Monday, 21st September ’20
Good morning, welcome this refreshing and energizing week with TMT. Paytm was temporarily suspended from PlayStore because it breached Google’s policies on gambling due to the scratch cards. This coming from Google which captured an entire customer base from its scratch cards on Google Pay is nothing but ironic. Recently, Apple also did something similar to Epic Games but for different reasons. This is how a monopoly can dictate what is offered to the end customer. And that is why it is important for a customer to go around and give opportunities to other players too and be wary of a monopolistic market.
Here is a quote from Peter Thiel to begin the day,
“Anyone that has a monopoly will pretend that they’re in incredible competition”
MARKETS
Markets: The Indian stock market is expected to open in the red with trends on SGX Nifty indicating a negative opening for the index in India with a 42 points loss. US stocks turned lower in volatile trading on Friday as worries about rising coronavirus cases and a patchy economic recovery dampened risk sentiment. Asian shares held to tight ranges on Monday, as did currencies, as investors awaited developments on U.S. fiscal stimulus and coronavirus vaccines amid a resurgence of infections in Europe.
TECHNOLOGY & INNOVATION
- Tesla started exploratory discussions with the Karnataka government to set up a research facility in India. Tesla CEO Elon Musk is hopeful that Tesla cars will soon reach the Indian market. If the talks fructify, India will be the only second country after the US to have a Tesla research facility.
- Google pulled down Paytm App from its PlayStore over its gambling policies. Last week, as Epic Games, Facebook, and Microsoft continued to express concerns about Apple’s “monopolistic” hold over what people can download on their iPhones, Google’s pulling down of PayTm expressed concerns over monopolistic markets.
- The ban on WeChat by Trump administration has been overruled by a US district court citing that the people’s right to free speech is being undermined. This comes after US commerce department had sought a ban on WeChat and TikTok in the US.
WHAT ELSE IS COOKING
- Key component for TV manufacturing to attract 5% import duty from 1 Oct: Open cell panels, a key component used in the manufacturing of television sets, will attract 5% import duty from 1 October, with the government saying that a duty exemption expiring at the end of this month will not be extended – to boost domestic production. As part of ‘Atmanirbhar Bharat’ the government is keen to expand domestic production capacity for open cell panels so that imports can be curbed. The one-year exemption given to the item expires on 30 September.
- India hands over two modern trains to Nepal: India has handed over two modern trains to Nepal that would run between Jaynagar in Bihar and Kurtha in Dhanusa district from mid-December, marking the beginning of the first broad-gauge railway service in the Himalayan nation, officials said on Saturday. These trains are manufactured by Integrated Coach Factory, Chennai with modern amenities and latest AC-AC propulsion technology.
- Last Day of Amazon Grand Gaming Days Sale, offers on laptops, monitors, accessories: Amazon India’s ‘Grand Gaming Days’ sale is being conducted by the e-commerce platform. As the name suggests, the sale is being centred around gamers and deals are being offered on gaming laptops & monitors, headphones, gaming consoles, TVs and graphic cards. Brands like Lenovo, Acer, ASUS, LG, HP, Sony, Dell, Alienware, GIGABYTE are participating in the sale. The sale will continue till 21 September. Customers can avail No-cost EMI options and exchange offers and an instant discount of 10% using ICICI Bank Debit Card EMI.
BUSINESS LOUNGE
Ambrane – The Power Bank Behemoth in India
In 2001, Ashok Rajpal, who had spent his 11 years in the textile industry, noted a huge growth potential in the demand for peripheral devices and he decided to venture into this nascent industry, though he had no knowledge of it. Putting his head and fortunes together with his brother, Sanjay Rajpal, who already had a small peripheral devices shop in Nehru Place, New Delhi, Ashok began his journey as a retailer of mobile accessories.
Capitalising on a first-mover advantage, the duo founded Ambrane in 2012 with an investment of Rs 10 lakh from their personal savings.
When Ashok entered the business of manufacturing and retailing power banks, the smartphone industry was burgeoning, and he saw an untapped opportunity in the powerbank segment. He noted that, back then, the concept of power banks was still alien to India, though the product had gained popularity in China and Japan, among other countries.
With an amazing prescience, they studied that people were not aware of the powerbank and its usability, and thought it would be right to start with it. Also, the demand for power banks was bound to increase with that for smartphones. So, in 2014 they set up a manufacturing unit in Kundli near Sonipat in Haryana, and began manufacturing power banks.
Ambrane started selling its power banks through various ecommerce portals, including Snapdeal, Flipkart, and ShopClues. However, the product was listed under the category of chargers as there was no specific category available for power banks then.
Theirs was one of the first brands to adopt the ‘Make in India’ ethos, long before the movement officially began. Suddenly, the reception for the products exceeded all the expectations of the founders. Within three to four days, Ambrane’s power banks were stocked out, leaving the entrepreneurs amazed that this huge market demand had been unmet. Even against the stiffest competitors, we have hit a 10-million customer base, just in the powerbank category. Now they export to Dubai and Sweden.
The importance of continuous innovation to stay relevant in the industry is paramount and hence the brother travel countries to learn about their tech-products. Ambrane is now mainly focused on increasing its market share and enhancing its foothold in the accessories market.
TMT VARSITY
Cross-Media Marketing
People are inundated with advertising nearly everywhere they turn. Whether they’re scanning the toothpaste label as they squeeze out a dollop, or wearing a t-shirt with an Old Navy logo on the front, they’re affected by a form of marketing. Marketing professionals are familiar with the “rule of seven”—the idea that it takes a consumer at least seven times to see a product or company advertising before he or she feels compelled to make a decision and leverage it.
That said, people may deliberately ignore certain forms of advertising because, let’s face it, they can be obnoxious. The challenge for marketing professionals, then, is to slide the marketing and advertising into the consumer’s awareness without being irritating, or simply ignored. The goal of cross-media marketing is to put a company’s name and product front-of-mind continually, catching consumers in a variety of mediums.
Cross-media marketing is what the name suggests, it involves using a variety of media forms to integrate your marketing message into peoples’ consciousness. Using a variety of media puts your company’s message in front of more consumers more often. Nearly every organization or company uses at least two forms of media to market their products or services. For example, moviegoers and television viewers don’t often register product placement, which is just one form of cross-media marketing. When a viewer’s watching American Idol, he or she might not realize that the judges are drinking from prominently placed Coca-Cola cups to advertise Coke.
A working mother might see a car with logos for a housekeeping service, noting the clever name and the claim that it’s a green company. She then might receive a coupon inviting her to try the service for 50 percent off, in a direct mail piece. She might finally decide to call, once she sees a sign on the front lawn of her neighbour’s house.
Customer awareness of a product grows every time they’re confronted with a form of advertising about the product. Each time it makes an impression and further solidifies the product as legitimate and well-known. Each impression increases the likelihood of a potential customer becoming an actual customer.
Written by Kumar Sourav Mohanty, Akansh Bhatt, and Shashank Dobhal
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