MARKETING INSIGHTS

RSS Feeds & Widgets - Web 2.0 Marketing Tool

noreply@blogger.com (Touqeer) — Mon, 26 Oct 2009 05:27:00 +0000

The primary purpose of these two Web 2.0 Marketing tools is to drive traffic to your blog and/or your website. RSS feeds and widgets are very easy to use, cost very little, if anything, and after set-up require no time to maintain. In other words, they work for you in the background while you are doing other things. What could better than this?

RSS Feeds

RSS is an acronym for the term “Really Simple Syndication.” When a visitor subscribes to your RSS feed it pushes new content to them when something is changed or added rather than them having to remember to keep coming back to your blog or website to check to see if there is anything new.

As we all know, if visitors have to rely on memory to come back to your site, chances are that it will never happen. Therefore, the more people that subscribe to your RSS feeds the more traffic you will have to your site. And because they keep coming back, little by little you are building a relationship with them even if you do not know who they are. These are all good things.

RSS feeds are far more common on blogs than conventional websites. The major reason for this is that new content is usually added to a blog several times a week, while content on a conventional website does not change that much. Therefore, my commentary on RSS feeds is directed primarily to blogs.

Most blogs come with two RSS feeds; one for when a new article is posted and a second if you wish to notified when someone leaves a comment. Both of these are delivered via a “RSS Reader” (the subscriber can choose from many that are available). Through experimentation with my own blog, I have learned a couple of things:

Most of your blog visitors do not know what an RSS feed is and even if they click to subscribe, they have no idea where to look for updates; and Visitors only care about reading the comments posted by others on posts where they have commented.

You can use third party RSS feeds like Feedburner (free from Google) that allow the subscriber to receive updates via a reader or by email. My experience is that about 70% of those subscribing to my RSS feed choose to receive updates by email. You can do the math to determine how it will affect you if you do not offer updates by email. When I added the choice of receiving updates by email, my growth in RSS subscribers more than doubled.

You can also install a plug-in on your blog that will email updates to those leaving comments when others add to the comments. This may bring previous visitors back and a discussion incurs. Comments help your article to rank higher on the search engines.

TIP: Most blog software gives you a choice of posting the entire article in the feed or only a summary. I prefer only a short summary. If you send them the entire article there is no need to come back to your blog. If you can get them back to your blog, there are other features you can use to get them to read some of your other articles.

Finally, RSS feeds are also used for other purposes as well. Using RSS feeds you can automatically import your blog headlines into your LinkedIn profile and other social networking sites.

Widgets

Widgets are small software applications or “apps” that work on smart phones (e.g. iPhone), iPods, websites and computers. There are many websites where you can build a widget for free or a very low cost. Of course, more complex widgets will cost more.

Allow me to share with you a widget I was reading about the other day. A pet supply company created a widget that resides on your computer desktop. It is a puppy that frolics back and forth across your desktop. Every 90 days the puppy stops it’s frolicking to scratch to remind you to order a new flea collar. Click on the puppy and you are taken to the website where you can order the replacement flea collar. I think this is clever and no doubt dramatically increases traffic to their website.

There are widgets you can create with different types of calculators, calendars with reminders, for RSS feeds, puzzles, clocks, games and just about anything you can imagine. Creating a widget that people will actually use will increase traffic to your blog or website.

A couple of the websites where you can build your own widgets are KickApps.com and WidgetBox.com. You can find several others by searching the web.

As we continue our series on Web 2.0 Marketing covering the tools listed in the graphic above, you might consider subscribing to my RSS feed by reader or by email so you don’t miss a single article.

What things to care when developing a Website Marketing Plan

noreply@blogger.com (Touqeer) — Thu, 08 Oct 2009 12:01:00 +0000

Website Marketing is an essential component to increase the visibility of a website, blog or any other online profile. As with a traditional marketing campaign, a strategic Website Marketing plan needs to exist in order to gain the best results from your website. A website is a powerful business tool and without a marketing plan, it could be a drain on your finances.

While it is perfectly okay to have a website that simply contains contact information, why settle for that when your website can do so much more? Even the smallest local business can utilize the power of the Internet to be more efficient and to build revenue with a solid website marketing plan in place.

Website Marketing is all about driving targeted traffic to your website and it can usually be split up in the following categories:

Search Engine Optimization (SEO)
Pay per Click(PPC)
Pay for intrusion (PFI)
Social Media Marketing (SMM)
Banner advertising
Newsletters
Viral marketing
Email marketing
Affiliate marketing

Creating a solid Website Marketing plan isn’t scary or difficult. You don’t need a marketing degree to create one, only time and dedication. Most people think that by incorporating website marketing onto their existing marketing campaigns will instantly generate more business. Usually they are wrong. If you don’t have a plan, it won’t work!

Find below a couple of tips to help you create and understand a Website Marketing Plan.

Analyze all your information

Find and analyze all the information regarding your company on the internet. This will also give you an indication on how well your company’s business profile is setup online. Also identify who your targeted customers are.

Identify your challenges

The internet is full of challenges, especially in the Website Marketing industry. Write down all of your internet related challenges that you would like to overcome. Refer to this list often as it will help you stay focused while developing your Website Marketing plan.

What is your objectives?

What do you want to accomplish with your Website Marketing plan? Do you want to increase the rate of targeted unique visitors to your website? Increase your sales and business leads? Build conversation and start relationships? Every website including your Website Marketing plan needs to have a set of objectives. If it doesn’t, why bother having a website at all?

Create strategies for you objectives

Create strategies that will support your objectives. These will usually define the approach to meet your objectives. They go hand in hand. If for example you would like to create more brand awareness via social media platforms – which social media tools and networks will you be using?

Tactics for your strategies

Define your tactics for the strategies you will be using. To take the above example if you would like to create brand awareness via social media – will you be creating targeted focused groups or join existing groups regarding your niche? Will you be helping others by contributing to the conversation? Start a conversation?

A Website Marketing plan is absolutely vital for any business wanting to create more brand awareness and sales via their website. Treat your Website Marketing plan as a work in progress. Often you could tweak and adjust the plan to meet certain requirements.

If you are a shop owner or part of a large scale company, by having a solid Website Marketing plan and following it through will extend your visiblity online and can produce you with good results.

Why you Must do Social Media Marketing?

noreply@blogger.com (Touqeer) — Thu, 08 Oct 2009 11:53:00 +0000

Social media has been incorporated into our daily lives at the office and at home. What is the first thing you do when you switch on your computer at the start of the day? Open Facebook? Start tweeting? View some videos on YouTube? Read some RSS feeds? Are you using these social media tools to the best advantage for your business?

A good well planned social media policy will create a better informed group of social media users within your company. With the social media policy they will be able to better represent your company and will not subject it to undue risk from inappropriate disclosure of financial information and proprietary company information. This could also help your business that your employees does not engage in unfair practices.

To have an effective social media policy, consider the following when you are in the process of creating one.

Develop the social media policy to extend to all employees and all use of social media and social networks whenever there is a potential for them to be seen as company representatives.
Engage all the departments of the company such as marketing, legal and finance when creating the policy.
Be sure to address the need for social media users to behave ethically, legally and to the best interest of the company.

Be sure to incorporate the company’s culture inside the policy. Avoid creating a too strict policy that would limit the authenticity and effectiveness of your social media campaigns.

The social media policy you created is another extension of your company’s standards and the business you conduct. This will help remind your employees that they represent the company in everything they do and should always act in good faith of it.

An overly strict social media policy will limit the participation in social media programs and discourage new participates. This could also slow down the communication process and add costs to your campaigns because you will need to find other ways to partake in the conversation. A wrong social media policy could limit the effectiveness of the company’s social media programs and to make them not worth doing.

Social Media is here to stay and it is advisable for any company to start embracing this new trend. By having a well planned social media policy for your business, you are already establishing yourself as a serious player in the field and it can help your company with your Social Media Marketing

Online Adspend Enjoying the Position and Trend

noreply@blogger.com (Touqeer) — Wed, 30 Sep 2009 11:49:00 +0000

Advertising expenditure levels in the UK will continue to fall until mid-2010 at the earliest, while the internet will overtake television in terms of ad revenues generated this year, a forecast from Warc and the Advertising Association predicts.

The first two quarters of 2009 yielded year-on-year reductions in adspend of 18.8% and 19.0% respectively in the UK at constant prices, with totals set to slide by 13.5% in Q3, and 9.7% in Q4.

Similarly, the opening six months of next year will witness media budgets decrease by a further 3.5%, with the market returning to growth in the period from July to September 2010.

Overall, UK adspend will diminish by 15.3% this year, from £14.13 billion in 2008 to £11.97bn in 2009, and by a further 1.1%, to £11.83bn, in 2010.

Television will post a decline of 16.2% this year, and follow this up with a significantly smaller contraction, of 1.3%, over the following 12 months, to a total of £2.71bn.

National newspapers will also be down by 17.4% this year and 3.3% next, to £1.28bn, with consumer magazines' ad sales plummeting 18.3% in 2009, and slipping 1.4% in 2010, to £509 million.

Radio will post successive decreases of 16.1% and 0.8%, while outdoor will see revenues tumble 17.2% in 2009, but increase by 1.4% in 2010.

The internet, including paid-for search, will enjoy a modest improvement of 0.7% this year, and expand by 4.7% at the end of the decade, to a value of £3.03 billion, seeing the medium overtake television.

By sector, financial services will make the largest cut backs in 2009, at 23.8%, with consumables down 11.9%, durables by 17.4%, and retail by 3%.

Coca-Cola adopts aggressive Digital Marketing

noreply@blogger.com (Touqeer) — Wed, 30 Sep 2009 11:38:00 +0000

Coca-Cola, the US soft drinks giant, will adopt a "far more aggressive digital presence" as it seeks to respond to "dramatic changes" in consumer behaviour, according to Joseph Tripodi, the company's chief marketing and commercial officer.

"One of the things we're talking about now is how we evolve as a marketing entity around the world. We're pushing for a far more aggressive digital presence," Tripodi said.

This will include moving beyond traditional marketing techniques, and developing material that will positively engage its target audience.

"What we're going for more and more will be developing compelling content. Some will be consumer-generated, some of it we'll buy, some of it we'll create ourselves. The idea is to flex that content out over different digital endpoints," he said.

One of the Atlanta-based firm's primary innovations in this area to date has been establishing platforms that allow its customers to exchange the "points" they accrue when buying its brands for a range of products.

This initiative is known as My Coke Rewards in the US and CokeZone in the UK, and offers a variety of valuable information to the beverage maker about its customers.

"With My Coke Rewards we have 13 million names. With that kind of database you can build relationships with consumers that are very different from the ones you gain through TV ads," Tripdoi said.

Moreover, once web users become involved in this sort of programme, it means "you start evolve your thinking about how to engage them, beyond giving away T-shirts," he continued.

The American corporation recently announced a new competition, called the Sounds of Coca-Cola, asking people to submit videos in which they replicate the noises they associate with opening, pouring and drinking Coke.

To enter, participants need to visit Facebook, the social network, to find out the details, and then use an "app" to upload their entry, with the best efforts possibly going on to feature in an ad campaign.

Katie Bayne, chief marketing officer of Coca-Cola North America, said "we know there's nothing quite like drinking a Coca-Cola, so if people share their interpretations of how that sounds, have fun and make us thirsty, we may put them in a Coca-Cola commercial."

Similarly, at a Mobile Marketing Forum event this month, Hinde Pagani, Coca-Cola's senior mobile marketing manager, global interactive marketing, indicated this channel would be of increased importance going forward.

"Consumers are changing. Audiences are changing dramatically, especially the younger ones. They live with technology, using it to consume more media, generate more conversations and befriend more brands than ever," she said.

"Mobile is at the centre of this media revolution. For us it is critical to understand this new device, to interact with teens and youth where they spend their time and deliver engaging and compelling brand experiences. So we add mobile to the marketing mix in pretty much all of our markets."

Earlier this year, Coca-Cola launched an iPhone application, the Magic Coke Bottle, which answers "questions about life, love and the universe."

Mercedes Spending maximum on Digital Marketing in UK

noreply@blogger.com (Touqeer) — Wed, 30 Sep 2009 11:34:00 +0000

Mercedes-Benz, the luxury automaker, currently directs around half of its marketing budget in the UK to digital media, an approach it has adopted in response to changing behaviour among consumers in the country.

Anders Sundt Jensen, its vice president for brand communications, said digital is responsible for a higher share of its outlay in Britain than elsewhere in Europe, where this figure is typically well under 40%.

One of the key strategies adopted by the German firm has been to establish an in-house team with an expert understanding of how channels like the internet can best be utilised for commercial means.

"We don't have normal marketers just doing online ads, or just putting our TV ads online. For example, we have a whole department at our headquarters in Germany just doing digital marketing," Jensen argued.

A major challenge for brands using the web, however, is identifying which portals will offer a return on investment, and those that are unlikely to provide long-term payback.

"Two years ago there was so much hype around Second Life, and where is that today? The hype can make it hard to see what really is great and where to invest online," he argued.

Speaking at the same event as Jensen, Bernhard Glock, who will soon leave his role as Procter & Gamble's vice president of global media and communications, emphasised that privacy was a key issue.

"There are many areas where digital can lead the way. But there are also areas where it can be very dangerous. Experiment, but be very careful. Of all media in our research, digital is the least trusted, and word of mouth the most trusted."

"Even though social media is word of mouth, it's dangerous if you don't respect people's privacy, especially kids. We need to be very careful otherwise we'll be beaten by the regulator," he added.

Harvard Business Review highlighting October 2009 Issues

noreply@blogger.com (Touqeer) — Thu, 24 Sep 2009 17:43:00 +0000

Coke Beat the Competition in Best Brands List of 2009

noreply@blogger.com (Touqeer) — Sun, 20 Sep 2009 10:16:00 +0000

It has been a tough year, but the brands topping the 2009 list of Best Global Brands have managed to weather the storm admirably. Here, find out more about the strategies of all 100 brands on the list, from Campbell's, slipping in at No. 100, to this year's No. 1, Coca-Cola.

Coca-Cola
In a hard year for fizzy drink makers, Coke gained luster. Credit the über-successful Coke Zero, a no-cal beverage with a more macho image than Diet Coke.
IBM
IBM has strived to make itself more broadly relevant by focusing on clean air and water, more efficient health care, and mass transportation.
Microsoft
For the first time, Microsoft's sales slipped. Yet it also began forcefully taking on its rivals, launching the Bing search engine and advertising hard against Apple.
General Electric
GE painted itself green with its "ecomagination" crusade. Now it aims to color itself healthy by pushing health-care solutions in underserved markets.
Nokia
Nokia continues to lag in smartphones, but its reputation for robust construction, ease of use, and low-key style has helped it dominate mass-market handsets.
McDonald's
The downturn heightened the appeal of McDonald's low-priced fare, particularly in Britain and France, while new McCafé coffee drinks have perked up sales.
Google
Its new free services are pushing it beyond search. But with trustbusters on the prowl, Google faces a challenge in maintaining a cuddly brand image.
Toyota
The automaker lost money in 2008 and likely will again in '09. But deep pockets and newly focused management mean this titan should revive when the economy does.
Intel
Intel paid a $1.45 billion antitrust fine in Europe, but that hasn't slowed the chipmaker's push into new markets, including smartphones and home electronics.
Disney
Falling attendance at its parks and sliding DVD sales are hurting. But the Mouse House continues to invest in its future, including buying Marvel for $4 billion.
Hewlett-Packard
HP extended its lead over Dell and weathered the economic downturn better than most tech companies, thanks to its acquisition of services provider EDS.
Mercedes-Benz
Although Mercedes' sales have plunged, the engineering icon has maintained its premium image with new fuel-efficient models. It needs to add small cars to the lineup.
Gillette
Brisk-selling high-end razors have boosted sales. But to extend its reach to more buyers, Gillette will have to innovate at the lower end of the market, too.
Cisco
The battle to rebrand itself as more than a maker of Web plumbing continues. By acquiring the Flip video camera, Cisco aims to be more consumer-focused.
BMW
It has demonstrated that buyers will pay a premium for a chic, sporty compact. BMW is also benefiting from an early investment in more efficient engines.
Louis Vuitton
The world's preeminent luxury brand has enjoyed a sales rebound in Europe this year, while continuing to tap new wealth in Asia and the Middle East.
Marlboro
As marketing restrictions tighten at home, the cigarette giant continues to push hard in emerging markets from Asia to Russia and win over millions of smokers.
Honda
Despite slumping global sales, Honda's lineup of gas sippers and a profitable motorbike business have helped the automaker navigate the recession.
Samsung
It has overtaken Sony as the top TV brand and emerged as the only credible challenger to Nokia in mobile phones. To expand its appeal, Samsung is opening an app store.
Apple
Mac sales have slowed, but Apple continues to prosper thanks to the iPhone, now in its third generation, and an app store that rivals are rushing to copy.
H&M
As many retailers suffer from the global recession, H&M has been expanding and luring value-conscious consumers with its affordable-yet-stylish apparel.
American Express
Hurt by accounts gone bad, the aspirational card company is bolstering loyalty programs and reviewing its card portfolio to get rid of riskier account holders.
Pepsi
It got a brand facelift with a new logo and sleeker packaging, but Pepsi was not immune to the tough climate for carbonated beverages, particularly in the U.S.
Oracle
Amid shrinking demand for corporate software, Oracle has stepped up face-to-face meetings—dinners, seminars—between its executives and customers.
Nescafe
Nestlé's flagship is playing to consumers' new aversion to pricey designer coffee. It also is catering to the health-conscious with new drinks.
Nike
Battling to control costs and keep rivals at bay, Nike continued amid the recession to spend money on innovation, including a line of eco-friendly sports gear.
SAP
It remains the leader in providing software to automate HR and other internal corporate functions. But SAP's new line of Web-based software has disappointed.
Ikea
The home goods giant is flourishing as recession-scarred consumers continue to snap up its stylish-yet-affordable designs, offsetting stumbles in Russia.
Sony
It has lost billions on TVs and game consoles. But Sony's software is improving: The latest e-book Reader allows users to tap Google Books and local libraries.
Budweiser
Squeezed at home by premium brews on one side and discount ones on the other, the beer maker is growing strongly in emerging markets like Vietnam.
UPS
The global downturn hit the shipping giant hard. UPS has upped its marketing budget to $200 million and is building a new hub in China.
HSBC
The worldwide credit crisis slammed its U.S. retail businesses. The world's second-largest bank is now trying to extricate itself from those bad bets.
Canon
Corporate cutbacks hurt its office machine and chipmaking businesses. To rev up sales, Canon is preparing new products with more network-friendly features.
Kellogg's
Easing commodity costs and higher prices boosted the cereal maker's profits, while new products like Special K Crackers and Jumbo Rice Krispies kept private-label rivals at bay.
Dell
It is continuing its overhaul by moving aggressively into retail and sharpening its design chops, but Dell needs to cut costs if it is to compete with HP and others.
Citi
Mismanagement and bad bets on risk at home have sullied Citi's reputation around the world, though its international business remains profitable.
JPMorgan
It is capitalizing on its position as one of the strongest financial institutions. The acquisition of Washington Mutual eventually should give JP broader reach in the U.S.
Goldman Sachs
It proved that when the chips are down in finance, those that lose the least become the new winners. Now, Goldman is under fire over its outsize profits.
Nintendo
Its Wii and portable DS gaming consoles still outsell rivals'. But the company isn't recession-proof: Annual profits could fall for the first time in four years.
Thomson Reuters
Since the merger, Thomson's strength in less cyclical areas such as legal information has helped balance Reuters' heavy dependence on financial services.
Gucci
The storied luxury goods maker has held up better than many rivals, thanks in part to an aggressive push in emerging markets, especially brand-obsessed China.
Philips
The conglomerate has continued a transition from low-margin electronics maker to a leading player in health care, lighting, and high-end consumer gadgets.
Amazon
The e-tail titan prospered by continuing to offer low prices and superb customer service in hard times. It risks losing focus by expanding into e-books and apparel.
L'Oreal
The world's leading cosmetics and mass-market beauty brand continues to reinforce its sales in emerging markets, particularly Brazil, India, China, and Poland.
Accenture
The firm launched an ad campaign after the crash positioning itself as "the partner of choice" in uncertain times. That didn't stop corporations from cutting consultants.
eBay
Once the symbol of yard-sale-style online auctions, the Web site is increasingly selling new products from wholesalers and liquidators. GM is even selling cars.
Siemens
A bribery scandal hurt, but the electronics maker has moved on and aims to exploit its engineering prowess in green energy and mass transportation.
Heinz
The ketchup king now derives more than 60% of its sales overseas and plans to boost marketing spending to fend off the threat from private-label products.
Ford
It deftly separated its brand from the troubles of its Detroit siblings. But as Ford rolls out a risky "one model for all markets" strategy, it faces a newly minted GM.
Zara
Zara is benefiting from a strong appetite for fashionable but affordable clothing. It spends relatively little on advertising, relying on word of mouth to drive sales.
Wrigley
The maker of gums like Orbit and Extra is getting traction by pushing the health benefits of chewing its brands.
Colgate
Despite the global slowdown, Colgate's oral, personal, and home-care categories grew robustly this year, while the brand gained share at home and abroad.
AXA
The insurer is trying to project stability (new slogan: Profits have slumped but not as much as some analysts expected
MTV
Pinched by sliding ratings among young adults and a drop in advertising, MTV is revamping its programming, including more animation and documentary series.
Volkswagen
With its lineup of fuel-efficient cars and strong positions in China and Brazil, VW has held up better than the industry as a whole. It has work to do in the U.S.
Xerox
Amid a dismal year for office equipment, Xerox forged ahead with new eco-friendly technologies and continued its move beyond hardware into services.
Morgan Stanley
While trading operations have revived earnings, the brokerage business remains under siege. The firm won't regain its footing until the economy rebounds.
Nestle
With a nearly $2 billion R&D budget, Nestlé has moved into healthier fare—from nutritionally enriched baby food to probiotics that protect the skin from the sun.
Chanel
Sales of its perfumes and apparel have suffered in the downturn, but the legendary Paris fashion house says it expects to eke out sales growth in '09.
Danone
The world leader in fresh dairy products looks poised for increased global reach after raising $4.3 billion—its first capital increase in 22 years.
KFC
The launch of its grilled chicken meal was a PR mess due to a coupon shortage, but the new, healthier product helped turn around KFC's declining U.S. sales.
Adidas
Sales are declining, but thanks to strength in soccer balls, shoes, and apparel, Adidas will likely rebound in 2010 as the World Cup in South Africa approaches.
BlackBerry
No brand has a bigger global presence in smartphones than BlackBerry. It certainly doesn't hurt that the U.S. President wears one on his belt.
Yahoo!
After fending off Microsoft's advances, Yahoo cut a search deal with the software giant. It was needed but showed the limits of Yahoo's tech prowess.
Audi
It has suffered less than other luxury car brands, thanks to its foothold in China and lower exposure to the U.S. market. Sharing parts with VW helped Audi's margins.
Caterpillar
Construction may be quiet in the U.S., but in building sites, mine pits, and farm fields in China and India, Caterpillar's big yellow machines are multiplying fast.
Avon
Amid a tough global economy and battle for sales, Avon has been expanding its direct-sales army—often by recruiting people laid off from other industries.
Rolex
Fancy watches aren't selling like they used to. But to maintain brand integrity over the long haul, Rolex has discouraged its dealers from lowering prices.
Hyundai
Encouraged by a weak won and the improving quality of its cars, Hyundai poured money into marketing and boosted global market share to a record 5%.
Hermes
Leather goods are holding up relatively well in the recession, especially in Asia where new stores are opening, helping the fashion house boost sales this year.
Kleenex
It's doing well overseas, but private labels spell trouble at home. The brand is fighting back with technology; one example is Kleenex Facial Tissue with Lotion.
UBS
UBS brought in a new CEO to clean house but is still struggling with the legacy of huge credit-crunch losses and revelations it helped U.S. clients evade taxes.
Harley-Davidson
A hog is the ultimate discretionary buy, not ideal in these times. And as boomers age, Gen Y isn't picking up the slack. Harley is pinning its hopes on Asia.
Porsche
A takeover struggle with VW hurt Porsche's image, and sales plunged amid the downturn. But the company still enjoys a reputation for fast, sexy, reliable cars.
Panasonic
Its TV and digital camera units are struggling. Acquiring Sanyo Electric gives Panasonic more green products, from solar panels to batteries for electric cars.
Tiffany & Co.
A strong dollar and weak economy slammed U.S. sales. But Tiffany continues to open stores, and a $93,000 diamond-encrusted cell phone attests to the brand's ambition.
Cartier
Cartier's loyal high-end customers, particularly those living in China and the Middle East, have softened somewhat a consumer pullback elsewhere.
Gap
Sales fell because Gap failed to lure enough shoppers to its low-priced apparel. Featuring its four divisions on one Web site also could confuse consumers.
Pizza Hut
Sluggish sales in the U.S. have prompted the pizza chain to turn to China and India for growth as it expands its menu with new dishes like pasta and wings.
Johnson & Johnson
J&J has long been perceived as comforting and trustworthy—ideal positioning for hard times. Its sponsorship of the 2008 Olympics boosted its global visibility.
Allianz
The insurer preserved a reputation for financial solidity by avoiding the worst of the crisis. Allianz is poised to grow as it moves into markets like India and China.
Moet & Chandon
Consumers switching to cheaper champagne and sparkling wines have hurt. With fewer marketing dollars, the brand is doing things like film festival sponsorship.
BP
The oil giant has brought new projects online, mollified Russian partners, and focused green energy efforts on a few businesses such as wind power in the U.S.
Smirnoff
Tony beverages suffered as consumers cut back on boozing, but Smirnoff held its own with cheaper libations and premade cocktails.
Duracell
Beset by private labels, new ads invoke a heritage of safety, trust, and performance. Duracell is also innovating, including a battery charger that works in a car.
Nivea
Sales fell in the U.S. and Europe as consumers switched to generic skin-care products. Nivea is using its brand strength to win loyalty in emerging markets.
Prada
Armed with fresh capital, the only fashion label with a movie named after it is opening stores around the globe.
Ferrari
Ferrari sales typically have held up in good times and bad. This recession is no exception, prompting the carmaker to open new stores and launch new models.
Armani
Despite offering fashion at various price points, Armani has so far avoided hurting its brand. Now it is developing a chain of luxury hotels and resorts.
Starbucks
Hit by the recession and facing competition from McDonald's, the coffee chain is making its food healthier, lowering some prices, and introducing, yes, instant coffee.
Lancome
Thanks to such innovations as a "vibrating power mascara," plus a handful of celebrity endorsements, the cosmetics giant has regained some of its luster.
Shell
Its reputation restored after a scandal over misrepresenting oil reserves, the company is cutting layers of management to match lower oil prices and profits.
Burger King
Cheeky ads and the Whopper Bar, which offers customized burgers, bolstered BK's appeal. To maintain momentum next year, its ad budget will rise 25%.
Visa
The company is poised to capitalize on a growing global shift from high-cost credit cards to debit cards. Visa already dominates the U.S. debit-card market.
Adobe
Designers of ads and Web sites swear by its software, which includes Flash and Photoshop. But tough times have hurt sales of Adobe's latest products.
Lexus
The recession and stiff competition from European rivals hurt Lexus, which is hoping its emphasis on hybrid models will differentiate it from the pack.
Puma
The sneaker maker is accelerating a push into fashion by, for example, joining with British designer Alexander McQueen in an attempt to compete with Adidas.
Burberry
Like many luxury brands, it is looking for new customers in emerging markets, including Bahrain. Burberry also opened a new headquarters in New York City.
Polo Ralph Lauren
Sales have slumped, but an elegant new Web site and increasing emphasis on reaching younger consumers have helped the apparel maker beat expectations.
Campbell's
The 140-year-old company has found success by pitching its soups as cheap, nutritious meals. It aims to expand its offerings in Russia next year.

At Amazon Consistent Quality Service Brings Customer Loyalty even in Recession

noreply@blogger.com (Touqeer) — Sun, 20 Sep 2009 10:06:00 +0000

The world's best-known companies typically spend hundreds of millions of dollars a year on advertising and marketing to build their brands.

Not Amazon.com (AMZN). The giant online retailer has created one of the world's strongest brands by eschewing conventional tactics. Instead of shelling out big bucks for lavish trade shows and TV and magazine ads, Amazon pours money into technology for its Web site, distribution capability, and good deals on shipping. The result: a smooth shopping experience that burnishes the company name. "It is pretty unprecedented that their brand has ascended so quickly without a large marketing budget," says Hayes Roth, chief marketing officer at brand consultant Landor Associates. "It's not about splaying their logo everywhere. They are all about ease of use."

Amazon declined to participate in this story, in part because executives say they don't spend much time on branding. Still, the company had the biggest jump in this year's ranking of the Best Global Brands, rising 13 spots, to No. 43.

One reason is that Amazon has thrived during the recession, even as other retailers have been battered and pushed into bankruptcy. The company's reputation for offering low prices, broad selection, and quality service has resonated with strapped consumers. In the past six months, Amazon reported 16% revenue growth, while most retailers saw sales fall. "By investing back in the user experience, you get high loyalty and repeat usage," says Sebastian Thomas, head of U.S. technology research for RCM Capital Management, an investment firm with a stake in the company.

The performance is something of a vindication for Chief Executive and founder Jeffrey Bezos. After the dot-com bubble burst, critics hammered him for investing so much in technology and physical distribution centers. Some investors called for Bezos to pull back and produce more short-term profits. Now those heavy investments are paying off big time, helping the company sell an ever-widening range of products to more than 94 million customers. Amazon's stock has more than doubled over the past three years, while the Standard & Poor's 500-stock index is off about 20%. "Amazon has taken the long-term perspective," says Thomas. "Things they were criticized for have become essential assets."

There are limits to the Amazon brand. The company hasn't had much luck selling luxury items, and some expansions, such as its shoe site Endless.com, have failed to gain much traction, prompting Amazon's bid for rival Zappos in July. "They have not been successful in all categories," says Citigroup (C) analyst Mark Mahaney.

Such disappointments won't stop Amazon from new experiments, though. The company plans to dabble in conventional marketing this fall, with a national TV ad campaign. But instead of hiring a hotshot ad agency, Amazon started a contest in which anyone could create their own commercial. The company picked five finalists and then asked customers to vote for their favorite. The filmmaker with the highest average customer rating, to be announced on Sept. 21, will get a $10,000 Amazon.com gift card. "I am sure they will get a great deal of press," says Landor's Roth. "They won't have to spend a lot of money on media because they will get everyone else to do it for them."

TRUST Factor Involvement in Building the Brand

noreply@blogger.com (Touqeer) — Sun, 20 Sep 2009 09:49:00 +0000

David Kiley explores the importance of trust when it comes to the reputation of brands as part of BusinessWeek's Best Global Brands 2009.

Pepsi at # 1 in the Soda Market (23%) & Coke at # 1 in Juice Brand Minute Maid (10.3%) in China

noreply@blogger.com (Touqeer) — Sun, 20 Sep 2009 09:34:00 +0000

The American Idol-style television show is a big component of the company's brand-building efforts in China. Some 6,000 bands tried out for 10 spots on the show, which was broadcast nationwide and streamed to Pepsi's Web site. The winner, a five-piece combo from Tianjin called Focus Point, got $30,000, a trip to a Los Angeles recording studio, a car, and a role in a Pepsi TV ad.

Worldwide, of course, Pepsi (No. 23 on BusinessWeek 's Best Global Brands survey) remains far behind Coca-Cola (KO) (No. 1). But by at least one important measure, Pepsi is beating its archrival in China. It's the No. 1 cola, with 23% of the soda market, vs. Coke's 22%, according to researcher Euromonitor International. The country "represents our single biggest opportunity today outside the U.S.," says CEO Indra K. Nooyi, who spent 12 days in China this summer.

Pepsi thinks the Internet is key to unlocking that opportunity. In August the company launched the "Pepsi Creative Challenge," soliciting online birthday wishes marking the 60th anniversary of the founding of the People's Republic. Last year a promotion called "Go China," before the Beijing Olympics, encouraged people to send in patriotic slogans and pictures of themselves. Pepsi got 28 million submissions and more than 122 million votes to decide the winners, whose photos and slogans were printed on soda cans. And in 2006, some 28,000 Internet users submitted scripts for a Pepsi TV ad. "Pepsi [in China] is one of the best digital marketers anywhere," says Tom Doctoroff, North Asia director for ad agency JWT.

The promotions are the brainchild of Harry Hui, Pepsi's chief marketing officer for China. The former head of Greater China for Universal Music, Hui is serving as producer of Battle of the Bands and is one of its three judges. "Consumers in China are bombarded with messages, so merely telling them what they should drink or eat might not resonate," Hui says. "Giving them a platform where they can talk back fosters a deeper relationship with the brand."

TEMPORARY FIZZ?

Web campaigns are growing in importance for most foreign companies in the mainland. With more Chinese than Americans online, social media and blogs are "a must-have component of marketing in China," says Sam Flemming, chief of CIC, a research firm in Shanghai that works with Pepsi.

Coke, meanwhile, is no stranger to the Net, and it's turning up the heat in China, too. Pepsi may be the No. 1 cola, but it's behind Coke's Sprite, the top soda in the country. Coke's Minute Maid leads the juice segment, with 10.3% of the market, vs. just 1.4% for Pepsi's Tropicana. Coke also sponsors an American Idol-style competition of its own, and its iCoke Web site is a popular portal for gamers in China. "Everyone knows about iCoke," says Tony Ip, China managing director for G2, Grey Group's digital-marketing arm. Though Pepsi's big campaigns create a lot of buzz, it's short-lived, he says. "I don't see them building equity," says Ip.

Pepsi executives counter that the efforts will pay off as they move into juices and other noncarbonated drinks. But they acknowledge that marketing can get you only so far in China and that plans to boost distribution are equally important. To really succeed, says Ken Newell, Pepsi's beverage chief for the country, "we must build plants further into China."

Who is Responsible for US financial Crisis?

noreply@blogger.com (Touqeer) — Sat, 13 Jun 2009 11:19:00 +0000

Pakistan Economy Watch has said that the irresponsible role of International Monetary Fund and Federal Reserve is responsible for the US financial crisis. The US authorities are still living in a cloud of self-deception that is influencing situation adversely.

The US oil and power companies, Arab petro dollars and credit rating agencies also paved the way for crisis and it seems that America will drown itself in Asian cash, said Dr. Murtaza Mughal, President, Pakistan Economy Watch.

He said the basic task of IMF was to force majority of the 185-member countries to knee down to US policies which was delivered successfully.

Many countries tried to escape the disastrous policies of IMF by accumulating dollars. Presently known reserves with Asian economies stands at 4000 trillion dollars.

After having plenty of dollars these countries naturally desired to invest money. Their natural selection was the world’s No. 1 economy. US oil and power companies and Arabs who were enjoying oil bonanza also diverted their liquidity towards US.

At this juncture the controversial American credit rating agencies awarded triple A rating to some institutions which they never deserved. This paved the way for heavy investments in the US firms which was not capable of handling it and their affairs were not transparent.

At this juncture, the US Federal Reserve and other regulators not only preferred to remain silent but neglected the opposition, said Dr. Murtaza Mughal adding that its amazing that they are still heard.

These government institutions believed in market forces which paved the way for a crisis which has now engulfed whole globe.

He said that for the first time the epicenter of crisis is in west and east is gaining a dominant positioning. Earlier the countries outside US ’enjoyed’ crisis and Americans use to be concerned about its impact on their homeland. Now Americans are facing the music and whole world is concerned about impact on their economies.

"US has simply lost all moral authority and it cannot deliver lectures any more."

"Whole world would not have been feeling the pain of US mistakes if slogans like globalization, free market economy and deregulation etc were not followed so religiously," said Dr. Murtaza Mughal.

The world will never be same and the financial health of west may not get as better as it was due to wrong policies in the wake of crisis.

The popularity of President Bush and 533-member Congress is at all times low and mistrust in plaguing the society. Top government officials are still deceiving themselves and masses. Even the presidential candidates are no exception.

Dr. Murtaza Mughal said that demise of capitalism, which is a probability will not hurt the world as much as portrayed as a single system isn’t workable enough to be trusted to run the whole world. Other options are available.

Developing the CEO within you

noreply@blogger.com (Touqeer) — Wed, 03 Jun 2009 05:05:00 +0000

Harvard Business Review Publishing

Google Friend Connect Gadget

noreply@blogger.com (Touqeer) — Tue, 02 Jun 2009 05:13:00 +0000

Twitter eyes foray into TV

noreply@blogger.com (Touqeer) — Tue, 02 Jun 2009 04:58:00 +0000

26 May 2009

LOS ANGELES – How’s this for a tweet? Twitter is coming to a television near you. The social-networking and micro-blogging service is developing the first TV series that incorporates Twitter into the action of the show.

Created by novelist Amy Ephron, sister of Nora and Delia Ephron, the untitled show will feature ordinary people competing while on the trail of celebrities.

Twitter has partnered on the project with production companies Reveille (“The Office”) and Brillstein Entertainment Partners (“Samantha Who?”).

Google Increasing battles Facebook in Search

noreply@blogger.com (Touqeer) — Tue, 02 Jun 2009 04:57:00 +0000

26 May 2009

Google has long been the king of search, dominating rivals including Yahoo Inc. and Microsoft Corp. But it increasingly sees social networks such as Facebook as challengers to its search engine, a Google official said.

As people search out advice online for everyday, personal decisions, the standard list of links served up by Google is not seen as intimate or trustworthy, Google Group Product Manager Ken Tokusei said Monday. For decisions such as choosing a restaurant or a day care provider, social networking sites or known review sites have an advantage, he said.

Such sites offer information from friends or acquaintances, and Tokusei said users tend to trust that information more. This puts Google’s results at a disadvantage.

“We haven’t gotten to the point where results are seen as if they come from someone you know,” he said.

The search giant has begun to offer tools for users to rate results and delete unrelated links, but it still has work to do, he said.

As Internet users gain savvy and experience, they also expect better-honed answers to queries. Sites such as WolframAlpha, launched earlier this month, comb the Internet for data, and analyze it to provide specific answers to queries, rather than a list of sites.

Google Inc. does something similar for some searches, providing price quotes for “Sony stock” or an answer for “Tunisia capital.” But it also provides the familiar list of sites to dig further, a strategy it is unlikely to change.

“It’s a matter of determining what kind of information the user is looking for. But we will always serve some links to pages with our results,” said Tokusei.

He spoke to reporters at Google’s Japanese headquarters in Tokyo, where he gave an overview of the company’s basic search tools.

Google has developed a host of expanding tools and services, from a mobile operating system to an online word processor, but it devotes 70 percent of its employees and resources to search.

The company still faces fresh competition from its traditional rivals, which are regrouping in an attempt to take back market share.

Microsoft has failed to make much headway in repeated Internet ventures. But the deep-pocketed company, which has poured hundreds of millions of dollars into improving its search engine, continues to develop a new search technology, part of which is called “Kumo” internally.

Yahoo, which has seen its share of total online searches conducted plummet to Google, is tweaking its search results, cutting out some links and emphasizing images and video.

Microsoft Chief Executive Steve Ballmer has said he is still interested in buying part of Yahoo after a proposed deal was turned down last year.

Microsoft to launch New Zune later this year

noreply@blogger.com (Touqeer) — Tue, 02 Jun 2009 04:55:00 +0000

27 May 2009

Microsoft Corp plans to launch a new version of its Zune portable media player later this year in the United States, incorporating high-definition video, touch screen technology and Wi-Fi connection.

Microsoft said on Tuesday the new Zune, its answer to Apple Inc’s popular iPod digital music player, will also come with an Internet browser and a built-in HD radio receiver that offers higher-quality sound than traditional radio.

It did not give a price or a specific date except to say it was due in the fall.

The company added new features to Zune’s music service last year, enabling users to download music wirelessly and buy songs they hear on the device’s built-in FM radio.

Microsoft restore search engine, dubbed "Bing"

noreply@blogger.com (Touqeer) — Tue, 02 Jun 2009 04:52:00 +0000

29 May 2009

Microsoft Corp is revamping its search engine to counter the dominance of Google Inc in the Web search and related advertising business.The world’s largest software company, which is still in talks with Yahoo Inc over a potential partnership, has long been determined to play a major role in the lucrative Web search market after watching upstart Google take a stranglehold.

Microsoft, which has been testing the search engine internally under the name Kumo for several months, plans to introduce the new service, re-christened “Bing,” over the next few days, with a full launch next Wednesday. The service will be available at www.bing.com.

Advertising Age reported earlier this week that Microsoft was planning a $80 million to $100 million ad campaign to promote Bing. Microsoft declined to comment on the report.

“We’ll have what I would call a big budget—big enough that I had to gulp when I approved the budget,” said Microsoft Chief Executive Steve Ballmer, who unveiled Bing at a technology conference in Carlsbad, California, run by the All Things Digital tech blog.

The Redmond, Washington-based firm has lots of ground to make up. Last month Google took 64.2 percent of U.S. Internet searches—up half a percentage point from the month before—handling 9.5 billion out of a total of 14.8 billion searches.

Yahoo was a distant second with 20.4 percent of searches and Microsoft third with 8.2 percent, both down slightly from the month before, according to data firm comScore.

Ballmer offered no quick turnaround in those numbers. “My timeframe is lots of years,” he said at the conference. “I don’t have a specific forecast, but this is lots of years.”

The new name, Bing, is short, universal and can be “verbed-up,” said Ballmer, a clear reference to the fact that ‘to Google’ has become the generic verb for searching the Internet for information.

New features

Both Google and Yahoo have recently introduced new features in their search engines to attract users, making Microsoft’s task even harder.

Microsoft is calling its new product a “decision engine,” promising to make things like buying a digital camera, booking a flight or searching for a restaurant easier by serving up results based on similar previous searches.

A search on a make of car, for example, will bring up clickable categories on the left-hand sidebar, such as ‘problems,’ ‘reviews’ and ‘dealers,’ which Microsoft has calculated are the most likely places a Web user will want to go from the initial search.

Bing also incorporates the increasingly popular Farecast service in its flight booking section—making use of the company it bought last year—which predicts whether fares will rise or fall.

Other new features include getting directions to locations with only one mouse click, and the ability to hover over a search result to see more information, without having to open a new link.
Microsoft’s shares rose 36 cents to $20.49 on Nasdaq at mid-afternoon. Google edged up 1.1 percent to $409.96 and Yahoo shares rose 1 percent to $15.09.

Sony to Launch, lighter PSP-Game Websites

noreply@blogger.com (Touqeer) — Tue, 02 Jun 2009 04:51:00 +0000

1 June 2009

TOKYO - Japan’s Sony Corp plans to sell a smaller and lighter PlayStation Portable (PSP) handheld game machine later this year, according to video game web sites which cite what they say is Sony’s own promotional video clip.

The video clip, which game web sites including IGN say was first distributed through Sony’s online game information distribution service for paying U.S. subscribers, has been posted on Youtube.

The new device, dubbed the PSP Go, is 43 percent lighter than the current model and comes with a 3.8-inch display, compared with a 4.3 inch screen now, according to the video clip on Youtube.

A spokesman for Sony’s game unit, Sony Computer Entertainment declined to comment on the video clip, saying that any announcement on the PSP will be made at the E3 video game trade show that starts on Tuesday in Los Angeles.

According to the video clip, the PSP Go will go on sale this autumn, although the current model, the PSP 3000 will remain in the market.

The newer model’s key pad slides out from below the screen, the clip shows. With the PSP 3000, the keys are placed on either side of the screen.

Sony aims to sell 15 million units of the PSP in the financial year to March, up from 14.1 million units a year earlier. The PSP competes with Nintendo Co Ltd’s DS.

Shares in Sony rose 2.6 percent to 2,560 yen, outperforming the Nikkei average, which gained 1.6 percent.

Reasons for the General Motors Bankruptcy

noreply@blogger.com (Touqeer) — Tue, 02 Jun 2009 03:37:00 +0000

Just about everyone—from management and the UAW to government, consumers, the competition and the media.............writes Wiliam J. Holstein

First of all, Management

For most of its existence, GM was not really a centrally unified company in the modern sense. Founder Billy Durant smashed together different companies—Chevrolet, Pontiac, Buick, Cadillac—and allowed them to compete with each other with only the thinnest level of oversight. Alfred P. Sloan, who took over the company in the 1920s, imposed a measure of discipline on these rival fiefdoms by creating more financial controls and a more rational positioning of each brand, with Chevrolet being the car for the masses and Cadillac being the car of the elite. But the company was still very decentralized.

Following World War II, this lumbering GM dominated the American automotive landscape, reaching 50.7% of the market in 1962. It didn't matter if GM was late to market with a feature or a design because "we had such enormous power that we could always steamroller everybody else," recalls Bob Lutz, the just retired product development chief who first joined GM in 1963.

Not Ready for Toyota

Then there was labor, and management's decision over the decades to grant the United Auto Workers higher wages, medical benefits, and pensions with each contract negotiation. This helped to elevate the standard of living for many blue-collar Americans, but health-care costs would emerge as a major burden on GM, as would a confrontational standoff between management and labor.

Then there was overseas competition. GM simply was not ready to respond to Toyota Motor (TM) and other Japanese manufacturers when they began to gain serious ground in the early 1980s. Toyota, in particular, had developed a lean manufacturing system that was completely different from the mass-assembly-line techniques GM was still using, many decades after Henry Ford perfected them. GM's fractured structure meant that each division had its own manufacturing processes, its own parts, its own engineering, and its own stamping plants.

Hungry for jobs, U.S. states began to encourage Japanese manufacturers to locate plants, or so-called transplants, in their states. The Big Three figured that would saddle the Japanese with the same labor costs and the same labor problems they had. But they were wrong. The Japanese located in mostly southern and border states that were solidly anti-union. They hired younger, less expensive workers, and they created an entirely new relationship between management and labor. This led to an entirely new auto industry. The net effect was to rachet up the competitive pressures on Detroit, not ease them.

Government Wasn't an Issue

But GM had to respond to the Japanese challenge without the help of the federal government. The Clinton Administration, as many before it, simply could not figure out how to force the Japanese to open their auto market, so in 1995 after a bout of highly publicized negotiations, it declared victory, even in the obvious face of failure. And the Clinton Administration was also unable to address the absence of a national health-care system. These two failures were huge, seen in retrospect.

In the ethos of the time, however, government did not matter. Rick Wagoner; as my book chronicled, encouraged the company to absorb Toyota's methods, which it did almost entirely. Wagoner's decision to hire Lutz in 2001 resulted in dramatically improved styling and design. Wagoner invested in innovation once again—again with Lutz egging on the whole organization—as GM decided to attempt to leapfrog Toyota's Prius hybrid with a brand new lithium-ion battery-powered Chevrolet Volt. Wagoner integrated the far-flung global operations. He centralized management into one Automotive Strategy Board and he persuaded the UAW to assume responsibility for its own medical costs. By early 2008, it was credible to argue that GM was on the way to a successful transformation, one of the most impressive in U.S. economic history.

But then there was the one-two punch of high gas prices and the global economic downturn. Detroit was caught off guard when gasoline prices reached $4 a gallon in the second quarter of 2008. The U.S. consumer, after years of inattention and disbelief, flocked to more fuel-efficient, largely nondomestic vehicles. But at least people were still buying cars. When the economy collapsed, so did car sales.

A White House Band-Aid

That was followed by yet another rude awakening last November when the then-CEOs of GM, Ford (F), and Chrysler came to testify in Washington, D.C., and found out that the government wouldn't be bailing them out. Southern Republicans, many of whom represented states with nonunion auto factories, chewed the CEOs up before the cameras. Newly powerful California environmentalists assaulted them. The center of the national consensus regarding the importance of the domestically owned auto industry had shifted, and American media coverage was also thoroughly hostile.

The Bush Administration gave a Band-Aid to GM and Chrysler in the form of a bridge loan to get them through to the early days of the Obama Administration. But then came the final surprise. Industry observers widely assumed that Obama, a Democrat from Chicago, understood the manufacturing base of the Midwest and would help it. The fact that the UAW had helped deliver five states in the Midwest to Obama deepened that assumption.

But Obama turned to other members of his political alliance for answers. From New York, he brought in investment banker Steve Rattner, a major fundraiser, to head the government's automotive task force. Rattner arrived on the job with the assumption that Chapter 11 bankruptcy was the right course for GM, and promptly sacked Wagoner when he demonstrated signs of resistance. Wagoner's heir apparent, Fritz Henderson, was elevated into the CEO position. Meanwhile, Obama tilted toward the California environmentalists by pushing through new fuel-efficiency standards, which would add another layer of cost to production.

And so the mighty General Motors, now nicknamed Government Motors, was pushed into bankruptcy. Rattner and his allies in the investment banking and bankruptcy-law industries insisted it could unfold in 60 days and that a new GM would rise from the ashes, phoenix-style. But the odds were against it working. U.S. bankruptcy law had never applied to a global corporation, one with thousands of suppliers and dealers.

Yet it wasn't Rattner's fault, nor that of the Obama Adminstration, high oil prices, Toyota, fickle consumers, the recession, or high labor costs. Whose fault was it? The answer: everyone's.

General Motors to file for bankruptcy

noreply@blogger.com (Touqeer) — Mon, 01 Jun 2009 14:00:00 +0000

General Motors, the humbled auto giant that has been part of American life for more than 100 years, will file for bankruptcy protection on Monday in a deal that will give taxpayers a 60 percent ownership stake and expand the government's reach into big business.
It would be the largest industrial bankruptcy in U.S. history, and the fourth-largest overall. In addition, a GM bankruptcy would be unprecedented as the federal government would pump billions more into the company.

Underscoring the government's extraordinary role, President Barack Obama planned to announce his support for GM's restructuring strategy at a midday appearance at the White House, much as he did in April when Chrysler sought court protection.

GM president and CEO Fritz Henderson planned to hold a news conference in New York immediately following Obama's announcement.

Administration officials said late Sunday the federal government would pump $30 billion dollars into GM as it makes its way through bankruptcy court. That's besides the $20 billion in taxpayers' money that the Treasury already lent to the automaker.

The $30 billion is to help GM through the Chapter 11 proceeding and move it through its restructuring plan. It doesn't have the money to run the business right now. The money would come from what remains of the $700 billion rescue fund for the financial sector.

The officials, speaking on condition of anonymity in advance of Obama's public remarks, said the administration expects the court process to last 60 to 90 days. If successful, GM will emerge as a leaner company with a smaller work force, fewer plants and a trimmed dealership force. The company will stick with its four core brands — Chevrolet, Cadillac, Buick and GMC — and jettison four others.

The company plans to cut 21,000 employees, about 34 percent of its work force, and reduce the number of dealers by 2,600.

"There is still plenty of pain to go around, but I'm confident this is far better than the alternative," Sen. Carl Levin, D-Mich., said Sunday after being briefed about the developments by the president. "It's a new beginning, it's a rebirth, it's a new General Motors."

The government's ownership stake and huge financial injection represents yet another remarkable intervention into the American private sector. The Treasury has stepped in to help banks, it has taken majority ownership in insurance conglomerate American International Group and it has guided Chrysler through bankruptcy protection proceedings.

Despite its sizable ownership, administration officials said the government intends to stay out of day-to-day management decisions. It says it intends to shed its ownership stakes "as soon as practicable."

The day to day operations will be carried out by GM's management. But a majority of the board of directors will change and the administration will have a hand in helping select them.
"Our goal is to promote strong and viable companies that can quickly be profitable and contribute to economic growth and jobs without government involvement," a fact sheet issued by the White House and the Treasury Department said.

Still, it was Obama who ordered the firing of former GM CEO Richard Wagoner a month ago. And it was the Obama administration that instructed GM to trim itself to a point that it could break even by selling 10 million cars a year. It's current break even point is 16 million cars.

Even as the White House stressed that it would run the day-to-day operation of the car company, the arrangement was fraught with potential conflicts. The Obama administration has proposed tougher fuel efficiency requirements that GM will need to abide by and has pumped billions into the auto company's lending arm and assured consumers that it will backstop GM warranties.

GM plans to name turnaround executive Al Koch to serve as its chief restructuring officer to help the company through bankruptcy protection, said a person familiar with the matter. The person, who spoke on condition of anonymity, was not authorized to speak about the appointment publicly.

Koch, a managing director with AlixPartners LLP, is a veteran turnaround specialist who helped Kmart Corp. through its Chapter 11 reorganization. He will lead the separation of the automaker's assets into a "New GM" and the remaining parts of the company that will form "Old GM." Koch will lead the management team that winds down the "Old GM" company once the automaker emerges from bankruptcy.

A majority of the Detroit automaker's unsecured bondholders have accepted a deal viewed as crucial to reorganization, and Germany agreed to loan $2 billion to GM's German unit, Opel, as part of its acquisition by a Canadian auto parts supplier.

The moves don't change much for GM, but better prepare it for a bankruptcy protection filing, said Rebecca Lindland, an auto analyst for the consulting firm IHS Global Insight.

"The more agreements GM has with its interests, the better the bankruptcy is going to go," she said. "It's not a game changer at all."

On Sunday a group of large, institutional bondholders, representing 54 percent of GM bondholders, agreed to exchange their unsecured bonds for a 10 percent stake in a newly restructured company, plus warrants to purchase a greater share later. They had balked at an earlier offer, that gave them 10 percent of the company without the warrants.

Beyond the bankruptcy announcement Monday, GM is expected to reveal 14 plants it intends to close and name the buyer of its Hummer division. One of those plants, however, will reopen as a new small car factory. The decision to build the new car in the United States appears to address previous labor and congressional concerns that GM was considering importing a small car from its plants in China.

By building the car in the U.S., the share of U.S. produced cars for U.S. sale will increase from 66 percent to more than 70 percent.

In Germany on Sunday, the government agreed to loan GM's Opel unit $2.1 billion, a move necessary for Magna International Inc. to acquire the company.

The Canadian auto parts supplier Magna will take a 20 percent stake in Opel and Russian-owned Sberbank will take a 35 percent, giving the two businesses a majority. GM retains 35 percent of Opel, with the remaining 10 percent going to employees.

The German funds are available to Opel immediately, as it attempts to shield itself from cuts if GM files for bankruptcy protection. Opel employs 25,000 people in Germany, nearly half of GM Europe's work force. Under the deal, four factories in Germany would stay open saving jobs.

Treasury Secretary Timothy Geithner, who was traveling to China, followed the developments closely. The Treasury on Thursday offered bondholders 10 percent of a newly formed GM's stock, plus warrants to buy 15 percent more to erase the debt. Last week, GM withdrew an offer of 10 percent equity after only 15 percent of the thousands of bondholders signed up.

The current 54 percent acceptance represents only $14.6 billion, but by lining up support in advance of a bankruptcy protection filing, GM is likely to find it easier to persuade a judge to apply terms of the sweetened offer to the rest of its unsecured debt.

It could also help the automaker get through the court process more quickly, said Robert Gordon, head of the corporate restructuring and bankruptcy group at Clark Hill PLC in Detroit.
The company made a huge stride toward restructuring Friday when the United Auto Workers union agreed to a cost-cutting deal.

GM's fate and the federal government's intervention was scrutinized on several Sunday morning talk shows.

"I think the government auto bailout was a big mistake," said Sen. Mitch McConnell, R-Ky., on CNN's "State of the Union" program. "We could have let these companies go through the bankruptcy process much earlier."

In a typical Chapter 11 bankruptcy case, the company files a plan of reorganization that must be voted on by creditors. In each class of creditors, the plan would have to be approved by holders of two-thirds of the claims and a majority of the number of individual creditors who vote.

But the GM case is anything but ordinary, and it appears the company will sell some or all of its assets to a new entity that would become the new GM, rather than submit a plan to reorganize the old company.

GM's stock tumbled to the lowest price in the company's 100-year history on Friday, closing at just 75 cents after trading as low as 74 cents. In a Chapter 11 bankruptcy reorganization, the shares would become virtually worthless.

Kool Aid to iPhones, LiveSpeakR

noreply@blogger.com (Touqeer) — Sun, 31 May 2009 04:17:00 +0000

Creativity & Innovation

noreply@blogger.com (Touqeer) — Sun, 31 May 2009 04:02:00 +0000

Edge of Discovery, True Entrepreneurial Spirit, The Flying Car

noreply@blogger.com (Touqeer) — Sun, 31 May 2009 03:15:00 +0000

Here's the video which shows the creativity, innovation and entrepreneurship spirit and Edge of discovery. This video has been quoted by me in my assignment under the references. This video is basically a way to promote creativity, innovation & entrepreneurship in the minds of the students through different mediums like through seminars, internet or television which will show the students that if the students graduating from Massachusetts Institute of Technology (MIT), USA can do it then why we can't?

This video is basically of a flying car. A company Terrafugia which formed its startup with graduates from MIT. They are developing a car that morphs to its plane form in 20 seconds. After your flight (of no more than 500 miles), you can be back on the road and parking in your single car garage. The company is looking to hit the market in 2011.

Spinneys entry to Pakistan Likely

noreply@blogger.com (Touqeer) — Thu, 21 May 2009 15:36:00 +0000

Spinneys is also looking to coming soon in Pakistan. It is been under the news that spinneys the premier supermarket retailer in the middle east is looking to expand in Pakistan under the partnership agreement with real estate developor of Bahria Town.

It has been in the news by the Spinneys officials that they will open up 6-8 supermarkets in the major cities of pakistan currently and their target market would be growing middle class.

Spinneys is currently owned by the Abraaj Capital. Its supermarkets sell a range of fresh foods, such as scones and fresh buns, as well as various international branded products; and operate book and magazine section, mobile telephone shop, gift store, video and DVD store, pharmacy, florist, hairdressers, barbers, picture framing and souvenier store, school uniform shop, and ice cream corner, as well as a cafe. The company also offers catering and support services to customers in various industries, such as city based sites, mid-sea oil rigs, desert camps, power plants, institutions, and hospitals.