Archive for June 1st, 2016

Patanjali riding on Ramdev’s image and not products…really?

June 1, 2016

This is anything but a bizarre statement given by Adi Godrej.

Patanjali is doing well by leveraging its founder Ramdev’s image and selling “simple products like ghee and honey”, but is still small in the value-added segment, Godrej Group Chairman Adi Godrej said today.

“They seem to be leveraging Baba Ramdev’s image in yoga and ayurveda quite well, but most of their sales are in simple products like ghee and honey. Their sales in value-added products are still relatively small,” Godrej said during an interactive session organised by industry  ..

What else is it for Godrej? Don’t Godrej products ride on the Godrej image as well? Most FMCG products are essentially about who can capture the space using branding associated with founders etc. It stands for trust and pedigree. How else do you sell these FMCG categories where it is really difficult for the consumer to differentiate goods on the basic of product attributes alone. So you bring some celebrity etc to differentiate. In Patanjali’s case, Baba Ramdev happens to be the celebrity. Though, Patanjali also has Hema Malini selling biscuits and not soaps surprisingly.

Patanjali has truly shaken the FMCG industry from nowhere. Most would have rubbished the threat as an experiment which will not last. It is truly an incredible story whatever anyone may say..

 

Why monetary economics and financial economics are taught in silos?

June 1, 2016

This blog has always believed (along with few others) that for economics to go forward we need to really sort out our economics education. This crisis is about fixing our econ education as much as it is about fixing all the jazz like macro policy, financial institutions etc. If we  don’t fix the former and jus keep the focus on latter as is the case, it will just be a ban aid solution, True, education will not ensure that there will be no crisis in future but it will just make us realise that economics is hardly a linear subject and needs to be studied with other disciplines.

What we have instead is highly siloisation of economics where you just study standard stuff without any politics, history, society etc meshed in the curriculum. Even worse is siolisation within economics. One is just a macro person, other is just a micro person, yet another is a finance person and so on. One may not need to know anything about the other. This blogger too has been a victim of this siloisation, a huge limitation which does not just go away thanks to years wasted in silos.

Ironically, this silo creation is one of the crucial reasons behind the crisis and acts as a hindrance to solve the issues. This silo is between monetary economics persons and finance persons. How do you fix the issues going forward without understanding the linkages. This blog has written about this silo issue earlier as well.

In a recent post, Prof Peter Mehrling mentions how attempts are being made to limit this bifurcation:

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How a brand of Indian candy becomes an unlikely social media icon..

June 1, 2016

This article has a bit of everything – internet marketing, brand management, currency issues, customer perceptions, pricing etc.

It is about how a hard boiled candy called Pulse which has quickly generated Rs 100 cr of sales. I just tasted the candy recently and found it to be really different. It is perhaps the most tangy candy I have eaten so far. It is like eating a raw mango with salt and they have brought the taste to be really close to the original thing. It seems to be quite popular with most people who have eaten it.

The question is how did the candy grow this big?:

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What was it like to work in world’s most powerful company — East India Company ?

June 1, 2016

Fascinating article by Amanda Ruggeri in bbc.com. 

Given how much power East India Company had and enjoyed, how does it compare with today’s large companies?

Interestingly, it was a company which most wanted to be working in:

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