co branding strategy for tcs value, image and other issues

8/10/2019 Co Branding Strategy for Tcs Value, Image and Other Issues

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IN-COMPANY TRAINING REPORT

ONCO BRANDING STRATEGY FOR TCS: VALUE, IMAGE AND

OTHER ISSUES

COMPLETED IN

TATA CONSULTANCY SERVICES

SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT OF

BACHELOR OF BUSINESS ADMINISTRATION (B.B.A.) GURU

JAMBHESHAR UNIVERSITY OF SCIENCE ! TECHNOLOGY,

HISAR

T"#$%$%& S'"*$+": S'$//0 B1:

M". NAVNEET SHARMA VARSHA SINGH

D+$&%#/$%: MAR2ETING MANAGER E%"33%/ NO: 45677886496
http://study.taaza.com/university/guru-jambheshwar-university-hissar/13819http://www.google.co.in/imgres?imgurl=http://www.topnews.in/files/TCS-LOGO.jpg&imgrefurl=http://www.topnews.in/tcs-optimistic-about-growth-quarter-may-hire-30000-professionals-2256575&h=160&w=160&sz=6&tbnid=D0C8508Goltf-M:&tbnh=98&tbnw=98&prev=/search%3Fq%3Dlogo%2Bof%2Btata%2Bconsultancy%2Bservices%26tbm%3Disch%26tbo%3Du&zoom=1&q=logo+of+tata+consultancy+services&hl=en&usg=__KsdexQ1OOPvobywZU16KiebTqjk=&sa=X&ei=sNrETrK9DYjIrQfj77jZCw&ved=0CCcQ9QEwBA


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SESSION: 8445-8478

PREFACE

No professional curriculum is considered complete with out work experience. Every

individual who is doing management studies has to go this phase of practical study before

he/she considers himself/herself fully qualified as potential managers.

I got an opportunity to do training with T!.. I undertake the "# $%&N'IN(

!T%&TE() *#% T!+ ,&-E I0&(E &N' #T1E% I!!E!2 training to study.

This study discusses on the various aspects of ustomer relationship management and its

importance in retailing. The study is based on questionnaire survey results of tcs. The

study concentrates on the concept of retailing in the current scenario and prevailing

market of retail. &nd describe the effectiveness of %0 by identifying the key activities

that should perform in order to maximi3e the profitability of tcs.


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AC2NOLEDGEMENT

I would like to take an opportunity to thank all the people who helped me in collecting

necessary information and making of the report .I am grateful to all of them for their

time energy and wisdom.

(etting a pro4ect ready requires the work and effort of many people. I would like all

those who have contributed in completing this pro4ect. *irst of all I would like to send

my sincere thanks to Mr. Navneet Sharma(Training

Supervisor)and other staff.

,&%!1& !IN(1


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DECLARATION

I hereby certify that the pro4ect report entitled onCO BRANDING STRATEGY

FOR TCS: VALUE, IMAGE AND OTHER ISSUES!ubmitted in partial

fulfillment of the requirement for the award degree of $achelor in $usiness

&dministration to (% 5&0$1E!16&% NI,E%!IT) #* !IENE 7

TE1N#-#() 1I!&%is my original work and not submitted or the award of any

other degree diploma fellowship or any other similar title or pri3es anywhere else.

VARSHA SINGH

45677886496


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EECUTIVE SUMMARY

Tata onsultancy !ervices the second is 6ipro and the third is Infosys + the three

leading lights of the Indian software industry. They more than anything else have put

Indian skills on the global map and gained India greater global respectability than it has

ever had in its modern history. The three by now household names among middle class

Indians represent a fine conundrum. They offer near+identical services of near+identical

quality and there is little to distinguish them in the way they meet customer requirements.

$ut they are so different ++ in age pedigree and history of growth. Not unexpectedly in

an 8attempt to differentiate themselves they have followed vastly different marketing

strategies and sought to makes themselves into distinctive brands.

T! is the grandfather of them all. $ut fascinatingly 9it has been the best+kept secret in

the Indian software industry9 says %amanu4am !ridhar marketing expert and E# of

$rand+omm. ntil it was listed in :88; T! cared little about getting itself publicly

known and concentrated on its customers. *rom all accounts it has done a fine 4ob within

its chosen focus. It grabbed customers when they were up for grabs but what is more not

only managed to hang onto them but created a relationship it has leveraged to win some

of the biggest recent deals.

T! earlier didn


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,ashistha managing director of offshoring consultancy neoIT 9It has been very

aggressive in the last year and has put the right people forward. The I=# has made it

hungry for the right things. T! is stable and trustworthy. It has great expertise a lot to

offer and is not charging all that it can.9 T!


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TABLE OF CONTENTS

P#& N'"

C;#/" 7 < I%/"0'=/$%>>>>>>>>>>>>>>>.7-6?>.>. #verview of Industry as a whole ???????????????....>+@

>.:. =rofile of the #rgani3ation ??????????????????A+B:

+ ,ision 7 0ission

+ =roducts

+ #rgani3ation !tructure

>.B Introduction to the Topic ??????????????????..BB+@C

C;#/" 8 - O@=/$* ! M/;03&1>>>>>>>>>> 65-98:.>. #b4ectives of the !tudy ????????????????????... @D

:.:. %esearch 0ethodology?????????????????????.A:

+ !ampling unit

+ !ources of data

+ !ampling Technique

+ !ample si3e

+ 0ethods of data collection

C;#/" - D#/# A%#31+$+ ! I%/""/#/$% >>>>>>.>..9-96

C;#/" - F$%0$%&+ #%0 A%#31+$+>>>>>>>>>>>.>.99-?4

C;#/" 6 < R=%0#/$%+>>>>>>>>>>>>>...?7-?

ANNEURE (Q'+/$%%#$")>>>>>>>>>>>>>..>?-?9

BIBLIOGRAPHYREFERENCES>>>>>>>>>>>>>..?


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CHAPTER 7-INTRODUCTION

OVERVIE OF THE INDUSTRY AS A HOLE

Twenty+five years ago the vision of 5%' Tata gave birth to a centre for applied research

that would work both for the good of science and of society. 1is words 9To apply

existing knowledge for the benefit of our industry and our people9 had a profound

influence and served as a roadmap for the Tata %esearch 'evelopment and 'esign entre

T%''F.

The thinking back then according to 'r 0athai 5oseph executive director T%'' wasthat 9The Tata group had a centre for fundamental research and teaching institutes for

social sciences and natural and engineering sciences. They were a large industrialised

group but they had nothing that was specially focused on industry.9

!et up in =une in >DC> as the %7' division of Tata

onsultancy !ervices T!F T%''


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'r 5oseph says 96e have a three+year hori3on. If anything takes longer than three years

we sponsor universities to do it.9 The organi3ation has forged academic alliances with

universities in the ! the G and 'enmark. These alliances enable it to collaborate with

the universities in areas that are of interest to T%'' but where it will be years before

results are seen.

Interestingly while T! funds the research it allows the universities to work at their own

pace and direction. The university research itself is in the public domain enabling

scientists to have their work reviewed by their peers.

6hile T! does not own the university research that is sponsored it is the first to gain

access to it. !o if there is any opportunity for commercial exploitation T! has the right

to first refusal. #ther companies will have to wait until the research reaches a scientific4ournal or a conference some years later. 91ere we not only know what it is9 says 'r

5oseph 9$ut we are part of the process of making it happen.9

The universities in turn benefit from having the funds to work in emerging fields and

from getting a free hand to work on a larger canvas than they would otherwise have had.

T%'' is open to new ideas and to building a relationship with universities.

T%'' also invites students to do small pro4ects depending upon their course of study.

This facility helps it to source good people for recruitment interact with the faculty of

reputed universities create opportunities for students and ensure greater visibility for

itself.

T%'' is very concerned about empowering its own people and giving them intellectual

freedom. 'r 5oseph clarifies 96e give them a lot of flexibility when it comes to choosing

what pro4ects they will do. Typically when someone 4oins they work in different pro4ects

trying to understand what we do and how we do it. Then they decide what they want to

do. It may take months or even a year. 6e try not to slot people into compartments. In the

long run it is better for the organi3ation.9

The organi3ation is very clear about giving its people growth opportunities. If a group

working in a particular area proves itself it is moved out of %7' and made into a T!

business unit. In many instances people who started their careers in T%'' have moved

on to lead ma4or business groups in T!.

:


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T%'' is equally serious about its responsibility towards society. In the >DD8s the

organi3ation built a water filter for domestic use in a 4oint %7' exercise with the

anadian International 'evelopment &gency. 6hile the agency pulled out after two

years T%'' continued to work in the field. Its aim was to produce a user+friendly

water filter that could provide bacteria+reduced potable water to villagers.

The value of the filter was enhanced in numerous ways. T%'' trained some villagers

to make this element at a cost price of %s>H. These people then sold it for %s:@ thereby

earning some revenue on it.

T%'' has sent :C888 of these filters to different places in India. The filters were

especially beneficial following the (u4arat earthquake and the tsunami in Tamil Nadu.

The organi3ation continues to research ways to improve the water filter.T%'' also supports another cause the adult literacy pro4ect which though not under

the purview of %7' underlines its commitment to society. This pro4ect the brainchild of

* Gohli the director+in+charge then and created by T! 1yderabad proposes to teach

people to read in ;8 hours. The test of the learning is being able to read a newspaper.

&nother social pro4ect involved setting up a computer lab for the members of the !ociety

for the =hysically 1andicapped. This facility served to stimulate children to go in for

higher education and later employment.

'r 5oseph wants his organisation to prove its abilities both on the industrial and the social

front. 1e says 9#ur people are measured in terms of their patents and publications. #ur

organisation is measured by its industrial and social pro4ects. 6e want to know that what

we are doing is of relevance to industry and society. 6e must demonstrate that what we

do goes into the company and creates value for the company.9

Today 'r 5oseph heads an organisation that plays a leading role in T! business one that

has leveraged its knowledge to expand its hori3ons and sought to improve the quality of

life of ordinary people. &ll through its :@+year existence T%'' has faithfully adhered

to the course set by 5%' Tata. (uided by the former chairman


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Industries in India. !trong demand over the past few years has placed India among the

fastest

(rowing IT markets in the &sia pacific region. The India software and information

technology

Enables services industry has grown at a compounded annual growth rate of :CJ during

last five years.

Tata onsultancy !ervices T!F is a leading provider of IT services business solutions

and outsourcing. Through its global network delivery model the mammoth corporation

offers its e+business application development and maintenance architecture and

technology consulting engineering security infrastructure development and

management services to organi3ations in more than @B countries worldwide. 1oweverthe firm


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CLIENT CHALLENGES

!uccess in a business environment is characteri3ed by the ability to adapt to the changing

profile and higher user expectations on the one hand and a rapidly changing technology

environment on the other.

Telecom service providers are facing tremendous challenges on improving profit margins

falling &%=Ls high customer churn fierce competition customer experience

maintaining uos demand for new services and bundles and heavy investments for

network transformation.

&t the same time fast+paced innovation advent of next generation wireless technology

-TE/6imaxF converged networks competition from new entrants and demand for end+

to+end managed services from service providers is putting immense pressure on telecomequipment vendors.

T;" #" *#"$'+ =#%$+ ;$=; =+ '%0" /;$+ $%0'+/"1

TATA CONSULTANCY SERVICES

IPRO TECHNOLOGIES

INFOSYS TECHNOLOGIES

HCL

IBM INDIA

@


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COMPANY PROFILE

Established in >DAC Tata onsultancy !ervices has grown to its current position as thelargest IT services firm in &sia based on its record of outstanding service collaborative

partnerships innovation and corporate responsibility.

6e are proud of our heritage as part of the Tata (roup founded by 5amset4i Tata in >C;C

and one of IndiaLs most respected institutions today. T! mission reflects the Tata

(roup8 global companies by the year :8>8. T! values integrity leading change

excellence respect for the individual and fostering an environment of learning and

sharing will get us there. T!< ability to deliver high+quality services and solutions is

unmatched. 6e are the worldLs first organi3ation to achieve an enterprise+wide 0aturity

A
http://images.google.co.in/imgres?imgurl=http://www.worldlit.ca/assets/images/Sponsor%20Logos/TCS%20mark_2blue.jpg&imgrefurl=http://www.worldlit.ca/sponsors.html&usg=__4Ge6P1ew0b8qgWg6DmuE1Msw7Ik=&h=678&w=1460&sz=166&hl=en&start=2&sig2=TPoL3hEiyxC-nNI987C10g&um=1&tbnid=kCfNIiQHQOk46M:&tbnh=70&tbnw=150&prev=/images?q=TCS&hl=en&sa=N&um=1&ei=N3wCSvKwL4KdkAXD_MjNBA


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-evel @ on both 00IP and =+00P using the most rigorous assessment

methodology + !&0=I!0. &dditionally T!L Integrated uality 0anagement !ystem

i0!QF integrates process people and technology maturity through various established

frameworks and practices including IEEE I!# D88>O:888 00I !6+00 =+00

and A+!igma.

BUSINESS MODEL

IndiaLs largest IT services company Tata onsultancy !ervices has

scripted a remarkable turnaround story emerging from the global recession

by churning out impressive results. 6ith global tech spends set to rise over

the coming years it is now gearing up to meet the expected surge in

demand for its services

6hen Tata onsultancy !ervices T!F announced its

results for financial year :88D+>8 analysts and the markets

were pleasantly surprised. IndiaLs largest IT services

company had beaten expectations and defied critics to post

some of the most encouraging numbers that the Indian IT

industry has seen in a couple of years.

H


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Nobody had expected this kind of growth. onsider thisO

%evenues for the year ended 0arch B> :8>8 were RA.B; billion up @.BC per cent

from the previous year.

Net profit at R>.;@ billion was up :D.8> per cent from the previous year.

#perating profits were up >C.8: per cent at R>.AC billion.

#perating margins grew :HH basis points to :A.@ per cent.

Net profit for the fourth quarter ended 0arch B> :8>8 rose @D.AD per cent over

; :88D.

=ut simply the results emphatically signalled the end of the slowdown. The company

followed up the *)>8 results with an equally robust performance for the quarter ended

5une B8 :8>8O

%evenues 3oomed :>.: per cent year+on+year to R>HD; million.

Net profit rose :D.B per cent year+on+year to R;8B million.

#perating profits grew B:.@ per cent year+on+year to R;CH million.

6ithin 4ust the first three months of the new financial year the company added BA

new clients.

C


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TCS VS OTHER OFFSHORE PLAYERS

&mong the top four Indian IT companies Infosys has highest total score in &'0 space

on the back of very high score in strategyF followed by T! +having highest score in

current offering and market presence as can be seen in the table given belowF.

onsidering its strengths in &'0 space T! is expected to maintain the lead among

offshore players going forward.

D


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E%/""$+ S3'/$%+: -

Enterprise solutions are ready made software packages such as !&=F which are

implemented by IT service providers after certain modifications as per the requirementsof clients. The level of customi3ation done by IT companies is around :8J of total efforts

level. 1ence being less labor intensive the cost benefit provided by off shoring companies

is relatively less as compared to other service lines. *urther global service providers such

as I$0 &ccenture and ! having superior industry/business domain competencies

have an edge over offshore players.

B'+$%++ I%/33$&%= (BI):

$usiness intelligence is high+end service as it requires a diverse set of technology skills

best practices and frameworks as well as knowledge of multiple functional areas to

implement and optimi3e an enterpriseLs $I processes and applications. $eing a high+end4ob there are limited numbers of players in this space. T! is only Indian player which

is classified in leadersL quadrant beside I$0 and &ccentureF by (artner. The offshorable

market for this service is expected to be R:8 bn by :8>8 !ourceO (artnerF offering T!

huge opportunity as it is well placed in S$usiness IntelligenceL space. The strength of

T! in this segment is also reflected in its strong performance. $usiness Intelligence

segment for T! grew by A:J in *)8H as compared to BDJ for India.

E"&$%& +"*$=+:-

6ithin IT services T! has identified &ssurance !ervices like testingF Infrastructure

#utsourcing I!F and consulting as its future growth areas considering the current market

needs.

$) T+/$%& +"*$=+: -

>8


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NEED FOR OUTSOURCING TESTING SERVICES

Testing is an independent function that verifies software developed by third parties or

client himself. In other words it involves identification and correction of flaws and bugs

in software.

as can be seen in the chart given belowF.

MAR2ET POTENTIAL

The worldwide software testing market will reach R>B billion by :8>8 out of which ;@+

@8 percent approximately RA billionF will be outsourced !ourceO (artnerF. India has the

potential to corner H8J share of the outsourced testing market as per the industry

estimates. In *)8D IndiaLs export revenue from testing was about R:C8 0n !ourceO

N&!!#0F.

EMERGING AREA FOR TCS

>>


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In testing segment T!Ls share is around >AJ of total export from India in *)8AF. In

*)8D T! has registered growth of >::J in testing business which is more than B

times the growth in IT service segment as a whole.

$$) I%"#+/"'=/'" '/+'"=$%& (IS):-

NEED FOR INFRASTRUCTURE OUTSOURCING

In todayLs business environment IT infrastructure is becoming increasingly complex and

needs constant attention. #utsourcing this domain can enable enterprises to focus on their

core business. $esides in+house competencies are difficult to build and retain which

increases the need to outsource IT infrastructure.

MAR2ET POTENTIAL

In :88D the global infrastructure outsourcing market is estimated at around RD: billion.

The global spend on infrastructure outsourcing is expected to rise at a stable rate of

around A per cent over the next @ years. #n an average @8+A8 per cent of infrastructure

outsourcing activities can be carried out from remote locations. This translates into a

market potential of around R@8 billion for offshore players !ourceO %I! IN*&F.

OFFSHORE PLAYERS VERSUS MNC+

6ith the increase in si3e of offshore players they are capable to take the IT assets of the

clients on their balance sheets. *urther extension of development centres by offshore

players has enabled them to move up to the leadership position T! Infosys 6ipro and

1- are included in the listF in infrastructure management space !ourceO *orresterF.

>:


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TCS VS OTHER OFFSHORE PLAYERS

&mong the top four Indian IT companies 6ipro has highest total score in infrastructuremanagement space on the back of very high score in strategy and market presenceF

followed by T! +having highest score in current offering because of its successful

adoption of the global delivery model among all the offshore players. onsidering its

strengths in infrastructure outsourcing space T! is expected to maintain its lead going

forward.

$$$) C%+'3/$%&:

IT consulting involves formulation and execution of IT strategy on behalf of corporates.

!ince it involves participation with the clients from the stage of formulation of IT

strategy and interaction with the top+level management of client organi3ation it provides

IT consulting company a chance to obtain contracts for other IT related work such as

implementation and maintenance. 1ence most players are increasingly trying to expand

>B


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their presence in IT consulting. Traditionally Indian players did not have a large presence

in IT consulting. *or instance share in IT services export of consulting was 4ust >J

however over a period of time tier I companies have built their expertise and increased

their presence in IT consulting. T! at present employs around C88 consultants. $esides

these C88 consultants consulting work is also done by same number of people from

outside the consulting department. T! plans to increase the number of consultants to

:@88 in next three years. &lso it expects revenue from consulting services to more than

triple to RA@8 million by *)>8 from R>;A million in *)8D. To strengthen its presence in

IT consulting T! has also made acquisition or entered into alliances which are as

followsO +

TCS M#%#&%/ P/1 L$$/0, A'+/"#3$#

T! 0anagement =ty -imited T!0F a privately owned consulting company in

&ustralia was acquired by T! in *)8D. T!0 provides consulting services to clients in

banking telecommunication media retail and government sector in &ustralia. 6ith this

acquisition T! added B@ senior consultants of T!0 to its team

A++/ 3*"#& +3'/$%+ (S/#" P"0'=/+)

I. 0arket potentialO +!oftware products export from India is expected to grow from

si3e of !R: billion in :88A to !RH billion by :8>8 i.e. at a &(% of BA.CJ

!ourceO N&!!#0F. (eography wise the .!. and Europe are the main

markets. 6hereas industry wise $anking *inancial !ervices and Insurance

$*!IF is the mainstay.II. In order to capture the market opportunity in software product space T! has

adopted the inorganic route. In previous two financial years T! has made

following acquisitionsO +

F$%#%=$#3 N/" S"*$=+ (H30$%&+) P/1 L$$/0, A'+/"#3$# (FNS)

>;


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In *)8D T! acquired !ydney+based *N! to strengthen T!L portfolio of banking and

financial services products by adding S$&N!L a ore $anking !olution with an

established customer base of over >>@ banks spread over B@ countries.

T2S-T%+/ S.A., S$/"3#%0

In *)8D T! acquired !wit3erland+based TG!+Teknosoft !.&. TG!F to expand its

product portfolio in the banking and financial services space in !wit3erland and *rance

by acquiring marketing and distribution rights of S&%TUPL platform for wholesale

banks and also by adding new products in the private banking and wealth management

space. These two acquisitions have enabled T! to move to number two spot in Indian

software productLs players list in *)8D in terms of revenueF. *urther *N! with T!

being its parent moved to number one spot globally for retail banking solutionF in terms

of number of wins in )8A !ourceO I$! :88AF. In addition L &%TUL was at fourth

spot for wholesale banking solutionF in terms of number of wins in )8A. In order to

leverage these two acquisitions and consolidate its suite of financial products T! has

launched new business unit +ST! *inancial !olutionsL.

B'+$%++ P"=++ O'/+'"=$%& (BPO)

I. 0arket potentialO +$=# industry is one of the fastest growing segments of Indian IT

industry. It grew at a &(% of BHJ as compared to B>J for industry as a whole over a

period of *)8B to *)8D.(oing forwardM also it is expected to maintain the high growth

rate led by platform+based $=# offerings %efer Terminology in &nnexureF. &s per

N&!!#0 platform+based $=# will gain tractions as firms combine expertise in

process management and implementation technologies such as business intelligence

data warehousingF to deliver a solution oriented towards business delivery.

(lobally pro4ections for the IT industry also paint a happy picture. &ccording to a report

by the National &ssociation of !oftware and !ervices ompanies NasscomF and

International 'ata orporation global technology spends are expected to increase from

R>.A trillion in :88C to R>.D trillion in :8>B.

C$=" S.A., C;$3

>@


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In *)8D T! acquired omicrom !.&. to enhance its presence in -atin &merican $=#

market. omicrom is a leading $=# organi3ation in hile having @HJ market share in

the cheque processing business.

D$3$&%/# L$$/0

In *)8D T! entered into a contract with the G+based =earl &ssurance (roup =earlF

under which the business processing activities of the =earl were taken over by T! along

with its D@8 employees as part of the deal. III. T! has developed its own $=# platforms

and has started delivering services to clients from these platforms for e.g. =earl (roup is

served from platform developed for insurance companiesF. *urther it is planning to

launch two more new platforms in next couple of months. #ne platform is in area of

1uman %esource #utsourcing 1%#F and another in area of *inance and &ccounting

*7&F.

E%&$%"$%& S"*$=+

I. 0arket potentialO +Engineering !ervices #utsourcing E!#F includes product

design research and development and other technical services across sectors like

automotive aerospace hi+tech/telecom utilities and construction/industrial

machinery.

&s per the N&!!#0 and $oo3 &llenLs study global spending on engineering services

in :88D was RH@8 billion which is pro4ected to increase to R>.> trillion by :8:8. #ut of

which today only miniscule portion i.e. R>8+>@ billion of engineering services is off

shored which is expected to grow to R>@8 +::@ billion by :8:8.

The market share of India in offshore engineering is currently >:J which is pro4ected to

increase to :@J by :8:8 i.e. potential engineering market in India could exceed RBC bn

by :8:8 !ourceO N&!!#0 and $oo3 &llenF. The primary reason for increase in share

of India in offshore engineering is its cost attractiveness and talent pool si3e in relation to

that of other countries. *or instance if the cost of automotive design in Europe cost RC88

>A


24/97

per hour which is even higher in the ! costs in India when put on an hourly basisF are

as low as RA8 per hour for equivalent quality !ourceO N&!!#0 and $oo3 &llenF.

II. To expand and take the opportunity in E!# space T! set up a separate business

unit for E!# in *)8@. 1owever T! has entered this space in >DCH by starting a

5.,. with 6estinghouse Electric orporation and International *inance

orporation.III. T! offers E!# services to clients in the verticals industriesF like +automotive

hi+tech 7 telecom aerospace industrial oil 7 gas and utilities. 1owever among

all the verticals focus area for T! is aviation industry. In India T! is the first

company to be &! D>88O %ev $ certified for design of airframe structures.

*urther T! has been accredited with certification from Indian &irworthiness&uthorities. The scope of the certificate covers design and development of

airframe structures provision for engineering services/analysis along with design

development/ maintenance of support software.

G3#3 D3$*"1 M03 (GDM)

S('0L means the delivery of IT services using multiple locations in such a manner that

cost+effectiveness and quality are optimi3ed. ('0 tries to achieve a perfect balance of

quality cost savings and locali3ation by executing components of an IT pro4ect in various

parts of the world.

T; ++%/$#3 '%=/$%+ GDM $%=3'0:

O%+$/ - these are operations performed at the site of the client

O+;" - these include operations performed away from the clientLs site generally from

low+cost countries

M'3/$-3=#/$% 03$*"1 =%/"+ - it is important to have a multi+location offshore

presence in order to mitigate risks associated with a single location delivery centre and to

ensure continuity of the business process.

>H


25/97

F"%/ %0 - these include marketing and sales functions carried out in the clientLs country

in order to obtain repeat business orders and to seek new clients. *or a ('0 to be

successful it is important to establish the right structure and thus have the right mix of

onsite front+end and offshore components. 'elivery centres and their role in T!Ls ('0

are depicted belowO +

E#%+$% $% "&$%& +;" 0+/$%#/$%+

&mong all the geographies &sia+=acific is estimated to lead the growth in IT spending

followed by &merica and Europe 0iddle East 7 &frica E0E&F. 6ithin &sia+=acific

the growth is expected to come from India and hina and in &merica growth will come

from -atin &merican countries.

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To take twin advantage of relatively higher growth in developing countries and benefits

of global delivery model T! is expanding its employee base in delivery centres in other

emerging offshore destinations such as hina and -atin &merican countries. &bout D.BJ

of T!Ls workforce is non+Indian. This is expected to go up to >@ per cent over the next

three years.

In hina T! has entered into 5oint ,enture 5,F with B hinese parties $ei4ing

Uhongguancun !oftware =ark 'evelopment ompany naware ompany and Tian4in

1uayuan !oftware &rea onstruction and 'evelopment ompanyF which are supported

by National 'evelopment and %eforms ommission N'%F+ a hinese government

organi3ation. T! stake in 5, is H:..::J whereas that of hinese parties is :H.HCJ. 5,

has entered into agreement with 0icrosoft as a result 0icrosoft will 4oin the 5, by

0arch :88C and its stake will be >8J. The share of T! will come down to A@J after

the entry of 0icrosoft in 5,. &t present the employee strength of the 5, is >>88 plus

D:J local recruitsF which it plans to increase to @888 people by *)>>. 6hereas in

revenue terms the ompany expects to touch R B@ mn in *)8C. T! has head start

against other Indian IT players in hina in terms of both revenues and employee

strength.

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T#3%/ 3 #%#&%/

IT service industry being human resource intensiveM ability of company to attract retain

and impart training in new technologies to employees are key factors as it provides the

certainty in respect of delivering the agreed level of services in terms of qualityF to

clients.

T! is considered to have one of the best human resources policies in Indian IT industry

enabling it to win for four consecutive years i.e. from :88C to :88D the 'ataquest award

for the S$est Employer in the Indian IT industryL. This is also reflected from the lowest

attrition rate of employees of T! among tier I Indian IT companies.

T! has set up training facility in India as well as outside India .!. hina 1ungary

and ruguayF having the capacity to train :8888 plus employees per annum. This

enables it to recruit the talent from higher number of institutions to meet its need of

!ourceO ompanyF

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!trong presence in -atin &merica has enabled T! to win some key local contracts Tata

onsultancy !ervices -imited &0II- :> talent pool while ensuring the required skill

level of employees by providing initial learning and induction program. The quality of its

training program can be gauged from the fact that T! has tied up with ,ietnamese

government for training the students in ,ietnam and itLs in talk with !ingapore

government for the same purpose. &long with the increase in number of institute T!

visits the number of institutes in which it has able to fill its slot on day one itself has

increased +corroborating its status as preferred employer on campuses.

Tata onsultancy !ervices is IndiaLs leading Information Technology ITF and

0anagement onsultancy :>optimi3e:>ion. Established in >DAC T! has completed :@

years of services to business industry and government worldwide. ItLs operations span

over ;8 countries. It has successfully executed pro4ects in areas such as banking and

financial services manufacturing industries energy healthcare transport

communications and tourism.

Employing more than @@88 >DDAF professionals T! provides a wide spectrum of

consultancy services in the area of IT. These services cover all aspects of systems and

software engineering including information needs analysis computer hardware si3ing and

selection systems analysis and design system conversion :>optimi3e:>i software

development and implementation bureau services and computer+assisted instruction.

%esearch and development play a critical role at T!. The !ystems Engineering and

ybernetics entre at 1yderabad IndiaF studies and analyses problems with a holistic

perspective. It has developed methodologies for understanding the increasingly complex

organi3ational and societal problems. The entre functions as a nucleus for the

dissemination of systems engineering and cybernetics techniques in India.

The Tata %esearch 'evelopment and 'esign entre a division of T! is based in =une

IndiaF. The entre speciali3es in applied research in information technology. !ome of

the areas of :>optimi3e:>ion:>n are ob4ect oriented techniques software engineering

artificial intelligence expert systems &'/&0 image processing and microprocessor

based instrumentation. onsultants at T! have access to a wide range of hardware

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mainframes mini+computers personal computers =sF and dedicated workstations.

!ome of the systems in T! are the I$0 E!/D888 I$0 B8D8 I$0 &!/;88 %!/A888

,&VA888 'E@888 ElxsiA;88 !N !EENT T&N'E0 TV= -V and ,-V. In

addition there are mainframes and minis from Texas Instruments 1ewlett =ackard and

others. Extensive use of software tools ensures quality and productivity optimi3ation.

The company is listed on the National !tock Exchange and $ombay !tock Exchange in

India.

A"#+ '+$%++

S"*$=+

The following T! services help customers optimi3e business processes and create

resilient IT infrastructure ensuring faster business resultsO

onsulting

T! consulting services help enterprises transform the way of doing business by

helping them to optimi3e business processes align IT with business requirements

support IT operations and design effective risk management strategies.

IT services

T! provides system integration and testing solutions and applicationdevelopment and management services that help companies make the most of

their IT investments.

$usiness process outsourcing

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T! works with enterprises worldwide helping them focus on their core business

while accelerating outsourced operations and ensuring round+the+clock service

delivery.

Infrastructure outsourcing

The company partners with enterprises to make their IT infrastructure flexible

scalable and secure while maximi3ing performance.

Engineering and industrial services

sing the best technologies processes and competencies T! helps businesses

to put into practice their strategies in product development and management of

assets and production.

V#"$'+ +"*$=+

Tcs helps clients from various industries solve complex problems mitigate risks and

become operationally excellent. !ome of the industries it serves areO

$anking and financial services

Energy and utilities

(overnment

1ealthcare and life sciences

1i technology

Insurance

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0anufacturing

%etail

Telecom

Travel and hospitality

G"$%& G3#3 M#%#&"+

T; #$%& /; &3#3 #%#&"

R G#3#"$+;%#% the executive director of Tata !ons sorts out the leadership and

managerial qualities demanded by todayLs worldwide order of business

O% /; ;$&; "#0 #$%

& year later though things are looking up again. T! obviously did a lot of things right

to achieve the kind of growth it reported for the year ended 0arch :8>8. It was

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determined to go after those pro4ects and continue investments where required recession

or no recession. That focus combined with some serious cost+management measures and

a business restructuring exercise earlier on ensured that the company emerged stronger

from the recession.

0r. handrasekaran has a simple way of explaining how the company did what it didO

"The T! model was actually a part of the solution.2

G3#3 +"#0

In terms of a global presence the numbers speak for themselves. &s of 0arch B> :8>8

T! had >;: offices spread across ;: countries and >8@ ('s in :8 countriesO

>C offices in the ! and anada.

>: offices in seven countries in -atin &merica.

>> offices in the G and Ireland.

:: offices in >: countries in Europe.

>C offices in >: countries in &sia =acific.

V$+$% #%0 M$++$%

,ision is all about seeing the invisible through imagination. 1owever mission is all about

executing the activities. ,ision indicates where one wants to go and mission directs how

one can go. ,isionaries always look for what is possible by discovering the potential and

missionaries adopt though right planning and execution. The visionaries are directors and

the missionaries are actors.

Importance of ,isionO

9,ision without action is a daydream. &ction without vision is a nightmare.9 + 5apanese

proverb

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,ision enhances organi3ational excellence and effectiveness. It enhances the commitment

of employees towards organi3ation. It helps employees move in a specific direction in

which the organi3ation is intending to move.

,ision statement is the highest order of goals that takes the organi3ation to the tipping

point. It is for long term that can transform the organi3ation and keeps it different from

others. In contrast mission statement is different from vision as it may change from time

to time as the strategies to reach organi3ational goals and ob4ectives change from time to

time.

& vision statement serves as a catalyst. It plays a pivotal for the success of any

organi3ation. It should be clear crisp simple and straight and above all 4argon free. Itmust energi3e employees to contribute their best. They must be able to take pride and be

proud of the organi3ation. In fact there are no fixed rules and regulations and no fixed

formula for crafting a better vision statement. *or instance (ELs vision statement is "To

become W> or W: in every market we serve and revolutioni3e this company to have the

speed and agility of a small enterprise.2

,ision statement must preferably be below >88 words and in present tense to have

effectiveness. It requires imaginative mind to craft one. 6e shall look at few tools to craft

a better vision statement.

X ,ision must spell out a clear and compelling picture so that there is a strong reason to

pursue and persevere. It must be audacious and !0&%T which is the acronym for

specific measurable attainable realistic and time bound.

X It should be simple and straight and challenging and inspiring.

X It must convey companyLs value system culture ethics and etiquette. It should never be

a mere rhetoric but must be a realistic one.

X It must be challenging enough so that people can put in their energies and efforts

aggressively.

X It must neither be too short nor too big. It must convey the ideals and ideas of the

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organi3ation for which it stands and aspires to achieve.

X &void 4argon and bu33 words as it ensures better clarity.

6hen the vision statement is made to compete with another firm the company must

revise its vision once it is successful. $esides if the company reached the target of

magical numbers then it has to revise its vision statement.

ommunicating the vision and progress of the transformation programme to all the

employees is the key to success. !ince the change programme is expected to change the

way employees work and view the future T! addressed some key concernsO the

compulsion behind the change why changeYF the timing of the exercise why nowYF the

expected results what it means and where it will take the companyYF and the

significance what does it mean to every employeeYF.

Inspiring thousands of people and making them experience a new corporate lifestyle

requires a well+cascaded communication strategy. The transformation programme touches

all parts and functions within the organisation. Every functional and operational team was

involved in the programme. This induced them to look upon the transformation

programme as their own initiative instead of something that had been thrust upon them.

The programme has received a huge boost from the involvement of the entire

organisation and the leadership of the T# and E#. 0aking the employees experience

the final effect of transformation even before the conclusion of the transformation

process is crucial to the success of the transformation.

TCS PRODUCTS *ord product

(0 product

0#=&% product

T##-! 7EI=

=erformance converters

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'iesel billet covers

O/;" "0'=/+

0ed 0antra + T! 1ospital 0anagement and Information !olution

Tata &ccounts %eceivable and $illing !ystem T&%&$!F

T! lin+e:e

T! !ilicone &mbulatory E( 'evice and !olution

T! Enterprise Integration and ontrol Environment !olution/ Energy and

tilities

T! $io+informatics !olution

,E%IT + 0achine !imulation !oftware

O"%$#/$%#3 +/"'=/'"

T! offers the following eight areas of serviceO &pplication 'evelopment and

0aintenance $usiness Intelligence 7 =erformance 0anagement $usiness =rocess

#utsourcing Engineering and Industrial !ervices Enterprise !olutions %0 E%=

!0F IT onsulting IT Infrastructure !ervices and Testing and uality &ssurance. The

industries T! works with are divided like thisO $anking Energy and tility *inancial

!ervices -ife !ciences and 1ealth are Insurance !ecurities trading system

0anufacturing Telecommunications %etail and onsumer goods Transportation and

(overnment.

T! is experiencing rapid growthO it grew by one fourth in :88A only. It is

breaking all sorts of revenue records for Indian companies mostly thanks to the

global demand for outsourcing/off shoring. &lthough India+based T! has strong

presence in North &merica and Europe G being one if its current focusesF and

continues to recruit aggressively. T! is a place of strong momentum a big player

thatLs getting top contracts. In fact it serves seven of the *ortune @88 top+ten

companies. T! is investing into strategy by series of acquisitions but it still

remains like Indian consultancies in general IT/outsourcing focused. The

company announced it will concentrate on products $=# infrastructure

:C
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message that comes out is three+foldO employees should feel that they are cared for that

the company respects employee capabilities and abilities and that every employee has a

career option.9

6hat queers the pitch is that T! is no longer restricted to any geography. T!employees are spread across @@ countries and represent various nationalities and

ethnicities leading to different work cultures and expectations. 0r =admanabhan says

9#ver the last few years we have been acquiring clients in countries apart from the !

and G. 6hen we acquire customers in other countries our value proposition has to be

delivered locally. To do this we need to have local marketing people who can connect

with our customers.9

The ability to think global and deliver local requires the senior management to adopt a

flexible approach and structure that optimises skills across the enterprise. !ays 0r%amadorai 9&s the E# one needs to set an example and drive these changes.9 1e

stresses the ability of senior managers to collaborate on a pro4ect rather than merely form

specific pro4ect teams. To draw a corollary the organisational hierarchy needs to model

itself along the lines of a fishnet rather than limit itself to classical pyramidical or flat

structures. & fishnet model presents an opportunity to intermesh diverse skills and people

in a meaningful grid without grossly affecting the overall structure of the enterprise.

&t the level of the organisation several changes have been initiated. These includeO

Empowerment of people

$uilding excellence throughout the organisation

#pen and transparent communication

ompensation system based on E,&

D$&$/$+#/$% TCS

!etting up a performance management system

reation of the position of a chief transformation officer

&s the E# one needs to set an example and drive these changes.

T! is the first company in India to have an officially designated transformation officer.

6hy did you feel the need for thisY

Transforming from a centralised to a distributed empowered organisation required a lot

of thinking on our part and involved mindset changes among employees. The top

management needed to fuel this effort and communicate the key messages effectively and

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efficiently. I felt the need for a senior person with a suitable mindset for this challenging

role.

1ow do you make transformation a continuous processY Is it proactive or reactiveY

This has to be very clearly proactive. The change in mindset instills an ability to learn tolive with change. This along with empowered decision+making and an ownership+based

approach is aimed at ensuring that transformation is a continuous process.

In your view who should be the transformation championY

'efinitely the E# has to take the initiative and run with it. The processes have to

percolate across the entire organisation.

Is the transformation officer more of a facilitator or a catalyst for changeY

The transformation officer is a facilitator who acts as the change agent. This person needsto ensure that the change is smooth and that it becomes a matter of discipline and habit.

The transformation officer also needs to be an excellent communicator.

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SOT ANALYSIS

S/"%&/;+

&bility to adopt to the changes

0arkets

=rovide one service exchange of The other

$enefit by the association

$uilding of two in house brand

#%+++

-ong term association with weaker brand

'ropping of slandered because of the inability of the poor franchisees.

O"/'%$/$+

#utsource to experts

Introduce a new culture change through a new organi3ation

Improve consumer trust

Increase market penetration

T;"#/+

hanging consumer

onsumer confusion !afety scares and product recalls

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40/97

I%/"0'=/$% / /; /$= /$/3 ! +/ #%#31+$+

CO BRANDING STRATEGY OF TCS VALUE, IMAGE AND OTHE ISSUES

0arketing goods or services under two or more trademarks of different companies is a

popular way to broaden an existing or new brandLs exposure in the marketplace and can

be used in many ways.

&lthoughco+brandingis not a new concept it remains crucial to consider the strategic

ob4ectives of the pro4ect and to address all the possible risks before it is launched.

6hile one participant in a co+brandingexercise may have in mind to increase revenue or

brand recognition another participant may wish to penetrate new markets or introduce

new products or services. 6hichever ob4ective is applicable in a particular situation each

participant should be absolutely certain from the outset that his specific ob4ectives

coincide with the actual opportunities that will arise from the intended marketing

campaign.

To ensure that all participants benefit from the campaign it is important to identify the

right partner K the compatibility of potential partners plays a crucial role in the success

of the pro4ect.

The parties need not necessarily be of equal si3e or reputation. 6hen a dominant partner

4oins forces with a smaller brand the smaller partner usually benefits from the trust and

loyalty that attach to the bigger brand while the latter may use the smaller brand to

penetrate new market sectors.

o+branding by two or more small players can be more strategic and creative in nature.

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In this kind of situation parties should ensure that the sum total of the 4oint marketing

effort results in greater brand recognition than what would have been achieved with

individual campaigns.

&fter a compatible partner has been identified the risks of the co+branding pro4ect must

be considered and addressed. The following situations could pose serious risks for a

participant and should be addressed in the co+operation agreementO

The failure of the pro4ect because of financial or other strategic ob4ectives not being

achieved.

& change of strategyor withdrawal of products.

& breach of contract insolvency or change in control of one of the participants.

The sudden degeneration of a participantLs previously stainless reputation.

The unauthori3ed use of a participantLs trademark.

&greement with ,alue hain members

It aims to give customers altogether new experience and enhance customer value. In

value chain co+branding members in a distribution channel both hori3ontally and

vertically linked form alliance. !uch co+branding can be between supplier+retailer

companies offering similar product or service or between product and service provider.

Innovation

This approach offer opportunity of growth in existing market and exploring new markets.

In such alliance companies come together to create new offerings for customers. %isk and

return are two important aspects which need to be considered. Top level management co+

operation and organi3ational collaboration is essential for a successful agreement.

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$enefits of o+branding

Z Increased sales revenue.

Z exploring new markets with minimum expenditure.

Z &ppropriate approach when company seeks quicker response.

Z &ccess to new source of financing.

Z Technological collaboration between two companies give better results than what

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Z ompanies having different visions and culture are in+compatible for co+branding.

Z If brand don


44/97

$rand should not be confused with product as it is often done. $rand is identity given to a

product or serviceF like the name of a person. $rand immediately creates a mental image

of set of consumer value and degree of need satisfaction in relation to consumption of a

particular product or service. In other words $rand is always attached with some

attributes which the product offers to the consumers.

SECRETS OF BRAND CREATION:

[ The $rand must reflect at least one != or an outstanding value that the product carries

with it and also not many. This value better be a distinctive advantage over competing

suppliers< product in the market.

[ The $rands also age like people and therefore have to be re4uvenated by fresh dose of

advertising product attributes changes and innovation. In other words the brand should

reflect continuous improvement in product proposition and reflect image of being owned

by a dynamic organi3ation 1ere comes the role of =% executivesF.

[ $rand cannot be built overnight whatever may be the advertising effort going into it. It

would be sheer wastage of resources and this often acts as counter productive and kills

the brand in its nascent stage. The credibility and acceptance of $rand accrues only over

a period of time and often is linked with background of its owners. *or example it is

difficult to create world class brands by purely trading organi3ations that do not actually

manufacture the goods or service.

[ The multi products and multi $rand companies have a difficult task in maintaining

$rand equity for all of its brands and products. It is always advisable to have only a few

core $rands we may call as mbrella $rand or =ower $rand and which focuses on

particular product group not category like 'ental hygiene products or !having productsF.

This may even be pricing based differentiation 7 segmentation of the same product for

example low+end medium and high end priced product but in this case it will be

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suicidal to use mbrella brand or ompany logo in common as this will invariably lead

to confusion and erosion of high end product market. The customer perceives the high

end product being made merely with ob4ective to raise profitability of the companyM such

products are bound to bear discounts and sales promotion schemes. In such cases the

individual $rands should be completely separated for promotion or unless this can be

managed by distinctive product attributes that 4ustify price segmentation.

[ $rand acceptance by the consumer is not achieved by $rand promise alone. $ut it is

achieved by testing of the credibility of a $rand by repetitive purchase by the consumers

over a long period of time &t least B yearsF and the satisfaction derived by such

consumption over a period of time. In other words brand equity is created by repeated

and consistent delivery of brand promise.

In this context supply chain management has to be highly efficient in distribution

availability and after sales service of the product which *0( companies and many

Engineering goods manufactures are now learning after painful experiences which were

solely dependent upon &dvertising. 6hile &dvertising can pull the product through

markets it cannot push the product which needs sales promotion and efficient distribution

of goods and services.

[ In present situation when technological differences in product attributes and quality are

indistinguishable a =ower brand is sure way to improve sales margins and price

differentiation. $ut a company cannot have a range of =ower $rands as mentioned earlier.

=rice differentiation based on $randing only will not work if the consumer is in a

position to comprehend the value of product attributes built into the product. In such case

the $rand may not even take off or die earlier death than normal. It will be out rightly

re4ected by globally aware consumers now+a+days & consumer would like to have

$urger at price of Narula


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[ 6hile it is doubtful that any such thing exists the $rand -oyalty is not strongly

associated with $rand usage and exposure but to the product superiority in its class. In

spite of this there is always brand switching customers and given the near equality of

various brands in same product category the market share is bound to stabili3e with time

0arkov hain modelF. &ny effort to drive market share through $rand advertising

without shifting product positioning over this share will entail sheer wastage of resources

without any perceptible results.

[ The brand name should reflect the cultural and ethical background of the product and

the target consumer class. *or example it is unlikely that purely 6estern names will

succeed on Indian spices handicraft items or Indian food items. In other words 'esi

products should bear 'esi $rand names. !imilarly *eminine products should bear

feminine or at+least (ender neutral names -akme and =ondsF. It is doubtful if 9,I=9

$rand can ever sell much of ladies undergarments.

[ It is surprising but true that in many cases lesser the consumer knows about the product

and $rand #wner


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The little talking hihuahua

If asked you could probably name do3ens of others.

These are examples of strong and powerful memes. )ou know exactly who they stand for

and what the brands that own them stand for too. &nd every time you see the image or

hear the line it self+replicates and reinforces the perception of the brand that owns it.

G"#/ + =#% ;3 '$30 "#%0+ /;#/ 0$% /;$" =#/&"$+.

6hat all great brand+building memes have in common is the emotional component that

answers every consumer


48/97

-ux Toiletries

+ !kin friendly though it is notF

+ &roma

+ 0arket !hare

+ (lamour/!tatus

!amsung 0obile 0#$I-E 1andset

+ $rand ambassador

+ &ggressive advertisement

+ &vailability

+ EmotionalO

National =ride

ooperative pioneer

0otorola 0#$I-E 1andset

+ sound quality+ 'urability

+ =ioneer in India

+ &vailability

Nirma Toiletries+ %easonable price

+ harisma &chieverF

ROLE OF ADVERTISING IN BRAND CREATION

[ 0ost #rgani3ations blame &dvertising oncerns about failure of $rand development

exercise or reaching the sales target. $ut that is not the only reasons for failure. $esides

poor and run+of+mill advertising without '&(0&% approachM it is mostly the factors

very well within control of the $rand owners that are normally responsible for failure

like poor promise delivery in the product poor after sales service or even deficient supply

logistics. It is interesting to note that the brilliant advertising campaigns normally don


49/97

misunderstood for highly effective advertising for the brand though it actually fails to

convey the desired attribute to the viewers.

[ In present scenario of world class companies and indiscernible product differentiations

and broadening of brand basket of the consumer trying to broaden the brand extension or

product categories under one brand will sure prove to be detrimental. 1ere it is always

advisable to create ompany name or logo as ommon brand and create sub brands for

product categories though this too is not likely to work well.

[ sing multinational particularly western $rands are not likely to succeed in regional

and local markets in countries like India hina or even 5apan. The regional $rands are

emerging fast because of their closeness to cultural practices and lifestyle of the target

market segments. $etter understanding of trade channels and their proximity to them puts

%egional $rand owners in definite advantage position 6agh $akri in (u4arat and $rand

rivalry between oke and =epsi (lobal image ,s -ocal image with the latter having

won the battleF.

[ 6ith burgeoning cost of national and now regional advertising needs the brand spend

may well exceed the marginal increase in profits through brand development. It is

imperative for the brand owners to focus on supply chain strengthening and below the+

line advertising rather than trying to pull the brand through media advertising alone.

It is as simple as the common sense. The brand should be focused should convey a

promise and deliver it over a long period of time should reflect target market


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The silent digital revolution is consistently communicating to the consumers the benefits

of digital convergence. India is not far from digitalisation. The switch from analogue to

digital was very fast. It is possible for a cell phone to take photos record voices and

command an air+conditioner or a wash machine in oneA@ million by the year :88@.

!amsung India.C: billion in %7'which formed nearly H to C per cent of the total revenue from its >; %7' centres across

the globe.

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The company sources have indicated that !amsung will soon set up facilities for home

appliance and mobile instrument in Noida near 'elhi. &t present the company is having

production facilities for cooler television washing machine monitors and micro woven.

!amsung has been serving the consumer with diversified products. In order to reinforce

its marketing power the company has implemented holistic brand communications to set

up a homogeneous brand image around the world. *urthermore to strengthen the global

strategy independent regional strategies have been tied up with customers and

distributors. Though the company billion.

Indian market is a segmented market and therefore there is a need to customi3e the

products and target specific customer segments. 9&s a result we offer differentiated

products at different price basis9 says 0r. 6on.

BRANDING ! CO BRANDING

the main focus in this =h' thesis is on how consumers evaluate co+branded products.

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o+branding is defined as the "combining and retaining of two or more brands to create a

single unique K%product2 -euthesser Gohli In the last fifteen years an increase is

noticeable in the number of consumer products introduced by two brands through a brand

alliance. $rand alliances can be defined as "a form of co+operation between two or more

brands with significant customer recognition in which all the participantsL brand names

are retained2 $lackett and %ussell >DDDF. The brand alliance strategy has been

thoroughly discussed from the brand+owners point of view related to the execution of the

alliance its advantages and disadvantages. In addition several studies have examined the

consumerLs point of view with regard to some forms of brand alliance. ,arious forms of

the brand alliance strategy existM for example 4oint sales promotions bundling dual

branding composite brand extensions and co+branding !imony and %uth >DDCM =ark5un and !hocker >DDAM -evin :88:M %ao u and %uekert >DDDM -euthesser Gohli and

!uri :88BF. -ittle academic studies have been conducted to investigate how consumers

react to a new =-"#%00product. Therefore and !uri :88B p. BAF. Examples of such

products are the portable sports audio devices by =hilips and Nike the draught beer

system for home use introduced by 1eineken and Grups the Tide $u33 ltrasonic !tain

%emover by $lack 7 'ecker and Tide and the electric toothbrush by #ral $ and $raun.

*rom literature related to brand alliances in general co+branding in particular and the

related brand extension strategy four ma4or factors of influence on the evaluation of a

new co+branded product were foundO &F fit between the current products of both brands

=ark 5un and !hocker >DDAM !imony and %uth >DDCF $F fit between both brands

!imony and %uth >DDCF F fit between the current products of the brand and the new

product 1err *arquhar and *a3io >DDBM &aker and Geller >DD8F and 'F fit between the

brand and the new product =ark 0ilberg and -awson >DD>M $roniarc3yk and &lba

>DD;F. !ee *igure >. #f course other variables such as familiarity with and prior affect

towards the brands have to be taken into account as they may have an impact on the

evaluation of the product.

BRAND ARCHITECT

$rand architecture is the structure of brands within an organi3ational entity. It is the way

in which the brands within a companyLs portfolio are related to and differentiated from

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one another. The architecture should define the different leagues of branding within the

organi3ationM how the corporate brand and sub+brands relate to and support each otherM

and how the sub+brands reflect or reinforce the core purpose of the corporate brand to

which they belongs.

T1+ "#%0 #"=;$/=/'"

There are three generic relationships between a master brand and sub+brandsO

M%3$/;$= "#%0 " B"#%00 ;'++ Examples include ,irgin (roup %ed ross

or #xford niversity. These brands use a single name across all their activities and

this name is how they are known to all their stakeholders consumers employees

shareholders partners suppliers and other parties.

E%0"+0 "#%0+ " H'+ 3%09 + -ike NestleLs GitGat !ony =lay!tation or =olo

by %alph -auren. The endorsement of a parent brand should add credibility to the

endorsed brand in the eyes of consumers. This strategy also allows companies who

operate in many categories to differentiate their different product groupsL positioning.

P"0'=/ "#%0 " H'+ "#%0++ -ike =rocter 7 (ambleLs =ampers or 1enkelLs

=ersil. The individual sub+brands are offered to consumers and the parent brand gets

little or no prominence. #ther stakeholders like shareholders or partners know the

company by its parent brand.

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!ourceO www.cim.co.uk

2*$% L#% 233"+ B"#%0 B'$30$%& 03

$uilding a strong 9$rand India9 in the global market will require 9holistic marketing9

practices as countries too are brands 4ust like products services and organisations with

their own associations images and set expectations which affect perceptions andbehaviour.

=rof Gevin -ane Geller =rofessor of 0arketing at Tuck !chool of $usiness 'artmouth

of the ! and co+author of =hilip Gotler


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and 9there is a need to build on this successfully9. Explaining how it was possible to

market India as a durable brand in this fast+changing marketing world he said the key

challenge in marketing was that 9everything mattered9. 1olistic marketing according to

him can be seen as the development design and implementation of marketing

programmes processes and activities that recognise the breadth and interdependence of

their effects. & ma4or contribution to branding theory was that made by Gevin Geller

>DDBM :88>M :88BF with his introduction of the concept of customer+based brand equity

and the brand hierarchy as graphically portrayed in *igure >F Geller :88BF. There is a

general agreement that source of prowess of successful companies is the presence of big

brands in their portfolio. Every company wants to create 7 own the ageless brands 7

does spend a lot of money towards this ob4ective. )et many top executives are not verycomfortable with following a structured approach to branding.

#ur research on the past successful and unsuccessful brands says otherwise. #n a careful

inspection successful brands show a lot of common threads. These commonalities led us

to model the consumer behaviour model that is the ultimate reason for the existence of

any brand. Gevin Geller captures the essence of branding when he says "& brand resides

in the minds of consumers2. & brand should move beyond its physical character to

acquire a perceptual character hence representing itself as a means to achieve what issought by a customer. In this paper we start by discussing what a brand is from the

perspectives of the organi3ation as well as the consumer. This gives us the foundation for

building the models subsequently. Next we build a model for consumer decision making

process and bring in the perspective of the Indian brands vis+]+vis multinational brands.

6e touch upon the importance of various parameters in building the Indian brands and

stress upon them with relevant examples. ItLs not 4ust the initial creation of a brand but

the reinforcements evolution and revitali3ation that ultimately decides the winners in

marketplace we have also conducted a primary survey to analy3e the quality perception

and understand the consumer behaviour and hence help us arrive at the model. 6e

conclude the paper by discussing a framework which could help build the Indian brand

both domestically and globally.

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233"+ M03 / "

;D


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S' M03 33"+ /;"1

$rand equity according to Geller is the effect that brand knowledge has on consumer

response to the marketing of a brand with the effect occurring when the brand is known

and when the consumer possesses favourable strong and unique brand associations

Geller >DDBF. The ustomer+$ased $rand Equity $$EF model identifies four steps

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which denote questions asked by customers and represent a Sbranding ladderL with each

step dependent on achieving the previous one Geller :88>F. These steps consist of six

brand building blocks with a number of sub+dimensions Geller >DDBF. To build a strong

brand the aim is to reach the pinnacle of the pyramid where a harmonious relationship

exists with customers. $riefly overviewed the first step of the $$E model is to ensure

the correct Sbrand identityL. &nswering the first question customers ask about brands +

6ho are youY + the purpose is to create an identification of the brand and an association

with a specific product class or need Geller :88BF. The initial step consists of the brand

building block SsalienceL. The second step answers the customer question + 6hat are

youY + by establishing Sbrand meaningL in their minds and linking brand associations

with certain properties Geller :88>F.

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Two brand building blocks make up this step + SperformanceL and SimageryL. The next

step is Sbrand responseL whereby the proper customer responses to the brand

identification and meaning are elicited Geller :88BF. This step is achieved with the

S4udgmentsL and SfeelingsL building blocks and answers the question + 6hat about youY

S$rand relationshipsL constitutes the final step in the $$E pyramid where brand

response is converted to an intense active loyalty relationship between customers and the

brand Geller :88>F. &ddressing the customer question of + 6hat about you and meY +

the final brand building block and the pinnacle of the pyramid is SresonanceL.

GellerLs conceptual framework provides guidance in building measuring and managing

brand equity. 6hile Geller claims that the model can be applied in a $:$ context and a

consumer environment Geller :88BF it does not appear to have been tested for industrial

brands. The similarities and differences between business and consumer markets have

long been debated with organi3ational buyers found to differ in many ways 1utt and

!peh >DDCM Gotler :888M 0udambi :88:M Thompson Gnox and 0itchell >DDH/>DDCM

6ilson and 6oodside :88>F suggesting that the application of such a model in a $:$

setting will pose challenges.

@:


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In answer to GellerLs call for additional research to refine the framework and suggest

implications for marketing strategy Geller >DDBF this exploratory study aims to identify

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difficulties in applying the $$E model in a $:$ context + that of electronic tracking

systems for waste management.

INFORMATION TECHNOLOGY INDUSTRY

The Indian information and technology industry has played a key role in putting India on

the global map. Thanks to the success of the IT industry India is now a power to reckon

with. &ccording to the National &ssociation of !oftware and !ervice ompanies

N&!!#0F the apex body for software services in India the revenue of the

information technology sector has grown from >.: per cent of the gross domestic product

('=F in *) >DDH+DC to an estimated @.@ per cent in *) :88H+8C. The net value added by

this sector to the economy is estimated to be B.B to B.D per cent for *) :88H+8C.

The phenomenal growth of the Indian IT !oftware 7 !ervices and ITE!+$=# sector has

had a perceptible multiplier effect on the Indian economy as a whole. In addition to the

direct positive impact on national income the sector has grown to become the biggest

employment generator and has spawned the mushrooming of several ancillary industries

such as transportation real estate and catering and has created a rising class of youthful

consumers with high disposable incomes. This in turn has triggered a rise in direct+tax

collections and propelled an increase in consumer spending.

The total IT !oftware and !ervices employment is expected to reach the :+ million mark

in :88H+8C excluding employment in the hardware sectorF as against >.AB million in

:88A+8H a growth of ::.H per cent year+on+year. This represents a net addition of

BH@888 professionals to the industry employee base this year. The indirect employment

attributed by the sector is estimated to about C million in year :88H+8C. This translates tothe creation of about >8 million 4ob opportunities attributed to the growth of this sector.

The Indian IT industry is recogni3ed the world over for its quality. Today India leads the

world in terms of the number of quality certifications achieved by canters in any single

country. &s of 'ecember :88H over ;DC India+based centersL both Indian firms as well

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as 0N+owned captivesF had acquired quality certifications with C@ companies certified

at !oftware Engineering Institute !EIF arnegie 0ellon apability 0aturity 0odel

00F -evel @ higher than any other country.

India> growing at an annual rate of B8 per

cent per annum from the earlier few million dollars worth exports in early >DD8s.

AS PER NASSCOMS LATEST FINDINGS:

Indian IT+$=# sector grew by BB per cent in *) :88H+8C to reach !R A; billion

in aggregate revenue including hardwareF. #f this the software and services

segment accounted for !R @: billion growing by :C per cent over *) :88A+8H !oftware and services exports including exports of IT services $=# engineering

services and %7' and software productsF reached !R ;8.; billion contributing

nearly AB per cent to the overall IT+$=# revenue aggregate. IT+$=# exports including hardware exportsF grew by :C per cent from !R B>.C

billion in *) :88A+8H to !R ;8.D billion in *) :88H+8C. 6hile the ! A> per centF and the G >C per centF remained the largest IT+$=#

export markets in *) :88A+8H the industry is now making a mark in other

countries as well + with exports to ontinental Europe in particular growing at a

compound annual growth rate &(%F of more than @@ per cent over *) :88;+

8H.

'omestic IT market including hardwareF reached !R :B.> billion in *) :88H+8C as against !R >A.: billion in *) :88A+8H a growth of ;B per cent. 1ardware

remained the largest segment of the domestic market with a growth rate of ;; per

cent in *) :88H+8C. !oftware and services spending grew by over ;> per cent

during the year.

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The industryC.A per cent.

OUTSOURCING

& research by (artner forecasts India as the undisputed leader in the outsourcing space in

the year :88C. The #utsourcing !ervice =rovider =erformance !tudy :88H undertaken

by sourcing advisory firm &qua Terra reported that the ma4ority of G businesses

offshore all or parts of their IT functions to India and plan to continue with this strategy

as India continued to be the favorite outsourcing destination for businesses in G in

terms of satisfaction.

IndiaCB: educational

institutions and polytechnics which train more than AHHC@ computer software

professionals every year. The enormous base of skilled manpower is a ma4or draw for

global customers. &ccording to a (artner study India remains the undisputed leader in

offshore services and tops the list of B8 countries on criteria


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MULTINATIONALS IN INDIA

Information technology has been a promising sector for India generating revenues both

for the domestic as well as the global market. India88 per cent year+on+year growth in their small and medium businesses !0$sF market

in India. &lso according to a study by consulting firm Uinn3ov IndiaH.A+:; per cent by :8>8 from the current IT spending totalling

!R >H billion.

Intel apital chipmaker Intel billion in India over the next

three years in partnership with Indian and foreign hardware firms to prepare light+weight personal computers.

isco posted over >88 per cent year+on+year growth in its !0E business in India in

*) :88H+8C. #racle is expecting over >88 per cent growth in India for its %0 business on the

back of increased technology awareness and need for cost+effective customer

servicing. )ahoo^ Inc and Tata !ons< subsidiary firm omputational %esearch -aboratories

%-F have entered into a 4oint agreement to make available+EG& a supercomputer

for cloud computing research in India. 1ewlett =ackard 1=F the worldLs biggest

maker of personal computers recently stated that a total of eight entries in the list of

top @88 supercomputers are from India. EG& is ranked >Bth.

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'ell which not only manufactures and sells hardware in India but also has a service

and support arm had ended the year :88H with revenues of !R ABC.DA million and

expects to touch the billion+dollar mark next year.

6orld+billion dollar+chip maker 0icrochip Technology will invest

!R A@ million in its India development centre over the next five years.

DOMESTIC MAR2ETS

India>.> million

units in :88D aided by a surge in demand for laptops. The laptop market is expected to

grow by BH per cent in :88D to B.AD million units and constitute a third of the total =

market. In the next couple of years global market intelligence and consulting firm I'

sees a higher local demand driven by growth of broadband expansion of !oftware+as+a+

!ervice !assF service oriented architecture virtuali3ation as also networking pro4ects.

The net margins in the domestic market are at about D+>> per cent which has improved

considerably in recent years. #f late IT service providers 0Ns and domestic firms have

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co branding strategy for tcs value, image and other issues

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