Sunday, May 30, 2010

Water selling- A huge business in Mexico

As I was doing my regular reading I found a very intresting fact which really amazed me, Mexicans drink more bottled water than the citizens of any other country do, an average of 61.8 gallons per person each year, according to the Beverage Marketing Corp., a consultancy. That's far higher than Italy, and more than twice as much as in the United States. The Beverage Marketing Corp. in New York City also said Mexico's bottled water market composes 13 percent of the world's total, and has grown at 8 percent for each of the past five years.
This really made me to wonder and think upon the reasons for the same. After a lot of research I came to the conclusion that, A rising mistrust of tap water is behind the thirst for bottled water. Other factors are also at play, like clever advertising campaigns by multinational corporations and the failure of the Mexican government to provide timely data on water safety
Rising mistrust on tap water is seen because Some municipal water systems in Mexico have fallen into disrepair, including in the capital, where a 1985 earthquake that killed more than 10,000 people broke numerous water mains. Some 30 percent of the city's water is lost to leakage.
The infrastructure is very old and obsolete. Even though there has been investment, it isn't enough. Runoff is seeping into the water system of Mexico.
For years, many residents grew accustomed to boiling tap water to ensure its safety, but natural gas prices have risen, making boiling expensive.
Not all the water is bad. Some provincial cities have improved their water systems, and Environment Ministry officials say that 85 percent of the water coursing through municipal systems is potable. Consumers, however, don't know when they might sip the other 15 percent. Many Mexicans simply don't trust the government to deliver clean, pure water.
That's where multinational companies with bottled water divisions - such as Coca-Cola, PepsiCo, France's Groupe Danone and the Swiss giant Nestle - have found an opening.
One can hardly turn on the television without seeing an ad of a lithe young woman in a sweatsuit sipping from a bottle of premium water or a woman in a bikini whose svelte physique seems due to the bottle of water in her hand.
"Drink 2 liters of water a day," the ads from Bonafont, a leading brand from Danone, say in block letters at the bottom of the screen. Another ad says: "Eliminate what your body doesn't need."
On street corners, vendors hawk liter bottles of water. Restaurants don't offer tap water, insisting that diners buy bottled water. Primary school students must take money to buy bottled water from kiosks. One brand uses characters from Looney Toons to appeal to the student market.
The boom in bottled water has an underside, too. Empty plastic water bottles litter landfills and roadsides at a rate that alarms consumer and environmental groups. Recycling experts say that only about one-eighth of the 21.3 million plastic water and soft drink bottles that are emptied each day in Mexico get recycled.
A Houston-based recycling services company, Avangard Innovative Ltd hence joined with a Mexican environmental services company last year to open a $35 million recycling plant in Toluca to handle PET, polyethylene terephthalate, the strong, light plastic that's resistant to heat and impermeable to carbonation, making it perfect for beverages.
For big companies, the boom in bottled water consumption in developing countries such as Mexico, India, China and Indonesia has been a godsend, since consumers in Europe, a stronghold of bottled water, have rebelled against throwaway plastic bottles as harmful to the environment.
Not so in Mexico.
Consumer advocates say Mexicans' thirst could be quenched more easily and inexpensively if municipalities provided reliable drinking water.
I think the state has contributed to these companies taking over the market and converting drinking water into a saleable product

Thursday, May 20, 2010

German tremurs- will it stop Indias growth story

World markets were on a crash course today, while the euro hovered near four-year lows against the dollar after Germany banned speculators from short-selling government bonds, fanning concern the global economic recovery may be derailed.

Indian markets also felt the heat. In its second biggest fall so far this year, the benchmark equity index, Sensex, of the Bombay Stock Exchange crashed 467 points, or 2.77 per cent. The index was near its three-month low. Six of the 30 stocks on the index plunged by more than 5 per cent, pushing the measure below its 200-day moving average for the first time in morethan a year. Some investors may read the breach as a signal of further declines
The rupee depreciated to its weakest per dollar since February 2009 on speculation overseas investors would pare holdings of emerging market stocks.
Crude oil slumped to a seven-month low in New York as the dollar climbed against the euro, curbing the investment appeal of commodities. Copper for three month delivery fell 2.8 per cent on the London Metal Exchange, while gold fell to $1,200 an ounce on profit booking.

The ban also brought back memories of an unsuccessful attempt by the US and British authorities to prop up stock markets at the end of 2008, in the wake of the collapse of Lehman Brothers and the ensuing crisis that gripped the banking sector.

According to me “The Indian markets would see fluctuation and volatility,”. “But, directionally, I don’t see investors withdrawing from India. I think from the Asian perspective, the implications are going to be more muted to the European crises because the local markethere are still flush with liquidity across most countries,”
India on a relative basis is not as affected, but in an absolute sense, it cannot be said that there will be no impact since the country is co-related with the rest of the world. The crisis will bring back fears of the economy slowing down, will bring risk back into the equation and the credit market will start getting some fears. In terms of FII flows, though there may be some impact in the short term, with more and more FIIs looking to invest in emerging markets, in the long-term the theme will get reinforced,

Monday, May 17, 2010

Brands expenditure on IPL- worth or not

Now that the dust has settled on the third edition of the Indian Premier League — the matches definitely; the controversies might take some more time to die down — it is time to check whether the various marketing and brand-building experiments actually paid off.
Several new formats were tried in IPL3.
For instance, advertisements on the big screen in the stadium were shown also on television in between deliveries. The brands which were seen promoting themselves through this medium were carbon mobile, munch, perk etc. Disruptive brands that interfered with the flow of the game got negative recall. These actually irritated viewers.
A blimp was also sent up at all the stadiums. This helped MRF achieve good brand recall as the comentraters were also made to talk about MRF and link it to the game. Brands that spent large sums of money to advertise during the matches didn’t get the right returns. Brands on T-shirts were lost on viewers — only those worn by the favourite team seemed to register some impact. But in the favourite team also there were so many brands sponsoring each teams that the viewers hardly could remember a couple of major brands. Mumbai Indians had in all 14 brands sponsoring them which formed a clutter. So baring for Videocon and a couple of other brands people hardly remembered any brand.
Outside cricket also the activities which compliment the game vitnessed a lull this season. The cheer girls, who this time wore outfits more suited to conservative Indian sensibilities, failed to make a mark. Though the matches were watched in large numbers and the results were discussed threadbare the following morning, few took part in contests and bought IPL merchandise.
Though IPL3 created a lot of buzz, the engagement was less than desired. The organisers of the tournament as well as brand managers need to rethink the efficacy of such spots. The bbrand managers should be sure of the thing they would want to communicate in the 10 seccond commercial or through the team they are sponsoring or through other branding activities. The money charged by IPL is huge and so more care should be taken regarding the same.

Thursday, May 13, 2010

Need for a fullproof methord of calculating TRP's

Considering the huge sums of money spend on Television Advertising in India and as it is growing day by day the advertisers are becoming more and more caucious regarding the same. Also the prices charged by the channels for a property is rising and hence it is very essential that the agency knows its target group and matches it with the expected TG in that property. For that the Television rating system should be able to give a fair idea of the same but unfortunately in India this has been a huge problem and we have not been successfull to capture the same.
The information and broadcasting (I&B) ministry today constituted a seven-member committee, headed by Federation of Indian Chambers of Commerce and Industry (Ficci) General Secretary Amit Mitra, to suggest measures for an effective Television Rating Point (TRP) system.
The mandate of the committee is to address issues related to accuracy, accountability, transparency and objectivity in the generation of TRPs. It would also examine as to how misleading TRPs can be and it can not only impact broadcasters and advertisers but more importantly the viewing public. This is a very huge problem because the system in which the TRP is calculated today is not at all full proof and it needs some drastic changes. For those who do not know how TRP is calculated is given as under.
For calculation purpose, a device is attached to the TV set in a few thousand viewers’ houses for judging purpose. These numbers are treated as sample from the overall TV owners in different geographical and demographic sectors. The device is called as People’s Meter. It records the time and the programme that a viewer watches on a particular day. Then, the average is taken for a 30-day period which gives the viewership status for a particular channel.
Presently, INTAM (Indian Television Audience Measurement) is the only electronic rating agency functioning in India. INTAM uses two methodologies for calculating TRP. First is frequency monitoring, in which 'people meters' mentioned above are installed in sample homes and these electronic gadgets continuously record data about the channel watched by the family members. 'People meter' is a costly equipment, which is imported from abroad. It reads the frequencies of channels, which are later, decoded into the name of the channels and the agency prepares a national data on the basis of its sample homes readings. But there is a drawback in the technique, as cable operators frequently change the frequencies of the different channels before sending signals to the homes. It may be very misleading to read a channel according to a particular frequency even if the down linking frequency is same all over India. Also the number of families covered through this is quite less which is because of the huge cost of instauling these machines.
Second technique is more reliable and relatively new to India. In picture matching technique people meter continuously records a small portion of the picture that is being watched on that particular television set. Along with this agency also records all the channels' data in the form of small picture portion. Data collected from the sample homes is later on matched with the main data bank to interpret the channel name. And this way national rating is produced.
But the latter methord also has its own drawback. Hence there is a huge need for a new rating system which takes into consideration more number of factors.

Wednesday, May 12, 2010

BSNL & MTNL in further problem

Operators Bharat Sanchar Nigam Ltd, Bharti Airtel, Vodafone-Essar, Aircel, Mahanagar Telephone Nigam Ltd and Idea Cellular might have to fork out over Rs 11,200 crore for having spectrum beyond 6.2 MHz, if the government accepts the Telecom Regulatory Authority of India (Trai) recommendations. A bulk of this additional amount — Rs 4,800 crore — will come from the two metros, Delhi and Mumbai, where spectrum beyond 6.2 MHz has been allocated to all players.

The impact, according to telecom experts, will be the most on BSNL and MTNL combined. They will have to pay over Rs 5,000 crore due to the additional spectrum they have got in all circles, followed by Bharti (Rs 3,000 crore) and Vodafone-Essar (Rs 1,715 crore). While BSNL will have to pay around Rs 2,445 crore, MTNL needs to shell out Rs 2,302 crore and Idea, Rs 1,000 crore, according to preliminary estimates by telecom

If this regulations are passed then the most hit will be the two government telecom giants. Both the telecom giants have faced a lot of heat in terms of loss in market share. The loss has resulted in increase in losses for both the companies. Since March 2007 BSNL has almost lost 8% market share while MTNL has lost 3.5% market share. This addition in the cost will add on to the worries faced by them and will add on to the losses and hence further affect the future plans of the companies. It will be very intresting to see the steps the government plans to take especially even as the talk for 3G oction heats up day by day. So the telecom industry is surely the one to follow.

Tuesday, May 11, 2010

Manchester United- A title less season!!!

A 10 month long season finishes without any titles for one of the biggest sporting giants in the world. When I say that I am referring to Manchester United out here.

Ever since the Barclays English Premier League was born the club has managed to catch the attention of not only the people in England but the fan following has spread to other countries as well. Since 1992 it has managed to win 17 titles which is an amazing achievement.

A title less season can be due to a number of factors like the absence of Cristiano Ronaldo, The defensive problems due to the injury to its important defenders and due to the absence of Owen Hargreaves and the problems between Anderson and the coach resulting in some problems in the centre of the field. All these problems were the major concerning factors which resulted in a bad showing by the most popular football club in the world. But one positive factor amidst all these was Rooney. He has performed his heart out for the club and it was disappointing to see him not win the golden boot which he really deserved. Another thing the coach and its fans would be proud off is the performance by Valencia its latest signing.

Any blog about Manchester United cannot complete without the referral of Gigs and Scholes its longest servants who have given in everything for the club. The concerning factor is once these two soldures retire how will the club fill in their shoes. The club has already signed two young players from Fulham and Mexico which I am sure will live up to the expectation. Sir Alex Ferguson would also have an eye on the upcoming Fifa world cup 2010 as he would serch for a striker to compliment Rooney. Knowing Sir Alex Ferguson he would ensure that the nightmare does not repeat again and the club performs much better than it actually did in this season. So I am expecting a much better showing by the club in the upcoming season.

Sunday, May 9, 2010

Bye Bye- India(((

Team India went to the Caribbean as one of the favorites in the ICC World Twenty20 tournament, despite losing in the last edition of 2009. With the third season of the Indian Premier League (IPL) ending barely a week before the first match, the team had little time to rest and with a halfway around the world journey to West Indies, it was sure to affect the team’s performance. In 2009, the team came out with what one may call as an “ordinary” show. Now with a much improved team, Dhoni and his men were desperately looking forward to get back to their winning ways. MUCH IMPROVED is a very important word as it may be that on paper the team would have improved tremendously but on the field it was a different case.

The team had to play without Virender Sehwag, one of the strongest players India has ever had. But at the same time, it gave a chance to a certain Murali Vijay, whose form in the IPL was impressive, not to forget his brilliant century in the tournament. Partnering him at the top order was the much experienced Gautam Gambhir, who played a huge rule for the team in 2007. Getting into the shoes of Sehwag and playing for the country was a challenge for Vijay. But he did not live up to the chalange leaving behind the question again that Indian players are only good when they play at home.

A major concern for the team was Yuvraj Singh’s streak of poor form. IPL, for him was ordinary. The team needed his comeback for their successful campaign. Much depended on the likes of MS Dhoni and Yusuf Pathan to strike the ball in the final overs of the game. Yusuf’s ability to hit the ball out of the ground is no secret, but his inconsistency in performing let him down in a big way. MS Dhoni who is often considered to be one of the best captains the game has ever seen disappointed in a big way. Firstly with the team selection by choosing Vijay and Jadeja even after continuous failures and then by not bringing in an additional pace bowler even after the Australia game. With the bat also he could not do much.

The Indian bowlers also disappointed. Other than Harbajan Singh no bowler was able to live up to the expectation. Zaheer Khan on whom the team relies upon in a big way was not able to deliver the goods. Jadeja even after a horrible Australia game was again given two overs in the West Indies game were again he was hit for 27 runs, questioning Dhonis captaincy.
Over all the run has been a horrible one till now and it needs a real miracle from now on if Team India has to go through the next round. But even those who do not understand anything about cricket can conclude that it is time to say India a bye bye and welcome them back home.

Friday, May 7, 2010

"AJMAL KASAB" Is the nightmare over?

A nightmare was observed on 26 November when around 10 terrorists who entered Mumbai via the sea root attacked the heart of Mumbai and ripped apart around 160 life’s and shook away the entire nation. All the terrorists were killed in the 48 hour long battle between the NSG Commando’s and the terrorists, accept “AJMAL KASAB”.

A special court in Mumbai today sentenced to death Mohammad Ajmal Kasab for the November 26, 2008, terror attacks on the city.
Reading out the sentence, Special Judge M L Tahaliyani said Ajmal Kasab be hanged by the neck until death
The judge sent Kasab to the gallows on five counts —mass murder, abetment of murder, waging war against India, conspiracy and terror —offences covered under the Indian Penal Code and the Unlawful Activities (Prevention) Act.
Kasab was also handed down life sentence on an equal number of counts — attempt to murder, conspiracy to wage war, collecting arms with an intention to wage war against the nation, kidnapping in order to commit murder and causing explosion to endanger life or property.

The verdict evoked instant reaction with people bursting crackers outside Chhatrapati Shivaji Terminus (CST) where Kasab was caught on camera killing people.
Generally news of death evokes feeling of disappointment and discomfort among the minds of the people but in this case people preferred to celebrate which sums up the act undertaken by him.

But this nightmare is not over, as thanks to our democracy Kasab has an option of going to the Supreme Court and also to file for mercy petition with the president. So still there is a lot of time before we actually see the nightmare being hanged till death. But we can only hope that the decision is taken rapidly and Kasab gets to experience what he actually deserves.

Wednesday, May 5, 2010

Why the name "Nightmare on our streets

I just saw the movie Nightmare on elm street yesterday and I really liked the movie a lot. There is not a lot of differnce between the original version and the remake. For those who have not seen the movie the synopsis goes as under.
Freddy Krueger returns in A Nightmare on Elm Street, a contemporary re-imagining of the horror classic. A group of surburban teenagers share one common bond: they are all being stalked by Freddy Krueger, a horribly disfigured killer who hunts them in their dreams. As long as they stay awake, they can protect one another…but when they sleep. there is no escape.
Once I left from the movie I had only one thought in my mind that off late the life has turned into a nightmare day in and day out. One does not need to sleep to experience it. These days such events take place freequently and the scenario is getting worse. The number of Freddy Krueger's are increasing and the world is becoming an unsafe place to live in.
It is not necessery that the roll of Freddy Krueger in real life is played only by individuals but also by organisations and other climatic causes.
Thus in my blog I will cover topics which are related to all these topics and sometimes topics also outside the scope mentioned above.