“If India continues with its current unplanned urbanization path, it will result in a sharp deterioration in the quality of life in its cities, putting even today’s rates of economic growth at risk,” says an April 2010 report published by McKinsey & Company.
Despite this daunting tone, McKinsey highlights many of the urbanization “opportunities” for India to seize by 2030, including the following projections:
■590 million people will live in cities
■70% of net new employment will be in cities
■68 cities will have a population of 1 million or more (up from 42 today)
■700-900 million square meters of residential and commercial space needs to be built – the size of the city of Chicago
■2.5 billion square meters of roads will have to be paved, and 7,400 of metros and subways will need to be constructed – both equaling 20 times the capacity added in the past decade
But in order to meet the increased demand associated with this growth, the country will need to focus its efforts on improving mass transit, developing comprehensive land use plans and providing affordable housing, especially for low-income people. Here, we summarize some of the main transport-related recommendations.
McKinsey says “India’s planning is in a very poor state.” Its plans “are esoteric rather than pratcial, rarely followed and riddled with exemptions. For example, no city in india has a proper 2030 transportation master plan.”
The Context
Indeed, the country struggles with many strains on its roads:
■The share of public transportation has declined from 40% in 1994 to 30% today.
■Meanwhile, the number of private cars has skyrocketed. Peak private vehicular density is already 170 vehicles per lane kilometer – 50% higher than the basic requirement. This is only going to increase, likely reaching 610 vehicles per lane kilometer, which means that average journeys could take up to five hours in peak morning traffic! This is a severe threat to “urban productivity.”
The Solution
McKinsey calls for more intercity mass transit, especially rail-based and bus rapid transit, aiming for a 50% share of public transit in urban India by 2030. McKinsey estimates this would require a dramatic boost in infrastructure, which includes:
■Building 35 rail-based mass transit systems, totaling 8,400 kilometers of track in the country’s biggest cities
■Constructing 8,000 kilometers of BRT in 68 cities of more than 1 million people
■A fivefold increase in the number of buses
■Constructing 900,000 lane kilometers by 2030 to accommodate additional journeys by private transport
■Building 350 to 400 kilometers of metros and subways every year, more than 20 times the capacity of what has already been built in the past decade
■Building 19,000 to 25,000 kilometers of road lanes (including BRT lanes), which is equivalent to the length of road lanes constructed over the past 10 years
McKinsey seems to think that India can emulate countries like China, which has faced similar challenges, and eventually create a “mature urban planning regime that emphasizes the systematic redevelopment of run-down areas in a way that is consistent with long-range palns for land use and transportation.”
Monday, August 9, 2010
Bank of India brings in Mckinsey for revamp, growth road map
Public sector lender Bank of India has brought in global strategic consultancy firm McKinsey to advise on organisational restructuring and charting a road map for business growth in the next five years.
A senior bank official said the preliminary report would come in three months.
Seven consultants, including Ernst & Young, Boston Consulting Group and McKinsey, had expressed interest in the job. Elaborating on the need for external advice and appointment of McKinsey, a senior BOI official said: "The business scenario has become competitive. We have to frame business plans on (our) strength and improve on risk management and recovery."
While the bank has wide access to information due to its core banking platform and other programmes, "there is need for intelligent exploitation of data and information about consumer behaviour", said a senior official.
Mumbai-based BoI is the fourth public sector bank to engage McKinsey for consultancy. State Bank of India [ Get Quote ] had done so for revamping its corporate and wholesale banking business.
At present, MsKinsey is helping the country's largest lender in reworking the processes for rural banking.
Following its recommendations, the corporate banking business in SBI was revamped to set up corporate accounts to look after large companies. It also formed another unit, a mid-corporate group, to focus on mid-size entities.
This sharper focus helped to assess emerging funding and non-fund-based needs for companies and the offering of services, including treasury solutions.
Last year, Bank of Baroda [ Get Quote ] had commissioned McKinsey for its business process re-engineering advisory services. IDBI Bank had asked it for help in remap of branches, re-engineering processes and refocusing business.
BOI has aimed to grow its business to about Rs 12,00,000 crore (Rs 12,000 billion) in the next five to six years from about Rs 4,01,000 crore (Rs 4,010 billion) at the end of March. It plans to implement BPR initiatives to streamline its growing business.
The bank saw a change of chairman and managing director in the early part of 2009-10. Alok Misra, career BOI officer, took the reins in the second quarter of FY10.
After three years of breakneck growth, it hit a rough patch in 2009-10, with a sharp rise in non-performing assets. Its gross bad loans more than doubled to Rs 4,882.6 crore (Rs 48.82 billion) at the end of March, from Rs 2,470.9 crore (Rs 24.7 billion) a year earlier.
BOI officials attribute much of this increase in bad loans to the adverse effect of the global financial crisis on corporate borrowers. Higher provisioning for non-performing assets made a big dent in its net profit.
It reported a 42.1 per cent drop in net profit for FY10, at Rs 1,741, from Rs 3,007.3 crore (Rs 30.07 billion) for 2008-09.
A senior bank official said the preliminary report would come in three months.
Seven consultants, including Ernst & Young, Boston Consulting Group and McKinsey, had expressed interest in the job. Elaborating on the need for external advice and appointment of McKinsey, a senior BOI official said: "The business scenario has become competitive. We have to frame business plans on (our) strength and improve on risk management and recovery."
While the bank has wide access to information due to its core banking platform and other programmes, "there is need for intelligent exploitation of data and information about consumer behaviour", said a senior official.
Mumbai-based BoI is the fourth public sector bank to engage McKinsey for consultancy. State Bank of India [ Get Quote ] had done so for revamping its corporate and wholesale banking business.
At present, MsKinsey is helping the country's largest lender in reworking the processes for rural banking.
Following its recommendations, the corporate banking business in SBI was revamped to set up corporate accounts to look after large companies. It also formed another unit, a mid-corporate group, to focus on mid-size entities.
This sharper focus helped to assess emerging funding and non-fund-based needs for companies and the offering of services, including treasury solutions.
Last year, Bank of Baroda [ Get Quote ] had commissioned McKinsey for its business process re-engineering advisory services. IDBI Bank had asked it for help in remap of branches, re-engineering processes and refocusing business.
BOI has aimed to grow its business to about Rs 12,00,000 crore (Rs 12,000 billion) in the next five to six years from about Rs 4,01,000 crore (Rs 4,010 billion) at the end of March. It plans to implement BPR initiatives to streamline its growing business.
The bank saw a change of chairman and managing director in the early part of 2009-10. Alok Misra, career BOI officer, took the reins in the second quarter of FY10.
After three years of breakneck growth, it hit a rough patch in 2009-10, with a sharp rise in non-performing assets. Its gross bad loans more than doubled to Rs 4,882.6 crore (Rs 48.82 billion) at the end of March, from Rs 2,470.9 crore (Rs 24.7 billion) a year earlier.
BOI officials attribute much of this increase in bad loans to the adverse effect of the global financial crisis on corporate borrowers. Higher provisioning for non-performing assets made a big dent in its net profit.
It reported a 42.1 per cent drop in net profit for FY10, at Rs 1,741, from Rs 3,007.3 crore (Rs 30.07 billion) for 2008-09.
Thursday, August 5, 2010
Assignment 2
Dear Students,
You have to submit this assignment by tomorrow 9:30 a.m.
Q1. What is the difference between primary and secondary research?
Q2. List different tools that can be used for primary research.
Q3. List and explain probable purposes for conducting a research.
Q4. What are the advantages and disadvantages of MR. Differentiate between Basic and Applied research giving 2 examples of each.
Q5. Explain in detail, the overview (steps involved) of the research process.
You have to submit this assignment by tomorrow 9:30 a.m.
Q1. What is the difference between primary and secondary research?
Q2. List different tools that can be used for primary research.
Q3. List and explain probable purposes for conducting a research.
Q4. What are the advantages and disadvantages of MR. Differentiate between Basic and Applied research giving 2 examples of each.
Q5. Explain in detail, the overview (steps involved) of the research process.
Session 2
- Marketing research is again can be classfied as:
- Primary Research &
- Secondary Research.
- It has a purpose and it includes different sampling methods.
- There are 2 sources of information for Secondary Research:
- Internal Sources
- External Sources
- Primary research can be conducted by using any or combination of the following tools.
- Questionnaires
- Focus Groups
- User Groups
- Postal Surveys
- Telephone Surveys
- Customer Interviews
- Test Markets
- Technology-Internet feedback
- Primary Research provides you the first hand information, but it is expensive to collect, analyse and evaluate the information.
- It can be highly focussed and relevant to the topic of concern.
- But at the same time, due care needs to be taken with the approach and methodology to ensure the accuracy.
- Type of question that are asked in primary research are closed ended questions or open ended questions.
- Closed ended questions provides limited information whereas open ended questions useful information but it is difficult to analyse.
- Quantitative and Qualitative Information:
- Quantitative – based on numbers – 32% of employees of an organization are dis-satisfied with their job profile. - doesn’t tell you why, when, how
- Qualitative – more detail – tells you why, when and how!
Research can be categorized into:
- Basic Research
- Applied Research
- Data gathered by Indian Census (facts gathered) is available for use by others, including marketers.
- A study conducted by a researcher to find out the factors resulting in the satisfaction of salesperson and their turnover. Results were published in an article available to anyone.
- IBMs entry into personal computers lagged that of the innovators like Apple, and may have been IBM’s biggest challenge ever. They conducted the study to find out the market segment that strategically is the best. And later they proved, when the new PC captured major market share, to be right.
- This study is not published anywhere and the data is not accessible by anyone except few managers of IBM.
Overview of Research Process:
Step 1: Problem Definition
- Determine or define the problem or opportunity that is faced.
- Decision alternatives
- Research Users
- Research questions
- Hypothesis
- Boundaries of Study
Step 4: Design the Research
- Choose among alternative research approaches
- Specify the sampling plan
- Design the experiment
- Design the questionnaire
Step 6: Analyze and interpret the meaning.
Step 7: Present the findings to the decision makers.
Step 1: Problem Definition includes:
- Problems to be studied
- Which problems or opportunities are anticipated?
- What is the scope of the problems and the possible reasons?
- Decision alternatives to be evaluated
- What are the alternatives being studied?
- What are the criteria for choosing among the alternatives?
- What is the timing or importance of the decision?
- Users of the research results
- Who are the decision makers?
- Are there any covert purposes?
- Research objective is a precise statement of what information is needed.
- It has three components
- Research question
- Specifies the information the decision maker needs.
- Hypothesis
- Boundaries of study
- Hypothesis and boundaries of study make the research question as specific and precise as possible.
- Development of Hypothesis is basically to find alternative answers to research question.
- Researcher determines which of these alternative answers is correct.
- It is not always possible to develop hypothesis.
- One important role of hypothesis is to suggest variables to be included in the research design.
- Indicates the scope of the research.
- It is important for the researcher to clarify the boundaries of the study.
- It also indicates the desired precision or accuracy of the results.
Assignment 1
Q1. Define Marketing Research. Why it is important to study MR.?
Q2. Explain and differentiate between DSS and MIS.
Q3. Explain hierarchy of decision makers.
Q4. Explain in detail, the classification of marketing research.
Q5. Write short note on Marketing Research Process.
Q6. Explain the role of marketing research in decision making.
Q2. Explain and differentiate between DSS and MIS.
Q3. Explain hierarchy of decision makers.
Q4. Explain in detail, the classification of marketing research.
Q5. Write short note on Marketing Research Process.
Q6. Explain the role of marketing research in decision making.
Session 1
1. Why Study Marketing Research? Several factors increase the relevance for studying marketing research. They are as follows.
• New challenges were posed by the growth of internet based services and e-commerce.
•Stakeholders now have more information at their disposal and are more resistant to marketing stimuli.
• Competition is growing and coming from unexpected sources.
• There is more government intervention geared toward protecting its various publics through restrictions on marketing tools.
• Marketing managers have more variables to consider in every decision.
• The quality of theories and models in marketing is improving.
• Greater computing power provides the potential to get more data faster, integrate that data using warehousing, understand it using data mining, and analyze it using statistical tools.
• Research methods are gaining wider acceptance in dealing with a wide range of marketing problems.
Because of greater computing power and speed:
• Data collection cost is reduced.
• Better visualization tools are available.
• Powerful computations can be made very easily.
• More and more integration of data is possible
• Access to the information has become easy.
• Several advanced analytical tools are available for enhanced insights
• Reports can be customized as per the requirement of the client.
2. Marketing Planning Drives Marketing ResearchAn organization’s mission drives its marketing goals, strategies, and tactics and, consequently, its need for marketing decision support systems and marketing intelligence.
3.Information SourcesDecision Support Systems
Numerous elements of data are organized for retrieval and use in marketing decision making. It is stored and retrieved via Intranets and Extranets
Marketing Intelligence Systems
It includes Ongoing information collection. It focusses on events, trends in micro and macro-environments.
Explanation: When elements of data are organized for retrieval, they collectively constitute a marketing decision support system (DSS). This data is often shared over an intranet or an extranet.
An intranet is a private network that is contained within an enterprise and is not available to the public at large. It may consist of many interlinked local area networks. It typically includes connections through one or more computers to the Internet. The main purpose of an intranet is to share company information and computing resources among internal audiences.
An extranet is a private network that uses the Internet protocols and the public telecommunication system to share an organization’s information, data, or operations with external suppliers, vendors, or customers. An extranet can be viewed as the external portion of a company’s intranet.
A marketing intelligence system (MIS) is designed to provide ongoing information about events and trends in the technological, economic, political and legal, demographic, cultural, social, and competitive areas.
4.Sources of Marketing Intelligence
• Sources of government information include speeches by elected officials, recordings of public proceedings, press releases, and agency websites.
• Sources of competitive information include presentations at conferences, literature searches, press releases, syndicated industry studies, web sites, clipping services, and marketing research.
• Sources of economic information include literature searches and government reports.
• Sources of cultural and social information include syndicated studies, public opinion organizations, marketing research, and government reports.
• Sources of technological information include patent filings, web sites, syndicated industry studies, presentations at conferences, literature searches, and clipping services.
• Sources of demographic information include syndicated studies, government reports, and marketing research.
5.Marketing Research Defined….• American Marketing Association define Marketing Research as:
– The systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services.
Marketing research is the systematic and objective
identification,
collection,
analysis,
dissemination, and
use of information
for the purpose of improving decision making related to the
identification and
solution of problems and opportunities in marketing.
6.Hierarchy of Marketing Decision Makers Visionaries (on Top)
Standardized Decision Makers (in middle)
Intuitive Decision Makers (at bottom)
Intuitive Decision Makers:
Most decisions are based on past experience and instinct
Decisions supported with secondary data searches.
Standardized Decision Makers
• Some decisions based on business research
• Firms use tried-and-true methodologies, including other that might be appropriate.
• Limited enterprise-wide data and finding.
Visionaries
• Every decision guided by business research
• Firms develop proprietary methodologies and are innovative in their combination of methodologies
• Enterprise-wide access to research data and findings.
7. Characteristics of Good Research
A good research should have:
Its purpose clearly defined
A detailed research process
Its design thoroughly planned
High ethical standards
Its limitations clearly mentioned
Adequate analysis and relevant findings
Unambiguous presentation
Its conclusions clearly justified
Credentials.
8.Classification of Marketing Research
Research can be classified into:
a. Problem identification research
b.Problem solving research.
a.Problem Identification ResearchResearch undertaken to help identify problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research.
b.Problem Solving ResearchResearch undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.
Problem Solving Research is further classified as:
SEGMENTATION RESEARCH
Determine the basis of segmentation
Establish market potential and responsiveness for various segments
Select target markets
Create lifestyle profiles: demography, media, and product image characteristics
PRODUCT RESEARCH
Test concept
Determine optimal product design
Package tests
Product modification
Brand positioning and repositioning
Test marketing
Control score tests
PROMOTIONAL RESEARCH
Optimal promotional budget
Sales promotion relationship
Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing
Evaluation of advertising effectiveness
Claim substantiation
PRICING RESEARCH
Pricing policies
Importance of price in brand selection
Product line pricing
Price elasticity of demand
Initiating and responding to price changes
DISTRIBUTION RESEARCH
Determine…
Types of distribution
Attitudes of channel members
Intensity of wholesale & resale coverage
Channel margins
Location of retail and wholesale outlets
9.Marketing Research Suppliers & ServicesTwo types of suppliers
a.Internal suppliers
b.External suppliers
i. Full-service suppliers
1.Syndicated services
2.Standardized services
3.Customized services
4.Internet services
ii. Limited-service suppliers
1.Field services
2.Coding and data entry services
3.Analytical services
4.Data analysis services
5.Branded marketing research products
• New challenges were posed by the growth of internet based services and e-commerce.
•Stakeholders now have more information at their disposal and are more resistant to marketing stimuli.
• Competition is growing and coming from unexpected sources.
• There is more government intervention geared toward protecting its various publics through restrictions on marketing tools.
• Marketing managers have more variables to consider in every decision.
• The quality of theories and models in marketing is improving.
• Greater computing power provides the potential to get more data faster, integrate that data using warehousing, understand it using data mining, and analyze it using statistical tools.
• Research methods are gaining wider acceptance in dealing with a wide range of marketing problems.
Because of greater computing power and speed:
• Data collection cost is reduced.
• Better visualization tools are available.
• Powerful computations can be made very easily.
• More and more integration of data is possible
• Access to the information has become easy.
• Several advanced analytical tools are available for enhanced insights
• Reports can be customized as per the requirement of the client.
2. Marketing Planning Drives Marketing ResearchAn organization’s mission drives its marketing goals, strategies, and tactics and, consequently, its need for marketing decision support systems and marketing intelligence.
3.Information SourcesDecision Support Systems
Numerous elements of data are organized for retrieval and use in marketing decision making. It is stored and retrieved via Intranets and Extranets
Marketing Intelligence Systems
It includes Ongoing information collection. It focusses on events, trends in micro and macro-environments.
Explanation: When elements of data are organized for retrieval, they collectively constitute a marketing decision support system (DSS). This data is often shared over an intranet or an extranet.
An intranet is a private network that is contained within an enterprise and is not available to the public at large. It may consist of many interlinked local area networks. It typically includes connections through one or more computers to the Internet. The main purpose of an intranet is to share company information and computing resources among internal audiences.
An extranet is a private network that uses the Internet protocols and the public telecommunication system to share an organization’s information, data, or operations with external suppliers, vendors, or customers. An extranet can be viewed as the external portion of a company’s intranet.
A marketing intelligence system (MIS) is designed to provide ongoing information about events and trends in the technological, economic, political and legal, demographic, cultural, social, and competitive areas.
4.Sources of Marketing Intelligence
• Sources of government information include speeches by elected officials, recordings of public proceedings, press releases, and agency websites.
• Sources of competitive information include presentations at conferences, literature searches, press releases, syndicated industry studies, web sites, clipping services, and marketing research.
• Sources of economic information include literature searches and government reports.
• Sources of cultural and social information include syndicated studies, public opinion organizations, marketing research, and government reports.
• Sources of technological information include patent filings, web sites, syndicated industry studies, presentations at conferences, literature searches, and clipping services.
• Sources of demographic information include syndicated studies, government reports, and marketing research.
5.Marketing Research Defined….• American Marketing Association define Marketing Research as:
– The systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services.
Marketing research is the systematic and objective
identification,
collection,
analysis,
dissemination, and
use of information
for the purpose of improving decision making related to the
identification and
solution of problems and opportunities in marketing.
6.Hierarchy of Marketing Decision Makers Visionaries (on Top)
Standardized Decision Makers (in middle)
Intuitive Decision Makers (at bottom)
Intuitive Decision Makers:
Most decisions are based on past experience and instinct
Decisions supported with secondary data searches.
Standardized Decision Makers
• Some decisions based on business research
• Firms use tried-and-true methodologies, including other that might be appropriate.
• Limited enterprise-wide data and finding.
Visionaries
• Every decision guided by business research
• Firms develop proprietary methodologies and are innovative in their combination of methodologies
• Enterprise-wide access to research data and findings.
7. Characteristics of Good Research
A good research should have:
Its purpose clearly defined
A detailed research process
Its design thoroughly planned
High ethical standards
Its limitations clearly mentioned
Adequate analysis and relevant findings
Unambiguous presentation
Its conclusions clearly justified
Credentials.
8.Classification of Marketing Research
Research can be classified into:
a. Problem identification research
b.Problem solving research.
a.Problem Identification ResearchResearch undertaken to help identify problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research.
b.Problem Solving ResearchResearch undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.
Problem Solving Research is further classified as:
SEGMENTATION RESEARCH
Determine the basis of segmentation
Establish market potential and responsiveness for various segments
Select target markets
Create lifestyle profiles: demography, media, and product image characteristics
PRODUCT RESEARCH
Test concept
Determine optimal product design
Package tests
Product modification
Brand positioning and repositioning
Test marketing
Control score tests
PROMOTIONAL RESEARCH
Optimal promotional budget
Sales promotion relationship
Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing
Evaluation of advertising effectiveness
Claim substantiation
PRICING RESEARCH
Pricing policies
Importance of price in brand selection
Product line pricing
Price elasticity of demand
Initiating and responding to price changes
DISTRIBUTION RESEARCH
Determine…
Types of distribution
Attitudes of channel members
Intensity of wholesale & resale coverage
Channel margins
Location of retail and wholesale outlets
9.Marketing Research Suppliers & ServicesTwo types of suppliers
a.Internal suppliers
b.External suppliers
i. Full-service suppliers
1.Syndicated services
2.Standardized services
3.Customized services
4.Internet services
ii. Limited-service suppliers
1.Field services
2.Coding and data entry services
3.Analytical services
4.Data analysis services
5.Branded marketing research products
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