56,691
crores
44. In socially oriented sector like water, drainage & housing etc, LIC has invested Rs.5,
635 crores during 2007-08 & total investment in this sector is Rs.32, 321 crores.
45. Total investment in Social Sector Rs.89, 000 Crs.
46. Different incentive schemes for villages, Schools and Banks under Bima Gram, Bima
School and Bima Banks.
47. Total investment in Nation Building Activities is 5, 76,000 Crs.
Financial Strengths
48. LIC's investment income in 2007-08 was Rs.40, 655 crores. Out of Total income of Rs, 1,
76,559.28 Crs.
49. Total Assets of the corporation as on 31.3.07 were Rs. 6, 74,514.78 Crs.

50. Largest institutional investor in Share Market. On an average Rs.100 crores invested
every day. During the year 2007 LIC earned the profit Rs.10,000 Crs. from the Sale of
Equity.
51. Largest Financial institutional investor both Equity market & Term House.

Conclusion
When it comes to the process of building a service brand, the emphasis of the elements in this
process differs somewhat compared to the building of product brands. In our opinion, the
reason for this is due to the unique characteristics of services i.e. intangibility, heterogeneity,
perish ability and inseparability .From our discussion about how the services characteristics
affect the process of building a service brand, it can be said that brand identity and thereby a
coherent corporate culture is the most prominent element in this process. Thus it has been
pointed out that the service deliverers, i.e. the staff, have an essential role in the process of
building a service brand.
When it comes to the process of developing a consumer’s trust in a service brand it was
suggested that a positive reputation could serve to initially signal trust. However, reputation is
not enough to determine trustworthiness and therefore the consumer’s own experience is
essential for developing trust in a service brand, in which the actual encounter with the service
brand, i.e. staff is especially important. Furthermore, we argued that a satisfactory relationship
is important in order for the consumer being motivated to continue the relationship with the
service brand.

Brand Building in Services Sector (Services marketing)
Submitted by
Prof. Neha Tejwani,

Lecturer, JSPM’S Abacus Institute of Computer Applications (MBA)
Pune.
Abstract
The growing service sector leads to rapid changes of today’s economy from an industrial society
to a so-called knowledge society. Traditional values of organizations – often named “bricks and
mortar” – become less important. Instead of those values of human resources with all their
abilities and skills become the most important value drivers in many organizations. Branding is
inevitable and plays an important role in creation of demand. A brand today assumes much
wider concept than mere differential advantage and sustainable advantage. Today the brand
hexagon has to reflect wider aspects of personality, physique, culture, self image, relationship
and reflection.
Services are the wild beasts of branding - difficult to control, hard to direct, and with a mind of
their own. This paper focuses on the services-brand-building process. A model is posited of the
factors involved when building a services brand from scratch. Insights about those involved in
the services-brand-building process are provided along with a consideration of the impact of
the organization’s internal/external orientation. The results show that, in comparison with the
goods model, more work is required in terms of organizational culture and internal branding
when building services brands. It is recommended that organizations utilize cross-functional
teams, a strong customer orientation and a brand-supporting culture to maximize the success
of their services brand.
India though being a developing country has contributed more new members to the Forbes
Global 2000 than any other country in the last few years proving that ‘geography is history!’ in
todays maxim. Major contributors to this success were Indian Service sector and the Industrial
sector. Rapid technology changes, shorter product cycles and developments in Information &
Communication have combined with LPG i.e. liberalization, Privatization and Globalization of
trade and investment to produce a global economy.
Marketers building professional services brands have even more problems due to the sensitive
nature of the relationship between clients and consultants, and the many sources of
information and perceptions about a brand. This research paper provides four basic steps for

marketers attempting to build new professional services brands, based on the experience in the
management consulting space.
Keywords: Globalization, Marketing, Branding, Professional Services, Culture; Internal;

External, Personnel management, Brand Values.
Introduction:
One of the more established definitions of a brand was proposed by the American Marketing
Association (AMA) in 1960. This stresses the importance of the brand’s logo and visual signifiers
primarily as a basis for sustainable differentiation purposes, i.e.
A name, term sign, symbol or design, or a combination of them, intended to identify the
goods or services of one seller or group of sellers and to differentiate them from those of
competitors.
Differential advantage stands for the reason for which customers prefer that brand; and
sustainable means the advantage that cannot be easily imitated by others.
Developing the logo for the brand should be done strategically, rather than tactically.
In other words, the vision for what the brand is to become should drive ideas about
the core essence of the brand, which should then be used as the brief for designers.
Managing corporate brands needs a different approach to classic line branding. Individual
line branding primarily focuses on consumers and distributors, and few staff interact with
consumers. By contrast, corporate branding is about multiple stakeholders’ interacting with

many staff from numerous departments, and important objectives are ensuring a consistent
message and uniform delivery across all stakeholders’ groups. In line branding, consumers
mainly assess the brand’s values from advertising, packaging, distribution and the people using
the brand. Yet, in corporate branding, while values are partly inferred from corporate
communication campaigns, stakeholders’ interactions with staff are also important. In the early
days of some corporate brands (e.g. Virgin, Body Shop and Hewlett-Packard), strong personality
entrepreneurs had a philosophy about their brand making the world a better place and
recruited staff with similar values to theirs. With a low number of staff in regular contact with
each other, stakeholders were likely to perceive a consistent corporate brand. Success resulted

in growth and more staff. The more successful firms communicated their brand philosophy
through a culture that rigidly enshrined particular core values, allowing peripheral values to
adopt.
A brand depict attributes like
 Sincerity: down to earth, honest, wholesome, cheerful

 Excitement: Daring, Spirited, Imaginative, Up-to-date
 Competence: Reliable, Intelligent, Successful
 Sophistication: Upper class, Charming
 Ruggedness: Outdoorsy, Tough
The trend is been analyzed with respect to attributes rating and buying motives.
Services as Brands
In the past, many service brands have applied a consumer-goods approach to branding to
respond to a more competitive environment. This approach emphasizes the role of advertising
in building a strong brand, but underestimates the role played by employees in developing the
brand during their interactions with customers. More recently, the development of models that
provide an understanding of the process of building a powerful service brand has emphasized
the role of employees and their contribution to enhance brand equity. The role of employees in
building the brand and making the brand `come alive' is seen as essential. Employees must be
committed to demonstrating the brand values (as expressed by top management) each time a
customer interacts with the brand.
Strong brands bring tremendous benefits to their owners - premium pricing, strong growth
even during downturns, and they attract the best partners, talent, and customers. However,
brands don’t exist on their own merits but develop, live and die as a result of consumer
perceptions. A product is physical. A brand is a promise of benefits that will be gained. Not only
must the brand live up to the promise, but customers need to perceive that the service lives up
to its promise.
In the services sector the brand ‘promise’ is delivered through a complex, ever-shifting dance of
action and reaction between providers and clients. Every single interaction has an impact on
the reputation of the brand. And once consumer perceptions of the reputation are set in the
minds of the consumer, its very difficult to change them. So each interaction must deliver on
the benefits expected by customers. Think of certain public-sector companies in the services
sector – say airlines or telecom providers - who are stuck with a legacy of negative brand
perception because they didn’t live up to their brand promise in the past. However effectively

they operate now, and believe me some of them run as well as or even better than their
private-sector counterparts, its difficult for consumers to give them credit.
Services firms also have problems in building lasting differentiation based on the nature of the
services offered, unlike products where the differentiation can be built into the physical
product itself through clever design. Consider the Swiss Army Knife, with its multitude of
features, or the advanced designs of Samsung’s electronics products. For services, there are no
barriers to competitors copying any new service.
Yesterday’s innovations become today’s basic requirements, so original ideas quickly become
commodities. The banking and insurance sectors are good examples, since as soon as an idea is
introduced by one firm, clone services are quickly rolled out by competitors, sometimes in a
matter of days. Both these aspects mean that marketing for services firms has to focus on the
emotional rather than the literal benefits offered. Insurance products are almost the same
world-wide, but the brand promise is always around ‘caring’ and ‘safety’ aspects. A brilliant
example is the recent advertisement promising ‘old-age dignity’ by an insurer.
If you’re a marketer in a professional services firm such as an accounting or consulting firm,
you’ll face an even greater uphill struggle in developing your brand. For one thing, since these
sectors are highly regulated (especially after imbroglios like Enron-Andersen and Global
Crossing), firms must adhere to common norms, and mass advertising is generally not accepted
or allowed. Another issue is the fact that consumers of professional services are usually
amazingly sensitive to quality issues – whether real or perceived. So professional firms have a
much smaller window of opportunity to impress each client than general services firms. They
have to create a far more powerful impact in every single interaction than other firms, and thus
have to employ a larger basket of tools synchronized to deliver the same message.
Four steps in brand building:
The following are the four basic steps for marketers attempting to build new professional
services brands, based on the experience in the management consulting space:
FIRST STEP: Expand your marketing mix. Fast.
Manufactured products are marketed based on the classic ‘four Ps’ of marketing– Products,
Price, Place and Promotion. Services are marketed through the additional factors of People,
Processes, Productivity and Physical evidence - the customer experience from interactions with

people, the quality of the interaction processes, and what’s left with the customer. Professional
services marketing stretches the definition even further with another two factors (yes, another
two Ps) which I call Proof (proof of expertise and prior experience) and Plurality (the multiple
channels through which professional services reach end-users).
When starting a relationship, these two factors are the most important.
For manufactured products and most routine services, ‘proof’ is relatively less important since
the proof of delivery is an inherent element of the offering. For example, when you purchase a
car, it’s a given that it will safely and reliably get you from Point A to Point B. A shampoo will
definitely clean your hair. A bank will be a secure place to keep your money.
However, in the case of professional services, there’s a fair amount of subjectivity on the part of
both the service provider as well as the client. The same delivery standards and quality levels
provided to different customer organizations (or even to the same people in the same
organization at different times) get perceived very differently. A customer’s purchase decision
therefore starts with a search for explicit proof of capability, and that’s what the marketer must
first provide.
The basic elements are case studies of prior work, a library of white papers, a bank of customer
testimonials – all tools that project expertise and competence. Historically, most services firms
stopped at this point. A proven high-quality delivery capability, and a well-stocked case library,
allowed them to clear the first step in the selection process. Over a period of time, the brand
developed as the outcome of growth, rather than a consciously nurtured driver of growth. In
today’s environment, new firms cannot afford the slow and steady brand development process,
and must attack the problem on several fronts.
SECOND STEP: Start with the Basics – Client Attention
Providing ‘Proof’ is the starting point, and is a particular area of difficulty for new firms since
there’s no track record to leverage. At such a time, the profile of the firm’s executives becomes
more significant, and their qualifications, employment history, proven expertise and specific
experience come in for a lot of scrutiny. That’s why new firms not only hire the ‘right’ people,
but also publicize it strongly when they hire ‘stars’, since that assures clients of high-quality
services.
By contrast, the older consulting firms don’t do this, since the brand is so well known that
customers assume a basic level of expertise. In fact they almost always are able to ‘bait and
switch’ – bring in top guns at the time of pitching for business, but then switching teams around
at the time of executing the work.
For new firms, advice is to make sure top people are involved in the work well beyond the

extent promised and that the client notices it – that kind of client attention is increasingly rare,
is appreciated, and can be leveraged in references and testimonials.
THIRD STEP: Everything affects your Brand. Even your Tie.
Plurality is another factor. Most products and services communicate with and reach customers
through a whole host of channels – electronic and print media, online, mass advertising,
hoarding and store displays, etc. Professional services are usually barred from a number of
these avenues, and customers draw their opinion of a professional services provider from a
number of formal and informal sources. These can range from specific inputs from past clients,
to cigar-room chats with brother CEO’s in their clubs, to comments in blogs and chartrooms.
These sources are almost never under the control of the marketer and it’s impossible to control
the message being received. Large firms get around this problem by using communication
opportunities such as sponsorship of tournaments and sporting events and having brand
ambassadors.
Small firms, who cannot afford this level of spending, must focus on impressing clients who are
directly interacting with the members of the firm.
While previous clients can be tapped through testimonials and references, indirect impressions
based on intangibles such as nationality of the consultants, professional appearance, quality of
reports and presentations, design of the website, or even small aspects such as the language of
official correspondence have a great impact on customer perceptions. This is why, as a priority,
the smaller professional services firm MUST develop codes of conduct, appearance and
behavior, and not just technical methodologies, if they want to develop a brand. That’s why
marketers at professional services firms have to be involved in areas usually thought to be
under HR or Operations such as employee training, customer interaction processes, report
developments, etc. which have a direct impact on client perceptions.
FOURTH STEP: Speak the Language. Consistently and Continuously.

Professional services are by and large sold one-to-one and driven by relationships. Consumer-
style mass marketing is hardly ever used. Professional services need a ‘quiet’ style.
‘Conversations’ rather than ‘sales meetings’. Low-key and restrained rather than loud. ‘Clients’
rather than ‘customers’. ‘Engagements’ not projects’. ‘Value’ rather than costs or ‘per-hour
rates’. Firms entering the industry from other segments, such as technology firms moving into
professional services consulting must learn a very different mind-set and communication style
from that used in technology sales.
The marketing cycle is also usually much longer. In manufacturing or technology-driven firms,

the lifecycle determines the marketing characteristics. In professional services, the lifecycle is
much extended, and so there’s a greater need to deliver the same message consistently and
over a much longer period of time.

Conclusion
India has emerged as the best performer in world economy in recent years while juggling with
many other complex issues like running the world’s biggest democracy and providing
development to its growing young population which will be the forbearers of its future
.Branding professional services firms is tougher than it looks. The lack of options and the
amazing variety of ways that clients get information means that they develop their own notions
of what the brand may stand for. Marketers, especially for professional services who must
deliver as good as a client experience as their older rivals, must therefore consider issues
normally not thought to be in their scope, to deliver their message. So Brand Building approach
should consider a holistic approach while execution i.e. brand survives in the long run and has a
sustainable growth.
References
1. Kotler Philip, Armstrong Gary, Principles of Marketing, 12th edition, Pearson Education
Inc, Prentice Hall 2008.
2. John Phillip Jones -1998, « What is Brand » Tata McGraw –Hill Publishing Co. Ltd, New
Delhi.
3. Proceeding of International Conference on “Global Meltdown” opportunities and
challenges, organized by Department of Management Sciences(PUMBA)
4. www.google.com
5. www.wikipedia.com

Retail Trade In Independent India
Submitted BY
Mr. Thorat
Jayawant Institute of Computer applications (MBA),
Tathawade,Pune
E-mail : thorat82@gmail.com
Retail Trade in Independent India
The pre-independence was a period of near stagnation for the Indian economy- with a growth
rate of only 0.5% over the period of 1860- 1945.
Exhibit 7: Growth Rate of Per Capita Income
Time period Rate of growth
(years) (%)
1860-1885 1.1
1885-1905 -0.3
1905-1925 1.3
1925-1950 -0.1
1860-1945 0.5
As Hicks and others had put it “the low growth during the pre-independence years seems to
owe its origin to decline its per capita income between 1885 and 1905 and between 1925 and
1950. Occasional periods of stagnation are noticeable, for instance, the periods 1860 to 1865
and 1930 to 1935, and 1945 to 1951, etc.

Infact, the Indian economy was caught in a various circle of poverty characterized by one of the
lowest per capita consumption and income levels among the lowest countries in the world. Low
income level results in low level of saving a capital formation and therefore low productivity
and low level of income and this vicious cycle perpetuated poverty in the country. Although in
terms of population India was among the biggest countries at about 400 million, because of the
low purchasing power the effective market was very small and limited which in turn provided
entrepreneurs little incentive for making investments.
Indian economy at the time of independence was overwhelming rural and agricultural in
character with nearly 85% of the population living in the villages and deriving their livelihood
from agriculture and related pursuits. About 70% of populations engage in agriculture. Yet, the
country was not self-sufficient in food and raw material for the industry. The average
availability of food was nit only deficient in quality but also precarious was exhibited in famines.
Illiteracy was high at 84%; majority of children (60%) in the age group 6-11 did not attend
school. Mass communicable deceases were wide-spread and in the absence of a good public
heath service, mortality rate was very high (27 per thousand). Thus, the economy was faced
with problems of mass poverty, ignorance and deceases which were aggravated by the unequal
distribution of between groups and regions.
Since retail is a part of the broader concept of marketing, it is useful to understand the
condition of marketing in India in those days. Marketing in India has been a neglected part of
the economy- as in many other developing economies. Several reasons have been pointed out
for such status of marketing in developing economies. One of the main characteristics of
developing economies is its excessive dependence on agriculture. There is overpopulation in
agriculture along with very low productivity. This results in low income and consequent low
standard of living of the people. As a result of this, large income markets are not available in
these economies- although in terms of overall population may not be small. Again, in a
developing economy, there is always presence of excessive demand for many products. As a
result of which, if there is a need for any product it will get sold without any advertising support
or promotional efforts. Advertising, if any, would be more in the nature of informative than
persuasive. Thus, the focus in these economies is more on production than on marketing. Also,
many of these economies are in the process of industrialization. Their businesses, by and large,
still remain with a trading community whose practices are not always considered to be in tune
with the needs and interests of the society. There is a universal prejudice against middleman
and traders who are engaged in marketing goods and services.
“Marketing in India is probably the least developed aspect of the Indian economy” (Westfall, r
et al, 1960: 11). They mentioned that marketing was considered a wasteful activity. They also

noted that “middleman and salesman of all type are regarded as a schemers trying to profit at
the expense of the public” (ibid,1).
Retailers’ margins at that time were probably about 10% and wholesaler’ margins were lesser
than half as much. This was much lower than the US standard. However, despite such low
margins, marketing was considered inefficient in India as losses from poor distribution system
was large as also the losses resulting from the failure of the marketing system to integrate
consumer wants with production resources. (Westfall, R at el, 1960)
India at that time had a population of about 400 million. About 85% of the population stayed in
the villages, had very low average annual income of about $72 per person as compared to
$2343 from the United States. Personal consumption was lower at about $54 per person per
year- as against a high of $1664 for the United States. In the villages, where 85% of population
stayed, there were still potters and carpenters who produced for all members of the
community in return of a share of harvest. (Westfall, R at el, 1960)
“Indian shopping habits defer markedly from those in the United States. In the cities
housewives make daily trips to buy fruits and vegetables. There were no refrigerators except in
a few wealthy homes. A certain amount of grain may be stored in earthen jars in the
households.” (Westfall, R at el, 1960: 11)
Retailing in India differed significantly from that in the western countries. There was not a
single supermarket in India at that time (Westfall, R at el, 1960). Self-service was not a feasible
proposition and one of the main reasons for so was pilferage problem. In many of the better
stores in large cities, the goods were locked behind glass or mesh doors which had to be
unlocked every times the sales was made. Stores in which sales people other than owner wait
on the customers, two different employees are used to prevent stealing. One employee write
the sales check and other accept the money (Westfall, R at el, 1960). The typical (grocery)
retailing centers in a city were the bazaar where many shops are clustered together. Each shop
is typically about 10 sq. ft., so that the proprietor can sit in the middle of the floor and reach his
entire stock. In the small villages, where most of the population lives, there were no retail
shops. Individuals buy very little. Hawkers travel to villages selling frequently purchased items.
Some of the major weaknesses of the Indian marketing system noted at that time were in the
areas of demand creation, transportation, limited storage facilities, adulteration, and
standardization.
Exhibit 8: Production Trends Of Various Consumer Products

1970- 1980- 1990- 1999-
Units 1960-61 71 81 91 00
Cars, jeeps & land rovers Thousand 26.66 46.7 49.4 220.8 699.2
Two-wheelers Thousand 0.9 97 447.2 1842.8 3722
Bicycles Thousand 1063 2042 4189 7084 13733
Electric Fans Million 1.1 1.7 4.2 4.2 5.8
Televisions Million - - 0.4 4 11.3
Refrigerators Thousand - - 316 555 2688
billion
Electricity Kwh 16.9 55.8 110.8 264.3 480.7
Source: Economic survey, CMIE, as quoted in India Market Demographics Report, 2002: 2
India is being considered by many as roaring Tiger. India’s GDP stood at Rs. 250,000 crore in
2002-03 making her he 12th largest in the world. The World Bank is of the view that India is
supposed to be the fifth largest economy in terms of purchasing power parity. And considering
the rate of growth of GDP, India is supposed to be the second fastest growing economy in the
world just after China and, as per a Goldman Sach report India will be the largest economy in
the world in 2050. (The marketing Whitebook, 2005:21)

Exhibit 9: GDP and GDP growth over the years.
1999- 2000- 2001- 2002-

1998-99 00 01 02 03
GDP Rs. Bn. 17410 19369 20899 22821 24696
GDP Growth % 6.5 6.1 4.4 5.8 4
Per capita GDP Rs. 17711 19350 20509 22007 23408
Source: CMIE/RBI , as quoted in The marketing Whitebook, 2005:21
Per capita income also has increased at about the same rate as the GDP during the same
period. On an aggregate basis per capita income grew by a CAGR of 23.2% between 1996-97
and 2000-01. However, high income households grew by a much higher rate of about 20% on a
CAGR basis.
Exhibit 10: Percentage of Population in the 15 To 34 Yrs Age Bracket
All
Yrs Ahmedabad Bangalore Chennai Kolkatta Delhi Mumbai Hyderabad Pune India
15-19 13.6 13.9 13.3 12 13.6 12.6 15.1 13 13.6
20-24 13.8 14.4 12 12.5 13.2 14 15.1 13.8 11.1
25-34 24.1 26.6 26.1 23.2 27.9 26.1 22.9 25.8 24
51.5 54.9 51.4 47.7 54.7 52.7 53.1 52.6 48.9
Source: The marketing Whitebook, 2005:74
In terms of household/families, it is estimated to be at 192 million as per the 2001 census at an

average of six members per household. And, out of that, only 1.7% has monthly household
income of 10,001 and above. Food and grocery retails in India targets this Rs. 10,000+ monthly
household income group from the SEC A and SEC B category. Thus, it means that the current

target segment is really small. However, in the top eight cities, this target segment has a
comparatively higher percentage of population- the highest being in Delhi.
Exhibit 11: Percentage of Households in Different Income Brackets
monthly All
household Ahmedabad Bangalore Chennai Kolkata Delhi Mumbai Hyderabad Pune India
Income
Up to 3000 42.4 37.2 48.2 48 21.4 28 33.6 36.4 76.2
Rs. 3001-6000 39.8 45.6 30.9 33.5 36.8 44 39.3 37.1 17.3
Rs.6001-10000 12.9 11.8 16 13.4 22.2 19.4 15.4 17.7 4.8
Rs.10001-
15000 34 3.1 2.8 3.5 14.2 5.5 6.9 3.8 1.2
Rs.15001-
20000 0.8 1.1 1.3 1.1 3.9 2.1 4.2 2.8 0.4
Rs.20000+ 0,7 1.2 0,8 0.5 1.5 1 0.6 2.2 0.1
Total 100 100 100 100 100 100 100 100 100
Rs. 4.9 5.4 4.9 5.1 19.6 8.6 11.7 8.8 1.7
Source: The marketing Whitebook, 2005:72-73
The per capita private final consumer expenditure has increased from Rs. 5745.18 in 1992-93 to
Rs. 15082 in 2002-03 – registering a compounded annual growth rate of 10.3% at current
prices. However, the share of spending on food beverages and tobacco, which typically
accounts for the biggest consumption share, has been loosing to other categories. For example,
in Thailand, 37.85% of the spending is on the food and beverages and in Singapore it is even
lower at 13.59%- as the economy become more developed percentage spending on food,
beverages and tobacco comes down as other avenues emerge.

Exhibit 12: Private Final Consumer Expenditure
Year Private Final Consumer Expenditure on food, beverages &
expenditure per capita

(current tobacco
prices)
1992-93 5745.2 3106.4 54.1%
1993-94 6443.6 3534.3 54.8%
1994-95 7314.5 3955.7 54.1%
1995-96 8252.1 4419.8 53.6%
1996-97 9552.4 5270 55.2%
1997-98 10183.3 5369.7 52.7%
1998-99 11591.2 6239.5 53.8%
1999-00 12640.9 6505 51.5%
2000-01 13159.6 6324.5 48.1%
2001-02 14396 6783.4 47.1%
2002-03 15082 6756.7 44.8%
Source: The marketing Whitebook, 2005: 115
Spending on transport and communication has increased from 11.3% to 14.8% and that on
medical and healthcare has increased from 3.5% to 8.06% of the total expenditure over this
corresponding period.
The demand and purchase pattern of various consumer goods will change as household
graduate to higher income bracket from their current income level. In the developed markets
like that of USA and UK, it has been seen that ownership of own vehicles and availability of
home-refrigeration have had a significant effect on evolution and growth of organized grocery
retail. With ownership of own mode of transportation the mobility of people increase, which
allows them to buy food and grocery from a little far off supermarket rather than the next door

kirana store. Ownership of refrigerator at home allows a consumer to stock some items and
hence reduces the necessity for daily shopping. Ownership of television helps in bringing the
world to your drawing room and exposes one to global standard of shopping. Ownership of
washing machine is again a reflection of increasing purchasing power, the move towards
convenience and better lifestyle.
Exhibit 13: Ownership of Consumer Durables by Households per Thousand
1993-94 1995-96 1998-99 % growth
Bicycle 494.77 516.7 580.12 15
Motorcycle 25.49 29.27 42.15 40
Moped 30.16 34.05 42.81 30
Scooter 51.19 60.02 73.4 30
Car
Refrigerator 69.47 86.05 120.37 42
TV (B&W) 201.71 240 279.69 28
Washing machine 22.95 34.49 54.63 58
Source:NCAER,as quoted in marketing Whitebook, 2005: 115
The similar trend is being visible in the Indian market also. In congruence with the gradual
betterment of income level of household on an average as seen above, purchase of various
consumer goods- which have a positive impact on development of organized retail- are also
exhibiting a growing trend.
The year 1993 to 1998 recorded a very positive growth in the consumption of consumer goods.
However, it fell significantly thereafter. The marketers dropped price, improved products and
service quality and also resorted to all kinds of promotional schemes but the demand did not
pick up to earlier level. It was gradually being appreciated that the sort in this five year period
was a result of combination of various factors like “release of pent- up demand of the rich who
always had the money but nothing much to buy before this; a television boom that fuelled
aspirations; a distribution boom that brought products and services within easier rich; the
discovery of the sachet strategy that made everything affordable to more people; and finally a
string of good monsoons”. The FMCG sector was the worst sufferer with some of the product
categories reportedly shrinking in size. According to Prof. C.K. Prahlad, it all boils down to how

much value the manufacturers are providing to the customers- the FMCG players did very less
against the consumer durable players led by Koreans- and hence they have suffered miserably.
Exhibit 14: Fastest Growing Categories in FMCG Sectors
Fastest Growing Categories in

FMCG Contribution % CAGR %
2003 Mar-99
Refined oil Consumer pack 10 27
Packaged Atta 4 25
Non- refined oils 4 24
Namkeens 3 22
Vermicelli 3 15
Biscuits 16 10
Packaged pure ghee 4 10
Chocolates 4 7
Beverages 6 7
Vanaspati consumer packs 6 7
Source:AC Neilson Indian Retail Store Audit, as quoted in marketing Whitebook, 2005: 120
In the period between 1999 and 2003, the FMCG sector recorded a CAGR of 4.4%. The table
above indicates the top ten categories in the FMCG sector in term of fastest growth and it is
interesting to note that some of the top categories are the one which have traditionally been
primarily unbranded products in the recent past. This trend towards commodity branding has
been aided by factors like fall in technology cost; proliferation of regional media and entry of
aggressive regional players into categories where entry barriers are low; increasing in demand
for consumer products.
India vs. World
 Indian retail is fragmented with over 12 million outlets operating in the country. This is
in comparison to 0.9 million outlets in USA, catering to more than 13 times of the total
retail market size as compared to India

 India has the highest number of outlets per capita in the world - widely spread retail
network but with the lowest per capita retail space (@ 2 sq. ft. per person)
 Annual turnover of Wal-Mart (Sales in 2001 were $219 billion) is higher than the size of
Indian retail industry. Almost 100 times more than the turnover of HLL (India's largest
FMCG company).
 Wal-Mart - over 4,800 stores (over 47 million square meters) where as none of India's
large format store (Shoppers' Stop, Westside, Lifestyle) can compare.
 The sales per hour of $22 million are incomparable to any retailer in the world. Number
of employees in Wal-Mart are about 1.3 million where as the entire Indian retail
industry employs about three million people.
 One-day sales record at Wal-Mart (11/23/01) $1.25 billion - roughly two third of HLL's
annual turnover.
 Developed economies like the U.S. employ between 10 and 11 percent of their
workforce in retailing (against 7 percent employed in India today).
 60% of retailers in India feel that the multiple format approach will be successful here
whereas in US 34 of the fastest-growing 50 retailers have just one format
 Inventory turns ratio: measures efficiency of operations. The U.S. retail sector has an
average inventory turns ratio of about 18. Many Indian retailers KPMG surveyed have
inventory turns levels between 4 and 10.
 Global best-practice retailers can achieve more than 95 percent availability of all SKUs
on the retail shelves (translating into a stock-out level of less than 5 %).The stock-out
levels among Indian retailers surveyed ranged from 5 to 15 percent.
India's government seems to be on a gradual, but definite, path toward allowing foreign
retailers into the country. And when it takes the final steps, the peak time to enter will quickly
pass-giving retailers that enter now a distinct edge.
Modern retail's impact on emerging market economies. There is an ongoing debate on whether
the presence of modern retail has a positive or negative impact. Those in favor argue that it
drives the economy through increased productivity, investments in capital stock, new job
creation and lower prices. Opponents maintain that it promotes the monopolistic power of
modern retailers, disrupting the local economy and culture. They fear that modern retailers will
put local retailers at a competitive disadvantage and ultimately put those that are unable to
adapt out of business. The most successful modern retail policies will build on positive
economic drivers while recognizing the concerns and needs of local businesses.
The benefits of modern retail on emerging economies are much different than those in
developed markets, although detractors continue to argue that modern retail is monopolistic
and cutthroat.

Bibliography:
1. Retail Marketing : Levy & Wietz

2. Retail Marketing Management: Swapna Pradhan
3. Journal of Marketing : January 2007
4. www.fiber2fashion.com
5. www.retailindia.biz
6. startups.in/India/tag/retail
7. www.megamalls.in
8. www.surveyvalue.com
9. www.crm-forum.com
10. www.pantaloon.com
11. www.mywestside.com
12. www.globus.in

Web Mining A Key Enabler For E-services
Submitted By
Ms. Jayalekshmi. K.R Ms. Megha Wankhade

Assistant Professor Lecturer
Sterling Institute Of Management Studies Sterling Institute Of Management Studies
Nerul, Navi Mumbai Nerul, Navi Mumbal
Email - jlekshmi76@gmail.com Email-meghakale79@yahoo.com
Abstract
With the explosive growth of information sources available on the World Wide Web, it
has become increasingly necessary for users to utilize automated tools to find the desired
information resources, and to track and analyze their usage patterns. These factors give rise to
the necessity of creating server side and Client side intelligent systems that can effectively mine
for knowledge. The World Wide Web is nearing omnipresence. The explosively growing number
of Web contents including digitalized manuals, emails, pictures, multimedia, and Web services
require a distinct and elaborate structural framework that can provide a navigational surrogate
for clients as well as for servers.
Application of data mining techniques to the World Wide Web, referred to as Web
mining has been the focus of several recent research projects and papers. Web mining can be
broadly defined as the discovery and analysis of useful information from the World Wide Web.
This describes the automatic search of information resources available online. Ie Web content
mining, and the discovery of user access patterns from Web servers, ie, Web usage mining. The
term Web mining has been used in three distinct ways. The first, called Web content mining in
is the process of information discovery from sources across the World Wide Web. The second,
called Web usage mining, is the process of mining for user browsing and access patterns. The
third called Web structure .mining focuses on the structure of the hyperlinks within the Web as
a whole with the purpose of discovering its underlying link structure.
In this paper we define Web mining, its types, need for web mining, some tools for Web
mining and present an overview of how it is helpful for various E-services, like customer
behavior analysis, E-commerce, E-learning, E-banking etc.
Key Words: Web mining, Web content mining, Web usage mining, Web structure mining, E-
commerce, E-learning, E-banking.
Introduction
The Web can be defined as the largest database available and it is a huge task to have
an effective design and access to the web. Hence the need of the our is to extract information
from multiple web pages .Web mining is considered as one of the most important applications
of data mining which is able to locate different patterns from the web.
The World Wide Web is a collection of Web sites and its Web contents. The Web
evolves continuously and changes dynamically since new Web sites are born and the old ones

disappear simultaneously, and contents of those Web sites are updated at any times. While the
Web contains vast amount of information and provides an access to it at any places and any
times, that is a prize beyond our reach without efficient searching tools for the Web. Efficient
searching for Web contents becomes more important than ever before as the Web evolves and
users increase explosively. Most of portal sites have their search engines, which are used to find
relevant Web contents for users’ search queries. For efficient responses to users’ queries, many
portal sites have their index databases in which a collection of pointers to positions in Web
pages of occurrences of indexed words. Search engines find relevant Web contents by seeking
indexed words related to the query strings given by users in the index databases. Portal sites
update their index databases using special-purpose Web clients, called as spiders, or search
crawlers. Spiders send HTTP requests to a set of target Web sites to fetch Web pages of those
sites. Since a Web site has its homepage and Web contents linked each other, search crawlers
fetch the homepage of the Web site first and then obtain other Web contents by traversing
referenced links within Web pages. Commonly used techniques to traversing referenced links
are breadth first search and depth first search. Regardless of which techniques are used to
traverse Web contents of a Web site, it is necessary to avoid traversing a Web content that has
already been visited and fetched since cycles or loops among links within Web pages may result
ineffective and/or inefficient collection of Web contents with search crawlers

What Is Web Mining?
Web mining can be broadly defined as the discovery and analysis of useful information
from the World Wide Web. Web mining procedure can be viewed as consisted of four tasks
• Information Retrieval (IR)/ (Resource Discovery): It deals with automatic retrieval of
All relevant documents, while at the same time ensuring that the non relevant ones are
fetched as few as possible. The IR process mainly includes document representation,
indexing, and searching for documents. The process of retrieving the data, either online
or off-line, from the text sources available on the Web such as electronic newsletters,
newsgroups, text contents of HTML documents obtained by removing HTML tags,
and also the manual selection of Web resources. Here are also included text resources that
originally were not accessible from the Web but are accessible now, such as online
texts made for search purposes only, text databases, and so forth.
• Information Extraction (IE)/ (Selection and Preprocessing): Once the documents have
been retrieved in the IR process, the challenge is to automatically extract knowledge
And other required information without human interaction.
• Generalization (Pattern Recognition and Machine Learning): it discovers general
patterns at individual Web sites or across multiple sites. Machine learning or data mining
techniques are used for the generalization. Most of the machine-learning systems,
deployed on the Web, learn more about the user’s interest than the Web itself.
• Analysis.(validation and interpretation): it is a data driven problem, which presumes
that sufficient data are available so potentially useful information can be extracted
and analyzed. Humans also play an important role in the information or knowledge
discovery process on the Web, since the latter is an interactive medium. This is especially
Important for validation and interpretation but under Etzioni’s view (1996) of Web mining,
“manual” (interactive, query triggered) knowledge discovery is excluded And thus the focus is
placed on automatic data-triggered knowledge discovery.
Web mining refers to the overall process of discovering potentially useful and previously
unknown information or knowledge from Web data. In this sense, Web mining implicitly Covers
the standard process of knowledge discovery in databases (KDD) and can be viewed
as an extension of KDD that is applied to data on the Web.Web mining can be categorized into
three areas of interest based on which part of the Web Is mined where the previously
mentioned four steps can be applied:
Types of Web Mining

The three major categories of web mining are

 Web Content Mining
It focuses on the discovery/retrieval of useful information from Web contents/data/documents.
Web content data consist of unstructured data (free texts), semi-structured data (HTML
documents), and more structured data (data in tables, database generated HTML pages).
The lack of structure that permeates the information sources on the World Wide Web makes
automated discovery of Web based information difficult. Traditional search engines such as
Lycos, Alta Vista, WebCrawler, ALIWEB , Met Crawler, and others provide some comfort to
users, but do not generally provide structural information nor categorize, filter, or interpret
documents. A recent study provides a comprehensive and statistically thorough comparative
evaluation of the most popular search engines.
In recent years these factors have prompted researchers to develop more intelligent tools for
information retrieval, such as intelligent Web agents, and to extend data mining techniques to
provide a higher level of organization for semi structured data available on the Web. We
summarize some of these efforts below.
Agent Based Approach: Generally, agent based Web mining systems can be placed into the
following three categories.
 Intelligent Search Agents: Several intelligent Web agents have been developed that search for
relevant information using domain characteristics and user profiles to organize and interpret
the discovered information. Agents such as Harvest , FAQ Finder, Information Manifold,
OCCAM and ParaSite rely either on pre-specified domain information about particular types of
documents, or on hard coded models of the information sources to retrieve and interpret
documents. Agents such as ShopBot and ILA (Internet Learning Agent) interact with and learn
the structure of unfamiliar information sources. ShopBot retrieves product information from a
variety of vendor sites using only general information about the product domain. ILA learns
models of various information sources and translates these into its own concept hierarchy.
 Information Filtering/Categorization: A number of Web agents use various information

retrieval techniques and characteristics of open hypertext Web documents to automatically
retrieve, filter, and categorize them .BO (Bookmark Organizer) combines hierarchical clustering
techniques and user interaction to organize a collection of Web documents based on
conceptual information. Portable Bookmarks runs on Windows XP / Server 2003 / Vista /
Server 2008 and compatible with all browsers, including IE, Firefox 2, Opera, Netscape, Firefox
3, Google Chrome and Safari for Windows.
 Personalized Web Agents: This category of Web agents learn user preferences and discover
Web information sources based on these preferences�and those of other individuals with
similar interests using collaborative filtering. A few recent examples of such agents include the
Web Watcher, PAINT.Syskill & Webert, Group Lens , Fire fly and others. For example, Syskill &
Webert utilizes a user profile and learns to rate Web pages of interest using a Bayesian
classifier.
Web Usage Mining:

Web usage mining: It is the automatic discovery of user access patterns from Web servers.
Organizations collect large volumes of data in their daily operations, generated automatically by
Web servers and collected in server access logs. Other sources of user information include
referrer logs which contain information about the referring pages for each page reference and
user registration or survey data gathered via CGI scripts. It mines the secondary data derived
from Web surfers’ sessions or behaviors and focuses on techniques that could predict user
behavior while the user interacts with the Web (Cooley, 2000). Web usage data can be server
access logs, proxy server logs, browser logs, user profiles, registration data, user sessions or
transactions, cookies, user queries, bookmark data, mouse clicks, and scrolls and any other data
as the result of interactions.
Analyzing such data can help organizations determine the life time value of customers�cross
marketing strategies across products, and effectiveness of promotional campaigns, among
other things. It can also provide information on how to restructure a Web site to create a more
effective organizational presence, and shed light on more effective management of workgroup
communication and organizational infrastructure. For selling advertisements on the World
Wide Web, analyzing user access patterns helps in targeting ads to specific groups of users.
Most existing Web analysis tools provide mechanisms for reporting user activity in the servers
and various forms of data filtering. Using such tools it is possible to determine the number of
accesses to the server and to individual files, the times of visits, and the domain names and
URLs of users.
Web Structure Mining

Web structure mining tries to discover the model underlying the link structures of the
Web. The model is based on the topology of the hyperlink with or without the link description.
This model can be used to categorize the Web pages and is useful to generate information such
as similarity and relationships between Web sites and the link structure of the Web contains
important implied information, and can help in filtering or ranking Web pages. In particular, a
link from page A to page B can be considered a recommendation of page B by the author of
A. Some new algorithms have been proposed that exploit this link structure—not only for
keyword searching, but other tasks like automatically building a Yahoo-like hierarchy or
identifying communities on the Web.
The main purpose for structure mining is to extract previously unknown relationships
between Web pages. This structure data mining provides use for a business to link the
information of its own Web site to enable navigation and cluster information into site maps.
This allows its users the ability to access the desired information through keyword association
and content mining. Hyperlink hierarchy is also determined to path the related information
within the sites to the relationship of competitor links and connection through search engines
and third party co-links. This enables clustering of connected Web pages to establish the
relationship of these pages.
In the business world, structure mining can be quite useful in determining the connection
between two or more business Web sites. The determined connection brings forth a useful tool
for mapping competing companies through third party links such as resellers and customers.

This cluster map allows for the content of the business pages placing upon the search engine
results through connection of keywords and co-links throughout the relationship of the Web
pages. This determined information will provide the proper path through structure mining to
improve navigation of these pages through their relationships and link hierarchy of the Web
sites.
Web Mining
Web content Web usage Web structure

mining mining mining
“Types of Web Mining”
Why Web Mining?

Information users could encounter, among others, the following problems when interacting
with the web:
 Finding relevant information:
People either browse or use the search service when they want to find specific information on
the web. When a user uses such service he/she usually inputs simple key word query and the
query response is the list of pages ranked based on their similarity to the query. However
today’s search tools have the following problems. The first problem is low precision ,which is
due to the irrelevance of many of the search results. This results in a difficulty finding the
relevant information. The second problem is low recall, which is due to the in ability to index all
the information available on the web. This results in a difficulty finding the un indexed
information that is relevant .
 Creating new knowledge out of the information available on the web:
Actually this problem could be regarded as a sub problem of the problem above. While the
problem above is usually a query triggered process (retrieval oriented), this problem is a data
triggered process that presumes that we already have a collection of web data and we want to
extract potentially useful knowledge out of it (data mining oriented). Recent research focus is
on utilizing the web as a knowledge base for decision making.
 Personalization of the information:
This problem is often associated with the type and presentation of information, since it is likely
that people differ in the contents and presentations they prefer while interacting with the web.
On the other hand ,the information providers could encounter these problems, among others,
when trying to achieve their goals on the web.

 Learning about consumers or individual users:
This is the problem that specifically deals with the problem mentioned above, which is about
knowing what the customers do and want. Inside this problem, there are sub problems such as
mass customizing the information to the intended consumers or even to personalize it to
individual users, problems related to effective web site design and management, problems
related to marketing, etc.
Web mining techniques could be used to solve the information over load problems
above directly or indirectly. The business benefits that web mining afford to digital service
providers include -personalization, collaborative filtering, enhanced customer support, product
and service strategy definition, particle marketing and fraud detection. In short, the ability to
understand their customers’ needs and to deliver the best and most appropriate service to
those individual customers at any given moment. Web mining techniques coupled with
integrated meta-information such as author info, download info, and other additional info
explicitly defined by a domain expert helps to improve the learning process. Given a large,
knowledge-dense website and a non-expert user seeking information, recommending relevant
content becomes a significant challenge. Web mining has also been shown as a useful tool for
providing expert-driven recommendations to non-experts, helping them understand what they
need to know, as opposed to what is popular among other users. Another different dimension
of Web Mining has focused on modeling user navigation behavior. The popular techniques are
based on the first order Markov model where the user is modeled as a random surfer. Other
models include a Markov chain model and reducing the ‘randomness’ factor by introducing a
bias either based on the past usage patterns or due to natural clustering of documents
Some Useful Tools For Web Mining
To perform the task of web mining, various softwares are readily available. The most
commonly used web mining softwares are offline browsers. Some of the common example are
Teleport, Back street browser and Grab-a-site. Such offline browsers enable users to download
a copy of the web page from the web site which may then be explored offline with out worrying
about connection to the internet.
All the files related to that web site get stored in a single directory .If it happens that
there are two files with the same name the previous file gets over written. Usually this
methodology is called as saving mirror of a web site. Varieties of softwares are available to
understand the statistics of a web site such as the average number of hits to the web site . The
software also provides information about the behavior of the users who visit the web site. The
entire information gets stored in a log file in the website server . The technique of retrieving
visitors based information from the web server based log files and applying this information to
analyze data is known as web log mining. There are two types of log files for storing
information-access log and agent log files. The access log files list out the web pages that the
user had requested whereas the agent log files give the browser details which was used for the
purpose of exploration. Software such as Nihuo web log analyzer, OneStat, webalizer and click
Tracks Analyzer are used to understand the popularity of different websites. Having certain

community-specific websites is also an issue of concern for web mining A community is a set of
web pages where each page has multiple links to the other members of the community. A
community further consists of two entities –hub and authority. A hub points to the source of
information .A single or group of people are given the authority to update information at
regular intervals. A good hub points to update information at regular intervals. A good hub
points to numerous authorities whereas a good authority is linked by several hubs.
Some commonly used web mining softwares are listed below
 Sinope Summarizer :
Sinope Summarizer PE enables you to summarize the content of a webpage while browsing the
internet. It uses advanced Natural Language Processing techniques to summarize the text of a
webpage, while leaving the formatting, page layout and graphics intact. It`s a time saving tool
for everybody that uses the internet for work, school, or just for fun.
 Teleport Pro :
This is a web mining software that allows one to download a copy of the website which can be
browsed later offline. One simply has to give the starting address of the website and up to how
many levels deep the exploring has to be done. One also has the option of selecting what is to
be retrieved from the web site.
Teleport is a fully automated, multithreaded, link-following, file retrieving

webspider. It will retrieve all the files you want and only the files you want from any part
of the Internet. Teleport can also:
• Completely download a website, enabling you to “offline browse” the site at much greater
speeds than
if you were to browse the site online
• Create an exact duplicate, or “mirror” of a website, complete with subdirectory structure and
all
required files
• Search a website for files of a certain type (and size)
• Automatically download a list of files from the Internet
• Explore every website linked from a central website
• Search a website for keywords
• Make a list of all pages and files on a website
No more waiting for slow pages to download. No more clicking on links for hours, only to find
garbage at the end of your trail. Teleport can completely automate your website searching,
mirroring, publishing, and downloading tasks.
 Click Tracks :
This is a web analyzing software that supports various analytical tasks. The procedure can be
traced to generate various reports by clicking the icons in the main window. One can perform
several analytical tasks by pressing the icons and comparing the behavior of user groups. It can
generate reports stating how many visitors have known about a website through a search
engine.

 Pattern Discovery Tools:
The emerging tools for user pattern discovery use sophisticated techniques from AI, data
mining, psychology, and information theory, to mine for knowledge from collected data. For
example, the WEBMINER system .WEBMINER automatically discovers association rules and
sequential patterns from server access logs.
Pattern Analysis Tools:

Once access patterns have been discovered, analysts need the appropriate tools and
techniques to understand, visualize and interpret these patterns, eg the WebViz system.
Web Mining For E-services
In the recent years we have witnessed a rapid evolution of WEB. This development
allowed millions of people all over the world to access, share, interchange, and publish
information. Moreover, public and private sector organizations are implementing highly
functional and interactive Web-based applications that are accessible to any user with a
computer, a Web browser, and a connection to the Internet. These potentials impact all
dimensions of our daily life. Thousands of new Web sites are launched everyday providing e-
services, accessible through Internet, suspending bureaucracy procedures, demanding personal
contact of the users and loads of paper-based forms to be filled in. This “e-” prefix has been
applied to a vast number of domains and applications such as e-commerce, e-business, e-
learning, e-health, e-banking, e-marketing, and so forth, flavoring the respective domains with
electronic services (e-services). Web mining technologies can also be used in order to make the
interactions between government and citizens (G2C) and also between government and
businesses (G2B) easier, faster, and more efficient. It aims also at improving interdepartmental
interactions on various levels of government for example government-to-employees (G2Ε).and
government-to-government (G2G), as well as the elimination of redundant services.
Web mining extends analysis much further by combining other corporate information with Web
traffic data. This allows accounting, customer profile, inventory, and demographic information
to be correlated with Web browsing, which answers complex questions such as:
 Of the people who hit our Web site, how many purchased something?
 Which advertising campaigns resulted in the most purchases, not just hits?
 Do my Web visitors fit a certain profile? Can I use this for segmenting my market?
Practical applications of Web mining technology are abundant, and are by no means the limit to
this technology. Web mining tools can be extended and programmed to answer almost any
question.
Web mining can provide companies managerial insight into visitor profiles, which help
top management take strategic actions accordingly. Also, the company can obtain some
subjective measurements through Web Mining on the effectiveness of their marketing
campaign or marketing research, which will help the business to improve and align their
marketing strategies timely.

For example, the company may have a list of goals as following:
 Increase average page views per session;
 Increase average profit per checkout;
 Decrease products returned;
 Increase number of referred customers;
 Increase brand awareness;
 Increase retention rate (such as number of visitors that have returned within 30 days);
 Reduce clicks-to-close(average page views to accomplish a purchase or obtain desired
information);
 Increase conversion rate (checkouts per visit).
The company can identify the strength and weakness of its web marketing campaign
through Web Mining, and then make strategic adjustments, obtain the feedback from Web
Mining again to see the improvement. This procedure is an on-going continuous process.
Some of the specific applications of web mining are as follows
 Web Mining Application in E-commerce Customer Behaviour Analysis
 Web Mining Application in E-commerce Transaction Analysis
 Web Mining Application in E-commerce Website Design
 Web Mining Application in E-banking
 Web Mining Application in M-commerce
 Web Mining Application in Web Advertisement
 Web Mining Application in Search Engine
 Web Mining Application in Online Auction
 Web Mining Application in Online Knowledge Management
 Web Mining Application in Online Social Networking
 Web Mining Application in E-learning
 Web Mining Application in Blog Analysis
 Web Mining Application in Online Personalization and Recommendation Systems
Customer Behavior Analysis
Customer relationship management is one of the major applications of Web mining. A
website should be designed to entice the customers. Web Mining analyses visitor's behavior
and makes predictions on their future interaction. This can be exploited to improve website
performance and to recommend products or links based on user's behavior. Visitors entering
the site exhibits different behavior. They might just surf through or the process might end up in
a purchase. For understanding customer behavior and thus improve the performance of your
web site, certain standards should be used. Web metrics provide a method to evaluate the
performance. There are certain standard notations used which is provided in the table below.
Number of repeat visitors and committed visitors should be increased. Customer service
sites should be able to provide the required information in a short span of time. Customer data
including personal information entered during log time is stored in customer database. The
content delivery to the customer can be customized. Each user might be interested in specific
products and features. New products can be recommended to the user by analyzing their
behavior pattern. Market basket analysis can be carried out using the web data and there by

improve the chances of cross selling, discount rates etc. Information about the visitor's
behavior can be collected from Web logs which includes various log files like Source: Gaining a
competitive edge with web mining .We can also analyze the pattern in which the user traveled
from one web page to another of your website before making a purchase. Behavior can be
analyzed to form user clusters who require same class of details. Information mined can be
used to opt for the finest manner of interaction with customers. The decision made by a
customer depends on his experience on the site. Provision can be provided to enter feedback.
Data can be gathered and mined from web to achieve the final goal of turning visitors to
buyers.
Web Mining And E-Commerce

The ease and speed with which business transactions can be carried out over the
Web has been a key driving force in the rapid growth of electronic commerce. In addition,
customer interactions, including personalized content, e-mail campaigns, and online eedback
provide new channels of communication that were not previously available or where very
inefficient.
With the explosion of E-commerce, the way companies are doing businesses has been
changed. E-commerce, mainly characterized by electronic transactions through Internet, has
provided us a cost-efficient and effective way of doing business. The growth of some E-
businesses is astonishing, considering how E-commerce has made Amazon.com become the so-
called “on-line Wal-Mart”. Unfortunately, to most companies, web is nothing more than a
place where transactions take place. They did not realize that as millions of visitors interact
daily with Web sites around the world, massive amounts of data are being generated. And they
also did not realize that this information could be very precious to the company in the fields of
understanding customer behavior, improving customer services and relationship, launching
target marketing campaigns, measuring the success of marketing efforts, and so on.
The Web is revolutionizing the way businesses interact with each other (B2B) and
with each customer (B2C). It has introduced entirely new ways of doing commerce, including
e.g. auctions and reverse auctions. It also made it imperative for organizations and companies
to optimize their electronic business. Knowledge about the customer is fundamental for the
establishment of viable e-commerce solutions. To address one of the fundamental issues of B2C
e-commerce, namely personalized customer experience web personalization technique can be
applied Web mining for ecommerce is the application of web mining techniques to acquire this
knowledge for e-commerce. Typical concerns in e-commerce include improved cross-sells, up-
sells, personalized ads, targeted assortments, improved conversion rates, and measurements of
the effectiveness of actions.
Web Mining In E-Learning

E-learning is nothing but where learning happens with the aid of digital tools and
content, with necessary interactions possible. E-learning is independent of location, time or
space. A user who is exploring the web for self learning may not be a domain expert. Web sites
and topics popular among other users exploring the same area can be found using web mining
and recommended to the non-experts. Students or learners using E-learning sites will be

differing from each other on various aspects like the rate at which they capture the lessons,
domain expertise, personal interests etc. On the other hand, there will be many learners who
show the same characteristics also. Interest of learners and relevance of topics to them can be
mined from the user's profile created and the same can be made in designing and linking sites.
Giving the right combination of keywords is imperative for searching and finding what
we require exactly. Query keywords can be grouped into clusters and information from the
query result can be recommended to users. E-learning experience can be enhanced by
providing the relevant information to the relevant learner with the assistance of Web mining.
We have described in the previous subsections how information can be extracted from
different kinds of Web data. From a direct perspective, information extraction can be viewed as
a form of learning. Web mining techniques has been effectively used in search engine
technologies to retrieve the most relevant and significant pages. However, the contribution of
Web mining has not been restricted to such explicitly available information such as page
content. It must be noted that learning is often aided with inclusion of other kinds of data such
as concept hierarchy on which a Web structure is based or usage information. These kinds of
data do not directly reflect the information in the page but help in building the context and
circumstances in which such information is sought.
Web usage mining techniques as discussed earlier can be used to discover user
navigation patterns. The user in our case is the self-directed learner. The creator of the Web
pages would represent the expert who has designed the Web site to represent a series of
notes. However, it is the usage information that actually reflects how a user is navigating or
learning from the Web site. Such usage information can not only serve as a useful feedback to
the experts about the learners approach, but can also suggest to learners from the ‘navigation
experience’ of other user’s on what they found useful. Initial work on analysing Web logs to
discover patterns and associations between Web pages visited provided the right direction for
such kind of analysis, but did not especially address the issue of e-learning. These kinds of
analysis can be done either offline or online, or integrating both. A natural extension to such
analysis was to develop recommender systems based on offline [9] as well as an integrated
approach.
Web Mining In Banking Industry

Internet banking was offered as a "value addition" for most customers. But now almost all the
banks have ventured into this area. Enormous amount of data gets stored through banking
transactions. Success factor is the amount of valuable knowledge that is extracted from this
data store. Customer profile can be generated. This helps the bank executives in identifying the
appropriate customer for certain category of products and the risk in allotting loan facilities.
Credit card usage patterns can be identified and special offers can be provided. Defaulters of
payment can be identified easily. Banks like ICICI bank and HSBC bank identify the customers
for certain offers like home equity loan using web mining. Bank can target at the customers
who are likely to invest in mutual funds. Thus targeting the right customer and ensuring
excellent service to these customers can be made a reality with the aid of web mining.
Concluding Remarks

Many companies wanting an on-line presence believe that all they have to do is build a
website and sit back and reap the benefits. In most cases this has been a fruitless exercise and
companies will be unable to improve the situation without first gaining a basic understanding
of the visitors to their web site.
Web mining puts e-tailers in the unprecedented position of being able to understand
and
predict the behavior of their customers. Companies can now optimize their e-business
sites for maximum commercial impact and personalize the on-line content of their web site.
It is those companies who adopt a web mining strategy now to learn about their customers
who will gain the competitive edge in the new ‘digital economy’.
Web mining and the use of structure mining can provide strategic results for marketing
of a Web site for production of sale. The more traffic directed to the Web pages of a particular
site increases the level of return visitation to the site and recall by search engines relating to
the information or product provided by the company. This also enables marketing strategies to
provide results that are more productive through navigation of the pages linking to the
homepage of the site itself.
To truly utilize your website as a business tool web structure mining is a must Web
mining techniques has been effectively used in search engine technologies to retrieve the most
relevant and significant pages. Web mining techniques coupled with integrated meta-
information such as author info, download info, and other additional info explicitly defined by a
domain expert helps to improve the learning process. Given a large, knowledge-dense website
and a non-expert user seeking information, recommending relevant content becomes a
significant challenge. Web mining has also been shown as a useful tool for providing expert-
driven recommendations to non-experts, helping them understand what they need to know, as
opposed to what is popular among other users.
.
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http://www.dmreview.com/master.cfm?NavID=29
 Data Mining and the Web: What They Can Do Together, by Mary Garvi
http://www.dmreview.com/editorial/dmreview/print_action.cfm?EdID=420
 Data Mining on the Web, by Don R. Greening
http://www.webtechniques.com/archives/2000/01/greating/
 Web Mining: information and Pattern Discovery on the WWW by Cooley, Mobasher,
Srivastava http://www-users.cs.umn.edu/~mobasher/webminer/survey/survey.html
 The Live Wire Web Data Mining White Paper
 http://www.lwbbs.com/whitepaper.html

Crime Information System Tool Using Data Mining
Submitted by
Lt. Dr. S. Santhosh Baboo and A. Malathi

Reader, Department of Computer Science, D. G. Vaishnav College, Chennai.
Santhos2001@sify.com
A. Malathi
Research scholar, Bharathiar University, Coimbatore, Tamil Nadu
malathi.arunachalam@yahoo.com
Abstract
The concern about national security has increased significantly since 26/11 terror
attacks. However, information overload hinders the effective analysis of criminal and
terrorist activities. Data mining applied in the context of law enforcement and
intelligence analysis holds the promise of alleviating such problem. In this paper we
proposed a system which is used to extract necessary data from data base and analyze
the crime to find crime hot spot using data mining techniques.
Keywords: Crime, data mining and analysis.
1 Introduction
Crime is defined as “an act committed or omitted in violation of a law forbidding or

commanding it and for which punishment is imposed upon conviction”. Wide range of
activities, ranging from simple violation of civic duties (illegal parking) to internationally
organized crimes (9/11 attacks).
Now-a-days there is an enormous increase in the crime (26/11 attack). There is an eternal race
between law breakers and law enforcers. There is a need to implement the new emerging
technology in the public sector (Saha, S. 2006).

The following are some of the crime type
 Murder
 Rape
 Robbery
 Assault
 Burglary
 Theft
 Motor theft
 Abduction and
 Sexual assault
2 Existing Crime data mining approaches and techniques

 Preprocessing has been applied for the datasets to keep the database ready for the
process
 Entity extraction has been used to automatically identify person, address, vehicle, and
personal properties from police narrative reports
 Clustering techniques such as “concept space” have been used to automatically

associate different objects in crime records.
 Deviation detection has been applied in crime analyses that involve tracing abnormal
activities
 Association Rule mining discovers frequently occurring item sets in a database and
presents the patterns as rules.
 Sequential pattern mining finds frequently occurring items sets in a database and
presents the patterns as rules.
 Classification The process of finding the common properties among different crime
entities and classifying them into groups
 String comparator has been used to detect deceptive information in criminal records.
 Social network analysis has been used to analyze criminals’ roles and associations
among entities in a criminal network .

3 Crime Information System Tool (CIST)
In today’s world criminals have become techno savvy and they make maximum use of all the
modern technologies and methods in committing crimes. This has facilitated them in operating
over the length and breadth of the country also. If we have to effectively meet out challenges
of crime control and maintenance of public order, creation of databases on crimes & criminals
in digital form for sharing by all, an intelligent police information system (Chen, et al., 2003;
Ozkan, 2004) cannot be neglected anymore. This section highlights the need for Crime Analysis
Tool as interactive interface and describes the proposed Crime Information System Tool (CIST)
based on Crime Data Mining.
3.1 Need of Crime Information System Tool
In the present scenario, the criminals are becoming technologically sophisticated in committing
crimes (Amarnathan, 2003). Therefore, police needs such a crime analysis tool to catch
criminals and to remain ahead in the eternal race between the criminals and the law
enforcement. The police should use the current technologies (Corcoran,et al., 2003; Ozkan,
2004) to give themselves the much-needed edge. Availability of relevant and timely information
is of utmost necessity in conducting of daily business and activities by the police, particularly in
crime investigation and detection of criminals. Police organizations everywhere have been
handling a large amount of such information and huge volume of records. There is an urgent
need to analyzing the increasing number of crimes as approximately 17 lakhs Indian Penal Code
(IPC) crime (Chaudhary, J.N. 2003). and 38 lakhs local and Special Law crimes per year.
CCIS has facility only to view multi-dimensional view of data on crime, criminal and properties
and not analysing crime data e.g crime hot spot identification, crime zone identification, crime
trends prediction so that police planners can enforce their manpower at high density areas and
crime hot spots to reduce and control the crime. Integration of Analytical Tools for providing
support to decision makers is very much needed for effective use of the Crime Criminal
Information System in the Police stations, Districts and States. The police require interactive
interface as crime analysis tool that assists them in
• Detecting of crime locations and carrying out crime hot spot analysis
• Providing information to formulate strategies for crime prevention and reduction
• Reducing the further occurrences of similar incidence by analyzing crime patterns

• Targeting resources for preventative and detection strategies more efficiently

3.2 Proposed Crime Information System Tool
The proposed crime analysis tool CIST for CCIS is faster to implement and easier to use. The tool
will give an edge to the police to respond and thereby serve the people better. The proposed
crime analysis tool provides a user-friendly tool to analyze huge crime database as building up
in CCIS. The traditional way of executing the queries is the extraction of records and aggregates
them for every execution. This is more time consuming process because of rescanning of
database every time and required a specialized user to extract the information from the
database. The proposed crime analysis tool eliminates the rescanning of the database for every
new query as well need of skill users. It provides the user an interactive and fast way to carry
out process of identification of crime hot spots and crime zones as well as data comparison
among various area of interest. Interaction of many relational tables is required for analyzing
crime data since not all information required for crime analysis is stored in a single table. The
proposed query interface extracts the records from these tables and aggregates them for
further online querying. The crime analysis tool as an adaptive query interface has been
designed to make best use of the existing CCIS. Police station level analysis is also possible
through the interface.
Crime Analysis Tool consists of three major modules such as Data Extraction Module, Crime
Analysis Module and Visualization module for carrying out analysis. The features and utility of
each module is described in the next subsection.
Fig 1: Crime Analysis Tool

3.2.1 Data Extraction Module
Data Extraction module establishes connection from database to Crime Analysis Tool & also
extracts records state-wise for carrying out further crime analysis. An ODBC data source is
required before running this module to create a link fro database. To establish database
connection some inputs such as database name, username and password are required from the
user. The extraction of records is also carried out through this wizard (Knoblock, C.A. 2006). This
module is need not to run every time for carrying out crime analysis on the same data for same
period, only first time it is required to run for extracting records. For example, if a user has
already extracted the records of Karnataka State for period 2000-2006 then user needs not to
run Data Extraction Wizard for the same state & same period. But if user would like to run a
query for Punjab state
 Connection between CIST and Data base
 Any number of records can be extracted
 Not necessary to extract the database every time
 Main data base can be updated
3.2.2 Crime Analysis

Fig 2: Crime Analysis
A list of crime type is going to be stored in the proposed tool. For example, Robbery, rape, sex
assault, Murder, and etc., are going to be included. Crime type, Location, and period are going
to be the inputted. It finds out Crime hot spot area whether it is very high crime zone, high
crime zone, average crime zone and low crime zone.
3.2.3 Visualization
The analyzed data can be viewed in graphical format. Crime type and location need to be
inputted. The visualization techniques such as Geographical Information System are going to be
used.
4 Data mining techniques and approaches for CIST
 Pre processing
 Clustering
 Classification
 Network analysis

o SNA is identified to implement this concept
o Network extraction, Subgroup detection , root member identification and

interaction pattern discovery
 Hot spot analysis
o To reduce and control the crime
o 1. Crime Event Count 2. Time lag between events and 3. Spatial concentration of
events
5 Implementation of Crime Analysis Tool
To demonstrate the utility of the crime analysis tool, it has been implemented on sample
database. The tool is used on crime data of Tamil Nadu state at initial stage but later on
extended for carrying out analysis on all India crime data Knoblock, C. A 2007). Tamil Nadu state
has more than 25 lakhs of crime records from 1991 to 2007.

Fig 3: Crime Data Mining Tool
The above figure shows the crime data entered in to the data base. In this violent and property
crimes are calculated from other crimes like murder, Rape, Robbery, Assault, Burglary, Theft,
Auto and Arson. The proposed crime analysis tool performs remarkably well to handle such
database and carrying out crime analysis for Tamil Nadu state. Crime hot spots have been
identified for the state under different crime heads and for different period.
Fig 4: Crime Data Mining General Report
The above figure shows Crime Type Selection and Abduction, Dacoity, Hurt, Kidnapping,
Murder, Rape and Robbery crime has be selected to carry out analysis for Tamil Nadu state for
year 2007
6 Conclusion

In this paper, crime analysis tool of CIST based on the current decision support and data mining
techniques has been proposed in order to carrying out police activities efficiently. The proposed
crime analysis tool will provide an upper edge and with the use of the crime analysis tool
policing can be made effective, fast and responsible in their operation. The successful
implementation of the proposed crime analysis tool for India crime records depicts the utility of
the tool. The effectiveness of proposed crime analysis tool has also been illustrated for crime
hot spot analysis. The proposed crime analysis tool for CCIS is faster to implement and easier to
use. The crime analysis tool can be integrated with latest visualization techniques such as
Geographical Information System for enhancing the understanding of the results and patterns.
The tool has very promising use in the current changing scenario and provides an effective tool
to law enforcement agencies for crime detection and crime prevention. Hence, the proposed
crime analysis tool has wider variety of application for enforcement of laws.

Reference
1. Amarnathan, L.C. (2003). Technological Advancement: Implications for Crime. The Indian
Police Journal, April-June.
2. Chaudhary, J.N. (2003). Police in United States: Contemporary issues. The Indian Police
Journal, July – September, 173-179.
3. Chen H., Zeng D., Atabakhsh H., Wyzga, W. & Schroeder, J. (2003). COPLINK: managing
law enforcement data and knowledge. Communications of the ACM 46 (1), 28–34.
4. Corcoran J. J., Wilson I. D. & Ware J. A. (2003). Predicting the geo-temporal variations of
crime and disorder. International Journal of Forecasting 19, 623–634.
5. Krishnamorthy, S. (2003). Preparing the Indian Police for 21st Century. Puliani and
Puliani, Bangalore, India.
6. Kumar, M., Gupta, A. & Saha, S. (2006). Approach to Adaptive User Interfaces using
th
Interactive Media Systems. Proceedings of the 11 international conference on
Intelligent user interfaces.
7. Michelson, M. & Knoblock, C.A. (2006). Phoebus: A System for Extracting and Integrating
Data from Unstructured and Ungrammatical Sources. In Proceedings of AAAI.
8. Ozkan, K. (2004). Managing data mining at digital crime investigation. Forensic Science
International 146, S37-S38.
9. Tuchinda, R., Szekely P. & Knoblock, C. A (2007). Building Data Integration Queries by
th
Demonstration. Proceedings of the 12 international conference on Intelligent user
interfaces.

Multimedia Compression and Encryption
Using Primality Algorithms.
T Srinivasa Rao; A.M.V.N.Maruti R Srinivas
Dept. of E.C.E Dept. of E.C.E
Bapatla Engineering. College SCET, Narsapur, India
Bapatla, India
hellocinu@gmail.com
Abstract— The rapid growth of digital imaging applications, including desktop publishing,
multimedia, teleconferencing, and high-definition television (HDTV) has increased the need for
effective and standardized image compression techniques. While cryptography is probably the
most important aspect of communications security and is becoming increasingly important as a
basic building block for computer security. Encryption is used to securely transmit data in open
networks. Each type of data has its own features, therefore different techniques should be used
to protect confidential image data from unauthorized access. Most of the available encryption
algorithms are mainly used for textual data and may not be suitable for multimedia data such
as images. In this paper, we introduce a block-based transformation algorithm based on the
combination of image compression and a well known encryption and decryption algorithms.
The original image was divided into blocks, which were rearranged into a transformed image
using a transformation algorithm presented here, and then the transformed image was
encrypted using the data encryption algorithm. The results showed that the correlation
between image elements was significantly decreased by using the proposed technique. The
results also show that increasing the number of blocks by using smaller block sizes resulted in a
lower correlation and higher entropy.
Index terms: Compression, Cryptography, Encryption, Chinese Remainder Theorem.
I INTRODUCTION
Images from the significant part of data, particularly in remote sensing, biomedical and
video conferencing applications [1][4]. The use of and dependence on information and
computers continue to grow, so too does our need for efficient ways of storing and
transmitting large amounts of data. For example, someone with a web page or online
catalog that uses dozens or perhaps hundreds
of images will certainly need to use some form of image compression to store those
images. This is because the amount of space required to hold unadulterated images
can be prohibitively large in terms of cost. Fortunately, there are several methods of
image compression available today [2][5]. However, the digital pictures require far
more computer memory and transmission time than that needed for plain text. For

real time applications, in order to handle huge amount of data, the image compression
schemes are needed.
Image compression is a process intended to yield a compact representation of an

image, thereby reducing the image storage / transmission requirements. Genera lly,
data compression is of two types: reversible compression (lossless) and non -reversible
(lossy) compression. Reversible compression results in a reduction of redundant data,
but the reduction is in such a way that redundancy can be subsequently restore d into
the data. Non-reversible compression results in the reduction of information itself in
which the lost information can never be recovered. The non -reversible scheme
provides more compression than its reversible counterpart [6].
The rapid growth of computer networks allowed large files, such as digital images, to
be easily transmitted over the internet [1]. Data encryption is widely used to ensure
security however, most of the available encryption algorithms are used for text data.
Due to large data size and real time constrains, algorithms that are good for textual
data may not be suitable for multimedia data [2]-[6].
II. BACKGROUND
Uncompress image data requires considerable storage capacity and transmission

bandwidth. Current solution is to compress the data to acceptable quality before it is
transmitted and decompressed at the receiver side.
Principle of Image Compression
Most of the images have the common characteristic that is redundant

information of neighbor pixels. Removing the redundancy information in a image is an
important step during image compression. There are two fundamental components of
compression. First, the redundancy reduction that aims to remove the duplication
from signal source [2]. Second is irrelevancy reduction to omit p arts of the signal that
will not be noticed by the signal receiver, namely the Human Visual System (HVS) [2].
Image compression consists of three closely connected components:
i. Source Encoder – source encoder transform the image from the space or time
domain to a new domain where the inter-pixel redundancies are reduced.
ii. Quantizer – Quantizers reduces the number of bits needed to store the transformed
coefficient by reducing the redundancies of those values and represent it with
appropriate method. Embedded Zerotree Wavelet (EZW) algorithm [3] is one of the
famous quantizer that has the features of simplicity, efficiency, and low memory
requirements.
iii. Entropy Coder – entropy coder further compresses the quantized values to give a
better overall compression. Arithmetic Coder has been selected in this research
because of the efficient model it has and the output is nearly optimum according to
the Shannon Theorem.

III INTRODUCTION TO WAVELET TRANSFORM
The basic wavelet transform is similar to Four ier Transform. The coefficients are
calculated by an inner product of the input signal with a set of orthonormal basic
function. The different comes in the way these functions are constructed and more
important in the types of analysis. Multi-resolution transform is the key different of
wavelet transform; it allows a form of time and frequency analysis. In wavelet
transform, the result generated will shown when certain features occurred and about
the scale characteristics of the signal. Scale is similar to frequency and is a measure of
the amount of details in the signal. Small scale generally mean common details and
large scale mean fine details.
Discrete Wavelet Transform
Discrete Wavelet Transform can be described as a recurrent process of filtering

and sub-sampling perform on the input set data. In each level, a set of coefficients are
calculated by applying a high-pass filter to the signal and down sampling the result by
a factor of two. At the same level, low-pass filter is also performed followed by down
sampling to produce the signal to next level. In the following level, the process of
filtering and sub-sampling is performed on the signal output by the previous level,
again produce the signal to the next level. The process is continued until it meet s the
requirement.
Quantizer: Embedded Zerotree Wavelet Encoder
Embedded Zerotree Wavelet encoder or EZW in short, is type of progressive encoding

or known as embedded encoding that compress an image into bit stream with
increasing accuracy. This algorithm was designed by J. M. Shapiro in 1993 specifically
to be used with discrete wavelet transforms.
Its development is based on two observations:
i. Natural images in general have a low pass spectrum. When an image is wavelet
and the transformed energy in the subbands decrease, the scale decrease (low scale
mean high resolution), so the wavelet coefficients will, on average, be smaller in the
higher subbands than in the lower subbands. This show that progressive encoding is a
very natural choice for compressing wavelet transformed images, since the higher
subbands only added details [4].
ii. Large wavelet coefficients are more important than smaller wavelet
coefficients [4]. Therefore, EZW algorithm encode larger wavelet coefficient first. With
the above two observation, EZW schema encode the larger coefficients to smaller

coefficients with several pass in decreasing order. For very pass, a threshold is chosen
against which all the coefficients are measured. If a wavelet coefficient is larger than
the threshold it is encoded and removed from the image, if it is smaller it is save for
the next pass. When the entire wavelet coefficient has been visited, the threshold is
lowered and the image is scanned again to add more detail to the already encoded
image. This process is repeated until all the wavelet coefficients have been encoded
completely or another criterion has been satisfied.
Entropy Encoding
Entropy encoding is a coding schema that assigns codes to the symbols with the
probabilities of the symbols occurs. Typically, it is used to compress data by replacing
symbols with codes; therefore the most common use symbols will have the shortest
codes. The process of entropy coding is split into two parts: modeling and coding.
Modeling will assign probabilities to the symbols and coding will produces a bit
sequence from these probabilities. An accurate probability need to be calculated so
that the sequence bits will be assigned
based on the probability of the symbols to achieve a better compression rate.
Most of the algorithms specifically designed to encrypt digital images are proposed in
the mid-1990s. There are two major groups of image encryption algorithms: (a) non -
chaos selective methods and (b) Chaos-based selective or non-selective methods. Most
of these algorithms are designed for a specific image format compressed or
uncompressed, and some of them are even format compliant. There are methods that
offer light encryption (degradation), while others offer strong form of encryption.
Some of the algorithms are scalable and have different modes ranging from
degradation to strong encryption [10].
COMPRESSION TECHNIQUES
In block coding schemes such as Discrete Wavelet Transform (DWT)[5], Discrete

Cosine Transform(DCT), Vector Quantization (VQ), Block Truncation Coding (BTC),
either the compression ratio is high and the coding is complex (DWT, DCT, VQ) or the
compression ratio is modest and the coding is also moderate (BTC). The number of
operations (multiplication) for two–dimensional block coding schemes such as the
Discrete Cosine Transform requires N 2 log 2 N computations to code an image block size
of N  N . Moreover the choice of block size is a trade-off between the compression
efficiency and image quality. If the block size becomes too large , degradation effects
such as ringing and blocking effects are introduced, especially in blocks containing
high-contrast edges [9]. For Vector Quantization, the number of operations required
is K 2  N for coding the same N  N block, where K is the number of code words.
Moreover Vector Quantization yields a better image
quality only when the bit rate is lower [10]. Thus, popular block coding schemes are
suitable only for specific applications where the processing power is adequate or

where dedicated hardware may be used.
Fig. 2: Flow Diagram of the Image Compression and Encryption
III PROPOSED ENCRYPTION SCHEME FOR COMPRESSED IMAGES
The following scheme is based on the number theoretic and the JPEG (Joint
Picture Experts Group) standards [6]. In this method, the image is represented in the
form of a square matrix of size 256  256 , 512 512 , 1024 1024 and so on. Color images
are comprised of three spaces: red, green and blue. In color image coding applications
each space is compressed separately as in the grey scale image. Each pixel is of 8 bits
and the amplitude value varies from 0 to 255. The image coding system based on the
Number Theory is carried out by the following procedure. An image of size N  N is
taken and is fragmented into blocks of size 1 K . Each pixel in the block is
represented with a smaller bit representation by dividing by 16
b
ai  i , i 1to K
16
Now, they are represented as linear congruencies
yi  ai mod ni 
for some fixed integer ni . The congruencies are solved using the number theoretic
paradigm.
The Chinese Remainder Theorem is mainly based on the algorithm of linear
congruencies. Congruence is nothing more than a statement about divisibility [12].
The Chinese Remainder Theorem is mainly based on the system of linear congruencies

a  bmod n
This can be reduced to a set of
a  bmod ni  ,
Where ni , n2 , ...ni are prime factors of n.
Theorem
Let n1 , n2 , ...nk k positive integers which are relatively prime, and let a1 , a2 , ...ak denote
any k integers. Then the congruencies x  ai mod ni  ,
i  1,2,...k have common solutions.
Any two solutions are congruent modulo n1 , n2 , ...nk .
Y  X mod P  , where P  n1  n2 * .... * nk .
 
X  a1 * N1 * x1  ...  ak * N k * xk mod P 
i.e. X   ai * N i * xi Mod P 
Where N k  P in which x k satisfies
nk
Ni * xi  1mod ni 
The remainder of the solved congruencies X is transmitted. At the receiving end,
using X , a i are found using ai  X mod ni  and then multiplying by16, the original
pixel values are reconstructed.
Numerical Example
Let n1  17, n2  18, n3  19 & n4  23

Which are relatively prime.
a1  11, a2  12, a3  13 & a4  15
Encryption:
P  133722
N1  7866, N 2  7429,
N 3  7038 and N 4  5814;
x1  10, x2  7, x3  12 and x4  9
X  29064
Decryption:
a1 1  11, a1 2  12, a1 3  13, a1 4  15.
IV. IMAGE ENCODING
Consider an image of size N  N . Various blocks of K pixels are taken, divided
by 16 and then linear congruencies are applied to it. These congruencies are solved
using the Chinese Remainder Theorem. The remainder of the solved congruencies X
is obtained using the equation

X   ai  N i  xi mod P 
Where N i and xi are pre-calculated coefficients and a i are the pixel values after
applying the threshold. The Ni and xi are pre-calculated and they need not be
calculated for every X . The reason for using Chinese Remainder Theorem for solving
the linear congruencies is to reduce a bigger number to a smaller representation. For
image of size 256  256 and block size 4 , all 16384 X are computed. After computing
all X , the frequency of each distinct X and their counts are determined. They are
sorted in descending order of their count. A table of unique X and an equivalent
smaller code is generated. Using this table each X obtained is encoded into this
smaller code.
V IMAGE DECODING
Image decoding is performed at the receiving end. At the receiver, a i are found for
each X using the equation
ai  X mod ni 
The original pixel values are then reconstructed using the formula
R pi  ai  16  Q, i  1to K
Where, R pi = reconstructed pixel
Q = quality factor
This decoding technique has zero latency. It starts emitting decompressed text
immediately after receiving the first code word, emitting K output characters for
every compressed code word.
COMPRESSION MODES
This number theory based compression technique works as a lossy as w ell as lossless
scheme. In the lossy mode, a negligible error is obtained with more compression. For
the lossless mode of compression, two sets of congruencies are considered. In the
first step, the individual color values are divided by 16 and the quotien ts are
represented as linear congruencies and
solved using Chinese Remainder Theorem. In the second set, the original color values
are divided by 16 and their remainders are taken. The solutions thus arrived at by
applying the Chinese Remainder Theorem to these remainders are also transmitted.
The compression ratio achieved for a block size of 1 10 is 3.88 : 1.
VI SIMULATION RESULTS

The picture used for simulation is shown in Fig. 3. It is the original Lena picture of size
260  260 . Fig. 4 is the lossless decompressed Lena picture with block size 10 and the
compression ratio is 3.88:1. Fig. 5 is the lossy decompressed Lena picture with block
size 10. The compression ratio obtained is 16:1. Fig. 6 is the decompressed Lena using
improper key. The software portion of this scheme was developed and tested using
MATLAB for low and high dimensional images. The results are tabulated in Table 1.
Fig.3: Original Lena image Fig. 4: Decompressed Lena

Image Lossless (3.88:1)
Fig.5: Decompressed Lena Fig.6: Decompressed Lena

Image Lossy (16:1) using improper key
The Peak Signal to Noise Ratio (PSNR) obtained is moderate. The expression u sed for
PSNR calculation is
RMSE   P  R 
i i
2

/ N , i=1 to N.
PSNR  20 log 10 255 RMSE 
Where,
Pi = the pixel values for the original image
Ri = the pixel values for the decompressed image
N = number of pixels in the image.

Table1: Comparison of various compression techniques
JPEG JPEG2000 VQ PROPOSED

CR
PSNR PSNR PSNR PSNR
(dB) (dB) (dB) (dB)
80 17.96 29.98 18.12 23.75

53.33 24.77 31.74 25.31 28.16
32 30.41 34.13 26.57 32.69
16 34.75 37.33 27.46 36.42
8 37.80 40.93 - 38.58
4 41.05 44.93 - 42.39
Although the PSNR obtained by the proposed algorithm is lesser than that of
JPEG-2000, the high level of encryption offered in the same module makes it superior
in general sense.
Fig.7: PSNR of original and pre/post filtered images.
VII. CONCLUSION AND FUTURE WORK
Three approaches have been proposed to increase the compression efficiency

and to integrate security features with minimum impact on the computation cost.
First, the paper discussed on how to increase the security by encrypting the decoding
parameter and randomly inserts each bit into the image stream. Second, the paper
discussed on how to integrate
the encryption into arithmetic algorithm to protect the image against com pression.
Finally, flow modification has been proposed to maximize the compression efficiency.

Scope for future work
The algorithm can be extended to higher levels of encryption and compression by

increasing the key length. Also, specialized hardware can be developed for the
transmission and reception modules, to calculate the computation time and to deploy
Number Theory based Image Compression Encryption.
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[8] Chung-Ping Wu, C.-C. Jay Kuo, "Design of integrated multimedia compression and
encryption systems", IEEE Transactions on Multimedia, vol.7, no. 5, 2005, pp. 828.
[9] Vikram Jagannathan, Aparna Mahadevan, Hariharan R., Srinivasan E., "Simultaneous color
image compression and encryption using number theory", Proceedings of ICIS 05, 2005, pp. 1.
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Process. Xi'an Jiaotong Univ., Shaanxi, This paper appears in: Circuits and Systems, ISCAS 2002.
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[11] A. Mitra, , Y V. Subba Rao, and S. R. M. Prasnna, "A new image encryption approach using
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transform in image bit planes," Source: optical engineering, spieint society optical engineering,
vol. 44, no. 5 , 2005, pp.15-18

AN ACKNOWLEDGEMENT-BASED APPROACH FOR THE DETECTION OF ROUTING
MISBEHAVIOUR IN MANETs
Submitted by
Vidya Kadam
Shital Pawar
Ashish kumar
Subodh kumar
Bharati Vidyapeeth University College Of Engg. Pune (BVUCOE)
ABSTRACT
We are considering the Routing misbehavior in MANETs (Mobile Ad Hoc Networks). Routing
protocols for MANETs are based on the assumption which are, all participating nodes are fully
cooperative. But, due to the open structure node misbehaviors may exist. One such routing
misbehavior is that some nodes will take part in the route discovery and maintenance
processes but refuse to forward data packets. In this, we propose the 2ACK scheme that serves
as an add-on technique for routing schemes to detect routing misbehavior and to mitigate their
effect. The basic idea of the 2ACK scheme is to send two-hop acknowledgment packets in the
opposite direction of the routing path. To reduce extra routing overhead, only a few of the
received data packets are acknowledged in the 2ACK scheme.
KEYWORDS:-
MANET, routing in MANETS, misbehavior of nodes in MANETS, credit based scheme, reputation
based scheme, the 2ack scheme,network security.
1.INTRODUCTION

1.1 MOBILE AD HOC NETWORK
Mobile Ad-hoc networks (MANET) are self-configuring and self-organizing multi hop wireless
networks where, the network structure changes dynamically. In a MANET nodes (hosts)
communicate with each other via wireless links either directly or relying on other nodes as routers.
The nodes in the network not only acts as hosts but also as routers that route data to/from other
nodes in network The operation of MANETs does not depend on preexisting infrastructure or base
stations. Network nodes in MANETs can move freely and randomly.
An Ex is shown in figure 1.1. Node A can communicate directly (single hop) with node C, node D and
node B. If A wants to communicate with node E, node C must work as an intermediate node for
communication between them. That’s why the communication between nodes A and E is multi-
hop.
Fig 1.1: A Mobile ad hoc network
1.2 ROUTING IN MANETs

The use of conventional routing protocols in a dynamic network is not possible because they
place a heavy burden on mobile computers and they present convergence characteristics that do
not suit well enough the needs of dynamic networks. For Example, any routing scheme in a
dynamic environment for instance ad hoc networks must consider that the topology of the network
can change while the packet is being routed and that the quality of wireless links is highly variable.
The network structure is mostly static in wired networks, that is why link failure is not frequent.
Therefore, routes in MANET must be calculated much more frequently in order to have the same
response level of wired networks. Routing schemes in MANET are classified in four major groups,
namely, proactive routing, flooding, reactive routing, and hybrid routing.
1.3 MISBEHAVIOUR OF NODES IN MANET

Ad hoc networks increase total network throughput by using all available nodes for
forwarding and routing. Therefore, the more nodes that take part in packet routing, the greater is

the overall bandwidth, the shorter is the routing paths, and the smaller the possibility of a network
partition. But, a node may misbehave by agreeing to forward packets and then failing to do so,
because it is selfish, overloaded, broken, or malicious.
An overloaded node lacks the buffer space, CPU cycles or available network bandwidth to
forward packets. A selfish node is unwilling to spend CPU cycles, battery life or available network
bandwidth to forward packets not of direct interest to it, even though it expects others to forward
packets on its behalf. A malicious node creates a denial of service (DOS) attack by dropping
packets. A broken node might have a software problem which prevents it from forwarding packets.
Fig 1.2 : Scenario for packet dropping and misrouting
2. PROPOSED SYSTEM.
2.4 THE 2ACK SCHEME
The watchdog detection mechanism has a very low overhead. Unfortunately, the watchdog
technique suffers from several problems such as ambiguous collisions, receiver collisions, and
limited transmission power. The main issue is that the event of successful packet reception can
only be accurately determined at the receiver of the next-hop link, but the watchdog technique
only monitors the transmission from the sender of the next-hop link.
Noting that a misbehaving node can either be the sender or the receiver of the next-hop link, we
focus on the problem of detecting misbehaving links instead of misbehaving nodes. In the next-hop
link, a misbehaving sender or a misbehaving receiver has a similar adverse effect on the data
packet: It will not be forwarded further. The result is that this link will be tagged. 2ACK scheme
significantly simplifies the detection mechanism.
2.4.1 DETAILS OF THE 2ACK SCHEME

The 2ACK scheme is a network-layer technique to detect misbehaving links and to mitigate their
effects. It can be implemented as an add-on to existing routing protocols for MANETs, such as
DSR. The 2ACK scheme detects misbehavior through the use of a new type of acknowledgment
packet, termed 2ACK. A 2ACK packet is assigned a fixed route of two hops (three nodes) in the
opposite direction of the data traffic route.
Fig 2.1: The 2ACK Scheme
Figure2.1 illustrates the operation of the 2ACK scheme. Suppose that N1, N2, and N3 are three
consecutive nodes (triplet) along a route. The route from a source node, S, to a destination node,
D, is generated in the Route Discovery phase of the DSR protocol. When N1 sends a data packet to
N2 and N2 forwards it to N3, it is unclear to N1 whether N3 receives the data packet successfully or
not. Such an ambiguity exists even when there are no misbehaving nodes. The problem becomes
much more severe in open MANETs with potential misbehaving nodes.
The 2ACK scheme requires an explicit acknowledgment to be sent by N3 to notify N1 of its

successful reception of a data packet: When node N3 receives the data packet successfully, it
sends out a 2ACK packet over two hops to N1 (i.e., the opposite direction of the routing path as
shown), with the ID of the corresponding data packet. The triplet N1  N2  N3 is derived from
the route of the original data traffic.
Such a triplet is used by N1 to monitor the link N2 N3. For convenience of presentation, we
term N1 in the triplet N1  N2  N3 the 2ACK packet receiver or the observing node and N3
the 2ACK packet sender. Such a 2ACK transmission takes place for every set of triplets along the
route. Therefore, only the first router from the source will not serve as a 2ACK packet sender.
The last router just before the destination and the destination will not serve as 2ACK receivers.
3.APPLICATIONS:
Ad-hoc networks are suited for use in situations where an infrastructure is unavailable or to deploy
one is not cost effective.
A mobile ad-hoc network can also be used to provide crisis management services applications, such
as in disaster recovery, where the entire communication infrastructure is destroyed and resorting
communication quickly is crucial. By using a mobile ad-hoc network, an infrastructure could be set
up in hours instead of weeks, as is required in the case of wired line communication. Another
application example of a mobile ad-hoc network is Bluetooth, which is designed to support a
personal area network by eliminating the need of wires between various devices, such as printers

and personal digital assistants. The famous IEEE 802.11 or Wi-Fi protocol also supports an ad-hoc
network system in the absence of a wireless access point.
4.ADVANTAGES:
As compared to the watchdog, the 2ACK scheme has the following advantages:
1. Reliable data Transmission:
It deals with the reliable transfer of file from source to destination. The file needs to be stored at
source for certain amount of time even if it has been transmitted. This will help to resend the file if
it gets lost during transmission from source to destination.
2.Reliable route discovery:
Reliable Route Discovery deals with discovering multi-hop route for wireless transmission. Routing
in a wireless ad-hoc network is complex. This depends on many factors including finding the routing
path, selection of routers, topology, protocol etc.
3.Limited Transmission Power: A misbehaving N2 may maneuver its transmission power such that
N1 can overhear its transmission but N3 cannot. This problem matches with the Receiver Collisions
problem. It becomes a threat only when the distance between N1 and N2 is less than that between
N2 and N3. The 2ACK scheme does not suffer from limited transmission power problem.
4.Limited Overhearing Range: A well-behaved N2 may use low transmission power to send data
toward N3. Due to N1's limited overhearing range, it will not overhear the transmission successfully
and will thus infer that N2 is misbehaving, causing a false alarm. Both this problem occur due to the
potential asymmetry between the communication links. The 2ACK scheme is not affected by
limited overhearing range problem.
5. CONCLUSION:
The proposed system is a simulation of the algorithm that detects misbehaving links in Mobile Ad
Hoc Networks. The system implements the 2ACK scheme which helps detect misbehavior by a 2
hop acknowledgement. The 2ACK scheme for detecting routing misbehaviour is considered to be
network-layer technique for mitigating the routing effects. The 2ACK scheme identifies misbehavior
in routing by using a new acknowledgment packet, called 2ACK packet. A 2ACK packet is assigned a
fixed route of two hops (three nodes N1, N2, N3), in the opposite direction of the data traffic route.
6. REFERENCE:
1. L.M. Feeney and M. Nilsson. Investigating the Energy Consumption of a Wireless Network
Interface in an Ad Hoc Networking Environment, Proc. IEEE INFOCOM, 2001: Twentieth Annual
Joint Conference of the IEEE Computer and Communications Societies, Volume 3 (2001), Pages.
1548-1557, Year of Publication: 2007
2. D. Johnson, D. Maltz, Y.C. Hu, and J. Jetcheva. The Dynamic Source Routing Protocol for Mobile
Ad Hoc Networks (DSR) in 10th IEEE International Conference, 27-30 Aug 2002,Year of Publication
:2002, ICON 2002
3. K. Balakrishnan, J. Deng, and P.K. Varshney. TWOACK: Preventing Selfishness in Mobile Ad Hoc
Networks , Proc. IEEE Wireless Comm. and Networking Conf. (WCNC ’05), Mar. 2005,Volume
4,Pages 2137-2142, IEEE Press 2005,Year of Publication:2005

4. Kong, P. Zerfos, H. Luo, S. Lu, and L. Zhang, “Providing Robust and Ubiquitous Security Support
for Mobile Ad-Hoc Networks,” Proc. IEEE Int’l Conf. Network Protocols (ICNP ’01), 2001.
5. Elizabeth Royer and C-K Toh: A Review of Current Routing Protocols for Ad-Hoc Mobile Wireless
Networks. IEEE Personal Communications Magazine, pages 46-55, April 1999.
6. Josh Broch , David A. Maltz , David B. Johnson , Yih-Chun Hu , Jorjeta Jetcheva , A performance
comparison of multi-hop wireless ad hoc network routing protocols, Proceedings of the 4th annual
ACM/IEEE international conference on Mobile computing and networking, p.85-97, October 25-30,
1998, Dallas, Texas, United States [doi>10.1145/288235.288256].
7. Charles E. Perkins , Pravin Bhagwat, Highly dynamic Destination-Sequenced Distance-Vector
routing (DSDV) for mobile computers, ACM SIGCOMM Computer Communication Review, v.24 n.4,
p.234-244, Oct. 1994.
8. J. J. Garcia-Luna-Aceves et all: Source Tree Adaptive Routing (STAR) protocol, draft-ietf-manet-
star-00.txt, 1998, IETF Internet Draft.
9. Charles E. Perkins , Elizabeth M. Royer, Ad-hoc On-Demand Distance Vector Routing, Proceedings
of the Second IEEE Workshop on Mobile Computer Systems and Applications, p.90, February 25-26,
1999.
10. David B. Johnson, David A. Maltz: Dynamic Source Routing (DSR) in Ad Hoc Wireless Networks.
In Mobile Computing, edited by Tomasz Imielinski and Hank Korth, chapter 5, pages 153-181.
Kluwer Academic Publishers, 1996.

“Virtual reality Vs Simulated reality: The matrix visionary concept “
Submitted By
Miss Nisha A. Lodha
G.H.Raisoni Institute of Information Technology,
Jalgaon.
ABSTRACT
Although the virtual reality is under revolution the simulated reality is yet a fiction only played by
the visionary like that of “The Matrix”. This paper is about the review of the pros and cons of the
simulated reality with the reference of virtual reality. This is different from the current,
technologically achievable concept of virtual reality. Virtual reality is easily distinguished from the
experience of "true" reality; participants are never in doubt about the nature of what they
experience. Simulated reality, by contrast, would be hard or impossible to distinguish from "true"
reality. This paper takes the concept devised in the movie “The Matrix” to highlight the hurdles that
makes the simulated reality a fictitious hypothesis. In this paper we tried to cover the concepts like
brain computer simulation and communication and virtual people in virtual world.
KEY WORDS
Virtual reality , Simulated reality ,Brain computer simulation ,Virtual people and communication .
1. Introduction
“The matrix “ a movie that makes every one to move from inside and go in trance with Neo, the
hero of Matrix to fill if one can really walk on the wall ,fly and hammer anything to crack. The hero
can learn any technology in few seconds to win the fight. Technically is “The Matrix Hypothesis”
could be a reality? What is simulated reality? These are the questions to be answered. What is the
technical support required to simulated a virtual real world and virtual people carrying avatar of
the real people of real world.
2. Virtual reality and Simulated reality:-
Virtual reality is easily distinguished from the experience of "true" reality. Participants are never in
doubt about the nature of what they experience. participants are never in doubt about the nature
of what they experience. Simulated reality, by contrast, would be hard or impossible to distinguish
from "true" reality.
The idea of a simulated reality raises several questions:
 Is it possible, even in principle, to tell whether we are in a simulated reality?

 Is there any difference between a simulated reality and a "real" one?
 How should we behave if we knew that we were living in a simulated reality?
In a brain-computer interface simulation, each participant enters from outside, directly connecting
their brain to the simulation computer. The computer transfers sensory data to them and reads
their desires and actions back; in this manner they interact with the simulated world and receive
feedback from it. The participant may even receive adjustment in order to temporarily forget that
they are inside a virtual realm. While inside the simulation, the participant's consciousness is
represented by an avatar, which could look very different from the participant's actual appearance
(see The Matrix).
3. Simulation-brain communications:-
If one has to effectively communicate with the brain, a code or sequence must be
created/discovered to send information between the part of our brain that hears and talks.
3.1Virtual people:-
In a virtual-people simulation, every inhabitant is a native of the simulated world. They do not have
a "real" body in the external reality. Rather, each is a fully simulated entity, possessing an
appropriate level of consciousness that is implemented using the simulation's own logic. Another
way of getting an inhabitant of the virtual reality out of its simulation would be to "clone" the
entity, by taking a sample of its virtual DNA and create a real-world counterpart from that model.
The result would not bring the "mind" of the entity out of its simulation, but its body would be born
in the real world.
This category subdivides into two further types:
 Virtual people-virtual world, in which an external reality is simulated separately to the

artificial consciousnesses;
 Solipsistic simulation in which consciousness is simulated and the "world" participants
perceive exists only within their minds.
3.2 Emigration
In an emigration simulation, the participant enters the simulation from the outer reality, as in the
brain-computer interface simulation, but to a much greater degree. On entry, the participant uses
mind transfer to temporarily relocate their mental processing into a virtual-person. After the
simulation is over, the participant's mind is transferred back into their outer-reality body, along
with all new memories and experience gained within (as in the movie The Thirteenth Floor, or when
one flatlines in Neuromancer).

3.3 Intermingled
Morpheus teaches Neo inside a small simulated reality. An intermingled simulation supports both
types of consciousness: "players" from the outer reality who are visiting (as a brain-computer
interface simulation) or emigrating, and virtual-people who are natives of the simulation and hence
lack any physical body in the outer reality.
The Matrix movies feature an intermingled type of simulation: they contain not only human minds
(with their physical bodies remaining outside), but also sentient software programs that govern
various aspects of the computed realm.
4 Matrix as metaphysics
The Matrix presents a version of an old philosophical fable: the brain in a vat. A disembodied brain
is floating in a vat, inside a scientist's laboratory.[3] The scientist has arranged that the brain will be
stimulated with the same sort of inputs that a normal embodied brain receives. To do this, the
brain is connected to a giant computer simulation of a world. The simulation determines which
inputs the brain receives. When the brain produces outputs, these are fed back into the simulation.
The internal state of the brain is just like that of a normal brain, despite the fact that it lacks a body.
From the brain's point of view, things seem very much as they seem to you and me.
The brain is massively deluded, it seems. It has all sorts of false

beliefs about the world. It believes that it has a body, but it has no
body. It believes that it is walking outside in the sunlight, but in fact
it is inside a dark lab. It believes it is one place, when in fact it may
be somewhere quite different. Perhaps it thinks it is in Tucson,
when it is actually in Australia, or even in outer space.
Neo's situation at the beginning of The Matrix is something like this. He thinks that he lives in a
city, he thinks that he has hair, he thinks it is 1999, and he thinks that it is sunny outside. In
reality, he is floating in space, he has no hair, the year is around 2199, and the world has been
darkened by war. There are a few small differences from the vat scenario above: Neo's brain is
located in a body, and the computer simulation is controlled by machines rather than by a
scientist. But the essential details are much the same. In effect, Neo is a brain in a vat.

4.1 The Metaphysical Hypothesis
The Metaphysical Hypothesis here describes the processes underlying our ordinary reality, but
it does not entail that this reality does not exist. We still have bodies, and there are still chairs
and tables: it's just that their fundamental nature is a bit different from what we may have
thought. In this manner, the Metaphysical Hypothesis is analogous to physical hypotheses, such
as one involving quantum mechanics. Both the physical hypothesis and the Metaphysical
Hypothesis tells us about the processes underlying chairs. They do not entail that there are no
chairs. Matrix Hypothesis is equivalent to a version of the following three-part Metaphysical
Hypothesis. First, physical processes are fundamentally computational. Second, our cognitive
systems are separate from physical processes, but interact with these processes. Third, physical
reality was created by beings outside physical space-time.
4.1.1 The Creation Hypothesis

The Creation Hypothesis says: Physical space-time and its contents were created by beings
outside physical space-time.
4.1.2 Computational Hypothesis

The Computational Hypothesis says: Microphysical processes throughout space-time are
constituted by underlying computational processes.
The Computational Hypothesis is not a skeptical hypothesis. If it is true, there are still electrons and
protons. On this picture, electrons and protons will be analogous to molecules: they are made up of
something more basic, but they still exist. Similarly, if the Computational Hypothesis is true, there
are still tables and chairs, and macroscopic reality still exists.
4.1.3 The Mind-Body Hypothesis

The Mind-Body Hypothesis says: My mind is (and has always been) constituted by processes
outside physical space-time, and receives its perceptual inputs from and sends its outputs to
processes in physical space-time.
Conclusions
Virtual reality is easily distinguished from the experience of true reality. In contrast simulated
reality would be hard or impossible to distinguished form true reality. This paper takes the concept
devised in the movie “The matrix” features an intermingled type of simulation: they contain not
only human minds with physical bodies remaining outside, but also sentient software program that
govern various aspects of the computed realm. In brain computer interface simulation raises many
questions which are studied in above research. The Metaphysical hypothesis describes the
processes underlying our ordinary reality,
It is equivalent to a version of the main three part matrix hypothesis. First, physical processes are
fundamental computational. Second cognitive system. Third physical reality was created by beings
outside physical space-time.
References
[1] Are You Living in a Computer Simulation? by Nick Bostrom. July 2002. Accessed 21 December
2006
[2] V. Gintautas and A. W. Hubler, Experimental evidence for mixed reality states in an interreality
system Phys. Rev. E 75, 057201 (2007).
[3] physics, philosophy and quantum technology
[4] Alan Turing, On computable numbers, with an application to the Entscheidungsproblem,

Proceedings of the London Mathematical Society, Series 2, 42 (1936), pp 230-265
[5] http://whatisthematrix.warnerbros.com/rl_cmp/
new_phil_fr_chalmers.html
[6] Chalmers, J., The Matrix as Metaphysics, Department of Philosophy, University of Arizona

EFFECTIVENESS OF E-MARKETING AMONG MANAGEMENT STUDENTS: AN EXPLORATORY STUDY
Dr. Dharmendra Mehta

Reader, Pt. Jawaharlal Institute of Business Management,
Vikram University, Ujjain (M.P.) India
Email: mehtadnm007@rediffmail.com
Dr. Jitendra K. Sharma

Associate Professor, IIBS Indore (MP) India
Email: jitenksharma@rediffmail.com
Dr. Naveen K Mehta

Faculty- Board of Studies,
The Institute of Chartered Accountants of India, New Delhi (India)
Email: drnknmehta73@gmail.com
ABSTRACT
Marketers are struggling to find new conceptual bases on which to design and deliver their
marketing programs. This viewpoint holds great significance in current marketing scenario. Rapid
growth of Internet has facilitated marketing convergence. It has resulted into a blend of E-
marketing (electronic-marketing) and traditional marketing. E-marketing in India is in initial growth
stage. As the number of Internet users will keep on increasing, E-marketing will gain more
penetration. Various companies have adopted E-marketing techniques like: E-mail marketing,
online advertising, pop-up advertisements, banner advertisements, online sales promotion, etc.
Through e-mail marketing, the companies try to target encourage their prospective customers
through Internet to create further channels of targeting. This study is an attempt to determine the
effectiveness of e-mail marketing adopted by service sector companies. The study was conducted
on post-graduate students in Madhya Pradesh. The study has wide implications for companies in
particular.
Keywords: E–Marketing, Internet, Advertisements, Customers, Service Sector, Management etc.
INTRODUCTION
E-marketing is the use of information technology in the processes of creating, communicating, and
delivering value to customers and for managing customer relationship in ways that benefit the
organization and its stakeholders (Strauss et al., 2006). For achieving success in E-marketing, right
use of the Internet as a tool should be done. Internet refers to interconnected network of
information extended throughout the world. It has changed the way of looking at the world.

In India, Internet had limited success till 1995; later it started penetrating into Indian masses.
According to Internet and Mobile Association of India, the country has a growing Internet base of
more than 40 million users. It has been projected that by 2012, India will have an Internet user
population of more than 65 million. In Mumbai, nearly one-third of population uses online route to
pay telephone bills, electricity bills, taxes, premium etc. Companies have adopted various strategies
of E-marketing. E-mail marketing is a common tool. The companies send the promotional e-mails to
people and generate response. Generally, these e-mails contain lucrative offers for customers,
which are not available otherwise. The database of customer e-mails is received from various
sources. This is beneficial for companies since it saves the cost of telephonic approaching and
postage.
E-mail marketing has been mostly used by online shopping agencies, banking and insurance
companies, electronic goods companies, travel & tourism service companies, fashion & apparel
companies etc. New product launch are also supported by e-mail marketing. The promotion
schemes may consist of time-bound offers like: price discount, added quantity, additional product
free of charge, package deal etc. It is exclusively meant for Internet users. Many of these schemes
are specifically targeted at young customers since they are more habitual of surfing on the Internet.
Service companies like: insurance, bank, travel and tourism, education and other sectors are
prominent in adopting e-mail marketing as a tool.
LITERATURE REVIEW
A brief review of the existing research work in this area has been presented in this section. The
findings of research are as follows:
Stone and Han (1999) have studied the behaviour segmentation patterns in online advertising of
few service sector companies. According to the authors, the customer wants ease of transactions
with companies. The respondents were asked to show the impact of online advertising on their
purchase decisions. It was found that most of the respondents agreed that online advertisements
are more convenient medium of gaining information about the company. It is a means of
quenching their thirst for information about the services offered by the organizations. Instead of
visiting to the counters again and again, the customers prefer to equip themselves with adequate
information prior to their purchase decisions.
Upadhyay (2000) has covered the study of consumer behaviour and online marketing with
reference to metro cities in India. He recorded the response of technology-savvy customers those
who spend more time on Internet to explore the online marketing options. In terms of metro
citizens, the response towards e-marketing was fairly better. The acceptability of online marketing
has been gradually increasing among the customers.
Shaik (2002) had conducted a study of application of information technology in marketing of

services. Service providers are now moving towards the Internet as an important medium of
communication. In India, many service sector organizations have switched over to Internet to

market their services, banks being the first adopter. These e-marketing strategies are successful to
great extent towards achieving their goals in metro cities. The research conducted on office-goers
in a metro city in India revealed that customers are now willing to adopt modern marketing
techniques.
Lagrosen (2005) conducted a study to gain an understanding of how traditional service companies
use the Internet in their marketing communication and the impact of Internet on the use of other
marketing communication channels. Multiple case studies were carried out at 19 service
companies for the purpose of research. The findings had shown that there were different
communication strategies used by the service companies depending on the scope of use of
Internet. The characteristics of the strategies and their respective effects on other marketing
communications tools were described.
RESEARCH OBJECTIVES:
E-mail marketing is not new in India. Due to ever increasing Internet users in India, companies are
putting more efforts on this aspect. This study is an attempt to determine the response of post-
graduate students towards e-mail marketing. The research was conducted on 310 students in
Indore and Ujjain in Madhya Pradesh. The respondents’ point of view was recorded and
effectiveness of e-mail marketing was determined. The effectiveness was measured in terms of the
message, frequency, relevance, value-for-money proposition and final purchase.
METHODOLOGY:
Sampling: It was an exploratory research to find the effectiveness of e-mail marketing strategies
adopted by service sector companies. The study was conducted in April-October 2009. The
respondents chosen were 310 that included 170 and 140 post-graduate management students
from Indore and Ujjain respectively. The data collection instrument was handed to 321
management students. After rejecting incomplete response, a final sample of 310 was selected for
study. It was a simple, non-probability sampling that included MBA students who were net-savvy.
Some of them have availed promotional offers sent through e-mails.
Tools for data collection and analysis:
Secondary data were collected from various sources like- Internet, books, newspapers, brochures,
journals, business magazines etc. For primary data collection, a self-administered and non-
disguised five-point scale questionnaire containing 12 statements was used. The data was
tabulated in Excel sheet and analyzed by using z-test.

Hypotheses:
For the research, some null hypotheses were formulated and tested for significance to prove the
objectives in scientific manner. The null hypotheses were as follows:
H01 –There is no significant impact of e-mail marketing strategy on postgraduate students.
H02 –There is no significant impact of e-mail marketing on generating sales from young customers.
The above hypotheses were tested and results were drawn.
FINDINGS:
Results of z-test: On application of z-test, both the null hypotheses were accepted at 0.05 level of
significance. It can be concluded that
H01 –There is no significant impact of e-mail marketing strategy on postgraduate students.
H02 –There is no significant impact of e-mail marketing on generating sales from young customers.
It has been observed that e-mail marketing has not been very effective in case of college students.
Similarly, it has not contributed much towards generating sales. In terms of the message, e-mail
marketing has not been able to communicate the message to the audience. The respondents have
reported that in many e-mails there are incomplete or ambiguous messages. In some cases,
outdated information has been provided. For instance, some of them complained of time-bound
offers displayed on e-mails even after the date of offer is gone. Similarly, in terms of frequency, one
e-mail sent to people many times a day creates problems for the Internet users. The relevance
factor is also not followed in many cases. The Management students received the e-mail
advertisements for pension plan, which is not their cup of tea at that time. Packaged air travel
mails are also common. In terms of value-for-money proposition and final purchase, e-mail
marketing has not been successful in getting the objective fulfilled.
CONCLUSION AND IMPLICATIONS:
The study has determined many factors pertaining to e-mail marketing. The study has many
implications for the companies in particular. The examples of spam mails have been common in the
country. Many Internet users delete such company e-mails without reading the complete matter.
Marketing strategy adopted by metropolitan cities must not be adopted for other customers.
Detailed study of demographic variables of target audience should be done. The profile of Internet
user in Mumbai is different from Indore. Moreover, within one profile, there are further profiles.
For instance, MBA students may have different career motives. Age, family background, family
income, city background are other demographic variables that should be studied. Companies
should adopt one-to-one customized approach for targeting the audience through e-mail

marketing. Some customers complained that the services mentioned in e-mail and the actual
services differ at many times. The companies have to keep their customers updated about the
offers. All the hidden costs must be revealed to the customers. The companies should realize that
today’s college students are the important customers of tomorrow.
This study was confined to college students in two cities. The findings of this study may not be
generalized for other target groups and other cities. The results may differ in case of working
executives, businessmen and other customers. Further studies can be done on a large sample and
comparison across various customer groups and gender-based studies can also be done. The study
has wide implications for service companies in particular. Much work can be done towards making
e-mail marketing strategy more successful in this regard.
REFERENCES
Chaffey, Dave. (2006). Internet Marketing, USA: Prentice Hall Publications, pp 201-202.
Gopalakrishna D. (2001). Electronic-Marketing in 21st Century, Mumbai: Himalaya Publishing House,

pp 167-168.
Krishnamurthy, S. (2005). Contemporary Research in E-marketing, USA: IGI Global Publishers.
Lagrosen, S. (2005). Effects of the Internet on the Marketing Communication of Service Companies.
Journal of Services Marketing, Vol. 19 (2), pp 44-46.
Reedy, J. and Schullo, S. (2000). Electronic-Marketing: Integrating Electronic Resources into the
Marketing Process, USA: South-Western College Publishers, pp 89-92.
Shaik, M. (2002), E-Marketing in 21st Century. Indian Journal of Marketing, Vol. XXXII (11), pp 22-24.
Shipside, Steve. (2002). E-marketing, Hoboken: John Wiley & Sons Publishers.
Stone, J. and Han. J. (1999). Behaviour Segmentation in Online Advertising, Journal of Marketing
Research, Vol. 4 (2), Spring, pp 56-57.
Strauss, J., Ansary, A. and Frost, R. (2006). Electronic-marketing, New Delhi: Pearson Education, pp
56-70.
Upadhyay, M. (2000). Consumer Behaviour and Online Marketing, Indian Journal of Marketing, Vol.
XXXII (10), pp 30-32.
Zikmund, W. (2002). Business Research Methods, USA: Thomson-South Western Publishers, 88-89.

Information Warfare
Submitted by
Prof Rakesh Kumar Tripathi, Prof Mirza Shaney Raza

Department of Computer Science, Forte Institute of Technology, Meerut, UP, India
rakeshtripathi@forte.ac.in, shaneyraza@forte.ac.in
Abstract:
The Term “cyber-crime” is young and created by combination of two words: cyber and crime. The
term “cyber” means the cyber-space (terms “virtual space”, “virtual world” are used more often in
literature) and means (according to the definition in “New hacker vocabulary” by Eric S. Raymond)
the informational space modeled through computer, in which defined types of objects or symbol
images of information exist – the place where computer programs work and data is processed. The
term “cyber-crime” is not by chance put in quotes and its further use requires certain explanation.
Cyber crime encompasses any criminal act dealing with computers and networks (called hacking).
Additionally, cyber crime also includes traditional crimes conducted through the Internet. This paper
deals with different types of cyber crimes (Old Cyber Crimes as well as New Cyber Crimes) in the
world and their preventive measures.
I. INTRODUCTION
There are no precise, reliable statistics on the amount of
computer crime and the economic loss to victims, partly
because many of these crimes are apparently not detected by
victims, many of these crimes are never reported to
authorities, and partly because the losses are often difficult to
calculate. Nevertheless, there is a consensus among both law
enforcement personnel and computer scientists who specialize
in security that both the number of computer crime incidents
and the sophistication of computer criminals is increasing
rapidly. Experts in computer security, who are not attorneys,
speak of "information warfare". While such "information
warfare" is just another name for computer crime, the word
"warfare" does fairly denote the amount of damage inflicted
on society.
II. OLD CYBER CRIMES

A. Obscenity
When lay people hear the words "computer crime", they often
think of obscene pictures available on the Internet or
solicitation of children for sex by pedophiles via chat rooms
on the Internet. The legal problem of obscenity on the Internet
is mostly the same as the legal problem of obscenity in books

and magazines, except for some technical issues of personal
jurisdiction on the Internet. Obscenity is a computer crime.
Similarly, many crimes involving computers are no different
from crimes without computers: the computer is only a tool
that a criminal uses to commit a crime. For example,
· Using a computer, a scanner, graphics software, and a
high-quality color laser or ink jet printer for forgery or
counterfeiting is the same crime as using an old-fashioned
printing press with ink.
· Stealing a laptop computer with proprietary information
stored on the hard disk inside the computer is the same
crime as stealing a briefcase that contains papers with
proprietary information.
· Using the Internet or online services to solicit sex is
similar to other forms of solicitation of sex, and so is not
a new crime.
· Using computers can be another way to commit either
larceny or fraud.
B. False Origin
There are many instances of messages sent in the name of
someone who neither wrote the content nor authorized the
sending of the message. For example:
· E-mails with bogus from: addresses were sent
automatically by malicious programs (e.g., the Melissa
virus in 1999, the BadTrans worm in 2001, the Klez
program in 2002).
· Posting messages in an Internet newsgroup or online
bulletin board with a false author's name that is intended
to harm the reputation of the real person of that name.
These acts might be punishable by existing criminal statutes
that prohibit impersonation, forgery, deceit, or fraud.
However, a judge might decide that the specific language in
old statutes about writing or signature does not apply to email.
Rather than write new statutes for forged e-mail
addresses or unauthorized sending of e-mail in someone else's
name, I would prefer that legislatures broaden the existing
criminal statutes for analogous crimes with paper and ink.
Similar issues arise in both: (1) fictitious From: addresses in
some unsolicited commercial e-mail, also called spam or
junk e-mail, and (2) fictitious source IP addresses in denial of
service attacks.
C. Malware
Malware, short for malicious software, is software designed to

infiltrate a computer system without the owner's informed
consent. The expression is a general term used by computer
professionals to mean a variety of forms of hostile, intrusive,
or annoying software or program code.[1] The term "computer
virus" is sometimes used as a catch-all phrase to include all
types of malware, including true viruses.
Software is considered malware based on the perceived intent
of the creator rather than any particular features. Malware
includes computer viruses, worms , Trojan horses,
Malware is not the same as defective software, that is,
software that has a legitimate purpose but contains
harmful bugs.
Malware is divided into the following classes:
· A virus is a program that "infects" an executable file.
After infection, the executable file functions in a different
way than before: maybe only displaying a benign
message on the monitor, maybe deleting some or all files
on the user's hard drive, maybe altering data files. There
are two key features of a computer virus:
1. the ability to propagate by attaching itself to
executable files (e.g., application programs,
operating system, macros, scripts, boot sector of
a hard disk or floppy disk, etc.) Running the
executable file may make new copies of the
virus.
2. the virus causes harm only after it has infected
an executable file and the executable file is run.
The word "virus" is also commonly used broadly to
include computer viruses, worms, and Trojan Horse
programs. For example, so -called "anti-virus software"
will remove all three classes of these malicious programs.
Beginning with the Melissa virus in 1999, viruses could
automatically send e-mail with the victim's name as the
alleged source.
· A worm is a program that copies itself. The distinction
between a virus and worm is that a virus never copies
itself & a virus is copied only when the infected
executable file is run.
In the pure, original form, a worm neither deleted nor
changed files on the victim's computer & the worm
simply made multiple copies of itself and sent those
copies from the victim's computer, thus clogging disk
drives and the Internet with multiple copies of the worm.

Releasing such a worm into the Internet will slow the
legitimate traffic on the Internet, as continuously
increasing amounts of traffic are mere copies of the
worm.
Beginning with the Klez worm in early 2002, a worm
could drop a virus into the victim's computer. This kind of
worm became known as a blended threat, because it
combined two different types of malicious code.
· A Trojan Horse is a deceptively labeled program that
contains at least one function that is unknown to the user
and that harms the user. A Trojan Horse does not
replicate, which distinguishes it from viruses and worms.
Some of the more serious Trojan horses allow a hacker to
remotely control the victim's computer, perhaps to collect
passwords and credit card numbers and send them to the
hacker, or perhaps to launch denial of service attacks on
websites.
Some Trojan Horses are installed on a victim's computer
by an intruder, without any knowledge of the victim.
Other Trojan Horses are downloaded (perhaps in an
attachment in e-mail) and installed by the user, who
intends to acquire a benefit that is quite different from the
undisclosed true purpose of the Trojan Horse.
· A logic bomb is a program that "detonates" when some
event occurs. The detonated program might stop working
(e.g., go into an infinite loop), crash the computer, release
a virus, delete data files, or any of many other harmful
possibilities. A time bomb is a type of logic bomb, in
which the program detonates when the computer's clock
reaches some target date.
· A hoax is a warning about a nonexistent malicious
program. I have a separate essay that describes how to
recognize hoaxes, and how to respond to them.
· Once a malicious program is installed on a system, it is
essential that it stay concealed, to avoid detection and
disinfection. The same is true when a human attacker
breaks into a computer directly. Techniques known
as root kits allow this concealment, by modifying the host
operating system so that the malware is hidden from the
user. Rootkits can prevent a malicious process from being
visible in the system's list of processes, or keep its files
from being read. Originally, a Rootkit was a set of tools
installed by a human attacker on a Unix system where the

attacker had gained administrator (root) access. Today,
the term is used more generally for concealment routines
in a malicious program. Some malicious programs
contain routines to defend against removal, not merely to
hide themselves, but to repel attempts to remove them.
An early example of this behavior is recorded in
the Jargon File tale of a pair of programs infesting a
Xerox CP-V timesharing system: Each ghost-job would
detect the fact that the other had been killed, and would
start a new copy of the recently slain program within a
few milliseconds. The only way to kill both ghosts was to
kill them simultaneously (very difficult) or to deliberately
crash the system.[9] Similar techniques are used by some
modern malware, wherein the malware starts a number of
processes that monitor and restore one another as needed.
· A backdoor is a method of bypassing
normal authentication procedures. Once a system has
been compromised (by one of the above methods, or in
some other way), one or more backdoors may be installed
in order to allow easier access in the future. Backdoors
may also be installed prior to malicious software, to allow
attackers entry. The idea has often been suggested that
computer manufacturers preinstall backdoors on their
systems to provide technical support for customers, but
this has never been reliably verified. Crackers typically
use backdoors to secure remote access to a computer,
while attempting to remain hidden from casual inspection.
To install backdoors crackers may use Trojan
horses, worms, or other methods.
III. NEW CRIMES IN CYBERSPACE

There are three major classes of criminal activity with
computers:
· Unauthorized use of a computer, which might involve
stealing a username and password, or might involve
accessing the victim's computer via the Internet through a
backdoor operated by a Trojan Horse program.
· Cyberwarfare
· Identity Theft
· Botnets
· Grayware
· Harassment and Stalking in cyberspace.
A. Unauthorized Use

Unauthorized use of computers tends generally takes the
following forms:
· Computer Voyeur. The criminal reads (or copies)
confidential or proprietary information, but data is neither
deleted nor changed. These malicious programs are a new
way to release confidential information from a victim's
computer, with the confidential information going not to
the author of the malicious program, but to some person
unknown t o the author of the malicious program.
· Changing data. Unauthorized changing of data is
generally a fraudulent act. Altering of websites are also
come in this category.
· Deleting data. Deleting entire files could be an act of
vandalism or sabotage.
· Denying service to authorized users. On a modern timesharing
computer, any user takes some time and disk
space, which is then not available to other users.
By "denying service to authorized users", I mean
gobbling unreasonably large amounts of computer time or
disk space, for example:
1. by sending large amounts of junk e-mail in one day, a
so-called "mail bomb",
2. by having the computer execute a malicious program
that puts the processing unit into an infinite loop, or,
3. By flooding an Internet server with bogus requests
for WebPages, thereby denying legitimate users an
opportunity to download a page and also possibly
crashing the server. This is called a denial of service
(DoS) attack.
B. Cyberwarfare
Cyber warfare terrain includes all aspects of the Internet from
the backbones of the web, to the Internet Service Providers, to
the varying types of data communication mediums and
network equipment. The terrain does not end in a field,
mountain range, or a coastline, rather the cyber warfare terrain
encompasses the cities, communities, and the world, in which
we live. The 21st century battlefield is comprised of many
components that include the Internet and all things that
connect from a computer to the Internet. This would include:
web servers, enterprise information systems, client server
systems, communication links, network equipment, and the
desktops and laptops in businesses and homes. The terrain

also encompasses information systems like the electrical grids,
telecommunication systems, and various corporate and
military robotics systems.
There are several methods of attack in Cyberwarfare; this list
is ranked in order of mildest to most severe.
· Cyber espionage : Cyber espionage is the act or practice
of obtaining secrets (sensitive, proprietary or classified
informat ion) from individuals, competitors, rivals,
groups, governments and enemies also for military,
political, or economic advantage using illegal exploitation
methods on internet, networks, software and or
computers.
· Web vandalism: Attacks that deface web pages,
or denial-of-service attacks. This is normally swiftly
combated and of little harm.
· Propaganda: Political messages can be spread through or
to anyone with access to the internet or any device that
receives digital transmissions from the Internet to include
cell phones, PDAs, etc.
· Gathering data: Classified information that is not
handled securely can be intercepted and even modified,
making espionage possible from the other side of the
world. See Titan Rain and Moonlight Maze.
· Distributed Denial -of-Service Attacks : Large numbers
of computers controlled by one person launch a DoS
attack against systems
· Equipment disruption: Military activities that use
computers and satellites for coordination are at risk from
this type of attack. Orders and communications can be
intercepted or replaced, putting soldiers at risk.
· Attacking critical infrastructure: Power, water, fuel,
communications, commercial and transportation are all
vulnerable to a cyber attack.
· Compromised Counterfeit Hardware : Common
hardware used in computers and networks that have
malicious software hidden inside the software, firmware
or even the microprocessors.
C. Identity Theft
Identity theft is a term used that is to refer to fraud that
involves someone pretending to be someone else in order to
steal money or get other benefits. The term dates to 1964 and
is actually a misnomer, since it is not inherently possible to

steal an identity, only to use it. The person whose identity is
used can suffer various consequences when he or she is held
responsible for the perpetrator's actions. In many countries
specific laws make it a crime to use another person's identity
for personal gain.
Identity theft is somewhat different from identity fraud.
However, the terms are often used interchangeably. Identity
fraud is the result of identity theft. Someone can steal or
appropriate someone's identifying information without
actually committing identity fraud. The best example of this is
when a data breach occurs. There has been very little evidence
to link ID fraud to data breaches. A Government
Accountability Office study determined that "most breaches
have not resulted in detected incidents of identity
theft". However the title of that report is "Data Breaches Are
Frequent, but Evidence of Resulting Identity Theft Is
Limited; However, the Full Extent Is Unknown ". A later
study by Carnegie Mellon University concluded that "the
probability of becoming a victim to identity theft as a result of
a data breach is ...around only 2%". More recently, one of the
largest data breaches ever, accounting for over four million
records, resulted in only about 1800 instances of identity theft,
according to the company whose systems were
breached. However, synthetic ID theft is not always detectable
by the consumers whose information was used, according to
an FTC report.
D. Botnets
Botnet is a jargon term for a collection of software robots,
or bots, that run autonomously and automatically. The term is
often associated with malicious software, but it can also refer
to the network of computers using distributed
computing software. While botnets are often named after
their malicious software name, there are typically multiple
botnets in operation using the same malicious
software families, but operated by different criminal entities.
While the term "botnet" can be used to refer to any group of
bots, such as IRC bots, this word is generally used to refer to a
collect ion of compromised computers (called Zombie
computers) running software, usually installed via drive-by
downloads exploiting Web browser
vulnerabilities, worms , Trojan horses , or backdoors, under a
common command-and-control infrastructure.
A botnet's originator (aka "bot herder " or "bot master") can

control the group remotely, usually through a means such
as IRC, and usually for nefarious purposes. Individual
programs manifest as IRC "bots". Often the command-andcontrol
takes place via an IRC server or a specific channel on
a public IRC network. This server is known as the commandand
-control server ("C&C"). Though rare, more experienced
botnet operators program their own commanding protocols
from scratch. The constituents of these protocols include a
server program, client program for operation, and the program
that embeds itself on the victim's machine (bot). All three of
these usually communicate with each other over a network
using a unique encryption scheme for stealth and protection
against detection or intrusion into the botnet network.
A bot typically runs hidden and uses a covert channel (e.g.
the RFC 1459 (IRC) standard, twitter or IM) to communicate
with its C&C server. Generally, the perpetrator of the botnet
has compromised a series of systems using various tools
(exploits, buffer overflows, as well as others; see also RPC ).
Newer bots can automatically scan their environment and
propagate themselves using vulnerabilities and weak
passwords. Generally, the more vulnerabilities a bot can scan
and propagate through, the more valuable it becomes to a
botnet controller community. The process of stealing
computing resources as a result of a system being joined to a
"botnet" is sometimes referred to as "scrumping."
Botnets have become a significant part of the Internet, albeit
increasingly hidden. Due to most conventional IRC networks
taking measures and blocking access to previously-hosted
botnets, controllers must now find their own servers. Often, a
botnet will include a variety of connections and network
types. Sometimes a controller will hide an IRC server
installation on an educational or corporate site where highspeed
connections can support a large number of other bots.
Exploitation of this method of using a bot to host other bots
has proliferated only recently as most script kiddies do not
have the knowledge to take advantage of it.
E. Grayware
Grayware (or greyware) is a general term sometimes used as a
classification for applications that behave in a manner that is
annoying or undesirable, and yet less serious or troublesome
than malware. Grayware encompasses spyware, adware,
dialers, joke programs, remote access tools, and any other

unwelcome files and programs apart from viruses that are
designed to harm the performance of computers on your
network. The term has been in use since at least as early as
September 2004.
Grayware refers to applications or files that are not classified
as viruses or trojan horse programs, but can still negatively
affect the performance of the computers on your network and
introduce significant security risks to your organization. Often
grayware performs a variety of undesired actions such as
irritating users with pop-up windows, tracking user habits and
unnecessarily exposing computer vulnerabilities to attack.
Spyware is software that installs components on a computer
for the purpose of recording Web surfing habits (primarily for
marketing purposes). Spyware sends this information to its
author or to other interested parties when the computer is
online. Spyware often downloads with items identified as 'free
downloads' and does not notify the user of its existence or ask
for permission to install the components. The information
spyware components gather can include user key strokes,
which means that private information such as login names,
passwords, and credit card numbers are vulnerable to theft.
Spyware gathers data, such as account user names, passwords,
credit card numbers, and other confidential information, and
transmits it to third parties.
Adware is software that displays advertising banners on Web
browsers such as Internet Explorer and Mozilla Firefox. While
not categorized as malware, many users consider adware
invasive. Adware programs often create unwanted effects on a
system, such as annoying popup ads and the general
degradation in either network connection or system
performance. Adware programs are typically installed as
separate programs that are bundled with certain free software.
Many users inadvertently agree to installing adware by
accepting the End User License Agreement (EULA) on the
free software. Adware are also often installed in tandem with
spyware programs. Both programs feed off each other's
functionalities - spyware programs profile users' Internet
behavior, while adware programs display targeted ads that
correspond to the gathered user profile.
F. Harassment & Stalking
In general, the harasser intends to cause emotional distress and
has no legitimate purpose to his communications. Harassment
can be as simple as continuing to send e-mail to someone who

has said they want no further contact with the sender.
Harassment may also include threats, sexual remarks,
pejorative labels (i.e., hate speech).
A particularly disturbing form of harassment is sending a
forged e-mail that appears to be from the victim and contains
racist remarks, or other embarrassing text, that will tarnish the
reputation of the victim.
It is often difficult to get law enforcement personnel and
prosecutors interested in harassment, unless threats of death or
serious bodily harm are made, simply because the resources of
the criminal justice system are strained by "more serious"
criminal activities. I put "more serious" in quotation marks,
because the victim of harassment certainly is adversely
affected by the harassment, therefore it is a serious matter to
the victim. But the law treats harassment as a misdemeanor,
the group of less serious crimes.
IV. PREVENTIVE MEASURES
A. Unauthorized Use and Cyberwarfare and Grayware
Two ways to prevent:
· Detection: System in this category have the goals to
detect possible attackers and identify what are they trying
to do and possible where they are. Detection can be based
on Expert Knowledge or based on standard behaviour.
· Prevention: Stopping the attacker is the primary concern
even if the attack has not been identified(Locking the
entrance door is always a good idea).Most of the attack
are very straightforward and simple just like testing each
door if it is open and a good prevention is to simply lock
it. If a problem occurs use certain tools to prevent:
1. Firewalls
2. Authentication Systems
3. Authorization Systems
B. Botnets
Few preventive measures to protect your PC from Botnet
attacks are:
· Passive OS fingerprinting can recognize botnet attacks.
After the information obtained from passive
fingerprinting about botnet attack network administrators
will configure new firewall equipment to take action.
· Several security companies like Afferent Security Labs,
Symantec, Trend Micro, FireEye, Simplicita and
Damballa have released offerings to control botnets.
Some like Norton AntiBot, are aimed at consumers, while

most of them are aimed to protect enterprises and/or
Internet Service Providers (ISPs).
There are many technologies that can detect and prevent
computer from being infected by a Botnet.
· Anti-Malware Technology tools can detect malware
worms and restricts user from downloading them.
· IDSes (Intrusion Detection Systems) will notice the
changes in ordinary traffic flow and recognizes the start
time of DoS attack so that it can take remedial action.
· IPSes (Intrusion Prevention Systems) tak es immediate
action like blocking specific IP Address whenever there is
deviation in the usual traffic flow and reduces the impact
of Denial of service attacks.
· Honeypots are designed to distract botnets from critical
network machines and provide malware experts a safe
environment to examine botnet’s design and behavior.
· The host-based techniques use a method to try to identify
bot behavior that has ignored common anti-virus
software. Network-based approaches generally use the
techniques like shutting down C&C servers, nullrouting
DNS entries, or completely shutting down IRC servers.
C. Identity Theft
· Changing Your Daily Routines: Anything with an
account number, even old ones, can be used in identity
theft. This can include pre-screened credit card offers,
receipts, cancelled checks, bank statements, tax reports,
expired charge cards, medical bills, and insurance
documents. Since several identity theft cases are traced to
having a purse or wallet being lost or stolen, carry as few
cards with identification and personal information as
much as possible.
· Credit & Finances : What many people do not realize is
that they are victims of identity theft until long after the
initial crime occurred. Identity thieves will surely try to
hide the crimes for as long as possible so that they can
access more money and services. To stop the crimes
quickly, make sure you carefully check your credit
reports on a regular basis.
· Online Security: If you store personal information (such
as passwords or credit card numbers) on your computer or
personal digital assistant, use an encryption program to
protect it. Keep an electronic record, like a writable CD,
of the sensitive information and store it in a secure place

whenever you are not using it.
· Security Tip: Memorize your passwords and personal
identification (PIN) numbers for web accounts and cards.
Keep your PIN numbers somewhere secure that only you
know about, place anywhere but separate from your credit
cards.
V. CONCLUSION
We have discussed the various cyber crimes. In the startup we
are dealing with Old Cyber Crimes then with Latest Cyber
Crimes. While analyzing all these crimes we find that
whatever style being used for crime, the fundamental issue is
the criminals' lack of respect for the property or privacy of
other people . I hope that society will recognize the seriousness
of these crimes and demand more severe punishment for such
criminals (currently cyber laws are not very effective to
punish these criminals). We would like to get all you people to
aware enough to take preventive measures to get safety from
these crimes.
VI. REFERENCES
[1] "Governor Calls for 'Cyber Court'", by Declan
McCullagh, Oct. 18, 2001,
from http://www.wired.com/news/conflict/0,2100,47676,
00.html
[2] "Whodunnit?", Mar 29th 2001, From The Economist print
edition:
[3] Cybercrime: A Tutorial from Business Week : February
21, 2000.
[4] FBI National Computer Crime Squad Recommendations.
[5] "Internet addict' jailed for e-mailing child porn", by
LAURENCE HAMMACK, THE ROANOKE TIMES,
Wednesday, October 06, 1999.
[6] Man guilty in Internet sex case by KIMBERLY
O'BRIEN, THE ROANOKE TIMES, 8 May 1999.
[7] Warning for International Travelers with Laptop
Computers, Buddy Guynn, DMC Montgomery Security
Manager, NIH, March 1999.
[8] Computer Crime Bibliography - Glocal Technology
Research, Inc.
[9] Acceptable Use Of Information Systems At Virginia Tech
[10] STATEMENT OF SENATOR PATRICK LEAHY:
Hearing Before The Senate Judiciary, Subcommittee On
Technology, Terrorism, and Government

[11] Information. "Internet Crimes Affecting Consumers"
March 19, 1997.
[12] Hacker Accused of Credit -card Fraud - FBI Says He
Collected 100,000 Credit-card Numbers, Associated
Press, May 23, 1997.
[13] "Computer Crimes and Computer Related or Facilitated
Crimes", Statement of Charles L. Owens , Chief,
Financial Crimes Section, Federal Bureau of
Investigation, March 19, 1997.
[14] A listing of resources from O'Reilly & Associates may be
useful.
[15] Computer Crime: A Crimefighter's Handbook
[16] Criminal Law and The Internet © by Mark D. Rasch
[17] CPRS maintains a collection of materials related to
Computer Crime including records of court cases.
[18] "The Feds and the Net: Closing the Culture Gap" By
Mike Godwin -- a talk given at the FBI and commentary.
[19] The Computer Crime Page from MIT 6.805/STS085:
Readings on Computer Crime
[20] The Jones Telecommunications and Multimedia
Encyclopedia as an entry on "computer crime" in their
update section. We hope that they will maintain this online;
otherwise one will have to purchase their CD-ROM.
[21] COMPUTER CRIME RESEARCH RESOURCES by
Bruce T. Fraser, J.D.
[22] CyberSpace Law Center: Cybercrime Resources
[23] Chicago -based Emergency Response and Research
Institute: Technical Operations Page; Management,
Computers, and the Future
[24] FBI SAYS CYBERCRIME IS BECOMING AN
"EPIDEMIC" by Paul Anderson, ERRI Analyst
[25] "Security of the Internet", Published in The
Froehlich/Kent Encyclopedia of Telecommunications vol.
15. Marcel Dekker, New York, 1997, pp. 231-255.
[26] An Analysis Of Security Incidents On The Internet 1989 -
1995, A dissertation submitted to the graduate school in
partial fulfillment of the requirements for the degree of
Doctor of Philosophy in Engineering and Public Policy
by John D. Howard, Pittsburgh, Pennsylvania 15213
USA, April 7, 1997
[27] ECPE 6504 (Virginia Tech) : Network Security
Reference Information

Impact of QFD & Causal Effect on Effective Software development Process in terms of Quality
Enhancement
Submitted by
Prof. Deepali Sawai

HOD (MCA), IICMR, UOP, Pune
deepalisawai@yahoo.com
Prof. Aruna Deoskar,

Assistant Professor, IICMR UOP, Pune
e-mail id : aadeoskar@rediffmail.com
Abstract
The Increasing demand of automation in every field forces the need of computerization in today’s
globalization era. This has emerges as the need of effective software development with due
customization of software product. A real good quality of software can be built and that too as per
the actual customer perception if the entire development process is deployed by focusing on
customer’s need rather than focusing only on basic development phases. To improve the quality of
any product the need is to analyze the probable causes & their respective effects & after effects on
that product. Thus if Software Development Process is applied with the traditional Quality Function
Deployment model and if analyzed through causal method then this approach will help in
identifying the major causes and their corresponding effect(s) and so can enhance the entire
development process qualitatively. This paper shows that how the effective & qualitative software
can be developed if software development phases are analyzed with the Quality Function
Deployment model & Causal Effect Model.
Keywords : Quality Function Deployment, Software Quality, Kano Model, Software Cost, Causal
Model.
Introduction
Day by day increasing demand of software products in every field of organization requires the
qualitative development work. In order to retain in competitive market the demand is to meet the
customer requirements thoroughly. Quality involvement in software development is highly
important form cost benefit point of view. Building software from customer perception requires a
careful analysis of customer requirement & entire development process. The traditional software
development life cycle process uses several phases to build a quality product. But the major
requirement is of understanding the customer requirements from their different perceptions. This
paper highlights the impact of quality model on Software development. If implemented with QFD &
Causal Effect on each & every phase of software development life cycle then it can improve the
software quality from customer perception & so can reduce the maintenance cost.

Need of Study
Some facts are : "The biggest problems we have had in recent releases have been design defects
because of scenarios like ‘Oh I thought a customer would never want to do that.’ Whenever new
designs first come out, that [area] tends to be where the majority of our problems come up"
(Stevens 1999).
"We had a well-laid out and well-thought-out network that was designed the way that the network
protocols were actually intended to function. What we found was that at most customer sites, the
networks did not function as they were designed to function. Consequently, the designers would
design software to function in an ‘ideal’ environment rather than a ‘typical’ environment. This lead
to a large number of software design flaws that we had to correct through software patches and
upgrades" (Carrie 1999).
It is observed that the 25 % of total cost of software product is affected by the flaws in design &
specifications; development phase affects the 25 % of total cost. But the Integration & testing
phase of development life cycle affects the 50% of total cost of the product.3
In competitive environment software design flaw(s) may hamper any organizational growth. The
need is to build a customized software after understand their requirement. Flaws can be minimized
& can control if the software designer & developer could incorporate the Voice of Customer at
each & every phase of development life cycle. This may help in analysing the major causes affecting
the software attributes. This paper analyses some of the basic software quality factors from
customer requirements point of view & perform causal analysis to understand their effect on
software.
Traditional Software development process includes phases like: Requirement Analysis, Designing,
Coding, Testing and Maintenance. But this existing development process suffers from several
software development problems.
Six specific categories defining software errors are:

1. Requirements defects. Software does not meet the customer’s requirements.
2. Design defects. Software has design flaws (Flow does not meet the requirements).
3. Source code defects. The software has errors in the source code.
4. Error in user manuals or training material. The manuals &/or training materials might not
complete and so does not accurately cover the functionality of the software.
5. Testing Defect: Insufficient testing or wrong testing may leads to "Bad fixes" or mistakes during
repairs. A fix to repair one or more defect introduces another defect.
6. Use of inappropriate test cases on the application. The test cases do not adequately
test the functionality of the software product.
Some major design flaws show that if the customer requirements are not understood properly then
it would lead to major problems.
Another problem that ruins software robustness and reliability arises in product development
scheduling. Every organization’s marketing personnel and executive management set a schedule
date for releasing the specific software product in the market as per the market research survey.
This schedule might differ from actual development time frame. This brought the stress on
development team & the verification team to meet the deadline.
QFD Effect in Software development

In 1998, Nokia had studied the Quality Function Deployment to improve their product definition
process. To satisfy customers, we must understand that meeting different kinds of requirements is
key for achieving customer satisfaction. As described by Dr. Kano in Knao model, there are three
types of customer requirements:
1) Normal Requirements
2) Expected Requirements
3) Exciting Requirements
Normal Requirements are typically what are basic things which customer wants. These
requirements satisfy (or dissatisfy) in proportion to their presence (or absence) in the product or its
corresponding service. Some of the normal requirements for software could be like:
Software System should work with input, processing input & produces output(s).
Timely Delivery.
Accuracy in Result.
Expected Requirements are those requirements which customer wants but may fail to mention
them - until provided to them. They are basic expectations without which the product may work &
will provide the result but their absence may hamper to the software value & so their absence is
very dissatisfying. So Expected requirements must

be fulfilled. In software development process the expected requirements could be:
 Reliability,
 Compatibility,
 Maintainability and
 Flexibility.
Exciting Requirements are difficult to understand. They are beyond the customer's expectations.
Their absence doesn't dissatisfy; but their presence excites. Customers mostly never demand such
requirements but it is the responsibility of the organization to explore customer problems and
opportunities to uncover such unspoken items. With software development process such
requirements could be like :
 Additional Attracting Features
 Reduced cost
 Delivery before the dead line
 Reduced maintenance cost.
The requirement is to understand several areas of the software development process before
starting each phase of software development process. If we apply the Quality Function Deployment
model concept on software development lifecycle phases then following basic steps would be
required for effective software development.
1. Identify normal, expected, and exciting requirements.

2. Determine what all are benefits and what all are features, and categorize them with respect to
basic customer requirements identified in step 1.
3. Encourage customers to tell the developer about all those benefits which are most important
from the desired software quality point of view.
4. Let customer rate the current product and competitive product’s ability to satisfy the desired
benefits.
5. Apply the causal model to analyse the basic attributes & their effect on each software quality
factor(s).
6. Improve the weak area/features to meet those benefits that are important and under
performing.
7. Assure that internal operations related to those features have actually met.
As per the Kano Model each customer is having specific requirements for quality software in terms
of normal, Excitement & Expected type. Following figure shows the classification of these
requirements for a software product.

System works by processing input & produces output(s).
Causal Effect on Software Product

Cause-effect analysis was developed by Professor Kaoru Ishikawa of Japan, around 1950. He gave
the Ishikawa diagram which is also known as fishbone diagram. It is a pictorial representation of the
relationship between an effect and its potential causes. The general structure of such diagram
shows several probable causes & their effect(s). The effect or symptom of a problem is written at
the head of an arrow.
Paper applies the fishbone concept on some of the software quality factors naming like software
reliability, flexibility & maintainability. Following attributes are considered from customer
perception

as some of the major attributes affecting the factors under study.

Thus causal effect shows the major attributes affecting the software product. The need is
to understand the customer requirement in appropriate way and then observing the causal
effect on these requirements at each of the development phase. This way of
implementation of Kano model using Causal Effect Analysis will help in reducing the
overall cost of development.
Conclusion
With increasing demand of computer applications in every sector of business the need
is to build the more customized software product to satisfy the customer need. This
require the better understanding of customer while developing a customized software.
The implementation of Kano model in software development process helps in
understanding the customer’s basic, desired & excited requirements. With the fish bone
diagram the organization can understand the basic causes (attributes) & their
corresponding effects on main software factors from customer’s expected requirements
point of view. The better understanding of requirement will help the organization to
schedule the product development in better way. This paper shows the basic impact of
Quality Function Deployment & Causal Analysis on the software development process.
References
1. Research Methodology By Mr. Ranjit Kumar

2. Software Engineering By Pressman
3. Software Engineering By Sommervilla
4. Customer Focused development using QFD on www.npd-solutions.com
5. Cause Effect Analysis for Target Costing on www.imanet.org
6. Seminar on Software Cost Estimation Yong Xia, January, 14th 2003
7. QFD When & How does it fit in Software Development on www.isixsigma.com
8. Gemba Research in Japan on Cellular Phone market by Eric Ronney, Peter Olfe &
Glenn Mazur

Attribute Encoding Algorithim for worldwide distributed data
Submitted by
A.Anbarasi, Asst.Prof, Karpagam University, Coimbatore,TN,

anbarasi_a@yahoo.com
K.Vivekanandan, Prof, Bharathiyar University, Coimbatore,TN.
Abstract
Analysis of huge data sets has been a major concern in almost all areas of technology in the past
decade and the role of data mining has become so imperative as a result of this crisis. The
complexity in collecting and warehousing such large data in to a solo storeroom is practically
impossible; therefore they are accumulated usually in a geographically circulated method. Intensive
communication methods based on data mining are used these days for this purpose. Even though
new data mining techniques with improved efficiency of algorithms that could be used in single
locations (some meant for multiple locations), are practiced nowadays ,the efficiency of this
methods have not focused on its practical level environment application since the data on the
web/network distributed vary on its nature. This state of affairs demands the requirement for a
whole new architecture and novel innovative algorithms to be used in data mining techniques. In
place of long-established client server methodology new software that back up the building of a
distributed data mining architecture is the need of the hour. In this paper we present software that
Keywords: Distributed Data Mining, Multiple Locations, web/network distributed.
Introduction
Computing technology sphere have faced a massive change due to the progress of computing and
communication over wired and wireless networks. As examples we could point out the Internet,
intranets, local area networks, ad hoc wireless networks, and sensor networks. Various types of
distributed sources of data and computation have resulted in creating different computing
environments. These environments often come with different distributed sources of data and
computation. Mining in such environments naturally calls for proper utilization of these distributed
resources.

An adapt utilization of such distributed resources brings the data mining attained Moreover, in
many privacy and security applications different, possibly combined parties, data sets collected at
different sites must be processed in a distributed fashion without collecting everything to a single
central site.
Though, most off-the-shelf data mining arrangement are planned to work as a huge centralized
application they usually down-load the related data to a centralized locality and then carry out the
data mining procedure. This centralized approach does not work well in many of the emerging
distributed, ubiquitous, possibly privacy-sensitive data mining applications. This centralized tactic
does not work healthy in many of the rising circulated, omnipresent, possibly privacy-sensitive data
mining applications
Distributed Data Mining (DDM) offers an interchangeable attitude to deal with this difficulty of
mining data using distributed resources. DDM pays vigilant awareness to the distributed means of
data, computing, communication, and human factors in order to use them in a near best manner.
DDM applications come in different savor. When the data can be liberally and proficiently
conveyed from one system to another without noteworthy overhead, DDM algorithms may offer
better scalability and answer time by
 Correctly reorganize the data in dissimilar partitions or
 Allocate the computation, or
 A combination of both.
These algorithms often depend on speedy communication between contributing nodes.

Nevertheless, when the data sources are distributed and cannot be communicated freely over the
network due to privacy- limitation or bandwidth restriction or scalability troubles, DDM algorithms
work by sidestepping or reducing communication of the raw data.
Motivations and Related Work
As a result of the reasons mentioned below the data mining method are getting harder.
 Data increases in quantity every year

 The distribution of data worldwide.
 Mobility of data sets are not easy.
The application of algorithms on data of a particular location is restricted only to that location in
the traditional method. In this approach the conventional algorithm methods can be applied only
when the data is transferred to a central location. This is an expensive method at any rate. But the
new technology enables the transfer of data using minimum amount of networks and maximum
quantity of data.

Proposed Work or Main Focus
The theory put forward a trouble free method to transfer a huge amount of data from one location
to another using an undisturbed program based on the algorithms in a network. Adapting this
method will ensure the speedy transfer of compressed data inter continentally in a matter of
seconds whereas the old practice increases the time according to the volume of materials we send.
Another unique advantage of this method is its flexibility in adapting the new raw figures that we
provide in the place of old data. This can be explained through an example. N number of records
from a particular table transferred to the destination using one set of array can be replaced with
another set of records without hampering the previously sent records. A loop condition included in
the program ensures this feature. When attributes are given, the array will arrange them in a
manner in which not another table property will intrude into the prior array. In short overwriting is
an effortless procedure. Thirdly the assets that are entered would produce unique result for each
and every individual array. This individuality is the highlight and remarkable feature of the said
program. A clear description of this process can be explained as follows.
Table of Attributes.
Item No. Name of the Items Price Qty Total
1 CPU 2500 1 2500
2 Monitor 6000 1 6000
3 Hard Disk 2000 2 4000
4 Keyboard & Mouse 750 2 1500
5 UPS 1250 3 3750
As mentioned in the above table different entries into different columns represents the actual
value of a given item. For e.g. the item No. 5646 CPU has different properties such as price,
quantity, and the total value. When the data or attributes are entered, the program will consider it
a as one array and it will compress the data in to one tiny shell of a particular size. This compressed
shell or array will be much smaller than the actual data that we have supplied.

The compression technique used in this process is based on the equation 2n.
Item No. Name of the Items Price Qty Total
2 4 8 16 32
2+4=6
2 + 8 =10
32 + 16 = 48
…………..
…………..
…………..,
…………..etc.
As the diagram suggests the combinations used in the example provides unique results.
File Transfer [No: of Attributes=5]
1.8
1.6
Data Sets Transfer Time(In
1.4
1.2
Minutes)
1
0.8
0.6
0.4
0.2
0
1 2 3 4 5 6 7 8 9
Data Size in Num ber Records(In 1000s)
Figure 2 Actual Data set Transfer less No: of Attributes

File Transfer [No: of Attributes=100]
Data Sets Transfer Time (In 4.5

4
3.5
3
Minutes)
2.5
2
1.5
1
0.5
0
1 2 3 4 5 6 7 8 9 10
Data Size in Num ber of Records (In 100s)
Figure 2 Actual Data set Transfer large No: of Attributes
X axis in the diagram represents the time consumed in the transaction and the number of records
(data) is mentioned in the y axis. As we can see as the quantity of the data sending is increased, the
time used in the process is also increased. In the second diagram the no of attributes have
increased to 100 in the place of 5 mentioned in the first diagram. Subsequently the time consumed
has also increased to 4.5 minutes from the time i.e. 1.8 minutes that was used in the first
transaction.
Comparison of Traditional and Distributed

Data mining
5
Data Set transfer time
4
(In Minutes)
2
1
0
1 2 3 4 5 6 7 8 9 10
Data size in Number of Records (IN 1000s)
Figure 3 Comparison of Traditional and Distributed Data mining

The technology that has been explained in my paper has the unique advantage, which would
completely eradicate this problem. When we adapt this technology, even though the number of
attributes or data is increased manifold that data could be compressed and transmitted in the
network using the less possible time. As the diagram depicts, the light colored bars which
represents large number of data will be squeezed in to the size the dark colored bars using the
technology mentioned here.
Future Trends
One trend that can be noticed during the past years is the implementation of DDM systems using
emerging distributed computing paradigms such as parallelism.
Conclusion and Outlook
The above stated technology appears to be the most fitting and forceful method adaptable
in the distributed data as well as in the distributed data mining process in terms of speed and
competence when we measure it up to the old methods. Another useful characteristic that is
covered under this new technology is that it could be updated constantly when it is essential since
the data is maintained at remote sites. The huge quantity of data is not needed to be transferred to
the central location for this purpose hence the networks are used most favorably. To make
complete use of the novel technology, the customary client server distributed data mining scheme
must be entirely replaced with it. Methodology expansions for merging the accumulated
information from different spots are in advancement.
References
1. U.P,Kulkarni, K.K. Tangod, S.R.Mangalwede, A.R.Yardi, “ Exploring the capabilities of Mobile

Agents in Distributed Data Mining, 10th International Database Engineering and
Applications Symposium(IDEAS’06), 2006 IEEE.
2. Datta, S.Bhaduri, K.Giannella, C.Wolf, R.S Kargupta, H(2006). Distributed Data Mining in
Peer-to-Peer Network Security, IEEE Internet computing 10(4), 18 -26.
3. David W. Cheung. Vincent T.Ng, Ada W.Fu et al. “Efficient Mining of Association Rules in
Distributed Database”, IEEE Transaction on Knowledge and Data Engineering. Vol 8, No.6,
Dec 1996.
4. R. C. Agarwal, C. C. Aggarwal, and V. V. V. Prasad. A Tree Projection Algorithm for
Generation of Frequent Item Sets. Journal of Parallel and Distributed Computing, 61(3):350–
371, 2001.
5. V. C. Jensen and N. Soparkar. Frequent Itemset Counting Across Multiple Tables. In 4th
Pacific-Asia Conference on Knowledge Discovery and Data Mining, pages 49–61.

“ KAL, AAJ AUR KAL OF TELECOM SECTOR IN INDIA”.
Submitted by
Prof. Ashok Kurtkoti

Prof. Bidhan Datta
Abstract
Telecom sector has come a long way. Before liberalization it was a monopoly with only BSNL/
MTNL offering services. Today there is intense competition among many mobile and service
providers. However, there are many advertisements and promotional campaigns along with low
tariff schemes from both telecom service providers and mobile manufacturers to attract the market
.Also the handset prices have dropped. The mad rush for telecom sector can be visibly seen by more
than 10 million subscribers being added every month in the Indian market.
In order to understand the present consumer usage and expectations, a market survey was carried
out to in Pune city by selecting a sample size of 100 &in the age group of 21-25 years The research
results reveal that customers are satisfied with services provided by service providers and will not
stop using mobile phones even if health hazards are established in future. Going forward the
revenue from Indian Telecom Sector will cross $ 30 billion by 2013 The Indian Value Added Services
(VAS) to set worth Rs 20000 Crores by 2015.
Key words:
Mobile, Service provider, Regulated market, Subscriber

KAL (Past) :
About 2 decades back (before liberalization) one would not have imagined the unprecedented
growth in telecommunication in India. Early 90’s, in India, the customers had to wait for number of
years to get ‘the one and the only one’ BSNL/ MTNL connection and getting a new telephone
connection was a matter of great celebration in a monopoly market.
A greatest revolution in Telecom Sector was due to a mobile invention. At the initial stages of
mobile technology introduction, owning a mobile phone was a great status symbol as only affluent
class could afford to pay Rs. 1 Lac plus for the handset and even incoming calls were charged
astronomically high rates at about Rs. 16 per minutes or so. Improved connectivity and affordability
has resulted into removing traditional barriers of time and space. Before mobile invention, there
used to be long queue at STD booths with people waiting to talk to their loved ones, particularly
during night time as the landline charges were low at night. Today STD booths have become almost
nonexistent in major part of India. Today mobiles are owned by even consumers living below
poverty lines who may be using them at least for getting the incoming free calls.
AJJ (Present Status) :
1) Indian Telecom Sector :

Telecom sector status in India (as on 2009)
Financial Year '09
FY09 saw the continuance of strong growth for the Indian telecom market, which witnessed
a 49% YoY increase in its subscriber base during the 12-month period. At the end of March

2009, the country’s total telecom subscriber base (fixed plus mobile) stood at about 429 m.
The tele-density level stood at about 36% by the end of the fiscal.
Growth remained robust in the GSM mobile space, with the same growing its subscriber
base by 96 m, thus contributing to about 70% of the total incremental subscriber addition
for the entire Indian telecom market. After a strong 76% YoY increase in subscriptions
during FY08, the GSM industry recorded another good performance during FY08, growing
subscriber base by 50% YoY to about 289 m.
During FY09, India's mobile subscriber base grew by 50% YoY, from 261 m to 391 m, while
the fixed subscriber base declined by about 4%, from 39.4 m to about 37.9 m.
The industry has set out a target to cross the total subscriber base of 500 m by 2010 and
600 m the year after. Going by the current pace of subscriber additions, the target does not
seem too farfetched. Cellular subscribers will continue to propel the subscriber growth.
During the current fiscal, a lot of focus will be given to new policy initiatives in the industry.
The predominant one is the allocation of spectrum for the 3G and broadband wireless
access (BWA) services. In addition, the telecom regulator TRAI recently unveiled a draft to
allow mobile number portability (MNP) which allows subscribers to switch networks
without changing the number.
Source: www.r-telecom\Indian Telecom Sector A Presentation.mht
2) Why Mad Rush for Telecoms?

Fig No. 1 explains as to why there is mad rush for telecom.

250 24
Teledensity (in percent)

Subscribers (in million)
18.3 19.9 20
200
12.8 16
150
9.1 12
225.21
100 7.0
206 8
5.1 140.3
50 98.4 4
53 76
0 0
2002–03 2003–04 2004–05 2005–06 2006–07 2007–08 (as
of June
2007)
Telecom Subscriber Base Teledensity
Fig- 1
The other factors contributing the Mad Rush are:
a) Higher personal disposable income

b) Growing middle income group
c) Affordability
d) Increased value added services
3) Market survey :
In order to understand present consumer’s expectation a market survey was carried out in
Pune city, with a sample size of 100 nos. of respondents in the age group of 21- 25 years. The
results of the survey are outlined below.
A. The other demographics of respondents are :
a) All post graduate students

b) Gender:
Male : 57
43 FEMALE
Female : 43 MALE
57
Fig- 2
14
Graduates
Post Graduates
c) Qualification
Graduates : 86
Post Graduates: 14
Fig- 3
Finding- Majority of respondents are male and all respondents are graduates.
B. Which company mobile phone do you have?
Company Results
Nokia 66
Motorola 06
Reliance 10
LG 7
Samsung 7
Any other 19

70
Number of Respondents
60
50
40
30
20
10
0
Nokia Motorola Reliance LG Samsung Any other
Fig- 4
Finding: Majority of the respondents are using “Nokia” mobile phone.
C. How long have you been using mobile phone?

< 1 year 08
1-2 Year 12
2-3 11
3-4 11
4-5 25
More than 5 years 37
40
Number of Respondents
35
30
25
20
15
10
5
0
< 1 Year 1-2 Year 2-3 Year 3-4Year 4-5 Years >5 Years
Fig- 5
Finding : Majority of the respondents are using mobile phones for more than 4 years.

D. Which are all features available in your mobile phone?
Sl. No. Features Yes No
1 Call Receiving 100 0
2 Call Dialing 100 0
3 SMS 100 0
4 Camera 72 28
5 Calculator 100 0
6 Clock 97 3
7 Torch light 31 69
8 FM Radio 83 17
9 MP 3 74 26
10 Games 94 6
11 Ring tones 95 5
12 Blue Tooth 76 24
13 Internet 69 31
14 MMS 57 43
15 GPRS 64 36
16 Dial key pad 83 17
17 Touch screen facility 07 93
18 On line booking through 31 69

internet

Findings:
1) Most common features available to the respondent are: Call Receiving, Call
Dialing, SMS and Calculator. Clock, Games, Ring tones, FM Radio and Dial Key Pad 2) Touch
Screen facilities, torch light, on line booking through net features are rarely available.
E. Which features you use often?
Sl. No. Features Often use
1 Call Receiving 100
2 Call Dialing 100
3 SMS 100
4 Camera 58
5 Calculator 66
6 Clock 84
7 Torch light 11
8 FM Radio 46
9 MP 3 62
10 Games 50
11 Ring tones 64
12 Blue Tooth 66
13 Internet 31
14 MMS 11
15 GPRS 26
16 Dial key pad 49
17 Touch screen facility 14
18 On line booking through internet 14

Findings:
1) Most common features used by respondents are; call receiving, call dialing, SMS,
clock, ring tones, blue tooth, camera, games.
2) Most rarely used features are : torch light ,MMS,GPRS, touch screen and on line
booking.
F. According to you which feature have a nuisance value?

Findings:
a) By and large respondents find many features useful.

b) Few respondents find MMS, Camera, unwanted SMS calls, torch light features
as a nuisance value.
G. Which is you mobile service provider?
BSNL 18
Vodaphone 24
Airtel 47
Idea 10
Reliance 18
50
40
30
20
10
0
BSNL Vodaphone Airtel idea Reliance
Fig- 6
Finding: Majority of respondents are using Airtel services.
H. Are you satisfied with the services provided by the service provider?
Extremely satisfied 11

Satisfied 68
Neither satisfied nor dissatisfied 13
Dissatisfied 07
Extremely dissatisfied 01
70
60
50
40
30
20
10
0
Extremely Satisfied Neither Dissatisfied Extremely
satisfied satisfied nor dissatisfied
dissatisfied
Fig- 7
Finding: Majority respondents are satisfied with the services provided by the service providers.
J. Are you aware about the health hazard due to excessive usage of mobile phone?
Yes 92 No 08
Findings : There is great awareness of health hazards due to excessive usage of mobile
phones.
K. What will be your future plan once the health hazards due the electromagnetic wave and
radiation of energy is established?
Stop using mobile phone 01
Reduction in usage 99
Findings : All though 92 % of mobile phone users are aware about the health hazards they
do not want to reduce usage of mobile phone even if health hazards are established in
future.

L. What are your suggestions for the improvement in Telecom industries in futures?
The respondents have suggested the following improvements :
a) Better network facilities

b) 3 G to be launched soon
c) Reduction in internet rates and faster speed
d) Higher battery backup
e) Improving voice quality
f) Better rural area coverage and
g) New invention of mobile to reduce health hazards.
4. KAL (Future of telecom sector in India):
According to Gartner, a global information technology research and advisory firm, the revenue
from India’s telecom Sector will cross $30 billion by 2013.
The total mobile services revenue is projected to grow at a compound annual growth rate (CAGR)
of 12.5 percent during 2009-2013 to exceed $30 billion. At the same time the telecom subscriber
base is expected to cross 770 million connections by 2013, growing at a CAGR of 14.3 percent from
452 million in 2009.
The factors supporting this increase are:
 increased focus of operators on rural areas

 increased adoption of value Added Services
 availability of cheaper handsets
 entry of consumer durable and electronic companies into the mobile handset segment
The number of prepaid subscribers is expected to cross 740 million ( about 96 percent) by 2013. At
the same time the postpaid subscriber base will exceed 29 million subscribers by 2013, growing 2.5
percent from 2008. Gartner also predicted that the churn rate (the rate at which a subscriber
switches from one operator to another) will cross 59 percent in 2013 from 53 percent currently.
The Indian Value Added Services (VAS) sector is set to be worth Rs. 20,000 crore by 2015 from the
present level of Rs. 5000 crore reveals a new study report from PricewaterhouseCoopers.
The report says even though in the current scenario dominance of SMS in the space is felt with
contribution as high as 44 percent, this scenario is likely to change with acceptance of new
applications like ringtones, RBTs, GPRS and CLI.

The report also expects VAS to pick up with introduction of 3G services in the country.
The ever growing presence of youth segment in the overall demographics and availability of feature
rich handsets at low prices are also expected to drive uptake of VAS in the country.
Conclusions:
 The telecom sector has revolutionized the whole communication process for the masses.
 Features available are mostly useful to users barring a few features like MMS, unwanted
SMS calls, torch light, camera which have a nuisance value.
 Going forward, telecom sector has a great future in India once 3 G services are provided
which will boost value added services to Rs 20,000 crores by 2015.
References:
1) Telecom Sector in India Vision 2020

http://www.planningcommission.nic.in./report/generep/bkpap2020/1_bg2020.doc 20-01-
2010
2) The Hindu Business Line: Telecom sector leads M&A activity in India
www.bionet.com/2008/05/27/stories/20090527551
3) Telecom policy ad regulations in India

http://www.aptsec.org/meetingin.rediff.com/money/aug/02cola.htm
4) VAS sector in India to be worth Rs. 20000 cr, says PWC

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MAPPING THROUGH SOM IN BIDIRECTIONAL MAPPING USING MIRROR NEURONS in
ANNOTATIONS
R.Meenakshi
Research Scholar, M. I. T, Anna University, Chennai-44,Tamil Nadu ,INDIA
meena5_rm@yahoo.co.in
P.AnandhaKumar
Asst. Prof.(I.T.) Madras.Institue.of Technology Anna University, Chennai-44,
Tamil Nadu, INDIA
anandh@annauniv.edu
Abstract- Self organizing map (SOM) is used to map the prediction from ARTa with the output of the ARTb.
Since it is bidirectional ARTMAP representing mirror neurons SOM is used for mapping in both the
directions.
Keywords: Annotation, Bidirectional ARTMAP, Mirror Neurons.
1. INTRODUCTION
1.1 Mirror neurons

Mirror neurons are the action matching system found in the human brain. Rizzolatti says it is bridge
between ‘doing’ and ‘communication’ or acts as a link between the sender and the receiver. [5] (figure 1).
To these mirror neurons, when ever an object is presented its visual features are converted to motor
action and both the representations are associated [2]. Mirror neurons give a close link between
manipulable objects and information about the actions associated with their use. These action
associations are automatically evoked when the person sees the object. [11].
The association done by the mirror neurons is taken advantage of, for identification and
thus annotating the image through their components hence identifying each component. Associating them
one by one in order to get the final association to identify the image is done. The implementation of the
associations is done using bidirectional ARTMAP. Annotation of images is a totally new approach using a
learnable mirror neuron concept.
1.2 Annotation
Annotation generally means an addition made to information asserted with a particular point in a
document or other piece of information. Most commonly this is

used, for example, in draft documents.
Fig 1:Mirror neurons in human brain
When we take it to images it is called image annotation also called image

tagging. The method assigns some keywords or captioning to the image. In our work the
captioning or assigning of the keywords is done to parts of the image given as input that
too with the concept of mirror neurons. It can be used in image retrieval especially to
organize or locate the data in the database. Such type of training for annotations is used
to annotate new images but here we do it for a single image with its parts. In
annotations when the translation is from the textual vocabulary to the 'visual
vocabulary', or clustered regions it is known as blobs.

1.3 Self Organizing Maps
SOM transforms an incoming signal pattern of arbitrary dimension into a one or
two dimensional map. There are three essential processes involved in formation of
SOM.
a. Competition-For each input pattern, the neurons in the network compute their
respective values of a discriminant function provides the basis for competition
among the neurons. The particular neuron with the largest value of discriminant
function is declared winner of the competition.
b. Cooperation- The winning neuron determines the spatial location for
cooperation among neighbouring neurons.
c. Synaptic Adaptation- The excited neurons increase their individual values with
respect to input. This is done in order to have an similar application for similar
input in the future.
Fig 2: Self Organizing map
2. LITERARY SURVEY
2.1 A. Mirror Neurons

Mirror neurons are found
from primates to humans. They
have an action matching system
even for mouth actions called
mouth mirror neurons. [16]. The
visuomotor mirror neurons
concept is used to automatically
create a motor vocabulary through an imitation behavior implemented through robots
[17]. Using the mirror neuron theory, neural assembly and distributed modularity robots
make use of language instruction [14]. Using the concept of mirror neurons and brain
modularity, imitation based intelligent robot behavior was developed using an
assoicator neural network [13].
A mimesis model is based on mirror neurons which are extended to factorial
hidden Markov model. This model is used to recover data for whole body data imitation
[4]. A model suggesting how mirror neurons respond to auditory stimuli has been
developed. It develops prototypical representations for motor commands and auditory
stimuli with which it interprets perceived stimulus [7]. There is an empathetic response
which has a basic level of response to images. A reaction to this is necessary to
understand the image. This is used for implication of mirror neurons [3].

2.2 Annotation
A novel approach to semi-automatically and progressively annotating images
with keywords was done but in this the concept of mirror neurons was not used [12]. A
multimedia system for semi-automated image annotation was developed called Show
& Tell which combines speech recognition and natural language processing [19]. A face
annotation in multimedia is done for both labeled and unlabeled data using
Transductive Kernel Fisher Discriminant [9]. Annotations with coral data set was done by
Jiayu Tang [10]. An audition system that can both annotate novel audio tracks with
semantically meaningful words and retrieve relevant tracks from a database was
developed by Dougluss turnbull [21]. A statistical modeling and optimization method
was developed to learn large collection of images and annotate them with substantial
accuracy by establishing relationship between image and words [8]. Developing a
collaborative architecture to support collaborative image annotations, a comprehensive
framework was done having modeling, authoring, storing, querying and exchanging
annotations on medical images based on standard SVG [6]. In the work done by Abdala
an Annotation station was developed for annotating large biomedical databases [1]. A
hybrid consistency framework for distributed annotations of records was developed by
Ahmet [15]. Chales Robert considers many heterogeneous devices to create annotations
in his work for annotating documents [18]. A system called Coscribe was developed for
handwritten annotations on printed lecture slides to help students [20].In another work
done by Hwang students homework were annotated [22].
3. BIDIRECTIONAL ARTMAP LEARNING
ARTMAP learning is given by the following formula. The resonance (eqn-1)and

weight change equations (eqn 2-3) are given for level 0 in forward direction for the
mapping the first set of input components i.e. water and sand.
Reverse direction
MAP A-> B
MAP B-> A
wab wba
F2b F2b
Forward direction
F1a F1a
ART2a ART2b

Fig-3: Block diagram of the bidirectional ARTMAP system
| хab| ≥ ρab (resonance) (1)

| yb |
y b Λ wabj if the Jth node in Fa2 and Fb2

хab = are active
ab
w j if only the Jth node in Fa2 is
active
b
y if only Fb2 is active
0 if neither is active
wabj(t+1)=βab(wbKΛwabj(t))+(1-βab)( wabj(t)) (2)

wba K (t+1)=βba(wa J ΛwbaK (t))+(1-βba)(wbaK(t)) (3)
weight change is given in equation 2,3 which takes place in that order and when fast
learning is used wabj = wbK and wba K = wa J
The resonance (eqn-4) and weight change equations (eq 5-6) are given for level 1 of the
system in forward direction for the mapping the combined output from level 0 with the
input for level 1 which being another component.
| хcd | ≥ ρcd (4)

| yd | (resonance) where
wcdj(t+1)=βcd(wdKΛwcdj(t))+(1-βcd)(wcd(t)) (5)
wdc K (t+1)=βdc(wc J ΛwdcK (t))+(1-βdc)(wdcK(t)) (6)
y d Λ wcdj if the Jth node in Fc2 and Fd2

хcd = are active
cd
w j if only the Jth node in Fc2 is
active
d
y if only Fd2 is active
0 if neither is active
weight change is given in equation 5,6 takes place in order and when fast learning is
used wcdj = wdK and
wdc K = wc J .Here wcdj is the combined input.

For the reverse direction the weight change equations numbered from 7 to 10 are as
follows.
wbaK(t+1)=βba(wa J ΛwbaK (t))+(1-βba)(wbaK(t)) (7)

wabj(t+1)=βab(wbKΛwabj(t))+(1-βab)(wabj(t)) (8)
Weight change in level 0 for ART2a (figure-1) is given in eqn-7 and for that of
ART2b(figure-1) is given in eqn-8 which takes place in order 7,8 and when fast learning is
used wba K = wa J and wabj = wbK.
wdc K (t+1)=βdc(wc J ΛwdcK (t))+(1-βdc)(wdcK(t)) (9)

cd cd d cd cd cd
w j(t+1)=β (w KΛw j(t))+(1-β )(w (t)) (10)
Weight changes in level 1 for ART2a is as given in eqn-9 and for that of ART2b is as given
in eqn-10 which takes place in order 9,10 and when fast learning is used wdc K = wc J and
wcdj = wdK.. Here again the combined input is wcdj
The weight changes mentioned above have a general equation that is eqn-11.
New weight =learning rate* min of weight of ART1 and weight in mapfield + (1- learning
rate )* weight of active category in ART2. (11)
4. MAPPING SCHEME AND ANNOTATION
We train the ARTMAP with a set of inputs by associating them which are the
components of the image. Figure 3 explains the overall system architecture. We give the
image parameters as input to the ART’s which identifies the concepts which are then
associated using mirror neuron concept. The output of the association is given to the
next level in the hierarchy along with a new parameter as input. At the highest level of
hierarchy we get the annotated output of the scene. For example if we need to identify
a sea shore image then the inputs at the first level would be texture value of water and
sand which are taken as components of the image. These would get associated at the
training stage. The other inputs would be texture values of sky, birds for the other levels
along with the previous level output as one of the inputs. These would be associated
with each other in both the directions bringing in the concept of mirror neurons.
Going further the implementation at each level has two inputs and also each
level has two way associations. The inputs are given from level 0 to the higher order.
First each level is trained with different components of the image which are also
recognized through training. During this phase the level 0 has active categories of the

word water with the help of values obtained from the image in ART2a and active
categories of the word sand in ART2b.
In this level the map field in forward direction would be from water to sand
associating the categories of the two ART’s in this level. When the input data i.e. water
is given for the first time to ART2a one neuron in Fa1 of ART2a wins and is propagated to
Fb1 the layer from where the category learning takes place through resonance and gets
stored in the map field. This is associated with the winning active category from Fb2 of
ART2b which has the corresponding data i.e. sand are associated in the map field A -> B
against the active category from ART2a forming an association from water to sand.
Image input parameters
ART
ASSOCIATION
USING SOM
Mirror neuron association
Association
output
Final
output Next ART
Association
output
Fig 4: System overview
Once the association is done it means that the network has learnt the association and is
trained to recognize the association in the forward direction. Similarly the active
categories of sand are mapped with the active categories of water. The network with
the other map field will have a mapping B->A that is from ART2b to ART2a thus
associating sand to water.

Here an active category from ART2b is taken and is associated with the active
categories of ART2a. Once the association is established it means that the network has
learnt the association from both sides for further process.
So the next time when the texture inputs of water and sand are given at the
respective input the result can be association formed or not formed. If association is
formed then the process proceeds further else it is terminated.
The system is trained both ways for one particular input pair and other inputs for
this system from either ART’s are compared with the existing associations. When a
match is found there is resonance and when an association already exists it is adjusted
so that the new one is also included in the association. But if the association does not
already exist the vigilance factor ρ from the direction of input is slightly increased or
decreased depending on the match difference value. Now again a matching process
takes place. Once the match is found the system resonates and the vigilance parameter
is brought back to the baseline or previous value. Even now if match is not found ART
creates a new category and recognition is possible only if the network is trained with the
new inputs.
The mapping procedure is in both the directions for all the levels and
annotations of the components are done at each level. At the final level the image is
identified from its association of the word. The first level has two inputs whence
forward, reverse mapping is finished the flow goes to the next set which is a higher level
of abstraction. In our work the water and sand annotations are associated at the output
of this level.
The higher level or level 1 has again two input components of data where one of
the input data is combined input or the output from level 0. Since this level also has
mirroring concept getting implemented, there is reverse mapping taking place.
For all the sets the ART2a’s resonance is ρa=0.75, and ART2b’s resonance is ρb
=0.75, at the beginning, the learning rate is β =1 and choice parameter is α is 0.000001.
In the first set or for the first level i.e.level 0 twenty six neurons are used in the
recognition layer in ART2a and ten neurons in the recognition layer of ART2b. In the
second set level 1 ten neurons are used for both the recognition layers of ART2a and
ART2b. In the third set ten neurons are used in the recognition layer of ART2a and
twenty six neurons are used in the recognition layer of ART2b.
The resonance is increased or decreased with a value (x ∩ n)/x where x is
present input and n is present active node depending on the match of the category. The
direction from which the input is given also varies the respective resonances. If the input
is sand print then the ART2a’s resonance is modified. In ARTMAP the ART’s can be either
ART1 or ART2.

4.1. Working principle
The basic ARTMAP system consists of two ART’s and individual ART’s are capable
of identifying all the primary concepts like water, sky, sand etc. The proposed
hierarchical ARTMAP’s system is constructed using this basic configuration. The
hierarchical system is developed in such a way that the order of the concepts for
concept association could be random. In the sample case the level 0 uses inputs which
are trained with their different values to be associated with words water and sand from
the image.
A mapping if has taken place in the reverse direction also means the
bidirectional mapping is successful, the working goes to the next level which is level 1.
The mapping uses SOM for both the directions in all levels. For this level the input is
output from the first level i.e. level 0 and the word sky. The mirroring principle is
mapping the output from level 0 to sky in both the forward and reverse direction. In the
forward direction the annotation water-sand is taken as input to be mapped with the
word sky and for the reverse direction the word sky is mapped with the annotation
water-sand. This gives an annotated output of water-sand-sky. With this annotation the
flow goes to the next level the output of which is the annotation of the image. Now If
level 1 mapping is done the flow is put to level 2 with inputs as annotated water-sand-
sky on one side and the word birds on the other side. If a match occurs then the image is
annotated as sea shore thus image being identified from its components.
5. RESULTS AND DISCUSSION

The network was trained with various annotated words for water, sand, sky and
birds etc. Small variations are also considered for right input. The training was done for
each association i.e. in each level. Here the fast learning of the bidirectional ARTMAP
was taken advantage of by taking it as a procedure for going to a level higher for more
abstract level of annotation. Also the higher levels took care of the abstraction by giving
the inputs at different levels instead of one level. Experiments were conducted with
about 500 natural scenes of different categories. So far annotation accuracy is about 70-
80% for natural scenes. However the proposed new approach has the major advantage
for learning new concepts and fully automatic annotation of images makes feasible.

Mapping weight-
weight wba
sand-> water
Mapping weight-
weight
wab Water -> sand
One point check
F2 F2
F1 F1
ART2a ART2b
Water input Sand input
Fig-5: Block diagram of level 0 of Annotation.
6 CONCLUSION AND FUTURE ENHANCEMENTS.
Conclusion: The neural network takes texture input of given clustered image to identify
the various concepts namely water, waves, sky, road, sand, clouds etc. Each association
acts as a check point being in the form of levels which help us to have the abstraction
possible. The proposed system not only annotates the existing components but also
identifies the new annotation of concepts and makes their association feasible. Figure 6
gives the maximum prediction error of ARTMAP.
Future enhancements: The system can be enhanced for the identification of higher level
hidden concepts through basic concepts
Bidirectional ARTMAP
1
0.8
0.6
errors
Max prediction error

0.4
0.2
0
0 200 400 600 800 1000 1200
epochs
Fig 6 Bidirectional ARTMAP learning curve

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Service Quality Of Rural Indian Hospitals
Submitted By
Prof. Shivakumar. R. Sharma

Professor – JICM
Bhopal, Madhya Pradesh.
Services contribute to about 25 – 30% of the GDP of India and are expected to grow
around 7.5% every year as employment is increasing continuously in the services sector.
The services economy is distinctly different from the primary activities (agriculture,
fishing, forestry) and secondary activities (manufacturing and construction). 70% of the
working population of USA is engaged in services.
Services are essentially an experience. A good service profit chain emphasizes on

excellent internal service quality resulting in employee satisfaction leading to employee
retention and employee productivity which in turn helps deliver external service value
resulting thereby in consumer satisfaction and customer growth which enhances
revenue growth and profitability for the service provider. However, do our countrymen,
urban and rural, experience good services facilities and management in our health care
services sector except for a few hi – tech specialty hospitals for those who can afford?
Instead of embarking on writing a paper about the commercial and profitable side of
services marketing in different sectors such as banking, tourism, transportation and so
on, the objective of this paper is to highlight the social objectives of the services sector
by making a plea for more affordable, accessible and acceptable health care services in
rural India.
The Indian rural scenario comprises of almost 6,27,000 villages in more than 400
districts and 50% of rural assets is national tangible wealth2. The rural market size is
approx. 400 persons per square kilometer which means a very huge market but not fully
tapped. The rural population in India accounts for more than 700 million, which is
almost 74.3 percent of the total population3. This segment, commonly referred to as the
'bottom of the pyramid', presents a huge opportunity for companies. The rural market
in India brings in bigger revenues in the country, as the rural regions comprise of the
maximum consumers in our country. The rural market in Indian economy generates
almost more than half of the country's income. The changing scenario of the Indian
market, increasing competition and uneven demand and supply situation in urban
markets has forced companies to venture into rural markets. Companies are eyeing
rural markets due to high potential of the markets, increasing prosperity and
employment opportunities, increased consumption, changing life styles, improvements
in communication and infrastructure, media reach and high growth rates of the rural
market4. The ‘ruralite’ is exposed to the urban aspects, mostly through the medium of
television. Today, the ‘ruralite’ is well aware and has a disposable income rising upwards
with a propensity to save as well as spend.

The growing power of the rural consumer is forcing big companies to flock to rural
markets. At the same time, they also throw up major challenges for marketers. Business
opportunities today do lie in the rural areas of India.
The ‘ruralites’ of today are getting exposed to computers and services. BPO’s are being
set up in rural India and are slowly growing, handling even banking and insurance
services and processes (an example of ‘ruralites’ using technology is the ITC e – choupal
program). Such user friendly technology and services can slowly but surely transform
rural India. Today, the ‘ruralite’ has the money to buy white goods as well as services
such as ‘Hero Honda’, ‘Suzuki’, ’Bajaj’ and ‘Yamaha’ motorbikes, ‘Maruti’ and ‘Tata’ cars,
SBI banking services and credit / debit cards, to name a few. Apart from the services of
the Government such as nationalized banks, LIC insurance and speed post, the ‘ruralite’
today has a penchant for doing business with private banks, private insurance and faster
and cheaper courier services. There is a conventional demand for tractors for use in
agriculture as well as for fertilizers, pump sets, tubes, cables, wires, ropes, televisions,
transistors and of course movies. A number of promotional schemes like rural credit,
kisaan credit cards, micro finance, rural retailing malls, hariyali kisan bazaars, choupal
sagar, e-choupal of ITC, project ‘Shakti’ and ‘Bharat’ of HUL, project ‘Aadhar’ of Godrej
Agrovet Ltd and many such innovative strategies have improved today’s rural markets.
The exhibit given below shows the distribution of households by categories 5:
(in percentages)
Distribution of households
---------------------------------------------------------------------------------
Category Urban Rural
Total
Affluent / Very rich 9.44 1.05
3.49
Well – off 57.42 21.84
32.18
Climbers 25.67 33.04
30.90
Aspirants 5.83 31.02
27.20
Destitute 1.64 13.05
9.73
All 100.00 100.00
100.00
Source: NCAER, 2003

The above exhibit clearly shows that rural propensity to save and / or spend (affluent,
well – off and climbers) lies with 55.93% of the rural population and is an ever increasing
trend.
Often, rural marketing is confused with agricultural marketing. Agricultural marketing

denotes marketing of the produce of the rural areas to the urban and or industrial
consumer whereas rural marketing involves delivering manufactured and processed
goods as well as services to rural producers and consumers.
Some of the important features or characteristics of Rural Marketing in the Indian

economy are listed below:
 With the initiation of various rural development programs there have been an
upsurge of employment opportunities for the rural poor. One of the biggest cause
behind the steady growth of rural market is that it is not exploited and also yet to be
explored.
 The rural market in India is vast and scattered and offers a plethora of opportunities
in comparison to the urban sector. It covers the maximum population and regions
and thereby, the maximum number of consumers.
 The steps taken by the Government of India to initiate proper irrigation,
infrastructural developments, prevention of flood, grants for fertilizers, and various
schemes to cut down the poverty line have improved the condition of the rural
masses.
A healthy population is a key economic resource for any country as this determines its
economic well being in the present as well as in the future6.
The Indian healthcare market is estimated at about US$34 billion (FY 2006). The industry
is expected to grow at 15% p.a., to reach US$79 billion by FY 2012. The industry is
fragmented with a large number of independent, privately run hospital and healthcare
centers. Private sector corporate entities like the Apollo Hospitals, Wockhardt Hospitals
and Fortis Healthcare have aggressive expansion plans to establish themselves in rural
and urban areas. Indian hospitals are gaining reputation globally as “quality” service
providers. Many Indian hospitals have secured accreditation from the British Standards
Institute and Joint Commission on Accreditation of Healthcare Organizations. NHS, UK
has indicated India to be a preferred destination for surgery. 100% FDI is permitted for
all health-related services under the automatic route. Infrastructure status has been
accorded to hospitals. Lower tariffs and higher depreciation has been allowed on
medical equipment. Income tax exemption is allowed for 5 years to hospitals in rural
areas, Tier II and Tier III cities. The industry is expected to grow to US$79 billion by 2012.
Medical tourism is expected to become a US$2.2 billion industry by 2012. There is a high
potential and high growth in the domestic market arising from increasing health
awareness (share in total private consumption expected to increase by 10%), increasing
penetration of health insurance, rapid growth in private sector companies owning and
managing hospitals, high-growth in medical tourism and the cost of comparable

treatment is on average 1/8th to 1/5th of those in western countries. Opportunities
exist in multiple segments along the value chain such as service providers (curative and
preventive in primary, secondary and tertiary care), diagnostic services (imaging and
pathology labs), infrastructure (hospitals, diagnostic centers), and health insurance (less
than 10% of the population is covered by health insurance - the medical insurance
premium income is expected to grow to US$3.8 billion by 2012) which grew 44% during
2006-20077, healthcare BPO (medical billing, disease coding, forms processing and
claims adjudication) and training ( large opportunity for training doctors, managers,
nurses and technicians). There is an investment opportunity of over US$25 billion by
20108.
No doubt India faces a mismatch between rural and urban infrastructure and the theme
of this paper is to highlight the necessity to develop and nurture private health services
and specialty hospital services in rural areas. This is an excellent opportunity for
individuals and organizations to explore the possibilities of setting up hospitals and
focus on marketing of health services in rural India. The objective here is to view the
‘glass as half full rather than half empty’ and look at a marketing opportunity in an
optimistic manner.
I remember the story of the boss who sent two salesmen to study the market to sell
shoes in a backward area. While one salesman returned painting a very pessimistic
picture to the boss that leave alone shoes, the natives did not have proper clothes to
cover their bodies and hence not to venture out into that market (the salesman was
sacked for giving this report), the other salesman painted a very optimistic picture to his
boss that there was a very good opportunity to market clothes as well as shoes in that
area. Likewise I am very optimistic that there lies a very good marketing opportunity to
market health care services as well as to set up private and specialty hospitals in rural
areas.
There are three challenges a rural marketer must take into account. The first is the
challenge of reaching out to the rural markets which are small, scattered, inaccessible
and sometimes unviable. The second challenge is to ensure that consumers are aware of
and want your brand. The third challenge is to actually influence consumption and buyer
behavior9. Empowerment of the ‘ruralite’ in terms of economic power, purchasing
power and knowledge and information dissemination is a must for rural ventures to
succeed.
Hospitals are a service oriented industry and setting up a specialty hospital in a rural
background and marketing the concept of a unique health care ‘experience’ to the
customer (rural villager) is indeed a very daunting and challenging task. The silver
lining on the cloud is the ability of the marketer to communicate the advantages of
health care to rural India. Communicating and positioning the message to the ‘ruralite’ is
very important. The ‘ruralite’ will ultimately determine the value of the service or
product which is a tradeoff between perceived benefits of the service to be purchased

and the perceived sacrifice in terms of costs to be paid. Ultimately, perceived service
quality results from customers comparing the service they perceive they have received
against what they expected to receive or are receiving elsewhere. Expectations change
overtime influenced by supplier – controlled factors such as advertising, pricing, new
technologies, service innovation as well as social trends, advocacy by consumer
organizations, increased access to information from media and internet. Herein I
advocate converting the abovementioned third challenge into an advantage by using
abovementioned supplier controlled factors. Differentiating the service from others
with respect to implementing quality techniques, reducing wait periods and ensuring a
high success ratio in terms of customer or patient satisfaction will take care of the
second challenge and convert it into a opportunity.
Public health system in India suffers from many problems which include insufficient
funding, shortage of facilities leading to overcrowding by patients and a severe shortage
of trained health personnel. There is also a lack of accountability in the public health
delivery mechanisms. These are some of the reasons which have placed India at the
lowest rank in the Human Development Index.
India however holds top position in the migration of physicians to developed countries
like UK and the US. According to Planning Commission the country has a shortfall of six
lakh doctors, 10 lakh nurses and two lakh dental surgeons. This has led to a dismal
patient-doctor ratio in the country. For every 10,000 Indians, there is just one doctor.
India spends about 5 percent of its gross domestic product (GDP) on health care: the
official figure is a little over 6 percent, but a comprehensive health expenditure
accounting exercise puts the figure at 4.6 percent in 2001–0210. This proportion is
roughly in line with developing countries at similar income levels. But public sector
spending on health care is much less than developing countries by about 20%. Despite
elaborate institutional mechanisms within and across levels of government in India,
service delivery is poor at all levels11. The problem is more acute at the state level
because day-to-day and basic services, such as health care, education, water, and
sanitation, are mainly the responsibility of states, which seem disadvantaged with
respect to fiscal and administrative capacity. There are several kinds of evidence for the
poor quality of service delivery, including tangible public goods and services, as well as
various forms of social insurance. One is measurement of performance and outcomes,
such as life expectancy or infant mortality. A second is evidence based on inputs and
processes of government, such as corruption, overall spending patterns, and employee
absenteeism. A third is the response of citizens, through exit from the system by use of
private alternatives and through their voting behavior. Studies of the functioning of
government in India suggest pervasive examples of inefficiency in public service delivery,
including the functioning of core administrations, plan and ministry projects, and public-
sector enterprises12. For many states, subsidies and salaries are taking a larger share of
expenditure, and public-sector enterprises are overstaffed13. High levels of corruption
also contribute to inefficiency in the delivery of public services. Examples include
industry regulation and state-government job assignments14. Retail corruption is
widespread in health care, electric power, police and judiciary functions, taxation and

land administration, and education15. In sum, poor quality of public service delivery is
pervasive in India, including in health care but extending across the board to education,
social insurance, and infrastructure provision. Rural health care in most states in India is
marked by absenteeism of doctors/health providers, low levels of skills, shortage of
medicines, inadequate supervision/monitoring, and callous attitudes. There are neither
rewards for service providers nor punishments to defaulters16. A major policy response
to the failures in public health services delivery was to launch the National Rural Health
Mission (NRHM). Elements of this initiative were integrated district health plans,
including "effective integration of health concerns with determinants of health like safe
drinking water, sanitation and nutrition; partnership with nongovernmental
organizations (NGOs); flexible funds for state and local governments; appointment of an
Accredited Social Health Activist (ASHA) in each village; and "strengthening of public
health infrastructure"17.
India's rural health centers are critically short of trained medical personnel. The
country's 22,669 primary health centers are in sorry state of affairs increasing people's
suffering. According to the recent National Rural Health Mission report nearly 8%
primary health centers do not have a doctor while nearly 39% were running without a
lab technician and about 17.7% without a pharmacist. The primary health centers are
supposed to have one medical officer supported by paramedical staff. The condition of
3,910 community health centers supposed to provide specialized medical care is equally
appalling. Out of the sanctioned posts, about 59.4% of surgeons, 45% of obstetricians
and gynecologists, 61.1% of physicians and 53.8% of pediatricians were found to be
vacant. Moreover there is a shortfall of 70.2% specialists at the community health
centers. The report says there is a huge challenge to meet the shortfall for rural health
infrastructure specially the manpower.
According to Planning Commission figures India's health centers require 3,910 surgeons.
While only 2,372 are sanctioned, just 972 are in position creating a vacancy of 1,381
posts for surgeons and there is a shortfall of 2,376 surgeons in community health
centers. As for physicians community health centers require 3,910 of them. There are
only 832 in position with 1,296 vacant posts and a shortfall of 2,516 physicians. Of the
3,910 pediatricians required only 1,951 posts are sanctioned of which just 837 are in
position. There is a vacancy of 953 posts and a shortfall of 2,511 pediatricians18.
The public health system in rural India relies primarily on primary health care centers for
maternal and child health concerns whereas for all other health matters, it is dependent
on the community health centers.
The exhibit given below shows the health infrastructure in rural India (as of 2005)19.
Primary Health Centre Community Health Centre
Requirement (Census) 2005 26,022 6,491
Number functioning (2005) 23,109 3,222
Shortfall (%) 11.19 50.36

As on March, 2008, there are 23,458 primary health centers and 4,276 community
health centers functioning in the country20.
To augment this shortfall, I suggest that the entire system could be divided into a two -
fold system and it could be divided according to the population of the villages. In villages
where the population is between 5,000 to 10,000 persons, establishment of private
small clinics could be encouraged by the Government, which can take care of small
diseases and help the women during their pregnancy months. The focus should also be
in treating diseases like TB, polio, malaria, leprosy, dengue and so on. Government must
ensure accountability at all levels and strengthen the hands of the primary health
centers and community health centers and ensure that they are ‘focus’ driven based on
the needs of the particular village / district such as combating ‘kala azar’ in Bihar,
‘chikangunia’ in Maharashtra or undertaking of inoculation drives in West Bengal. The
primary health centers and community health centers as well as small clinics with the
help of the Government, could organize camps in different small villages and a lot of
publicity on health care could be administered at the village ‘haats’ / ‘melas’ or on the
local radio and television. The Government can also ensure coordination of all available
services under various national health programs in the country so as to ensure
availability, accessibility and proper utilization of care when required so as to ensure
proper delivery and cost effectiveness. Training of all health care manpower in primary
health centers, community health centers as well as small clinics by the Government will
go a long way in augmenting rural health care. The Government could make it a two
year mandatory term after completion of studies by students in private and
Government medical colleges to practice in villages or help in training rural personnel in
rural health centers on a stipend or salary basis as to be decided by the Government The
Government could encourage the students to set up dispensaries / clinics in the villages
by providing them land at concessional rates with the back - up of nationalized banks to
provide them soft loans. The students could be issued the final course completion
certificates only after a Government authority certifies that the student has completed
his two year work tenure in the village. A strong decision is required from the
Government in this regard as students will find it more lucrative to set up dispensaries /
clinics in the cities or migrate abroad.
Private organizations could set up small hospitals for a population of above 10,000
persons. These are specialist hospitals where more complex diseases can be cured.
There should be specialists visiting from the city to take care of the more complicated
cases and performing complicated operations. The Government can give sops to invite
participation of the private sector in the rural areas to set up large specialty hospitals.
One of the biggest challenges of these hospitals would be to take off the load of the
district and the municipal hospitals, which usually run out off beds for the patients. As
the ‘ruralite’ has a better propensity to save as well as spend today due to rising
incomes and wants better health care, setting of specialty hospitals at the district levels
would ensure that the hospitals can reach break – even within a short time and later on
sustain themselves towards profitability. So far, this aspect is looked at from a social

angle, but now it also must be looked at from the commercial angle as the hospital has
to sustain itself and that can be achieved by treating each department of the hospital as
a profit centre. Integration of social motive with profit motive is a must for private
hospitals to succeed in rural areas. At the same time, Governments (centre and state)
must review the performance of Government hospitals, run them professionally and see
that the Government hospitals do not lack in anything so as to provide proper
healthcare to the rural masses. The Government can at least ensure coordination of all
available services under various national health programs in the country so as to ensure
availability, accessibility and proper utilization of care when required so as to ensure
proper delivery and cost effectiveness. All this calls for more serious investment and
plan / budget outlay by Central and State Governments on a war footing.
The Indian rural health care system must rest on the principles of easy availability of
health care service centers in rural areas, accommodation of patients in hospitals /
health care service centers and accommodation for the service and medical staff
treating the patients, easy accessibility to the health care service center, acceptability
by the rural masses and last but not the least – affordability. Quality is a must and the
system must incorporate service efficiency (comparison to a standard that is usually
time based), productivity (financial valuation of outputs to inputs), effectiveness
(degree to which the health care organization can meet its goals), performance,
reliability, conformance to standards, durable value to the customer, serviceability
(speed, competence, courtesy and so on) and aesthetics.
Also, a sound strategic plan helps hospitals, their services and systems cope with a
variety of contingencies that arise in the changing healthcare environment. The benefits
of strategic planning are that it secures the future, provides a roadmap, direction and
focus, sets priorities, allocates resources, establishes measures, gets inputs and ideas,
gains commitment and coordinates action to accomplish objectives. Effective strategy is
characterized by sustainability, performance improvement, quality, direction and
focus21.
There are usually 9 key factors that contribute to poor performance:

Inadequate or unavailable resources.
Poorly communicated strategy.
Poorly defined actions required to execute the strategy.
Unclear accountability for execution.
Organizational silos.
A culture that blocks execution.
Inadequate performance monitoring.
Inadequate consequences for failure success.
Poor, uncommitted leadership22.
Patient care should be:

Safe, avoiding injuries to patients from the care that is intended to help them.

Effective, providing services based on scientific knowledge to all who could benefit.
Patient centered, providing care that is respectful of and responsive individual patient
preferences, needs and values and ensuring that patient values guide all clinical
decisions
Timely, reducing wait times and harmful delays for both those who receive and those
who give care.
Efficient, avoiding waste of equipment, supplies, ideas and energy and lastly
Equitable, providing care that does not vary in quality because of personal
characteristics such as gender, ethnicity, geographic location, and socio – economic
status23.
Health care organizations have to deal with five common strategic dimensions:
VALUE, which has to do with cost, quality and service of the care actually delivered.
Total Quality Management (TQI) or Continuous Quality Management (CQI) helps able to
manage value.
CLINICAL IMPROVEMENT, which arises out of the search for value, high quality, and
economical health care and depends on fitting diagnostic treatments to each patient’s
needs and on integrating them effectively with one another.
NEW PHYSICIAN ORGANIZATIONS have become necessary to support clinical
improvement and value.
DIVERSIFICATION AND COMMUNITY OUTREACH, which means providing care at new
sites including the home and reaching out into the community to people who often are
not yet patients with the explicit goal of keeping them from becoming seriously ill.
STRATEGY, which is a deliberate plan for enhancing overall effectiveness for actually
delivering on clinical improvement, physician organization, community outreach and
maximizing value. Strategy includes collaboration and cooperation, that is, making
decisions about partnerships with other organizations and setting priorities among
competing opportunities.
Suggestions to improve value of health care services are:
1) Start with the notion that the health care institution belongs to the community.
2) Begin a dialogue around the most serious presenting symptoms of the problems
(i.e. cost of care borne by employers and tax payers and cost of lack of access to
care for the uninsured, borne by health care organizations and public services.
3) Move deliberately toward risk sharing health insurance and care financing.
4) Emphasize value rather than cost – ‘Cheap health care’ is not an acceptable goal.
‘Quality health care is both acceptable and demonstrable.
5) Get a chief executive who can handle each project.
6) Develop a culture change – measured performance, goal setting and reward for
goal achievement
7) Stimulate a shift to a new medical philosophy – ask for realistic performance
measures.

8) Develop prevention and outreach to high risk groups (immunizing children in
public schools).
9) Collaborate with other institutions and continually expand the consensus
(identify concerns, bring them forward for debate and resolution and make
tactical concessions to achieve the strategic goal24.
If we compare ourselves to China, we are doing far better than them. But this should
not lead us to complacency and instead we must re - double our efforts in the field of
rural health care as this will help us emerge economically stronger in the long run. The
rural ‘Cooperative Medical System’ is practically non-existent in 90% of China’s villages.
Where the CMS system still exists it is mostly voluntary, causing many villagers to not
participate. And corruption among local officials has further hurt the chances of reviving
a cooperative medical system. Approximately 41% of individuals who are referred to
hospitals for treatment do not go due to their inability to pay (World Bank. 1997).
Meanwhile, according to a 2002 Ministry of Health survey, one third of farmers in China
receive no medical treatment whatsoever. In 1998, the number of rural households
living below the poverty line was 44.3% higher than it otherwise would be due to
medical spending by the Government25.
I urge today’s FMCG companies, multinationals, service providers and marketers to not
just view rural marketing as a process of developing, pricing, promoting and distributing
rural – specific goods and services leading to exchange between urban and rural
markets, which satisfies consumer demand and also achieves organizational objectives
(profit)26, 27, but also in terms of development of the rural economy by contributing to
rural health and happiness by investing in rural health service missions, setting up rural
specialty hospitals and promoting health awareness with the help of NGO’s and village
‘panchayats’ thereby making rural life more livable. Each Indian must remember the
golden quote, “think not what the country can do for you but think what you can do for
your country”. A step in this direction will definitely contribute to the growth of BRAND
INDIA and its services and do India proud.
Bibliography:
1. R. Srinivasan - Services Marketing The Indian Context (2009).
2. Maps of India.com “India Business Directory”.
3. Azad India Foundation report.
4. Dr. T. Julka and D. Batra – Different Initiatives in Rural Area with Special
Reference to Jaipur (Proficient – An International Journal of Management
Vol 1, Issue 1, October 2009).
5. Sanal Kumar Velayudhan – “Rural Marketing: Targeting the Non – Urban
Consumer” (2007).
6. The report of the National Commission on Macroeconomics and Health
begins as follows: ‘There is a growing realization that the health of the
people of a nation significantly contributes to its economic growth’. Report

of the National Commission on Macroeconomics and Health, 2005,
Ministry of Health and Family Welfare, Government of India, New Delhi.
7. IBEF, Indian Healthcare Foundation, India Country Commercial Guide 2002.
8. Investment Commission of India website.
9. Pradeep Kashyap and Siddharth Raut “The Rural Marketing Book” (2009).
10. Government of India, National Health Accounts, India, 2001–02 (New Delhi:
Ministry of Health and Family Welfare, 2005
11. World Bank, India: Inclusive Growth and Service Delivery: Building on
India’s Success, Development Policy Review, Report no. 34580-IN
(Washington: World Bank, 2006).
12. Decentralization and public delivery of health care services in India by
Nirvikar Singh health affairs, 27, no. 4 (2008): 991-1001 doi:
10.1377/hlthaff.27.4.991 © 2008 by project hope.
13. S. Howes and R. Murgai, "Subsidies and Salaries: Issues in the Restructuring
of Government Expenditure in India," in A Sustainable Fiscal Policy for
India: An International Perspective, ed. P. Heller and M.G. Rao (New Delhi:
Oxford University Press, 2005
14. D. Dollar, G. Larossi, and T. Mengistae, "Investment Climate and Economic
Performance: Some Firm Level Evidence from India" (Paper presented at
the Third Annual Stanford Center for International Development
Conference on Indian Economic Reform, Stanford, California, 3–4 June
2002); and R. Wade, "The Market for Public Office: Why the Indian State Is
Not Better at Development," World Development 13, no. 4 (1985): 467–
497.
15. Transparency International, Corruption in India: An Empirical Study (New
Delhi: Transparency International India and ORG-MARG Research Private
Ltd., 2002
16. Planning Commission, Towards Faster and More Inclusive Growth: An
Approach to the Eleventh Five-Year Plan (New Delhi: Government of India,
14 June 2006.
17. (Ibid., 54).
18. State of Rural Health Care in India – “NRHM” report.
19. Arnab Mukherji – Demographic Change and the Public Health System in
India: Academic Perspective (IIMB Management Review Vol 21, No 3, Sept.
2009).
20. Ministry of Health and Family Welfare website.
21. Alan M. Zuckerman – Healthcare Strategic Planning (PHI – 2006).
22. Mankins M C and R. Steele (2005) – ‘Turning Great Strategy into Great
Performance’ Harvard Business Review 83 (7): 64-72.
23. Daniel B. McLaughlin and Julie M. Hays - Healthcare Operations
Management (P.H.I Learning Pvt. Ltd 2006).
24. John R. Griffith – Defining 21st Century Health care – Leadership in
Hospitals and Health care Systems (Health Administrative Press, Chicago).

25. Simone Brant, Michael Garris, Edward Okeke and Josh Rosenfeld, “Access
to Care in Rural China: A Policy Discussion” Paper prepared for the
International Economic Development Program - The Gerald R. Ford School
of Public Policy, University Of Michigan April, 2006.
26. Iyer S.R. “Marketing Strategies for Rural Indian Markets”.
27. Balram Dogra and K. Ghuman “Rural Marketing – Concepts and Practices”
(2008).
28. Google search engine.

The Role of Industry Associations as Service Providers:
A Study of the Services provided by Vapi Industries Association
Submitted by
Padmini Ravindran
Asst. Professor
SSR Institute Of Management & Research,
Silvassa, U.T. Dadra & Nagar Haveli.
Abstract:
When firms intentionally carry out collective action with others—as when they join
together in a industry association—they may achieve greater cost savings for each
member. According to Economic Analysts there are two types of cost savings that groups
of firms can achieve through intentional group action. Those related to transaction costs
and those related to adaptive costs. Business associations can achieve transaction costs
savings for their members by helping them deal most economically with short-term
changes in demand. The challenges are to increase capacity utilization, profitability, and
productivity for individual firms in the association. Savings related to adaptive costs
occur when groups of firms are helped to produce new products in the same or different
sectors, and helped to create higher value-added niches in an existing product range.
These situations require new skills, new capital investments, and/or new technology so
the firms can create new products, diffuse new technologies, and utilize their workers
more flexibly than before.
There are many industry associations all over India, but, very few of them perform to the
expectations of their members. It is very important that industry associations perform
optimally so that they can act as a catalyst spurring growth and productivity. Is there a
common ground between what industry associations feel their ideal role should be now
and into the future, and what member companies are looking for from their industry
associations? This paper uses data derived from a study of Vapi Industries Association
(VIA) to answer these questions. The satisfaction levels and expectations of members
were analyzed; the gaps and potential scope for enhancement in the association’s
efforts were identified. The study reveals that there is a general appreciation of the
services provided by VIA. While the industry association is largely effective, there are
certain areas where there is scope to better the service.
Key Words
Trade association
Industries association
Collective Efficiency
Cost savings
Transaction costs
Adaptive costs

Collective Strategy
Coordination
Raise Industry Standards
Small and medium enterprises
Develop strategic partnerships
Establish stakeholder dialogues
Benchmarking
Sharing resources
Tool Development
Sharing good practices
Conduct Research
Seminars/workgroups
"Managers' roundtables"
Common resource pool.
Peer Learning
INTRODUCTION
An industry trade group, also known as a trade association or Industries association, is
an organization founded and funded by businesses. One of the primary purposes of an
industries association is to influence key policy makers, regulators and legislators in a
direction favorable to the group's members. A united industry voice is far more
powerful than many fragmented and incomplete arguments. Industry associations serve
the interest of their members by promoting business growth. An industry association
participates in public relations activities such as advertising, education, political
donations, lobbying and publishing, but, its main focus is collaboration between
companies, and standardization. Associations may offer other services, such as,
promoting conferences, networking or charitable events or offering classes or
educational materials. Many associations are non-profit organizations governed by
bylaws and directed by officers who are also members. Industry associations could be
instrumental in keeping their members informed of key trends and opportunities that
could have a material impact on firm performance and supporting businesses. Many
industry associations have played a big role in bringing best practices, development of
industry standards and fostering strategic relations with stakeholders.
The key stakeholders of Industry Associations are:

1. Members
2. Governments
3. Consumer groups
4. Local communities
5. Labour
6. Academic/research experts
7. Other associations

THE NEED FOR INDUSTRY ASSOCIATIONS
Firms from the same industry located in clusters enjoy external economies of scale and
scope which are comparable to the internal economies of scale and scope that the large,
vertically integrated corporation provides for itself (e.g., as when it employs automated
assembly line technology). These firms in clusters gain external economies, or cost
savings, by sharing a skilled and specialized pool of labor, a specialized set of local
providers (e.g., from suppliers of components to business services), and technological
information and know-how which allows each firm to better solve its own distinct
production problems. These represent cost savings from the unplanned behavior of
firms that are co-located in the same place.
When these firms intentionally carry out collective action with others—as when they
join together in a business association—they may achieve even greater cost savings for
each member.
According to Economic Analysts there are two types of cost savings that groups of firms
can achieve through intentional group action. Those related to transaction costs and
those related to adaptive costs. Business associations can achieve transaction costs
savings for their members by helping them deal most economically with short-term
changes in demand. The challenges are to increase capacity utilization, profitability, and
productivity for individual firms in the association.
Savings related to adaptive costs occur when groups of firms are helped to produce new
products in the same or different sectors, and helped to create higher value-added
niches in an existing product range. These situations require new skills, new capital
investments, and/or new technology so the firms can create new products, diffuse new
technologies, and utilize their workers more flexibly than before.
Adaptive costs are more critical for firms today given the increased focus on innovation
as the key competitive factor in the "flexibly structured" global marketplace. But many
manufacturers focus solely on transaction costs, and issues such as increasing
productivity or cutting production costs. A firm or group of firms today, however, must
innovate and increase productivity and cost savings in order to remain competitive.
Firms must attend to both transaction and adaptive costs.
IDEAL ROLE OF INDUSTRY ASSOCIATIONS

(1) Coordination with the government and Local Bodies
Closer interaction with government agencies can lead to transaction cost savings
when business associations push government agencies to enhance government
performance, or to expand the provision of infrastructure for a locality. Business
associations in the U.S. and other advanced industrialized countries often lobby
governments to decrease tax burdens, ease regulations, and increase public sector

efficiency and the provision of infrastructure. The results strengthen the returns to
business owners.
(2) Market Coordination. The second critical function of business associations and
other intermediary organizations is to coordinate their members input and output
markets to achieve transaction cost savings. For example, input markets are
influenced when small firms engage in resource pooling.
 Group Power Plants which provide a committed source of power to members
 HR & Accounting Resources including consultants, trainers, placement services
 Conference Halls
 Group insurance for all employees of member organizations
Business associations in the U.S., such as Chicago's Tooling and Manufacturing

Association (TMA), help small firms share the cost of health insurance.
Business associations can collect and disseminate information on changing market

trends and/or help market their members' products. Business associations and other
intermediary organizations can also limit or redirect the productive capacity of the
group as a whole through market sharing and/or export promotion schemes in
downturns.
(3) Raise Industry Standards A third function involves upgrading skills and productive
capacity of member firms and other actors. These activities achieve adaptive cost
savings for groups of firms moving into new or improved product areas. This can be
achieved by using the following
 Set targets for industry advancement
 Benchmark member performance
 Share best practice examples
 Develop how-to guides
 Promote peer-based learning
 Partner with others for training (Government, CII, FICCI, NGOs)
(4) Research and Development. Collectively promoting research and development

activities among a group of firms will lead to adaptive cost savings. Here the firms are
helped to produce new products in the same or different sectors, and helped to create
higher value-added niches in an existing product range. These situations require new
skills, new capital investments, and/or new technology so the firms can create new
products, diffuse new technologies, and utilize their workers more flexibly than before.

(5) Inter-firm Coordination. A fifth function involves the intentional coordinating of
inter-firm relationships to smooth out conflicts and achieve shipping, production, and
other efficiencies. Xerox, Motorola, Digital jointly sponsored an association that has
standardized quality accreditation requirements and run regional training programs for
its suppliers. This improves the production quality and capacity of many supplier firms
while also coordinating supply chain relationships better. Whether the collaborative
effort is vertical—between firms in a supply chain—or horizontal—between peers
wanting to pool resources, the coordination of networks requires leadership to organize
and maintain relationships.
(6) Strategic Planning. A sixth function is strategic planning for an industry and/or inter-
linked businesses. This function is critical for allowing firms to identify critical challenges
in their environment. This service enables firms to anticipate future changes in
technology, plan labor force requirements, markets, and other conditions. Industry
associations can demonstrate leadership by
 Inviting experts and industry leaders to identify trends and issues

 Convene industry to discuss issues
 Coordinate with the government
There are many industry associations all over India, but, very few of them perform to
the expectations of their members. It is very important that industry associations
perform optimally so that they can act as a catalyst spurring growth and productivity.
The following figure presents a potential “sustainability roadmap” for industry

associations to consider when developing, or improving upon existing programming. It is
important to note that each industry association will be limited by the mandate given to
it by its members, but as an overall vision, this figure encapsulates best practice.

Consult with stakeholders / Identify issues & trends
C
o
n
t Define industry-wide sustainability principles/vision
i
n
u
o Ensure alignment across association Benchmarking
u Sharing resources
s
Tool Development
I Educate/coordinate for improved performance Sharing good practices
m Conduct Research
p Seminars/workgroups
r Peer Learning
o
Develop action plan and targets, track progress Mentoring between larger
v
e and smaller companies
m
e
n Develop strategic partnerships /
t
Establish stakeholder dialogues
Implement public communication programs /

Enhance accountability
Figure 1: Sustainability Roadmap - Industries Association
Vapi Industrial Estate, developed by Gujarat Industrial Development Corporation, had

come into existence in 1967-68. The Estate, which was developed in phases, now
spreads over 1140 hectares and houses over fifteen hundred industries, most of which
are SSI units.
Basically a "declared" chemical estate, about 70% of the industries are chemical and
chemical related such as Dyes & Dyes Intermediates, Pigments, Pesticides, Fine
Chemicals and Pharmaceuticals etc. The remaining 30% comprises of Paper Mills,
Packaging (both paper and plastic based), Engineering, Plastics, Textiles, Food
Processing, Paints, Printing Inks & many other products.
Vapi GIDC Estate is centrally located on the National Highway No.8 (Ahmedabad -
Mumbai) with the Union Territories of Daman and Dadra & Nagar Haveli on either side.

This factor has led to the growth of Vapi as an important hub for the road transport
industry.
SOME STATISTICS
PROXIMITY TO MAJOR CITIES

Mumbai.. 180 Kms
Valsad .. 30 Kms
Surat.. 125 Kms.
Ahmedabad .. 370 Kms.
AREA DISTRIBUTION
Total Area.. 1140 Hectres.
Industrial.. 580 Hectares
Commercial.. 30 Hectares
Housing.. 103 Hectares
Roads.. 175 Hectares
Gardens.. 2 Hectares
Green Space.. 185 Hectares
The Estate which, over the years, has emerged as a major cosmopolitan industrial
township is now equipped with all necessary amenities.
A number of Government Offices are located within GIDC and in Vapi Town such as
GIDC, GEB, Telephones, Sales Tax, PF, Central Excise, Labour Commissionerate, Labour
Welfare Office, ESIC, Income Tax, Boiler Inspectorate etc.
Being a major commercial centre, it caters to other industrial estates like Sarigam,
Umbergaon, Daman, Silvassa, Gundlav etc. which are located on the periphery of Vapi.
Several Social Organizations like Rotary, Lions Club, Jaycees, Inner-Wheel etc. are very
actively engaged in social and philanthropic activities within the Estate and surrounding
areas.
SELF GOVERNANCE
Vapi GIDC Estate is a Notified Area and all civic functions are performed by the Notified
Area Authority administered by the Notified Area Advisory Committee which has equal
representation from GIDC and the industries. The expenditures incurred by Notified
Area are met by the Notified Area Tax paid by the industries.
BACKGROUND FOR THE SELECTION OF THE TOPIC –
The Role of Industry Associations as Service Providers:

A Study of the Services provided by Vapi Industries Association
We have already noted that Vapi is an industrial area comprising of small and medium
enterprises (SME). Researchers have pointed out that SME produce wider benefits for
the region. Firstly, small firms provide a greater proportion of new jobs, and are more
flexible in labor deployment to meet rapid changes in demand. Secondly, since SMEs are
local, they offer more entrepreneurial opportunities and returns to local people
compared to multinational firms.
But many SMEs face resource and capacity constraints compared to much larger and
resource-rich corporations. Due to these SMEs by themselves may not be able to invest
in research and development, training, technology acquisition, and marketing.
Large firms are often at a competitive advantage because they have the scale and
resources for strategic planning, marketing, export promotion, research and
development and training. Business associations offer services in areas like resource
pooling, technology assessment and adoption, quality standards, workforce training,
business systems, marketing, and finance. SMEs can garner economies of scale and
scope by collaborating with each other through industry associations. Industry
associations therefore have an important role to play in the Vapi Industrial Area which is
a hub of SMEs.
The type and nature and quality of services provided by the industrial association will
have a major impact on the growth of industries in Vapi and indeed in the growth and
economic development of this region. It is in this context that this topic was selected for
study.
RESEARCH DESIGN
Objective
To study the role played by industry associations in general. Further to study if there is
scope for improvement in the services, and what are the expectations of member
companies from their industry associations in terms of services and additional
sustainability support?
The study was designed to accomplish this through the following activities:
 A study of the by laws and activities of VIA , FICCI, CII, Nasscom
 A study of research reports of the role of industry associations abroad and the
services provided by them.
 A survey of the respondent’s awareness of the services provided by VIA and a study
of satisfaction with the services through questionnaires.

 Personal interviews to identify the expectations of members with regard to the
services.
Primary data was collected through personnel interviews. All interviews were typically
45 minutes in length and conducted in person through a questionnaire. The universe
for this project was the members of VIA. Out of this universe of 1500 members, a
sample of 90 respondents was chosen. The sample was selected on a stratified random
sampling basis.87of the respondents were members and 3 of them were non
members.
The study involved the use of secondary data available from the websites of different
industry associations and some research reports available on the internet.
VAPI INDUSTRIES ASSOCIATION

Vapi Industries Association, popularly known as VIA, is the most vibrant organ of the
Industrial Township of Vapi. The Association took shape in 1971 with a handful of
progressive minded industrialists. The founder President of VIA is Shri Rajjubhai D.
Shroff, Chairman & Managing Director of M/s. United Phosphorus limited. The present
membership strength is around 1500 industrial units situated in Vapi GIDC Estate. VIA
has been instrumental in all round developmental activities that have gone into bringing
up the township to what it is today. VIA is an ISO 9001:2000 certified Industries
association, perhaps, first of its kind in India.
SERVICES PROVIDED BY VIA
VIA renders multiple services to its constituents in all strata of industrial activities and
performs a catalytic role in implementing various policies and programs of the
Government.
The Association has been representing the grievances of its members with the ultimate
objective of promoting and strengthening trade and commerce.
The major services provided by VIA are:
Common Effluent Treatment Plant
Vapi is a Chemical Estate with several pollution prone industries. VIA has succeeded in
keeping pollution under check with a series of measures including a Common Effluent
Treatment Plant, which is Asia’s largest such plant.
Centre of Excellence
A commendable initiative of VIA is the Centre of Excellence. It has been established
under the Industrial Infrastructure Development Scheme (IIDS) of the Ministry of
Commerce and Industry, and is one of the two centers in India. The state-of-the-art
facilities at COE include Analytical Lab, Pilot Plant, Information and Communication
Centre. The objective is to improve quality and aid technology adaptation by local
industries by providing common facilities which are cost effective.

Conducts two Post Diploma Courses The first is a Post Diploma Course in Industrial
Safety. This is a unique service provided by very few industry organizations. This facility
helps members to secure the availability of trained Safety Officers whose appointment
is a statutory requirement.
The second is a Government recognized Two Year Post Diploma Course in Environment
Technology and Management to cater to the chemical and paper industries in the area
which are prone to pollution.
Other services provided by VIA:
 Organizing Seminars, Symposiums, Business Meets, Human Resources Development

Programs etc., on a regular basis.
 The Association organizes an Industrial Exhibition once in every four years in which
industries and trade from across the country participate.
 Publishes Industrial Directory, once in four years synchronizing with the Industrial
exhibition
 set up a separate cell Vapi Emergency Control Center, to provide timely service to
the industries in the event of an emergency arising out of any accidental occurrence
or anything of its kind
 built up a Community Hall and two Conference Halls for the benefit of its members
as well as the general public
 Operates several in-door sports facilities including Cricket, Table Tennis, Badminton,
Carom, Chess and Lawn Tennis. It also conducts various open tournaments as an
annual feature of the Association.
 Operates an Ambulance Service. The service is provided round-the-clock at

concessional rate.
 Publishes a monthly newsletter for its members.
ANALYSESOF THE STUDY:
Awareness about the services of VIA for the 90 respondents

From the above graph, it can be seen that the members are aware of most of the
services provided by VIA.
The study findings indicate that for all the 15 services provided by VIA the awareness
levels of respondents ranged from 50% to 99%
The awareness levels for Auditorium services, ambulance and sports facilities are very
high as these are open to the public for use.
Awareness of pollution control service provided through common effluent treatment
also high due to the fact that the industries in Vapi are prone to pollution.
The awareness levels for the two PG courses, training facility, and employment
exchange programme is low. Only around 50% of the 90 respondents were aware of the
course.
No specific reason is given by the members regarding their lack of awareness. This is a
surprising finding and merits further study to find the reasons as these facilities were
introduced to serve the felt needs of the industry.
Satisfaction Level of Members for the Services of VIA:

It was rated on a scale of 1 to 5.
From the above chart, it can be interpreted that members are satisfied with most of the
services. The service with the highest awareness and satisfaction levels, amongst all is
pollution control.
The services with the least awareness and only moderate satisfaction are:
 Training Facility
 Act as moderator,
 Employment exchange

Preference for Events to be conducted by VIA:
From the above chart, it can be seen that 61 members prefer more Training Sessions
and Buyers-sellers meet.
Seminars and export promotion events come next in the order of preference with 52
members. Workshops, Exhibitions and conferences followed with 43, 45 and 47
members.
According to members, Industry specific Trade fairs would be more useful than general
Trade fairs and that is the reason they gave it least preference.
Newsletter could be improved with sector-wise reports, views of industry leaders, and
review of trends.

Majority of the members are of the view that all services are important for the
development of the Industrial Estate and Industry. This is reflected in the fact that all
services have got members’ support.
GAPS AND POTENTIAL OPPORTUNITIES
The gaps and potential opportunities identified on the basis of the study findings are:
Infrastructure –
 Public transport system is inadequate. People find it difficult and costly to
commute from one place to another. Traveling to Daman by a taxi or auto,
for example, involves changing vehicles at least three times. This leads to
reduced mobility of labour between Vapi, Daman Silvassa and the
neighboring villages. To overcome this problem companies make
arrangements for the transportation of their employees. Development of
public transport connecting Vapi, Silvassa and Daman would greatly
contribute to the competitive strength of industries in and around Vapi by
increasing the availability of labour and reducing the costs.
 Roads connecting Vapi to Silvassa and Daman are in poor condition and
require urgent attention as any improvement can reduce transportation time
and costs.
 Naming the Streets in Industrial Estate is a suggestion mooted by many
members as it is really difficult to locate the industries in the industrial
estate.
VIA can play an important role in representing these genuine needs and lobby
with the government agencies for quick action as these simple measures can
reduce transaction costs thereby increasing the competitive strength of
industries in and around Vapi
Online database
The need for an online database of the Vapi industries has emerged as an urgent need
during the study. At present VIA publishes an Industrial Directory, once in four years
synchronizing with the Industrial exhibition. VIA should develop an online supplier’s
directory of its members' products for use by potential customers. This database should
be user friendly, where anybody typing the name of an organization or product can get
all the relevant details.
VIA Newsletter could be improved with sector-wise reports, views of industry leaders,
and review of trends.
Resource Sharing
The study reveals that members prefer common resource pool which will lead to cost
savings. These services include:

 Arbitration & Legal Services,
 Group Captive Power Plant,
 Group Insurance for employees of member industries
 Common Material Storage Depot,
 Common Placement and Training Services,
 Common Accounting Services.
 Technical assistance service centers
 Provision of subsidized incubator for new products
Skills development
The survey also revealed that, Respondents desired closer interaction with CII and FICCI
in organizing training programmes for productivity enhancement and technology up
gradation.
 VIA could try organizing "managers' roundtables". These problem solving groups
consist of about a dozen manufacturers each. They meet regularly to talk about
ways to upgrade their businesses collectively and solve common concerns and to
conduct strategic planning for the industry to enhance member competitiveness.
This activity serves to enhance collaboration and soften competitive divisions
among manufacturers.
 Mentoring between larger and smaller companies could also be tried to share
best practices and for Benchmarking in order to improve the profitability of
SMEs.
 Although worker training is important for some manufacturers, the issue has not
received adequate importance. VIA can take the initiative in partnering with the
Industrial Training Institutes for training workers in different sectors.
 It is suggested that VIA could compile best practices for cross-pollination
between industry sectors. This can stimulate the adoption of best practices with
a view to scaling growth and performance across a number of industry groups.
 VIA could encourage member participation through the use of awards and
recognition programs.
Business-community college link

This is one area which VIA can explore closer links with academic institutes in Vapi and
the South Gujarat area. This has been achieved in different parts of the world by the
following:
 Tie up with local colleges for financial planning and management courses for mid
level managers.

 provide scholarships to students/faculty at the colleges for research projects on
topics concerning SMEs
 Collaborate with local collages in curriculum development relevant to local
industries.
 support educational activities through active involvement of senior mangers,
providing inputs about the current industrial climate and the problems faced by
industry
Marketing and promotional activities
The marketing and promotional activities conducted by VIA are often relatively
passive in the sense that they promote products generally and do not help individual
plants with their marketing efforts nor actively help them coordinate output markets
and production capacity.
A more proactive marketing approach in locating new export markets overseas can
be tried. VIA can assist member firms to cooperatively market their products and
increase government contracting to members. These promotion and marketing
activities foster increased collaboration among all sectors of the industry
Build External Positioning

 VIA should consider holding Industry specific Trade fairs or Exhibition every year
instead of the present once in four years. This will enable better Industry specific
Business-to-Business and Buyer-Seller meets could be organized frequently.
 VIA can have “Made in Vapi” Trade Fair to promote industries of Vapi. “Made in
Vapi” stalls can also be booked at National or International trade fairs by VIA.
 Promotion of the image of Vapi as an industrial hub is an urgent necessity. The
perception of Vapi as a highly polluted place is wide spread on account of
adverse media coverage. Due to this, industries in Vapi have been unable to
attract good managerial talent.
 The beautification of Vapi will also improve its image.
Sustainable Growth
VIA should inform members of developments in civil society, government and law, bring
ideas on how to address issues to members, convene the industry to discuss
sustainability topics, encourage members to take up sustainability initiatives. The
industry association is also responsible to articulate the sustainability value proposition
and to promote accountability of the industry to society. To this end, the industry
association can facilitate stakeholder engagement at an industry level to secure society
and stakeholder input on key sustainability issues.
While VIA has the biggest Effluent Treatment Plant, it could also look at measures to:

 Improve Air Quality,
 Waste Reduction & Disposal,
 Disposal of Toxic Substances
 Water & Soil Conservation
 And assess environmental risks and liabilities.
Conclusion
This review of current and desired practice demonstrates that overall members are
aware of the activities of VIA. Vapi Industries association is one of the better performing
Industry Associations. It has produced significant local economic development benefits
for firms in that state.
In our Survey, we found out that there is a general appreciation of the services provided
by VIA and the level of satisfaction of members is very high. Association office bearers
and member companies pointed to a number of successes, including the effluent
treatment plant and the Centre for Excellence While the industry association is largely
effective there are certain areas where there is scope to better the service.
A number of industry associations have developed best practice programs that are
worthy of replication. Through collective action the industry can work together to find
solutions to have the best practices in an area. It is the job of the industry association to
identify such co-operative opportunities and form working groups of interested
members to help the industry move forward on key issues.
BIBLIOGRAPHY
1. Astley and Fombrun, "Collective Strategy;"

2. McCormick, "A Life Cycle Model."
3. Nadvi and Schmitz, "Industrial Clusters;"
4. Polenske, "Competition, Collaboration, and Cooperation."
5. Pyke, Small Firms;
6. Schmitz, "Collective Efficiency;"
7. Semlinger, "Economic Development in Baden-Wuerttemberg."
8. Storper, "Regional Technology Coalitions."
9. NIST, "Solutions for Manufacturers;" Website, "Georgia Manufacturing Extension
Alliance and EDI Homepage," http://www.edi.gatech.edu
10. Website, "Alabama Technology Network Homepage” http://www.atn.org.

Management Practices in Service Industry - Education Services
Submitted by
Prof.Popat N.Mohite
Head-General Management /Research Section
e-mail pmohite.sibaca@sinhgad.edu / pnmohite@gmail.com
STES-SIBACA, Lonavala
Dr.Parag C. Kalkar
Director
e-mail- director_sibaca@sinhgad.edu
Prof.Manoj Meghrajani
Dy.Director
e-mail- manoj0708@yahoo.co.in
Abstract:
In the changing context of management education, Indian business schools are reacting
in a way that is more likely to cause injury to the wider interest of society, business, and
students. It is argued that they will have to be proactive and develop strategies to deliver
educational and research services that are relevant, in demand, and reflective of the best
scholarship. It is also argued that one of the ways to do that is to reexamine the
relationship between business and business schools. Then it is further argued that both
the content and delivery of management knowledge designed to develop management
skills have to undergo radical change. When the business is moving away from the
disintegrated model of doing business into integrated model, how is it that business
schools still offer educational and research services in a disintegrated model? This
question is addressed and suggested for a change towards integration of knowledge
focusing on the processes to better serve the “customer” during the era of customer
orientation.
Keywords: Management Education, Management Curriculum Design, Governance of

Business Schools, Management Research and Teaching

Introduction:
The turn of twentieth century witnessed two important events in the world: one is the
collapse of Russia and Communism and two is the rise and spread of market economy.
Both these events have led to liberalization, globalization, and privatization through out
the world. These forces along with advances in information technology in turn have led
to a series of rearrangements in the world of business and management education.
Indian management education has also experienced a sea-change in the process. Much
of this change in India has occurred from 1995. Iswar Dayal (2002), AICTE Committee
(2003) and S L Rao (2004) have critically examined the Indian management education
with a view to develop policy and action plan. They have noticed among other things
that Indian management education is suffering from many limitations and is at great
risk. Indian Management Education therefore must change to ensure that business
schools become more proactive in developing strategies to deliver their educational and
research services around what is relevant, in demand, and reflective of the best
scholarship. It is only this way that business schools can be linked to business to
strengthen management practice without sacrificing scholarship. The practice of
management uninformed by the best of scholarship may have the danger of creating
demand for those skills the supply of which would reduce the business schools to
training institutes for the business. This perhaps may enhance demand and relevancy of
management education, but such an education may be at the cost of best scholarship
and practice. This paper examines the changing context of management education in
India to set the stage for discussing the main issues in doctoral, post graduate, and
executive educational services. How Indian business schools should reinvent themselves
while addressing these issues, and how they should associate themselves with business
in the process are discussed. While discussing these, it is argued that both content and
delivery of management knowledge designed to develop management skills have to
undergo radical change. When the business is moving away from the disintegrated
model of doing business into integrated model, how is it that business schools still offer
educational and research services in a disintegrated model? This question is addressed
and suggested for a change towards integration of knowledge focusing on the processes
to better serve the “customer” during the era of customer orientation. The importance
of this aspect from the view point of relevancy of management education is discussed.
The governance of business schools is seen to be central to affect changes in
management education in India.
The Changing Context:
Management education is shaped by such factors as the needs and preferences of

consumers of business education (prospective students and in-service executives); the
knowledge, and skills business expect graduates to possess (curriculum); the choice of
providers available to those interested in pursuing management degrees (business
schools); and the resources that business schools need to serve their customers (faculty,

financial, and physical, resources). These are the factors that make up the context of
Indian management education which is quite different from what it was in the past.
During 1950-1980, about 118 and during the 1985-2000 periods, 673 new management
institutions have come up. The number of students who pursue graduate and post-
graduate education in management has gone up significantly. This is in line with the
world-wide trend of management education. In China in the 1990s, the government
created and accredited 62 business schools which have produced almost 15000 post-
graduates in management. In the United Kingdom, enrolment in post-graduate
programmes in management has increased more than 18 percent between 1994 and
1999. In Germany, the number of post-graduate students in management has increased
from 500 in 1985 to 3000 in 2001. There has been huge demand for management
education and as a result newly designed programmes have emerged to respond to this
huge demand. The range of options and therefore the choice available to those who
wish to pursue management education have also broadened. The industry is lo longer
monolithic. Indian management education is delivered in a segmented market place and
in multiple formats.
The most important of all factors that shape management education is consumers of
management education. They are increasingly heterogeneous now than before in their
needs and preferences. In a way they reflect their personal life situations, resources and
the needs of the business. At the graduate level, there has been a sharp decline in the
demand for commerce education and this can partly be explained by increasing
consumer preference for well designed and diversified graduate management
programmes. The market value of these programmes however depends on the brand
value of schools offering these programmes and the skill-sets the students possess.
The cost-benefit aspect of management education has been an issue now than before
with rising costs and increasing dependence on study loans. In fact most management
students are stuck up with debt even before they complete their education. Given this,
students prefer those business schools that offer good placements so that they can
redeem their study loans in much shorter time period. But with increase in the number
of business schools and students competing for few jobs, there has been uncertainty
about placements. This is particularly true in case of those who come from business
schools that do not command brand value in the market place. The knowledge and skills
that business expects management graduates and post graduates to possess are also
the factors that shape management education. In fact these are the factors that are
reflected in the business school curriculum. Influenced by business expectations, and
accreditation process, business schools have moved away from imparting only theory
devoid of practice. Today, business schools are of three categories: those impart only
theory and university business schools fall in this category; those impart practice with
very less of theory and most business schools in the private sector fall in this category;
and those that maintain a proper blend between theory and practice and business
schools that command high brand value fall in this category. But all the above categories
of business schools have realized the importance of adapting to globalization.

There are various approaches that business schools in India have taken to train students
for global markets and operations. But it is believed in the business that business school
curricula and faculties are lagging behind the scale of true globalization. The leaders
from business hardly have time to play a role in the design and delivery of management
programmes, the quality of contributions from people in the industry is questioned. As a
matter of fact, this has implication for the way that faculty is organized for the delivery
of management education.
In the world of business, interpersonal relationship, leadership and communication
skills are highly important. But unfortunately these are though reflected in business
school curricula least effectively offered. The relevance of business curricula can not be
separated from pedagogy. Preparations for the fast changing business can not be made
from textbooks and cases alone, many of which are outdated. Students must learn to
use technology through action-learning and faculty must be equipped to guide them in
such learning.
This is the age of convergence of technologies. The convergence of technologies has
blurred the lines among business functions, industries, and markets. As a result many
integrative courses such as supply chain management, e-business, consulting,
performance management, and entrepreneurship have become important. But they are
not adequately reflected in the organization of our management curriculum. Business
schools in India have responded to this problem by designing management programmes
that give opportunities to students to specialize in more than one business function. But
this is not sufficient. There is need to provide for more integrative courses.
The resources that management institutes need to serve the customers. The resources
include most importantly faculty, financial, infrastructural and technological resources.
The university management departments in India by and large are starved of all these
categories of resources. Exceptions may be those that are centrally funded. Indian
Institutes of Management and other reputed management institutes in the country are
much better off in terms of these resources. The other autonomous management
institutes approved by AICTE are badly affected firstly by lack of quality faculty
resources, financial and other physical resources even to support post graduate
programmes leave alone other executive and doctoral programmes.
Doctoral Education and Research Orientation:
Business Schools with research orientation can deliver business teaching more
effectively than others who do not have such orientation. The role of research is critical
for business school faculty to promote scholarship and protect the market value. The
scholarship role of business faculty is therefore an essential and irreplaceable function
because societies and markets turn to business schools for knowledge advances that
reflect the best of scholarship to improve the practice. But the kind of scholarship that
business schools promote is questioned. The problem with the scholarship is its
scientific method that is used to produce knowledge. The method is the same that is
used in other natural and physical sciences. But management is fundamentally a social
science and is related to social phenomena which can not be studied by the same
method of natural and physical sciences.

The concept of science in natural and physical sciences is different from the concept of
science in social sciences. Sumantra Ghoshal (2005) has argued that research in the
field of management has followed the same method in natural and physical sciences
and celebrated as “scientific” research. But the scholarship resulting from such research
produced theories that destroy good management practices. He supports the concept of
scholarship Ernest Boyer (1990) advocated for business schools. There are four kinds of
scholarship that business schools should promote to deliver effective business teaching.
They are: scholarship of discovery (research); scholarship of integration (synthesis);
scholarship of practice (application); and scholarship of pedagogy (teaching). Business
schools in the beginning have shown equal respect to the practitioners of all four kinds
of scholarship. But from the middle of the 20th century, they have lost this taste for
pluralism and emphasized the scholarship of discovery to the study of business
management and ended up eliminating all other forms of scholarship from the world of
business schools. Even the scholarship of discovery is not appreciated due to its
scientific method inappropriate for the study of social phenomena. Those with primary
interests in synthesis, application or pedagogy have been sidelined. This has led to
considerable theory-practice gap in business management. This has implication for
designing doctoral programmes and organizing faculty in business schools.
The research orientation of business faculty evolves out of its involvement in the
doctoral programmes and research projects. Unfortunately, very few students show
interest in these programmes. The result is there is an acute shortage of doctoral
students. Many factors have led to the acute shortage of doctoral students in India. The
chief among them is the opportunity cost associated with it. In India the median
registration time to earn a doctoral degree in business is four years (rough estimate).
The boom in the economy due to LPG that means liberalization, globalization, and
privatization has attracted many young post graduates to opt for the lucrative jobs in
business than going for doctoral programmes. The registration therefore of students for
doctoral programmes even in the best of business schools has come down drastically.
Another contributing factor is the failure of providers of business education to give
academic leadership in creating proper environment and attract students for doctoral
programmes. Also most doctoral programmes have failed to improve the practice of
business, as such they have failed to get support from business. As a result those even
inclined for academics have therefore been discouraged from entering the Programme.
At the same time the demand for doctoral faculty is on the rise as the number of
business schools are increasing. The market for doctoral faculty in India as a result has
become competitive and pushed up faculty salaries. But the increases in salaries are not
uniform. In the private sector, business faculty is compensated at AICTE/UGC
recommended scales with state dearness allowances and incentives or central dearness
allowances and incentives, or consolidated amounts that in some cases are quite high.
In universities and centrally funded institutes in the public sector, faculty salaries,
however, being fixed once in ten years, have become un-remunerative. There is a
tendency for faculty members from the best of business schools in the public sector to
shift to business schools in the private sector.

Iswar Dayal (2002), AICTE Committee (2003) and S L Rao (2004) noted the absence of
research orientation among business school faculty in India. Research orientation is
considered to be very critical for business school faculty and lack of it is seen to be
affecting both post graduate and doctoral programmes in the country. The lack of
research orientation among business school faculty can be explained by poor
registrations for doctoral programmes, extensive engagement of faculty in consultancy
work, management development programmes, and teaching. The business school
faculty is further loaded with academic administration along with these activities and
left with no time for research and development. They also have an incentive to be
engaged in consultancy work than in research. The research and development activities
need an altogether different kind of organization and management from what it is today
in most of the business schools. All these have contributed to the acute shortage of
doctoral faculty for business schools. The problem is further compounded by sudden
increase in the number of business schools due to extensive demand for managers in
business under the influence of liberalization, privatization, and globalization. The
demand for doctoral faculty is also up due to accreditation processes and the
preference of business schools to have such faculty to ensure research productivity and
intellectual vibrancy of existing faculty. Due to the inadequate supply of doctoral faculty,
business schools use their services beyond retirement age.
The need to reorient doctoral management education in the country needs no
emphasis. The issues that need careful attention are: orientation; strategies for sourcing
doctoral faculty; relevance of curricula; rewards and promotion; accreditation
standards; and leveraging technology. Doctoral education at present in the country
requires prospective students to select their fields of specialization at the entry point.
The result is that doctoral students are trained in narrowly defined research agenda
giving them little exposure to research problems and methods outside their disciplines.
There are two strategies adapted at present to doctoral education. In some institutes,
doctoral programme is structured and the prospective doctoral students will have to go
through course work in their respective fields of specialization. The course work consists
of advanced courses in the field and also the relevant methods of research. Then they
will be required to work on a research problem. In most of the universities on the other
hand, the strategy is different in the sense that prospective doctoral students will have
to sit for pre-doctoral test, and then they will have to work under the guidance of a
faculty member. The hiring of these doctoral students adheres strictly to traditional
departmental tracks such as marketing, finance, manufacturing and human resource
management.
There are two aspects that deserve merit in reorganizing doctoral management
education in the country. One is related to organizing the programme and the other
related to the nature of research agenda for the programme. A well structured course
work is required to make the student ready for choosing research agenda for a doctoral
programme. But the course work, unlike at present offered in some institutes, should be
interdisciplinary and rigorous. Students should be rigorously trained in the advanced
topics in management in general and in the field of specialization in particular. Further
they should be trained rigorously in methods as well as methodology for management

research. The second aspect is related to research agenda. The research agenda should
reflect the needs of business and other types of scholarship that Ernest L Boyer (1990)
was advocating for business schools. The evolving issues of marketplace require
research frameworks that can span functional and business boundaries. This is
absolutely essential in view of the shifts taking place in the marketplace. Unless this is
done and instituted in the doctoral programme, training for researchers will become
less relevant to the knowledge advances the marketplace needs and to the teaching and
learning needs within business schools.
The above reorganization of doctoral management education is useful to serve the
needs of the business schools and business in the long run. But at present there is an
acute shortage of doctoral faculty. There must be a strategy in place for business
schools to augment their doctoral faculty to offer the educational programmes more
effectively. One way to augment doctoral faculty is to source doctoral students from
other kindred disciplines such as psychology, operations research, political science,
sociology, mathematics, and statistics as we did earlier in 1960s and 1970s. These
scholars have potential to bring alternative perspectives to bear on management
education and research. Another way is to bring doctoral students from other fields who
have accumulated years of business experience and can serve as doctoral qualified
clinical professors. There are some post graduate students in management who after
serving the industry for sometime would like to join the business school to make a
correction in their mid career. Such people should be encouraged to do their
executive/regular doctoral programmes before they join to business school as a faculty.
Business schools should organize such programmes to enable such middle level
managers to do their doctoral programmes to join the business schools. There are some
post graduates who having worked for the industry for a substantial period have shown
scholarship by way of publications and lectures in academic forums. Though they do not
have doctoral qualification, may be invited to business schools by virtue of their long
standing experience in business and scholarship demonstrated. It must be noted that
long standing experience in the industry is necessary but not sufficient. But she must
have demonstrated scholarship by way of publications and lectures in academic forums.
There must be at the same time another strategy to support continued research
orientation and vibrant scholarship of business faculty. It is believed that reduced
teaching loads would enhance faculty research contributions. But experience with this
strategy suggests otherwise. As a matter of fact such a strategy has produced more
counter productive behaviour on the part of the business faculty. Reduced teaching
loads are essential for the business faculty to produce research output. But this does not
happen just like that unless research output is linked to performance management and
rewards and certain internal arrangements are made to promote research. One such
arrangement is to expose the faculty to best research practices and institutionalizing
research activity. Business schools do well to promote research orientation if they
facilitate collaboration and mobility across institutions. It is also essential for the
business faculty to have freedom to decide the work load and mix of the work load each
year. It is here institutional planning and control systems can play an effective role in
maintaining the balance among teaching, research, training, and consultancy works of

the faculty. The research orientation among business faculty also depends on the very
concept of research. If it is confined merely to the scholarship of discovery, there will be
constrained research orientation.
One problem that business schools in India face is about how to attract students into
doctoral programmes and sustain their interest in pursuing academic rather than
industry track. As earlier noted, one way to do that is to create an excellent academic
environment to make it inviting for academically inclined students to join the doctoral
programmes. Another way to attract students is to make the curriculum more relevant.
To do that, doctoral programmes should respond to the increasing convergence of
industries, functions and key issues of the business. Also should encourage the other
types of scholarships that Ernest Boyer was talking about. Financially, academic careers
in business schools have become attractive but not uniform across all business schools.
There are many business schools that do not even offer UGC/AICTE scales. As a matter
of fact, they offer very low consolidated amounts. Unless business schools redesign their
reward policies, attractiveness of doctoral programmes for potential business faculty
may not enhance. At the same time there should also be in place a well designed and
strategic performance linked promotion policy to make the academic environment more
attractive.
The accreditation processes can also play a role in creating academic environment
conducive for research orientation. One way to do that is to require the business
schools to maintain a certain percentage of doctoral qualified business faculties to
protect the intellectual integrity of management education. Similarly to bring business
orientation to business schools, the accreditation standards should require business
schools to maintain a certain percentage of business faculties who have spent
considerable time in industry and demonstrated scholarship irrespective of their
doctoral qualification. That means accreditation processes should encourage business
faculty in both academic and professional tracks. This way business schools would be
able to pursue the kinds of scholarships that Ernest Boyer was advocating.
The use of technology to leverage faculty resources to facilitate and enhance the
quality of doctoral programmes in the country is also important at this point in time.
Technology can be used to expose the doctoral students to elite research faculty.
Examples include joint doctoral seminars delivered virtually across multiple universities
and virtual engagement of research faculty in the adjudication committees. This calls for
alliances across university faculties. Joint research programmes can also be offered by
multiple universities by forging alliances by them.
Post-Graduate Education and Industry Relevance:
Although there has been a good number of institutes and universities offering post
graduate programmes in management, many a time these programmes are questioned
in terms of their industry-relevance and scholarship. The market assessment of these
programmes is also in terms of these two aspects. Accordingly, top-ranking business
schools that reflect these two in their programmes command value in the market place.
IIMs, some institutes in the private sector, and Faculty of Management Studies of Delhi
University belong to this category. The other institutes/universities offering post

graduate programmes in management are rather weak, if not uniformly, on both the
aspects. Industry-relevance or rigor alone is necessary but not sufficient. Industry-
relevance without rigor is meaningless. Both are needed for they ensure research that
meets both theoretical and applied standards. The goal therefore for business schools is
to adapt to the changing global market place with rigorous scholarship. This adaptation
informs what is taught in the programme and links to the current and changing business
practices and issues.
The knowledge and skills offered through post graduate programmes are disciplined in
watertight disciplines such as marketing, finance, production, and human resource
management. These served the purpose of the business for a long time in the past. But
today, the needs of the business have changed. The convergence of technologies, as
earlier noted, has blurred the lines between markets, industries and functions. As such,
integrated knowledge and skills are more relevant today. Such integrated knowledge
and skills should not be enterprise centric but extended to enable the prospective
business leaders to see issues in the extended enterprise management framework.
These have implications for the knowledge and skills that business schools to offer in
their post graduate programmes. For instance e-business, management control systems,
supply chain management, activity-based management and entrepreneurship are some
such courses that reflect the integrated needs of the industry. The focus should
therefore be on the process rather than on functions to serve the customer better in the
present era of customer orientation.
The relevance of knowledge and skills can not be viewed separately from the
pedagogy used to offer them. As such there is need to adapt to new pedagogy to offer
these integrated knowledge and skills. To be effective, the new knowledge and skills can
be offered through action learning and technology based pedagogy. These in turn have
implications for teaching and evaluation. The traditional methods are redundant and
should give way to such methods as field-based projects, cases, small research projects,
workshops, and presentations. There is need for the faculty to reorient themselves in
the light of these changes in knowledge, skills, and pedagogy. There is one argument
often put forward against the use of international “cases” is that they do not reflect the
local realities. But in a global context, even the local context is changing. Abad Ahmed
and DP Chopra (2004) recently interviewed top managers of high performance
companies that include Infosys, Hero Honda, Hindustan Lever, Wipro, Sundaram
Fasteners, Tata and Sons, Reliance, L&T, Ranbaxy, Titan, and Dr Reddy’s Labs to find out
what makes them competitive in the market place for over ten years or so. They found
that Indian achievers are not different from others outside the country. And they
suggest that Indian management academics can draw support from the universality of
lessons and need no longer feel guilty of teaching foreign case studies. This however is
not to undermine the importance of local case studies. In terms of goals and strategies,
Indian companies may not differ from multinationals. But in terms of structures,
processes, and practices they may differ. Therefore local case studies may highlight
these differences to implement the same strategies that both Indian and multinational
companies pursue to achieve the same objectives.

In the extended enterprise management format, there are some basic skills that are
essential for success. They are interpersonal relational, leadership, and communication,
and negotiation skills. These skills are not adequately emphasized in the present post
graduate programmes in management. But these are the skills that are most important
today. Also business education is inadequate today in preparing the prospective
business leaders to manage value conflicts and dilemmas they face in their business
careers. Business ethics offered as a stand-alone course for this purpose is again found
to be inadequate. The attempt to integrate with basic functions of management has met
with limited success. There is need, therefore, to integrate business ethics with issues in
the extended enterprise management.
The post graduate programme so designed will have some implications for the
organization of faculty and admission of students in to the programme. The faculty
needs to be organized around two tracks namely academic and professional. Those who
come from business with the scholarship of application are drawn into the professional
track and those who come with doctoral qualifications with the scholarship of discovery,
pedagogy and synthesis are drawn in to the academic track. It is only such diversified
faculty that can offer the new knowledge and skills needed by the business. Their
continued interaction can also result in the generation of integrated knowledge and
skills. It is not possible for business schools to be completely self sufficient in terms of
highly diversified faculty without straining scarce financial resources. It is here that
academic alliances will help business schools to achieve further diversification in faculty
and at the same time to stretch the scarce financial resources. The admission of
students should also undergo a change. The post graduate programme so designed will
call for a certain class of students who alone can cope up with the programme. As such,
the admission of such class of students is necessary to ensure the programme is
participative and interactive which are essential to learn the new knowledge and skills
that business needs. It is here that academic strategy comes in clash with financial
strategy and most management institutes in the private sector maintain the supremacy
of financial strategy over academic strategy and the academic programme as a result is
diluted.
Executive Education and Competitive Environment

The knowledge and skills managers in business organizations have acquired during the
pre-liberalization period have now become obsolete with substantial changes in the
business environment and attendant changes in the way business organizations are
reorganized and managed today. Executive educational services are designed to update
the knowledge and skills of working executives in the business to make them more
competitive. These are either custom made or open ended. The top ranking business
schools in India have taken up executive education in a big way. They face stiff
competition from others such as consulting firms who also offer these services. Business
schools prefer to operate in this segment for a variety of reasons. One of the metrics for
accreditation processes is whether they have given any support to business. Not only
this, business schools see an opportunity in this to transfer the knowledge and skills

distilled out of their research efforts to the industry. Also it is to maintain the industry-
business school relationship for their mutual advantage. The leads for consultancy
works usually come from this interface.
There is another reason for offering this non-degree educational service to business.
Today they need to generate extra resources to contribute to the corpus money. This is
how they try to address the escalating costs of academic faculty and facilities. Also in
the competitive marketplace today, they need to develop distinctive competencies that
reflect their thrust areas. This is usually done by offering in the marketplace distinctive
executive educational services. A spin-off from this service is that they get feedback
from the industry and use that in developing pre-service educational programmes,
research and consultancy projects. Another spin-off is that faculty can bring these
experiences to bear on class room discussions in the post graduate and doctoral
programmes.
The most important of all the reasons is revenue generation. Although many business
schools in India have not been able to rise more than meager financial resources out of
executive education, the top ranking business schools have been making huge amounts
of money. But it must be remembered that increasing dependence of business schools
on revenues from executive education is not without risks. This segment of revenue is
more likely to be affected by cyclical changes in business and economy. Moreover as the
number of large scale industries is decreasing and the number of small and medium
enterprises is increasing, the number of enrollees for this kind of education will
decrease as these small and medium enterprises are less likely to invest in executive
education. Industry is also questioning the worth of these premium-priced executive
educational services in terms of improved managerial performance or higher retention.
There is a feeling in the business that these would provide opportunities for taking relief
from work pressure and networking. But there is a silver-lining in this. Managers usually
utilize these networks to develop partnerships and add value to their respective
companies.
Indian Business Schools, nevertheless, must appreciate the fact that business is
interested in these services provided they are designed to serve their need to be more
competitive and add value to them. They are more wise today and reluctant to spend on
spent-programmes that do not add value in some way or other. This suggests that while
designing these educational services, it is absolutely essential to keep in view the needs
of the business and the best of scholarship for these two ensure the application of
scholarship to the problems of industry. Business schools must also appreciate the fact
that it is increasingly difficult for the business to spare their managers for long-duration.
Business Schools should therefore work out alternative ways to address their needs.
One way to do that is by structuring proper e-learning modules before and after the
programme to reduce its duration. The executives come prepared that will enrich the
discussions without much waste of time. Another way to reduce the disturbance is to
conduct these sessions at their door-step.
There is an interesting trend today in business. The business is getting massed up with
young executives without formal education in management. This has an implication for
business schools to design appropriate educational services to enable them to obtain

formal education in management without much of disturbance to their career. One way
to do that is by offering these services by e-mode followed by contact sessions. Many
business schools in India have adopted some of these formats to address the needs of
business. The business is also expecting the business schools to rationalize the pricing of
these services for that would enable them to obtain optimal benefits for their
executives with limited resources they can afford for this purpose.
Discussion:
In the changing context in India, business schools are responding perhaps in a reactive
way to the demands of business and society. The reaction needs careful scrutiny of the
issues that underscore it. One issue is related to the emerging relationship between
business schools and business. For the sake of relevancy, increasingly business schools
are revising their curricula as per the needs of the industry, and recruiting more people
from the industry. Although relevancy is the name of the game behind the emerging
relationship, one can see the politics and economics of education. The politics is that
business schools are sucked into industry to serve as their training centers. The
economics is that the cost of training is shifted to business schools in return for
placement of the students. In such an emerging partnership, business schools cease to
be higher educational institutions sub serving the interests of the business and
producing students who are not future-ready. This leads to the question for discussion
in this section: How to reinvent the business schools in India. There was a time when it
was believed that work is work and business schools are business schools. The present
situation is a result of this criticism based on the assumption that business schools are
the problem and business is the solution. Both are extreme positions in the business
school-business relationship. As a matter of fact, business of business is education for
business needs people who are educated to do today’s and tomorrow’s jobs, and the
business of business education is business for it is supposed to improve the business
practice and that way to protect the value of business. It is precisely for this reason that
society and business look to business schools. To integrate business school and
business, business schools have to become far more flexible in defining what constitutes
education, who can provide it and how to assess it. Also both private and public will
have to provide substantial resources in the form of money and mentors and to trust
young graduates with responsible work in the context that is changing very fast under
the influence of technology. This calls for important changes in relationships among
business schools, employers and students.
Most business schools at present offer educational programmes that emphasize analysis
in water-tight knowledge compartments such as marketing, finance, systems, human
resource management, organizational behaviour. But today the sophisticated business
manage the business process rather than focusing on individual functions. It is realized
that to establish a true customer orientation, functional boundaries must be abandoned
to give an integrated approach. For example there is ample scope to present
management accounting process integrated with such other disciplines as
organizational behaviour, ethics, strategy, supply chain management, wider social
aspects . This calls for reorientation of knowledge that is to be integrated, and pedagogy

that has to be entirely different. It is precisely towards this end that the University of
Michigan has introduced Multidisciplinary Action Projects (MAPs) in their management
programme. In MAP, the faculty from four required courses (people, information,
measurement, and operations) team teaches with a focus on how to read, manage, and
use knowledge of each subject area to achieve world-class operational effectiveness:
quality, cost, delivery, cycle time, and innovation. After the introduction of basic
concepts, experts from companies like Xerox and Motorola are invited to provide an
intensive one week executive education course to students and faculty on process
improvement. Teams of students guided by faculty work full time on a project to
analyze and improve a specific process in a sponsoring company and then make final
presentations and recommendations to the faculty and management. In other words,
they observe and participate in the actual doing of what they have been learning. These
initiatives will facilitate the faculty to do research meaningful to business, and business
become active in helping faculty and assisting with data requirements. This is one of the
ways that the issue of relevancy can be addressed. Nonetheless, these should not
undermine the importance of basic analytical concepts and tools that aid in decision
making. This clearly suggests that by improving the pedagogy and research, faculty and
student relevancy can be enhanced. Henry Mintzberg (2004) is in support of this
argument when he says: “With in their contexts, managers have to put things
together in the form of coherent visions, unified organizations, integrated systems, and
so forth. That is what management makes it so difficult and so interesting. It is not that
managers do not need analysis rather it is
that they need it as an input to synthesis and that is the hard part. Teaching analysis
devoid of synthesis thus reduces management to a skeleton of itself. This is equivalent
to considering human body as a collection of bones, nothing holds it together, no
sinews, or muscle or no flesh or blood, no spirit or soul.”
Most business schools also at present offer educational programmes that emphasize
positivism. The dominant philosophy of positivism that underlies management
education asserts that science is the best way of obtaining the truth, and science
produces scientific knowledge that is value-free. This is how sciences have obtained
their respectability. Business Schools have jumped into the bandwagon of positivism in
the desire to attain academic respectability at par with other disciplines. But
management is fundamentally a social science, and multi-perspectival in nature. This is
not to negate the importance of science in the development of management education
but to emphasize at the same time the multi-perspectival nature of management
education. The paradigm shift in the nature of management knowledge should be
reflected both in pedagogy and research. This is bound to influence the content and
delivery aspects of management education. When this happens, the student is provided
with enhanced facility to think more creatively in the changing context of business. The
multi-perspectival knowledge of management would enable the student to focus not
only on analysis but also on implementation and action. In the process, the associated
skills such as political, interpersonal, teamwork, and negotiation skills will also be
developed.

The business schools should teach what business should be doing than what business
has been doing. This line of reasoning, suggests business schools should emphasize in
their educational programmes principled leadership and risk taking in the volatile
business world. These are important in today’s global world. Principled leaders are
those who inspire commitment from others to the vision, and strategy they create and
values they represent. The key to developing principled leaders lies in holding them
accountable for the strategic thinking, for the results they achieve, and for the
fundamental values they display. Operational and financial results will invariably ebb
and flow, but the core values of an organization and of individuals endure through such
cycles. Those values, in fact, provide the real clues as to which organizations and which
individuals survive difficult times. Increasingly business is expecting managers to take
risks. The propensity to try new things and to take risks emanates largely from an
individual’s trust in the fairness and values of the organization and in the manager for
whom the individual works. Business can also affect change in the business schools by
changing what happens in their own companies. In the practice of business today, to
disagree with management is punitive and risky for people who have the courage of
their convictions to ask tough questions. Students should also change to bring in change
in the business schools in the wider interest of the society and business. They are by and
large placement oriented not interested in learning management skills. This attitude is
leading to a situation where faculty water down the course contents and inflates the
grades to keep the students in good humor. Business schools, having promised great
jobs, attempt to deliver them and in the process transform themselves into placement
consultants rather than being educational institutions. Business can change the attitude
of students by changing their expectations from business schools and students.
Management skills can be developed when the students in business schools are
provided with opportunities to experience the business, raising their intellectual
curiosity to learn from this experience, and to learn theoretical frameworks that would
help them to evaluate their experiences. Towards this end, both business and business
schools should jointly change and work together.
To bring all that change in the relationship among business, business school, and
student populations, it is essential that their governance systems have to undergo
change. To initiate this change, the academicians should be welcome into the
governance systems of business, and business leaders should be welcome in the
governance systems of business schools. The regulatory agencies that govern business
and business education should also appreciate this and make the necessary changes in
their own organizations and criteria for assessment and accreditation.

References:
1. Abad Ahmad and D P Chopra (2004), Passion to Win: How Winning Companies
Develop and
Sustain Competitive Edge. Excel Books.
2. AICTE (2003), Report of the Management Education Review Committee, AICTE, New
Delhi
2003
3. Ernest L Boyer (1990): Scholarship Reconsidered: Priorities of the Professoriate,
Princeton,
NJ: The Carnegie Foundation for the Advancement of Teaching
4. Henry Mintzberg (2004), Managers Not MBAs, FT Prentice-Hall.
5. Iswar Dayal (2002): Developing Management Education In India, Journal of
Management
Research, Vol-2, No-2, PP 98-113.
6. SL Rao (2004); Rescuing B-Schools from Irrelevance, Indian Management, PP 78-85.
Sumantra Ghoshal (2005): Bad Management Theories are Destroying Good
Management
Practices, Academy of Management Learning and Education, Vol-4, No-1, PP 75-91.

Trade in Higher Educational Services, India & GATS : Prospects and Strategies
Submitted by
Dr.N.Mahesh
Professor & Head,
Department of Management Studies,
ACPCE MMS, Kharghar,
Navi Mumbai -410210
Nadiminty.mahesh@gmail.com
Prof. Vikram Parekh

Professor, Department of Management Studies,
SIES, Nerul (E), Navi Mumbai
Abstract
Since long time, the issue of cross-border movement in educational services in form of
students, teachers and programmes is taking place in different parts of world. The
issue of Educational Services as a commercial traded service has been recently
recognized under World Trade Organization’s (WTO) - General Agreement on Trade in
Services (GATS). Under GATS, the educational services include education at all levels,
the main focus is on higher education since most cross-border activities take place in
the domain of higher education. Globalization as well as liberalization is shifting higher
education services into more of internationalization. In WTO, the issue of trade in
higher education is under negotiation by various countries, looking into the
opportunities available and risk associated with it. India has greater prospects in this
sector as it is seen to be an important traded service. This paper will discuss issues
related to higher education under the GATS framework and analyses the trade inform
of student mobility to and fro India, movement of programmes and providers.
Key Words: Higher Educational Services, GATS, Student Mobility, Globalisation.


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Volume 1, February 2010.

Dr. Bigyan P Verma Proceedings of

Dr. Ajit Gaikwad Conference, Feb 2010

Prof. P.K Mishra Volume 1, Papers on:

Volume 1 SPECTRUM E-journal Feb 2010 K B S©Designed

 Marketing challenges in service industry

Volume 1 SPECTRUM E-journal Feb 2010 KBSCMR Page 3

 Volume 1 contains papers on Marketing challenges in service industry, Strategic role of

 Volume 3 contains papers on service quality, service ethics and importance of

Dr. Ajit Gaikwad

Volume 1 SPECTRUM E-journal Feb 2010 KBSCMR Page 4

Sr. Name of the Topic Authors name Page

2 An Analytical study on Changing Milieu of Customer Gone Rajesh 22

4 Shaping ERP Success through Extended Enterprise Dr. Amol Gore 46

5 Private Label Strategy by Organized Retailers Prof. Sayali Pataskar 60

6 Innovative Marketing Concept at Traffic Signal (TS) Vijay Dhole 66

7 Vrindavan Naturale Health Spa & Wellness Center Rajeev Navekar 73

8 Branding of B-Schools Dr. Shiney Chib 75

9 India, The land of Opportunities Prof. Shalini Mishra 87

10 ‘Customer Service—Dimension in Marketing Prof Madhulika A. Sonawane 94

11 Service Brand A Journey From Wow To Reliability To Swati Bisht 102

Volume 1 SPECTRUM E-journal Feb 2010 KBSCMR Page 5

13 Win-Win Customers Through Loyalty Program Vijay Dhole 119

14 In film Branding – An Emerging Trend Prof. Dr. Manohar K. Ingale 124

15 Tangibilising The Intangibles Of Entertainment Services: Prof. Nidhi Upadhyay 135

16 Consumer Behaviour And Advertising Effort In Prof. Prerna Sharma 156

17 Interactive Retailing Prof.Srini.R.Srinivasan 180

18 Brands leading to empower the Service Sector: In Arpit Mantri 188

20 Retail Trade in Independent India Mr. Thorat 217

IT,IT ENABLED SERVICES,TELECOMMUNICATIONS

24 The Detection Of Routing Misbehaviour In Manets Vidya Kadam 262

26 Effectiveness Of E-Marketing Among Management Dr. Naveen K Mehta 274

Volume 1 SPECTRUM E-journal Feb 2010 KBSCMR Page 6

28 Impact of QFD Aruna Deepali 294

31 Mapping Through Som In Bidirectional Mapping Using R.Meenakshi 317

PUBLIC SERVICES MANAGEMENT

33 The Role of Industry Associations as Service Providers: Ms Padmini Ravindran 341

34 Management Practices in Service Industry - Education Prof. Popat N.Mohite 358

Volume 1 SPECTRUM E-journal Feb 2010 KBSCMR Page 7

Prof. Rishi P. Shukla

Volume 1 SPECTRUM E-journal Feb 2010 KBSCMR Page 8

Volume 1 SPECTRUM E-journal Feb 2010 KBSCMR Page 9

Volume 1 SPECTRUM E-journal Feb 2010 KBSCMR Page 10

MOVIE FOR RESEARCH – “3 IDIOTS”

MOVIE FOR RESEARCH—“ALL THE BEST”

Volume 1 SPECTRUM E-journal Feb 2010 KBSCMR Page 11

STATEMENT OF THE PROBLEM

OBJECTIVES OF THE STUDY

 To find out the frequency of watching movies among the audience

 To determine whether awareness has influenced the young viewers

Volume 1 SPECTRUM E-journal Feb 2010 KBSCMR Page 12

Gender/ None Once Twice thrice more total

Table No.1.2 : Analysis of awareness about product placement in 3 –IDIOTS.

Gender/frequency YES NO total

Total 104 16 120

Volume 1 SPECTRUM E-journal Feb 2010 KBSCMR Page 13

Gender/frequency YES NO total

Gender/frequency Right wrong No idea total

Table No.1.5: Analysis of second product recall in 3 IDIOTS i.e. [Airtel ]

Volume 1 SPECTRUM E-journal Feb 2010 KBSCMR Page 14

Volume 1 SPECTRUM E-journal Feb 2010 KBSCMR Page 15

Gender/frequency Right wrong No idea total

Age -: _ Gender-:

Education -: _ Occupation

Contact no.-: _ E-mail-: