The Triad Chinese Gangs - 868 Words

The Triad: Chinese Gangs Triads are a system of organized crime gangs that are closely knit and very often family run. Referred to as the Chinese Mafia, Triads are active in numerous countries including China, Taiwan, Southeast parts of Asia, Australia, New Zealand, Canada, and many Chinatown scattered throughout the United States (Huston, 2001). Believed to have in excess of 250,000 members, Chinese Triads are one of the most expansive crime organizations in the world (Booth, 2000). While the term â€Å"Triad† is relatively modern, its use comes from the triangle markings that are used on banners and flags by the Hung clan. The Hung clan is largely considered to be the start of all things Triad. Origins The origins of Triad gangs can be traced back to 1000 B.C. in a centuries old secret society. In this time period, peasants, often preyed upon by dynasty leaders, attempted to protect themselves by forming various self-help groups. According to legend, Chinese monks, bent on fighting injustice, formed an extremely powerful political group who were able to bring down Chinese emperors who were considered â€Å"evil† (Booth, 2000). Most of the current research dates out of the late 18th Century Hung Society where groups of society would help foreign traders smuggle large amounts of opium throughout China. By the turn of the 19th Century, secret societies were mounting an opposition in response to the harsh rules of the Manchu Qing dynasty, who were regarded heavily as barbaric outsidersShow MoreRelatedRebellion Of The Qing Government870 Words   |  4 PagesThe Triad also had an extremely strong presence in Hong Kong, known for being their headquarters in southern China: â€Å"At all events, in 1847 it is recorded [Hong Kong] it was that the Triad Secret Society flourished unchecked, Hong Kong having become its headquarters for the South of China, and three fourths of the Chinese population were believed to have been enrolled as members.† With the society flourishing and the police force ignorant, the society was able to influence the city. The Triad influencedRead MoreRed : Chinese Triads : An Example Of A Red Organization1324 Words   |  6 PagesRed – Chinese Triads Red organizations have existed since the beginning of life. The textbook uses the wolf pack example to illustrate how leaders in red organizations need to harness their power to control others. A leader within a red organization must maintain their power so that no one below them attempts to take the crown. (Laloux, pg. 18) The Chinese Triads date as far back as the mid-seventeenth-century during the Ming dynasty. (Chu, pg. 11) The Chinese Triads are essential a gang that hasRead MoreAn Analysis of Asian Gangs Essay1714 Words   |  7 PagesAn Analysis of Asian Gangs Lets say youre by yourself on the subway in New York City. You get on and its not that crowded, theres a bunch of open seats. As you look around, you notice that the car is filled with mainly high school aged kids, mostly boys. On one side there is a spot next to a bunch of African Americans, on the other side its a posse of Asians. Okay, so where are you going to sit? Next to the Asians I bet. What if it was Latinos instead of Blacks, chances are you wouldRead MoreRush Hour Two: Through an American Perspective1062 Words   |  4 Pagesâ€Å"redeemed† and transformed once more into a â€Å"man†. Regarding stereotypes Lopez 3 of the Asian male, the film also goes as far as to propagate the belief that Asian males have small penises. In the fight scene at the massage parlor, Carter unveils a Chinese triad member’s towel to reveal him naked and says, â€Å"No wonder you mad†. This insinuation that the Asian male has a small penis implies that they have low virility, but more so that they are not a compatible match against the Americanized slogan thatRead MoreEssay about Japanese, Russian, Chinese, and Mexican Organized Crime1042 Words   |  5 Pagesalien smuggling, prostitution, illegal gambling, extortion, and white-collar crime through infiltration of legitimate businesses. The Triads are a family run organized crime gang in China. Triads are sometimes referred to as the Chinese Mafia. In 1821 the first systematic account of the Triads was written down by a principle of an Anglo-Chinese college. Triads engage in highly ritualized dress and behavior- from secret hand signs, passwords, to blood oaths in elaborate initiation ceremonies. Read MoreOrganized Crime and Youth Gangs824 Words   |  3 PagesOrganized Crime and Youth Gangs The FBI defines organized crime as any group of individuals jointly and systematically engaged in criminal activity for the purpose of making money (FBI, n.d.a). The FBI also provides links to various organized criminal groups on their website, with most being defined by race or ethnicity. The most famous of these groups in the United States is the Italian Mafia or La Cosa Nostra, which is translated as this thing of ours (FBI, n.d.b). The FBI identifies four distinctRead More Todays Mafia Essays1186 Words   |  5 Pagesthe Prohibition era, also known as Scarface because of a knife cut to his cheek. (Nash 79) He was born Alphonse Capone in Naples, Italy, and raised in Brooklyn, New York. He left school at an early age and spent nearly ten years hanging-out with gangs. In the 1920s he took over a Chicago organization dealing in illegal liquor, gambling, and prostitution from the gangster Johnny Torrio. (80) Convicted of income tax evasion in 1931 and sentenced to 11 years in prison, he was released in 1939. AfterRead MoreMovie Analysis : Rush Hour 2 1649 Words   |  7 Pagesthe US embassy is struck by an explosion, perpetrated by the members of the Triad. Detective Lee is the first one to get called and assigned to this case. Carter has to come along, thinking they’re just fooling around, hitting karaoke and local massage parlors; he becomes part of a dangerous investigation, tracking down mafia bosses. Detectives nearly escaped death while confronting dangerous Triad lady Hu Li and a gang boss Ricky Tan, who had previous history with Lee’s father, which makes investigationRead More Youth Gangs Across the Globe Essay4796 Words   |  20 PagesMost gangs are created to form a sense of power and control. All types of problems are presented to the youths of today growing up in major cities. Before being so eager to jump to conclusions, we must try to understand these problems, or we will never find a solution to them. Gang members are out there trying to find a family that some never had. It may not seem like much to you - an abandoned house or a park - but it becomes a place to call their own. It’s easy to say â€Å"why don’t they everRead MorePersonal Perception of Organized Crime787 Words   |  4 Pagesportrayed in the same way as mafias include the Russian Mafia, Chinese Triads, Albanian Mafia, Bosnian mafia, Japanese Yakuza, , Calabria Ndrangheta, Apulia Sacra Corona Unita, Irish Mob, Indian Mafia, Neapolitan Camorra, Serbian Mafia, Mexican Mafia, Unione Corse and the Bulgarian mafia. Gangs Today, gangs are considered a Mafia. Gangs are not a new trend in America. Since the 18th century, cities and the rural areas have been dealing with gang-related problems. These groups have united for a large

An Inclusive Structure For Evaluating Health Promotion And...

The Precede-Proceed Model is an inclusive structure for assessing health needs for designing, implementing, and evaluating health promotion and other public health programs to meet those needs. The Precede-Proceed Model is an effective model for addressing the problematic behaviors which can evoke health concerns for example Hepatitis C in African Americans. â€Å"Precede is an acronym for the words predisposing, reinforcing, and enabling constructs in educational diagnosis and evaluation which can provide the structure for analyzing and planning the development of targeted and focused public health programs† (Nolan, 2016). In the precede aspect the following needs must be met to successfully implement the Precede-Proceed Model. The aspects are social assessment, and the determination of social issues, and needs of a given population to analyze desired results. The epidemiological assessment identifies the health causes of the identified issues to set priorities, and goals. The ecological assessment analyzes behavioral, and environmental factors that predispose, reinforce, and enable the behaviors and lifestyles are identified. â€Å"The Proceed Model assists with the implementation, and evaluation of these programs† (Nolan, 2016). The Proceed aspect includes implementation which can cause intervention and assess availability of resources and implement a health program. â€Å"The process evaluation determines if the program is reaching the targeted population, and achieving desired goalsShow MoreRelatedPracticum Evaluation: Orlando Childrens Clinic1821 Words   |  7 Pagesdelivery (Petrullo et al, 2013). The complaints lodged are always against the service personnel of the various healthcare facilities and the healthcare centers service structure. The basis formation of the HCAHPS as introduced with considerable implementations is significant as a result of the HCAHPS introduction survey program benefits to the industry. The benefits relates to both patient satisfaction and monetary value. The organization of the healthcare system involves the HCAHPS with similarRead MoreThe Aging Workforce: Business Strategies Used by Employers1834 Words   |  8 Pagesprovides information pertaining to the benefits they will receive at retirement. Armed with this information, combined with knowledge of their personal savings, investments, and workplace retirement benefits, individuals plan their retirement strategy inclusive of not working past the age of 65. In 1983, however, Congress changed the normal retirement age to gradually increase from age 65 to 67 depending on the year of birth. As a result, individuals who once considered retiring between the ages of 62Read MoreColgate Palmolive: Marketing Strategies and Programs5256 Words   |  22 PagesCOLGATE PALMOLIVE Marketing Strategies and Programs Introduction Colgate Palmolive Company is a $17.1 billion global company serving people in more than 200 countries and territories with consumer products that make lives healthier and more enjoyable. This American  diversified  multinational corporation focuses on strong global brands in its core businesses – Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate follows a tightly defined strategy to grow market shares for key productsRead MorePolicy, Politics and Global Trends Essay7576 Words   |  31 PagesPOLICY, POLITICS GLOBAL HEALTH TRENDS POLICY ANALYSIS TASK Introduction: This assignment requires that I develop and thoroughly analyze a public policy in order to advocate for one that improves the health of the public and/or the nursing profession globally (local, state, national or international). To do this, I must reflect on several aspects of being a policy maker within the nursing profession. I was instructed to consider the following:  · Why did I select the health or nursing professionRead MoreP1: Describe How Marketing Techniques Are Used to Market Products in Two Organisations4147 Words   |  17 PagesJanuary 2010 | 72 Marketing in the Public Sector By Olivier Serrat Marketing in the public sector may be the final frontier. Agencies operating in the public domain can use a custom blend of the four Ps—product (or service), place, price, and promotion—as well as other marketing techniques to transform their communications with stakeholders, improve their performance, and demonstrate a positive return on the resources they are endowed with. The public sector is the part of economic life, notRead MoreEssay about Managed Care3307 Words   |  14 PagesCare   Ã‚  Ã‚  Ã‚  Ã‚  There are so many problems with our society’s health care. Everyone wants to find a solution, but no one has been able to come up with one yet. Many different things have been tried, but none have put a cease to the exorbitant costs, which most believe to be the main problem. Out of everything tried, the most recent and popular system is known as managed care. Managed care is the most common form of health insurance in the United States, and provides more a costRead MoreHow to Improve Systems5445 Words   |  22 Pagesprofessional nursing practice. Through group and individual learning activities, students are introduced to concepts, professional nursing practice, issues amp; trends in nursing, and the Canadian health care system. This course establishes the foundation for your future nursing career. COURSE STRUCTURE: Classes are delivered using lecture, discussion, group work, and lab and clinical experiences. There is also an online component to the course. Please visit the Nursing 101 Moodle shell regularlyRead MoreEssay on Strategic Planning6467 Words   |  26 Pagesmore on matters of board development, fundraising and volunteer management. (Source: http://managementhelp.org/plan_dec/str_plan/str_plan.htm) The structure of this analysis going forward will be as follows: * Organizational Theory surrounding NPOs: * Mission Statements of NPOs: * Product and Services Offered: * Organization Structure: * Potential Competition: * Management Strategies: * Marketing Strategies * HR Strategies Mission, Vision and Goal Statements: Read MoreStress And Its Effects On The Mind, Body, And Environment8594 Words   |  35 Pagessatiations and helps shape the way others may respond to us in those given situations. Interactive factors also encompass the way in which we care for ourselves; an extensive amount of research has been documented detailing the benefits of physical exercise and how it can be used as a healthy alternative for managing stress. 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Banking On Customer Retention And Business -Myassignmenthelp.Com

Questions: How Has The Trend Of Mobile Banking Influenced The Customers Worldwide? How The Financial Companies Can Retain Their Customers And Improve The Business Process By Implementing Mobile Banking Facilities? What Are The Major Significances Of Developing Advanced Technicalities Like Mobile Banking? How The Business Managers Keep Track To The Online Transactions Occur During The Mobile Banking Process? What Are The Major Challenges The Companies Might Face To Implement The Mobile Banking Method? What Preferable Strategies Are Needed To Be Undertaken For Resolving The Issues With The Mobile Banking? Answers: Introduction The technological advancements have brought the drastic changes in the organizational functionalities. Mobile banking is one of those advanced technicalities that have the clear influence on human lives as well as the business practices (Yadav and Rai 2015). The current observation on the business scenario implies that the customers are more likely identifying the smart process of dealing with their financial aspects with the help of the internet (Shaikh and Karjaluoto 2015). They are therefore using the mobile banking methods by operating their smart phones or computers. The previous assignment explores the impact of Mobile Banking process in retaining the customers and improving the business performance. In this section of the study, the appropriate methodology will be discussed to identify the systematic way of conducting the research. In addition to this, the study would provide the appropriate justification of the information used in this research. The gaps and the limitations w ould also be identified in this paper. Project Objective To explore the conceptual insight about the mobile banking process To critically analyze the impact of the mobile banking on customer retention and business performance To provide suitable recommendations for improving the mobile banking services to retain more customers and increase business performance level Project Scope The project describes the emerging era of the advanced technologies by exploring the mobile banking process. Moreover, the study also highlights the considerable impacts of mobile banking in retaining the potential customers and improving the business performance level. The obtained ideas from this research study are expected to be implemented in the real business scenario that would be beneficial enough for the future prospects. The technological advancements have been ensuring more sophistication in current scenario (Joshi et al. 2017). The extensive research conducted for generating the knowledgeable insights regarding this subject area would help the business marketers to earn more profitability in future. Literature Review The literature study explores the conceptual analysis of the subject area. The current advancements in the technological field are quite significant in making the sophisticated approaches in using internet. This sophistication has influenced the customers much remarkably. They simply use their smart phones or computers to transact their money from one bank to another. Many of the financial companies have adopted this method to minimize the time and efforts require for transacting the money (Libana-Cabanillas et al. 2017). The previous assignment has explored the conceptual background of this financial transaction process through the mobile phones and computers that has created impact on the customers. It is stated that the mobile banking process is available for 24 hours, which is quite beneficial for the users to transact their money via using internet at any point of time (Chuah, Marimuthu andRamayah 2014). In emergency cases, this method is much convenient as well. In fact, the co mpanies even can make the adjustments with the amount of money that are reserved in their account. Another benefits availed from the financial banking process is the application facilities to download the transaction statement or the information. User may require the mini bank statement at any point of time for their use. The mobile banking process eases their process since they do not have to visit the bank personally and can download their required statement through mobile banking apps. On the other hand, the users can pay their bills check their account balance, and transfer funds during their needs (Kaura, Durga Prasad and Sharma 2015) These services are useful for both the bank companies and the users. Therefore, it can be considered that the mobile banking has the significant impact on the daily lives of the people who are quite fond of using the advanced technological method to save their times and efforts. The most beneficial services provided to the users lead towards huge customer retention rate. The companies are likely finding out the best application facilities that c an make the use o the mobile banking process easier to the customers (Kandampully, Zhang and Bilgihan, 2015). Moreover, the easier approaches and lesser time consuming technologies are fruitful for the business companies to deliver the project schedule quite easily. Hence, it is observed that the company is able to retain their users and improve the business process as well. Gap in the Literature In spite of these benefits availed from the mobile baking process; it has been observed that the literature failed to show the disadvantages precisely. While surfing internet or transacting the money from one source to another via internet, the users need to put their confidential banking details. If the banking company cannot provide the enough security in transacting money, the users detail might get hacked. The literature study failed to address such issues and the method resolving these issues. If the issue persists, it might lead to customer dissatisfaction and they might switch to another banking company. The security concern is much necessary aspect while dealing with the mobile internet banking. The literature study is thus considered to be quite limited in such aspect. Research Design and Methodology Research methodology is the systematic approach that indentifies the sequential development of a research study. It consists of the appropriate design, approach, philosophy and data collection method that would develop an informative paper exploring the subject matter clearly. The study focuses on the usefulness of mobile banking process on customer retention and improvement of business performance. The research is based on mixed method process in which both the qualitative and the quantitative data would be collected. The use of the positivism philosophy would be used in extracting the underlying truth by gathering responses from the people who have been experiencing the issues in their real life (Mertens 2014). The use of the deductive approach would also be helpful in this study to develop hypothesis for the detailed information. The descriptive design would also be used in this research process for analyzing the responses of the respondents associated with the data collection pro cess. The mixed method research is developed by gathering the information from both the primary and the secondary sources. The secondary information is already collected from the secondary sources like journals, books, articles, newspapers and assembled in the literature review. On the other hand, the primary research would be conducted by developing two method of data collection, such as quantitative data collection and qualitative data collection. The data collection process would be developed by taking some aspects into consideration and these aspects are discussed further. Qualitative Research The qualitative research is developed by gathering the responses of the limited amount of people who have the clear knowledge regarding a particular concept (McCusker and Gunaydin 2015). The managers would provide their insight regarding the use of mobile banking and the method of dealing with their potential clients. The qualitative data collection process would be developed by arranging telephonic interviews with the managers who are associated with the mobile banking process. The interpreter and the recorder would be available to record the entire conversation and memorize the entire information received from the managers while interviewing them about the subject. The authentic bank managers would participate in this data collection process to reveal their experience while dealing with the clients demands. The researcher would not persuade the managers if they do not feel comfortable enough to share their strategic vision of the company. The maintenance of the ethical parameter is quite necessary in such case. Quantitative Data Collection Process The quantitative data collection process is the method of collecting a number of data from quite a large number of the population (Palinkas et al. 2015). The quantitative data collection process would be developed by conducting the online survey among the people who have been using the mobile banking apps. The questionnaire would contain the multiple choice question from which the respondents have to choose their option. The responses collected from this data collection process would be analyzed by using the software tool called MS Excel. The entire responses would be collected and analyzed within the valid date. Sampling Technique and Sampling Size In this study the usefulness of the mobile banking is analyzed in a clarified way. Hence, the qualitative research would be developed by arranging an interview session with 3 managers from the different financial banking companies that are offering mobile banking apps for their customer use. The telephonic interview will be conducted by using the non-probability, convenient sampling technique. On the other hand, the quantitative data would be gathered by distributing questionnaires to 50 customers who have been using the mobile baking apps and are quite accustomed with the internet banking process. The Probability, simple random technique would be used in this case to gather responses from the respondents. Research Limitations The research provides the insightful knowledge about the use of mobile banking in retaining customers and improving the business process. However, the biasness of the respondents in both the qualitative and quantitative data collection process has made the research quite limited. Moreover, the lack of updated information in the literature study has limited the information since it does not notify the current business practices. In fact, the researcher does not have any source to identify the authentication of the data. These drawbacks have made the research quite limited. Time Schedule Main activities/ stages Month February Month March Month April Month May Month June Month July Selection of Topic Collecting Secondary Data Layout formation Review of the Literature Formulating the research plan Development of Research Technique Gathering Primary Data Discussion and analysis of primary data Main conclusion of the study Formation and presentation of the Rough Draft Submitting the final work to receive a result Table 1: Time Schedule (Source: Created by the Author) Conclusion The study develops the appropriate research methodology used for analyzing the research based on the impact of mobile banking on customer retention and improvement of business process. The literature study failed to address the method of mitigating the issues occurred due to the security concerns of the customers while providing their confidential banking details over the internet. The development of the project scope and objectives has provided the idea of the underlying conceptual formulation of the subject matter. The mixed method research is developed in this study. The analysis of the gathered data from the quantitative and qualitative research would initiate the ideas about the perceptive values of the people who have been experiencing the real life scenario by using this mobile banking process. The biased responses of the respondents might create the research limitations. References Arcand, M., PromTep, S., Brun, I. and Rajaobelina, L., 2017. Mobile banking service quality and customer relationships.International Journal of Bank Marketing,35(7), pp.1068-1089. Chuah, H. W., Marimuthu, M., andRamayah, T. (2014) The effect of perceived value on the loyalty of Generation Y mobile internet subscribers: A proposed conceptual framework,Procedia-Social and Behavioral Sciences,130, pp. 532-541. Joshi, S., Bhatia, S., Raikar, K. and Pall, H., 2017. Customer experience and associated customer behaviour in end user devices and technologies (smartphones, mobile internet, mobile financial services).International Journal of High Performance Computing and management,10(1-2), pp.118-126. Kandampully, J., Zhang, T., andBilgihan, A. (2015) Customer loyalty: a review and future directions with a special focus on the hospitality industry,International Journal of Contemporary Hospitality Management,27(3), pp. 379-414. Kaura, V., Durga Prasad, C. S., and Sharma, S. (2015) Service quality, service convenience, price and fairness, customer loyalty, and the mediating role of customer satisfaction,International Journal of Bank Marketing,33(4), pp. 404-422. Libana-Cabanillas, F., Alonso-Dos-Santos, M., Soto-Fuentes, Y. and Valderrama-Palma, V.A., 2017. Unobserved heterogeneity and the importance of customer loyalty in mobile banking.Technology Analysis Strategic Management,29(9), pp.1015-1032. McCusker, K. and Gunaydin, S., 2015. Research using qualitative, quantitative or mixed methods and choice based on the research.Perfusion,30(7), pp.537-542. Mertens, D.M., 2014.Research and evaluation in education and psychology: Integrating diversity with quantitative, qualitative, and mixed methods. Sage publications. Palinkas, L.A., Horwitz, S.M., Green, C.A., Wisdom, J.P., Duan, N. and Hoagwood, K., 2015. Purposeful sampling for qualitative data collection and analysis in mixed method implementation research.Administration and Policy in Mental Health and Mental Health Services Research,42(5), pp.533-544. Shaikh, A.A. and Karjaluoto, H., 2015. Mobile banking adoption: A literature review.Telematics and Informatics,32(1), pp.129-142. Yadav, M.K. and Rai, A.K., 2015. Exploring the Relational Impact of Service Quality on Customer Satisfication.Ushus-Journal of Business Management,14(4), pp.17-31.

Corporate Governance Australian Stock Exchange

Question: Discuss about the Corporate Governance for Australian Stock Exchange. Answer: Introduction The Australian Stock Exchange (ASX) has given its principles and recommendation for the large listed companies. Corporate Governance is basically the framework of principles, rules, integrity, ethical values, and many other aspect, as it forms as one of the most important and other mentioned above in the whole process. In the whole procedure these principles are benefitting the large companies for the betterment of their own operational activities. The position in the scenario would aid make sure that company would not be depressing, under the in the country. (ASX, 2012) The corporate governance has been a necessary aspect for many companies in the recent times is because of the fact that many companies have been going unethical with its approach towards its operational activities. For this reason, countries all across the nation are coming up with this aspect of corporate governance, which would introduce most of the ethical values in the company. Not only this, these ethical values would be generating one of the most important structures of the company or an individual. (Christensen, 2015) Principles and recommendation For a family controlled business, these principles would be effective as well. Following are the principles, in this particular scenario: It should be observed that these sort of principles would only be executed for the, companies, which have actually crossed the year of 25, in order to be eligible for these principles. Conducting proper auditing activities, all the activities would actually verified by the internal and the external auditor. Hence, these external auditors would be making sure that these principles regarding the corporate governance have been met. (Koldertsova, 2011) It can be said that the major factor to do so is because as the company is being under the operational activities for more that 25 years, the corporate governance have been as per the rules and regulations. But as soon as the mark of 25 years have crossed, all this companies come under the family controlled listed companies. (Karmel, 2013) The main purpose of introducing these principles and recommendations are because of the fact that proper governance outcomes would be expected from the companies and this would ultimately aid in meeting the reasonable expectation of an investor. Differences in Principles It is important to meet all the expectations of an investor, as in the absences of the same, no company will be able to survive as it would become difficult for the management to make sure that its activities are being conducted in the best possible manner. Hence, the main purpose of corporate governance is to make sure that all these aspects are actually being met in the best possible manner for the companies to meet all its objectives and goals. (ASX) For them, there are certain different rules, which are to be followed in the best possible manner. The rules are as follows: Ethical practices: The foremost principle has been all the ethical aspects regarding the company. It should be observed whether the company has been engaging itself in any sort of an activity, which is actually unethical in nature. It is for this reason, that the management of these companies should make sure that the practice of unethical behavior or operations should not be actually followed under any circumstances. (Freeman, 2013) Maintaining Governance: After meeting all the criteria, regarding the unethical practices in the society, it is important for these companies to maintain governance as per all the principles mentioned in the scenario. The corporate governance has been playing an effective role, in determining the same. This principle only allows for a fact that how a proper and effective governance can be maintained in the whole scenario. Apart from this, the management of the company should do its best to meet the needs of the corporate governance as it is formed to be the most important aspect, especially for a company, which are listed in the exchange. The governance, by the company should be maintained in the best possible manner and hence, some of these aspects are to be considered effectively by the management of the company. (Mroczkowski, 2007) Integrity: The next principle, which is to be effectively followed is the process of integrity. Integrity has been one of the major reasons for the corporate governance to actually take place and execute all its activities in the most legalized form. All the people related to the company should know all the activity of the company. Hence, integrity, too plays an important role in the determination of all facts related to how the company should perform its activities in the best possible manner. This would lead all the companies to actively participate in building up good relationship with all other third parties in the long run. (KPMG, 2006) Conclusion In order to conclude it should be said that corporate governance is an important task in real because of which, most of the companies have been engaging itself in an efficient manner. Family controlled business are the most actively involved companies with the process of corporate governance as once the governance has been implemented in the whole scenario, the operational activities of the company would be actually differentiated from its usual process. (Effective Governance, 2011) The rules and regulations as mentioned by the authorities are to be followed in the best possible manner in order to make sure that the whole aspect of running the business is not hampered. It has been observed that the compliance and other principles have been mentioned in the corporate governance aspect as per the major listed companies. Basically, the listed companies enjoy an advantageous position as there are certain thing, which were done for their own benefit. ASX has been deploying these principles as in the presence of the same, all the companies have to make sure that they are actually being in their respective operational activities in the most efficient manner. (ASX, 2010) References ASX. (2010). Corporate Governance Principles and Recommendations with 2010 Amendments. Retrieved August 25, 2016, from www.asx.com.au: https://www.asx.com.au/documents/asx-compliance/cg_principles_recommendations_with_2010_amendments.pdf Koldertsova, A. (2011). The role of Corporate Governance. Retrieved August 25, 2016, from www.oecd.org: https://www.oecd.org/finance/financial-markets/43169104.pdf ASX. (n.d.). Corporate Governance Principles and Recommendations. Retrieved August 25, 2016, from www.asx.com.au: https://www.asx.com.au/documents/asx-compliance/cgc-principles-and-recommendations-3rd-edn.pdf Freeman, S. (2013). Corporate givernance principles. Retrieved August 25, 2016, from assets.kpmg.com: https://assets.kpmg.com/content/dam/kpmg/pdf/2014/06/asx-corporate-governance-principles-recommendations-third-edition.pdf KPMG. (2006). Corporate Governance. Retrieved August 25, 2016, from www.kpmg.com: https://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Documents/14ru-007.pdf Effective Governance. (2011). Whats new in the ASX Principles? Retrieved August 25, 2016, from www.effectivegovernance.com.au: https://www.effectivegovernance.com.au/whats-new-asx-principles/ Karmel, R. S. (2013). Is the Independent Director Model Broken? rooklyn Law School, Law. Brooklyn Law School Legal Studies. Mroczkowski, N. A. (2007). Delineating Publicly Listed Family and Nonfamily Controlled Firms: An Approach for Capital Market Research in Australia*. Small Business Management 2007 45(3), pp. 320332 , 320-332. ASX. (2012). Corporate Governance Principles and Recommendations. ASX Corporate Governance Council. Christensen, J. (2015). Do corporate governance recommendations improve the performance and accountability of small listed companies? Accounting and Finance , 133-164.

Assesing marketing opportunities

The marketing strategies used by an organization play a pivotal role towards determining the success or failure of the organization. In order for an organization to market its products and services successfully, it must research and understand the needs of the consumers, and use this information to develop products and services that satisfactorily address those needs.Advertising We will write a custom essay sample on Assesing marketing opportunities specifically for you for only $16.05 $11/page Learn More One way of achieving this aim is by developing models that evaluate the consumer buying behavior within a given market. This paper shall describe the steps followed by consumers in the process of buying oatmeal manufactured by Quaker Oats Company. The cultural factors that influence consumers to buy this product shall also be discussed. There are five steps that consumers take in order to make a conclusive purchasing decision. The rate at which consumer s pass through these stages depends on the price, place, promotion and product being sold. Below is a graphical representation of the consumer buying behavior: Figure 1: Consumer Buying Behavior Model In regard to the selected product (Oatmeal), the consumers recognizes the need or problem. This can be triggered by an internal stimuli (hunger), which drives the consumer towards buying this product. After identifying the need or desire, the consumer may or may not look for information about the product. If the consumer has used the product before, he/she may buy the product again. However, if the consumer has not yet used the product, he/she may obtain the information about this product from personal or commercial sources. For the oatmeal, commercial sources such as advertisements, packaging and dealers could be useful for potential consumers.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The information gathered gives consumers a set of brand choices. In order to select the preferred brand, consumer compare and contrast the brand from a logical or evaluative processes. Some may use calculations (price and content preferences) or choose the product brand on impulse or intuition. After evaluating the alternatives, the consumer ranks the brands and decides which one to buy. The purchase decision is based on the price, income and expected benefits of the product. As such, the consumers may buy the oatmeal as a result of its competitive price, its health benefits and its impact on the consumer’s pocket. The post purchase behavior of consumers refers to the attitude and perceptions the consumers have in regard to the product’s ability to satisfy the identified need. During this step, consumers weigh their expectations against the performance of the product. If the gap between these two factors is large, the consumers will be disappointed, but if the gap is small, the consumers will be satisfied and delighted with the product. Cultural influences on consumers Buying Behavior According to Sheth (2011), cultural factors have a significant impact on a consumer’s buying behaviors. Cultural factors largely influence the wants and behaviors of an individual in regard to value systems, perceptions, material comfort and practicality among others (Sheth, 2011). In order to sell the oatmeal profitably, due consideration should be given to the culture, subculture and social classes within a given market. Marketers should do research in order to ascertain the income levels of the selected market segment, the value system of the consumers and the impact family and friends have on an individual’s purchasing process. Understanding how the aforementioned cultural factors impact buying behaviors will enable marketers to come up with a price and product that meets the consumer’s cultural expectations. In addition, such an understand ing will enable marketers to promote the product in a manner that guarantees success. Failure to consider these factors may lead to dissatisfaction among the consumers, and losses to the manufacturers. Reference Sheth, J. (2011). Models of Buyers Behavior: Conceptual, Quantitative and Empirical. Illinois: Marketing Classics Press.Advertising We will write a custom essay sample on Assesing marketing opportunities specifically for you for only $16.05 $11/page Learn More This essay on Assesing marketing opportunities was written and submitted by user Alberto Sloan to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

SAT Subject Test Dates 2018-2019

SAT Subject Test Dates 2018-2019 SAT / ACT Prep Online Guides and Tips At PrepScholar, we pride ourselves on using the best data to keep you posted about upcoming test schedules and registration deadlines. It's essential to plan ahead and choose wisely when selecting Subject Tests and test dates. You can see the SAT test dates for previous years. Refer to this information to get a general idea of when College Board has its test dates for the SAT and how long after the test you can view your scores. In this article, I’ll give you the SAT Subject Test dates for 2018-2019 and explain what you should consider when choosing your test date and Subject Tests. Test Dates for the 2018-2019 School Year SAT Subject Tests are given on the same dates and in the same locations as the SAT, but there’s an additional test date in March for the SAT that isn’t offered for the SAT Subject Tests. Subject Test Dates The College Board lists these dates on its website, but they’re still subject to change. Not every test is offered on every date. For example, the language with listening tests are only offered in November. Subject Test Aug 25, 2018 Oct 6, 2018 Nov 3, 2018 Dec 1, 2018 May 4, 2019 Jun 1, 2019 Literature X X X X X X US History X X X X X X World History X X Mathematics Level 1 X X X X X X Mathematics Level 2 X X X X X X Biology E/M X X X X X X Chemistry X X X X X X Physics X X X X X X French X X X X X German X Spanish X X X X X Modern Hebrew X Italian X Latin X X French with Listening X German with Listening X Spanish with Listening X Chinese with Listening X Japanese with Listening X Korean with Listening X You can take chemistry on each testing date. Registration Dates The registration deadlines and score release dates are projected by PrepScholar. Test Date Normal Registration Late Registration Score Release Aug 25, 2018 Jul 27, 2018 Aug 10, 2018 Sept 13, 2018 Oct 6, 2018 Sep 7, 2018 Sep 21, 2018 Oct 25, 2018 Nov 3, 2018 Oct 5, 2018 Oct 19, 2018 Nov 22, 2018 Dec 1, 2018 Nov 2, 2018 Nov 16, 2018 Dec 20, 2018 May 4, 2019 Apr 5, 2019 Apr 19, 2019 May 23, 2019 Jun 1, 2019 May 3, 2019 May 17, 2019 Jun 20, 2019 How Accurate Are the Tables Above? The test dates are the anticipated dates provided by the College Board, and the registration and score release dates are our estimations. Even though all the dates are likely to be correct, because the test dates are provided by the College Board, those dates may be somewhat more reliable. The test dates won’t be confirmed until within a year of the test. If any of the dates change, they’ll probably be a week earlier or later than the anticipated date. You can use these dates to help determine when you'll take your SAT Subject Tests. If you know your available options, you can select the date that works best with your schedule. Also, you can factor in the specific tests you're taking and the time you need to prepare for them. The tables are pretty accurate. How to Choose Your Subject Tests? Here’s what you should consider when selecting your Subject Tests: What Do Your Colleges Require? Know the requirements of the schools you're considering applying to. Do they require Subject Tests? If so, how many and which ones? Are you applying to a school or program that requires you to take science and math? Do you have to take Math II? Are you applying to colleges that want to see your skill level in a variety of subjects? Furthermore, are you applying to test optional or flexible colleges that allow you to use Subject Tests in place of the SAT or ACT? Call the admissions office if you have any questions about a school's policies. What Are Your Best Subjects in School? Typically, you'll do the best on the tests related to your best subjects in school. If you thoroughly enjoy US History and you're excelling in your AP US History class, you'll probably do well on the US History Subject Test. Are You Fluent in Another Language? Many non-native English speakers take the Subject Test in their native tongue, even if they’re not taking a class in that language. Often, they're able to get a high score and show off their language prowess. However, make sure you review the content for the Subject Test even if you're fluent. I scored higher on my Spanish Subject Test than some of my friends who are native Spanish speakers because I was more comfortable with Spanish grammar rules and written Spanish even though they were much more adept at conversational Spanish. For more guidance and study resources, read our articles on SAT Subject Tests. How to Choose Your Test Dates Review this article on how to select SAT Subject Test dates. When picking your test date, remember that you can take one, two, or three Subject Tests on a single test date. Here are the most important factors to consider. When Your Skills Are at Their Best Generally, you want to take your Subject Test in a particular subject when you’re studying the highest level of that subject. If you're taking AP Chemistry in your junior year, you may want to take the Chemistry Subject Test in May or June of that year right after you've spent a full year studying chemistry and preparing for the AP test. When Are Your College Deadlines? For most schools, the December test of your senior year will be the last time you can take the Subject Tests, and if you're applying early, the October test may be the last possible date for you. Make sure you have enough time to retake the tests, if necessary, and know your deadlines. Check Your Personal Schedule Give yourself ample time to study, and try to avoid taking the test when you have possible conflicts. If your'e particularly preoccupied with school and extracurricular activities in a certain month, you may want to avoid taking your Subject Tests then. What's Next? Find out how to register for SAT Subject Tests and send your scores. Also, learn more about how SAT Subject Tests are scored. Finally, if you're deciding between taking Math I and Math II, check out this article. Need a little extra help prepping for your Subject Tests? We have the industry's leading SAT Subject Test prep programs (for all non-language Subject Tests). Built by Harvard grads and SAT Subject Test full or 99th %ile scorers, the program learns your strengths and weaknesses through advanced statistics, then customizes your prep program to you so that you get the most effective prep possible. Learn more about our Subject Test products below:

The logic of alliance Value Creation model on case study Renault and Assignment

The logic of alliance Value Creation model on case study Renault and Nissan - Assignment Example In this manner the alliance has proved to be a success for both Nissan and Renault. However the two companies are still facing challenges in creating an organizational culture that can maximize cooperation between the human resources from the two companies. In order to create the maximum value from this alliance, Nissan and Renault need to share their core competencies to synergistic effects. This will enable both companies to improve their specifications and standards in a continuous process so that the competitive advantages of both companies are made sustainable. Strengths and weaknesses Nissan’s strength is the worldwide market share while Renault’s strength is in financial management (Glover, 2006). By forming this alliance, both companies will be able to address these structural problems. In order to maintain its financial strength, the French car maker Renault has to access new markets and this objective is met by forming the alliance with the Japanese car maker Nissan. Both companies will be able to implement the practice of benchmarking which is defined as comparing an organization’s performance against the best practices in the industry. This alliance will enable Nissan to compare its financing strategies against those of Renault and thus identify the areas of improvement. Renault will be able to compare its product development practices with those implemented by Nissan. As a result both companies can improve their efficiencies in these operational processes and thus strengthen their competitive advantages. ... The main weakness is the different focus in each organization design. Nissan places strategic focus upon supply chain management while Renault’s strategic focus is upon product development. Therefore there are structural dissimilarities which must be addressed if the alliance is to enable Nissan and Renault to capitalize upon each other’s assets. The challenge in front of the management is to create a decision making process which will enable the human resources from both companies to coordinate their efforts so that there is no duplication. This can address the company-specific weaknesses. Nissan’s financial weakness can be addressed by importing the financial management practices from Renault. Similarly Renault can access additional geographic markets in order to maximize its market reach. However in order to meet the demand from additional markets, Renault has to focus upon supply chain management which is Nissan’s strength. Nissan has embarked upon a c ost-cutting initiative to create greater demand for its products. If Nissan can reduce its cost of operations, then it will be able to price its automobiles more competitively. Because of its financial management practices, Renault has been successful in maintaining demand for its products in the market that the automaker currently operates in. However demand in these markets is shrinking. Therefore Renault needs to access additional markets in those regions which have growing demand. By forming the alliance with Nissan, Renault has been able to meet this objective. By forming this alliance, Renault will be able to access those markets that Nissan operates in. As a result, Renault will be able to sell more cars and enhance scale economies. Because of the high costs of new

Corporate governance Essay Example | Topics and Well Written Essays - 1250 words

Corporate governance - Essay Example The role of independent directors and non executive directors become significant as they are intended to serve as deterrent in the misuse and abuse of power by the vested interests, especially the senior management of the company. The paper would be broadly rationalizing the role of independent non executive directors within the broader parameter of corporate governance. Corporate governance is based on publicly acceptable values and code of behaviour for the higher echelons of corporate bodies (Haller & Shore, 2005). It can primarily be described as a set of well defined policies, rules and regulations and customs that effectively control the various internal and external processes of the business enterprises. They are, thus intended to create an environment that improves productivity, economic efficiency and protects the interests of various stakeholders through ethically delivered goals (Solomon, 2007; Mueller, 1996). Since the good corporate governance is dependent on effective p olicies and laws, the role of CEO and board of directors becomes crucial ingredient for their efficient implementation. In the various modalities and process that are incorporated within good corporate governance, the role of independent non executive directors in the company’s board has increasingly become key component of the success of the company. The recent cases of abuse of shareholders’ rights in the various countries have brought the role of corporate governance into the prominence. The increased risks to the interests of the various stakeholders have necessitated stringent code of conduct for the higher hierarchy of management. Chief Executive of the firm and board of directors, therefore become intrinsic part of corporate governance. They are endowed with the primarily responsibility for good codes of corporate governance and best practices within the organization that promote accountability. Boritz, (1990) has defined risks as possible loss due to uncertaint y and exposure of the firm from inappropriate investment decision or a commitment. Thus, risks and need for more effective transparency within the system become vital postulates of CG whose implementation is overseen and guided under the strict vigilance of independent non executive directors. Independent non executive directors in the board provide the firm with independent, objective and creative inputs on the various processes and modalities of business operations. As they are basically from outside the organization, they are observed to be equipped with unbiased approach to the issues and factors that could have long lasting impact on the performance outcome of the company. Cadbury report (1992, p33) explicitly states that they bring in ‘independent judgment’ within the board. Their presence on board therefore is designed to discourage the vested interests against financial malpractices and fraud. This is one of the most important criteria that reiterated the import ance of inclusion of independent non executive directors on the boards of the companies. UK has been a leader in setting up a Combined Code of Corporate Governance. UK boasts of a highly developed business environment with a vast shareholders’ base. The various financial institutions, big corporate houses, institutional investors and individuals with

UNIT 4 INDIVIDUAL PROJECT Essay Example | Topics and Well Written Essays - 1750 words

UNIT 4 INDIVIDUAL PROJECT - Essay Example The company needs to target an unserved but profitable segment of the market to increase sales and boost image minus the fierce competition. Distribution channels. The company depends largely on department stores to sell its products. Reebok should explore other channels that would effectively promote the increased visibility of its products in the market. Intellectual property rights. The company produces its products through independent manufacturers in third world countries. Despite the enforcement of patent laws, knockoffs proliferate in many international markets which have an adverse affect on Reebok’s revenues. Our passion for winning creates our possibilities. We harness the boundless creative energy of every individual to make the differences that count - to captivate the consumer and create an exceptional global brand and organization. a. [Pros] Reduced production costs and lead time, increased gross margins in the long run and creates new sources of raw materials for footware product lines as well as develop more efficient distribution channels. a. [Pros] Reebok needs to stick to more conservative demand forecasts to effectively control marketing, advertising and other related expenses; minimize production problems, cut costs and generate adequate cash flow for debt servicing. 1. Recommending the implementation of the Market Development Strategy [Alternative 1] to increase brand value and gain a bigger market share, if not a controlling interest in the athletic shoes and sports apparel market. 5. Product lines intended for outdoor activities should also be developed apart from contact sports, with 40% of the subject segment looking for new outdoor activities, among them backpacking/hiking (47%), road biking (38%), camping (30%) and paddle sports (23%). (NPD Group, as cited in Rab, 2004) 1. Revamp of existing marketing platforms and repositioning to new segment must be

Constructing Luxury for Consumers

Constructing Luxury for Consumers WHAT IS LUXURY? The word ‘luxury derives from the Latin word ‘luxus , which according to the Latin Oxford dictionary signifies ‘soft or extravagant living, indulgence and ‘sumptuousness, luxuriousness, opulence (Christodoulides, Michaelidou, Li, 2008). THE TRADITIONAL, ECONOMIC VIEW There are two aspects to consider when defining luxury, the psychological value and the value of the product/service itself. The psychological value of luxury comes from its function as a status symbol and from a highly involved consumption experience that is strongly congruent to a persons self-concept. From a product perspective, luxury brands are frequently defined in terms of their excellent quality, high transaction value, distinctiveness, exclusivity and craftsmanship (Fionda Moore, 2008). In his paper on International Retail Marketing, T.B. Jackson proposes the following as the core characteristics of a luxury product: ‘†¦ exclusivity, premium prices, image and status which combine to make them more desirable for reasons other than function (Jackson, 2004). Dimitri Mortelmans, in his paper ‘The concept of luxury, says there are three main characteristics in [a narrow] definition of luxury: extra value, high quality and exclusivity. The fourth, derived, characteristic is high price. * Extra value Extra value here is loosely defined to include design, aesthetic value any innovation or attribute that makes the product unique. * High quality Superior quality is an essential component of luxury products. Luxury products have been typically been associated with fine craftsmanship, precision and skill. * Exclusivity Exclusivity in luxury products comes from two factors: (a) the goods are made in limited quantity and distribution is strictly controlled. Haute couture began when royal tailors custom made garments that were made only for one user. Till date, products belonging to the highest category of luxury are made in scant quantities. It is also crucial to decide where all these products will be available in order to make them rare. (b) Luxury goods are typically priced so high that they automatically exclude a majority of the population from their target group. In the world of luxury, rarity value sells, because it is the rarity that the customer wants to own. Owning such a product makes the consumer feel privileged to be part of a select group of people. High price When a product or service is superior in quality has extra value and also has to be exclusive, then the price automatically becomes high. (Mortelmans, 2005) Traditionally, there were four principal categories of luxury goods: fashion (couture, ready-to-wear, and accessories), perfumes and cosmetics, wines and spirits and watches and jewellery. Today, luxury has expanded to include many more categories such as luxury automobiles, hospitality (hotels, tourism, airlines) private banking and home furnishings among others. Among these, the luxury fashion goods category accounts for the largest proportion of luxury goods sales (with a 42 per cent share in 2003) and also showed the strongest product category growth in 2007 (Fionda Moore, 2008). NEED FOR LUXURY MOTIVES FOR CONSUMPTION In their paper ‘The specificity of luxury management: Turning marketing upside down Kapferer and Bastien express that for the outward oriented motivations, â€Å"Luxury converts the raw material that is money into a culturally sophisticated product that is social stratification†. Where the inward directed motivations are concerned, â€Å"luxury should have a very strong personal and hedonistic component; otherwise it is no longer luxury but simple snobbery†. (Kapferer Bastien, 2008) According to Wiedmann, Hennigs and Siebels, â€Å"luxury is a subjective and multidimensional construct†. When studying consumer motivations for consumption of luxury, both outward (conspicuousness, snobbery, status) and inward (hedonism, perfectionist) directed motivations need to be taken into account. Additionally, these must be placed the situational and cultural context of consumption. (Wiedmann, Hennigs, Siebels, 2007) Wiedmann, Hennigs and Siebels have proposed four dimensions that add value to luxury purchases in the consumers mind: Financial Dimension of Luxury Value Perception The financial dimension captures the monetary value that consumers are willing to put on the purchase. This will take into account aspects like price, return on investment, resale value and discount. Functional Dimension of Luxury Value Perception This is the core benefit or utility derived from the luxury product or service purchased. This will take into account the attributes of the product such as its quality, durability, reliability, usability etc. Individual Dimension of Luxury Value Perception The individual dimension addresses the inward oriented motivations or the personal value derived from luxury. This includes benefits like self identity, materialism and hedonism. Social Dimension of Luxury Value Perception This dimension has been the most researched and appears to be the largest contributor to the value derived from luxury. The social dimensions of luxury value include recognition or being identified as a part of a particular social group, conspicuousness and prestige value within a social group and a sense of power in a social context. (Wiedmann, Hennigs, Siebels, 2007) In â€Å"A Review and a Conceptual Framework of Prestige-Seeking Consumer Behavior†, Vigneron and Johnson have suggested that the primary driver for the purchase of luxury is prestige-seeking behaviour. The prestige benefits derived out of luxury purchases are of two types: inter-personal (outward oriented) and personal (inward oriented). (Vigneron Johnson, 1999) Interpersonal effects:  · The Veblen effect perceived conscious value Veblenian consumers attach greater importance to price as an indicator of prestige. This comes from the fact that these consumers often use price as evidence to judge quality. They also tend to perceive higher quality products as granting higher prestige.  · The Snob effect perceived unique value ‘Snobs have a need to be unique and seek prestige through differentiation. The snob effect manifests itself in two forms: (a) when a new product/collection is launched, these consumers will want to be the first to buy (innovators) (b) they will choose not to use a product once the general masses have adopted it. Snobs see higher price as an indicator of uniqueness and exclusivity.  · The Bandwagon effect perceived social value This is the reverse of the snob effect. These consumers, the followers, seek prestige through group affiliation. In the words of Vigneron and Johnson, â€Å"bandwagon consumers attach less importance to price as an indicator of prestige, but will put a greater emphasis on the effect they make on others while consuming prestige brands† Personal effects:  · The hedonic effect perceived emotional value Luxury purchases have emotional value attached to them beyond their functional utility. These emotions could be aesthetic appeal, sensory pleasure, excitement etc. The consumer here is more concerned about her own feelings than those of others around her. The luxury product could be fantasy or self rewarding behaviour.  · The perfectionist effect perceived quality value These consumers seek superior quality as an indicator of prestige. They rely on their own judgements about the quality of products and services. They may see higher price as an evidence of better quality. (Vigneron Johnson, 1999) (Husic Cicic, 2009) THE ESSENCE OF LUXURY In her book ‘Let them eat Cake: Marketing to the masses as well as the classes, Pamela N. Danzinger (Danziger, 2005) explains that consumers link luxury to fantasy fulfilment. They fantasize about how their life will change once they own a luxury product; â€Å"Luxury takes on a transcendent quality linked to the persons hopes, wishes and dreams†, she says. Once we have achieved this fantasy, bought that luxury product, after some time it becomes ordinary and then we wish for something else, something even more luxurious and unattainable which then becomes the new object of fantasy. As Danzinger puts it, â€Å"that which is unattainable is overwhelmingly attractive and desirable†; once we have attained something, it loses its mystique and charm and becomes ordinary. Thus, to consumers, luxury is ultimately the unattainable. OLD vs. NEW LUXURY (MASSTIGE) There was a time when â€Å"luxury† as a category was restricted in the hands of the affluent and was meant only for the crà ¨me de la crà ¨me of society. Today, however, the scenario has changed more and more people can now afford a small piece of the pie with the democratisation of luxury. According to a study done by IBM Business Consulting Services (2004), todays consumers are demanding lower prices on basic goods but at the same time, they are willing to pay premiums for products that matter more to them. (Florin, Callen, Mullen, Kropp, 2007) Traditional luxury, now commonly known as ‘old luxury, was all about conspicuous consumption and its appeal was derived from the status and prestige that came with the ownership of these products. The attributes and quality of the offering itself were of supreme importance as it was a cultural symbol of high taste. In the years after the Second World War, material wealth was highly sought after. The generation that witnessed World War II and subsequently the great depression had seen immense scarcity; this generation basked in the joy of material things and sought luxury as a symbol of wealth. (Danziger, 2005) While old luxury was about the thing itself, new luxury is about the experience. The economy, worldwide, improved continuously in the 80s and 90s leading to increasing disposable incomes, lower unemployment rates and a growing wealthy class in emerging countries. Simultaneously, the democratisation of luxury meant that luxury has now become more accessible to a larger population. Goods that fall under the ‘new luxury category are less expensive than traditional luxury goods yet, they have some confines in terms of their price as exclusivity. They are affordable, yet they enjoy a reasonable level of perceived prestige as compared to middle-range products. The prices of ‘new luxury items are kept only slightly above those of middle ranges. This helps in targeting a much larger segment than the traditional luxury niches. The consumers for this new luxury come from middle and upper middle classes for whom luxury purchase is a form of self reward and indulgence. Their focus is a desire for living the good life and private pleasure. As Twitchell says in his book ‘Living It Up: Our Love Affair With Luxury â€Å"These new customers for luxury are younger than clients of the old luxe used to be, they are far more numerous, they make their money far sooner, and they are far more flexible in financing and fickle in choice. They do not stay put. They now have money to burn. The competition for their attention is intense, and their consumption patterns if you havent noticed are changing life for the rest of us.† (Truong, McColl, Kitchen, 2009) The term masstige was introduced by Michael Silverstein and Neil Fiske to refer to a new category which aims at providing luxury to the masses. The term is derived from the words mass + prestige goods and services that occupy the space between mass and class (Silverstein Fiske, 2003). These products are priced at a premium over the convention but are not always positioned at the top of their category in price. A recent survey by the Boston Consulting Group (2004) said that the top four categories for ‘trading up are homes, cars, appliances and dining out (Florin, Callen, Mullen, Kropp, 2007). Examples of new luxury goods are the urban BMW 1-series starting at $ 19 000, Ralph Lauren Polo shirts sold in outlets for $ 9 and Swarovski crystals with prices as low as $ 20. (Truong, McColl, Kitchen, 2009) MASSTIGE TO MASS? Critics argue that brands which enjoy the tag of ‘masstige today, could become the ‘mass brand tomorrow. By definition, it is contradictory to sell prestige and exclusivity in mass (because when something is owned in mass, it would no longer be prestigious). These products may be successful at first, but their enchantment for the consumer would be inversely proportional to their success. The critical success factor, then, for masstige brands would lie in maintaining the equilibrium between prestige differentiation and a reasonable price premium. â€Å"In order for a masstige product to be successful in the long term, it must have a noticeable differentiation in design and/or technology compared to the regular products in the category. This differentiation must be real and marked. Promises of â€Å"improvements† are not enough if they dont really exist or are imperceptible to the consumer† (Smith, 2007). LONG LIVE LUXURY! With the advent of masstige, top end luxury houses like Armani and LVMH are entering into the affordable luxury arena. Critics argue that as luxury becomes more and more affordable, the concept itself will die out. Here is where understanding the sign-value of luxury is important the concept is not absolute but relative. Over the centuries, what constitutes luxury has changed, but the concept has endured. Brands that are at the top may not remain there, even objects that are considered to be part of luxury may change, but because of human social needs, the concept of luxury will persist. (Mortelmans, 2005) LUXURY vs. MASSTIGE Motivations for consumption When defining masstige, price is not the only criteria to differentiate between the realm of luxury and that of accessible luxury. An extremely important difference lies in the motivations for consumption. While the reasons for consumption of luxury can be both internally as well as externally driven, consumption of masstige is in most cases externally driven. Conspicuous consumption, which formed the basis of luxury when the concept originated, now forms the basis for the masstige category. Hence, a Valentino gown does not have a logo printed on it but a Tommy Hilfiger product will always have a label, logo and some visible identification mark on it so that others can see it. Global versus local Luxury is global, it remains the same across the world luxury brands target the elite who expect the same experience from their brands whether they are in the United States, Europe or in Asia. Although various brands have specific associations with the heritage of their countries of origin, a luxury brand is not modified to suit a particular geography. It is meant for people who are global, and hence the brand perception and delivery has to be ‘global in approach and consistent in delivery everywhere. Masstige on the other hand needs to be localised to an extent because the consumption of masstige is directed outwards. It has to adapt to the cultural ethos of the geography in order to remain relevant and in the process also gets absorbed into the culture of any society. LUXURY IN THE INDIAN CONTEXT TRACING THE ROOTS Luxury in India has its roots going back to the era of the Maharajas who, for centuries, splashed their enormous wealth and lived opulently. The Mughal dynastys wealth and power was a legend but as it waned, the old Indian maharajas began to re-emerge, and new ones began to rise. With the arrival of the British Raj, western influences began to show in the collections at the royal courts. Then began the romance with brands like LVMH, Cartier, Gerrard and Asprey. â€Å"Indian courts commissioned all sorts of fine art like jewellery, woodwork, painting, enamelling, inlaid weaponry and intricate floor coverings† (Gopinath, 2009). Jewellers like Cartier and Van Cleef Arpels, Louis Vuittons bags and luggage and watches by Jaeger-Le Coultre, which were the icons of luxury in Europe, were frequently commissioned by kings. At the same time, western styles of dressing were being adopted. (Forster) The Maharajas, who were patrons of music, arts, poetry and craftsmen, began to patronise European and Indian artists and designers as well. The Victoria and Albert Museum, London, has opened an exhibition ‘Maharaja: The Splendour of Indias Royal Courts in November, which will be on display till January 2010. The exhibition explores the lives of the Indian royals beginning from the 18th century till the end of the British rule. The exhibition showcases 250 items a number of which have been loaned from the private collections of the erstwhile royal families of India. Some of the objects on display are the Maharaja of Indores Modernist furniture, a Louis Vuitton travelling case, French designed sarees, a Rolls Royce Phantom and the studding diamond necklace of Maharaja Yadarendra Singh of Patiala. The necklace which was completed in 1928, originally contained 2930 diamonds, weighed almost 1000 carats and was part of the largest single commission that Paris jeweller Cartier has ever executed. Though Western brands are now flocking to India after its new found affluents, India has clearly been consuming western luxury since way before. LUXURIFICATION OF THE INDIAN SOCIETY The Indian luxury landscape is rapidly transforming owing to a combination of economic and social factors: Rising Affluence Merrill Lynch and Capgemini report that the number of high-net-worth individuals in India (at least US$1 million in financial assets) increased by 20.5% in 2006. According to the McKinsey Global Institute, consumers earning more than 1,000,000 rupees a year will total 24 million by 2025 larger than Chinas comparable segment. Their share of private consumption is projected to increase from 7% to 20% in 2025. However, it is the emergence and steady rise of ‘mass affluence of the Indian middle class coupled with aspirational mindsets and lifestyles that is driving consumer demand. The scope for luxury today is larger than it has ever been in India before owing to the strength of the population that can now afford luxury goods. According to sereval reports by McKinsey Global Institue, the Indian middle class (household disposable incomes from Rs. 200,000 to 1 million a year) will increase from approximately 5% to 41% of the population and will become the worlds fifth largest consumer market by 2025. (Foreign Policy) Exposure to Media Media explosion in the form of television, radio, internet and print has led to increased product knowledge and awareness of brands. Fashion and lifestyle media have established a strong following as mainstream media are taking greater interest in consumer lifestyles, fashion trends and luxury brands. A milestone here was the launch of the Indian edition of Vogue magazine in 2007. Along with the platforms available for advertising, the spending on advertising is also rising. According to ZenithOptimedia, advertising expenditures in India increased from US$1.1 billion in 1996 to US$4.7 billion in 2006 and forecasts suggest that this number will exceed $7 billion in 2009. Accessibility of luxury brands A couple of decades ago, in order to purchase luxury brands such as Gucci, Cartier and Chanel, Indian consumers had to travel to Europe or the U.S. Today, the biggest names of the world like LVMH, Armani and Tommy Hilfiger are present in not only Delhi and Mumbai, but are also setting shop in the upcoming metros like Pune and Hyderabad. Inadequate retail space has also been a challenge to luxury brands operating in India which have been, until recently, hidden in lobbies of five star hotels. The retail boom is changing this scenario. Organised retailing, which currently comprises 6% of the market, is expected to rise to 15% in the next two years. Retail space has increased from 22 mn sq ft in 2002 to 101 mn sq ft (almost 5 times) in 2007 and is predicted to increase by a further 200% to 300 mn sq ft by 2012. (Jindal, 2008) With the retail revolution, newer formats like luxury shopping malls are evolving. An example of these new avenues for luxury brands is the Delhi luxury-goods mall, Emporio which opened in March 2008 which houses over 70 international high-end brands. In 2006, again, AT Kearney has ranked India at the top of its Retail Development Index as the worlds most attractive market for mass international retail expansion. Brands like Marks Spencer, McDonalds and Tommy Hilfiger have entered the market with franchisees due to market regulations which are in the process of loosening up further. (Euromonitor International, 2007) Market Regulation The further liberalisation of the Indian economy has made the market attractive to international players despite heavy import duties on luxury goods and foreign investors are looking to make long-term investments in the country. (Atwal Khan, 2008) THE CHANGING FACE OF THE INDIAN LUXURY CONSUMER In an interview the Pitch magazine, Radha Chadha, author of the book ‘The Cult of the Luxury Brand said that India currently is at an early stage of the luxury brand culture. â€Å"Typically, it starts when a country goes through a rapid economic growth and that has been happening in our country for the past few years. It puts money into peoples hands, at some point they want to demonstrate that. The third stage is what I call the show-off stage, where China is today and some of India is moving towards. Then comes the fit-in stage where we see a large scale adoption of luxe fuelled by the need to conform. The last stage is way of life where people are habituated to luxe products; they become confident and discerning buyers, like in emerged markets†. (Chadha, 2008) The luxury market in India has traditionally been segmented according to two distinct customer groups the affluents and the non-affluents. With the pace of economic development, rise of the middle class and the transition towards a consumer society, the profile of the luxury consumer has also evolved. Clustering luxury consumers into segments based simply on socio-economic classifications is erroneous. Todays luxury consumer is much more diverse and hence the old segmentation and classifications need to be reassessed. The regular classifications of customers based on income or SEC are not sufficient today to gauge clearly who are the consumers who are actually consuming luxury (Pant, 2009). India has always had a small elite segment that has been shopping abroad and buying western brands for ages. This elite class consists of the descendants of the royal families, nawabs and small rulers and long standing industrial families like the Birlas, Tatas, Godrej, Bajaj, Mahindras, some tracing their roots back to pre independence days. (Chadha Husband, 2007). This was the select, privileged segment that was exposed to and could consume luxury. In todays scenario, a typical BPO operator in Mumbai or Delhi is spending a substantial proportion of their monthly salary on international brands of clothes, accessories and cosmetics. â€Å"These are consumers are not affluent in the traditional sense of originating from wealthy family backgrounds, but are ambitious and successful in their chosen professions. Personal performance based on merit has got them to where they are today. Todays luxury shopper could be a broker, an entrepreneur, IT specialist or a student† (Atwal Khan, 2008). They purchase luxury not simply to show off, but as a self-reward. As Atwal and Khan say in their paper ‘Luxury marketing in India: because Im worth it, this generation consumes brands, goes shopping and purchases luxury as they firmly believe in the sentiment â€Å"because Im worth it†. The Indian Affluents In her article in the Brand Reporters special issue on luxury marketing, Vatsala Pant says that it is to try and understand these diverse consumers that one such measure, the Nielsen UMAR (Upper and Middle Rich) survey has redefined affluence using lifestyle and ownership of consumer durables factors (Pant, 2009). On the basis of these factors, Nielsen has estimated that there are 2.6 million affluent households across 35 cities (metros and upcoming metros) of India. Affluent Households in India (Source: Nielsen UMAR survey) — LANGUAGE Luxury is no longer reserved for the English-speaking elite. The survey reveals that 51% of these affluents have been educated in languages other than English and dont speak English as a primary language at home. The primary language spoken, then, becomes the preferred language for media consumption. — FAMILY STRUCTURE Ninety percent of these households live in nuclear families or nuclear families with elders living with them. The average size of the family is 4 members with the chief wage earner typically over 35 years of age. — DURABLES While all the households have the basic durables like TV, refrigerator, washing machines and mobile phones, the Rich segment is seen to have more expensive double-door refrigerators, front loading washing machines and microwaves as well. 20% of the affluent households have two or more TV sets. — MEDIA CONSUMPTION While the most popular medium is TV (watched in 98% of the HH), the next most popular is print where 70% HH read English dailies. However, only 10% read English business dailies. Popularity of watching cinema outside the home is more (67%) than radio listenership (54% of HH). 55% of the HH browse the internet while only 38% read magazines. (Pant, 2009) Changing Trends of the Affluent Indian Consumer Indian consumers are value conscious and highly value driven. Not just products, but the delivery and experience are becoming increasingly important. With the advent of international luxury brands with a bang into the country, consumers want world-class brands, and expect world-class quality, service and experience. They expect the latest designs and most modern technologies available. As the purchasing power has gone up, so have aspirations. The concept of wealth to be enjoyed rather than just display and badge value has emerged. Indulgence and self-rewarding behaviour are on the rise rather than simply the need to show-off. (Raman, 2007) NEW LUXURY FOR INDIA In their paper ‘Luxury marketing in India: because Im worth it Glyn Atwal and Shaziya Khan say that â€Å"the establishment of different levels of luxury ranging from ultra luxury to affordable luxury is a reflection of luxurys increasing mass appeal in India†. The concept of masstige or new luxury is extremely relevant in the Indian context for two reasons firstly, the market for masstige is huge is India owing to rising disposable incomes and a burgeoning middle class. Secondly, Indians are extremely value conscious and new luxury would, for many, be the first opportunity to experience luxury. This, then, could be the first step for a large population to move on to luxury. Rising incomes and the recent retail boom in the country coupled with increasing awareness has sparked off consumption of new luxury brands in India. At the same time, the arrival of international brands and players on the scene has provided accessibility to global resources and efficient supply chains. â€Å"The Indian society is moving towards NUF (Nuclear Urban Family) where each individual has their own tastes and preferences† (Marketing Funda: Masstige, 2007). The consumer is becoming more demanding in terms of value, quality and service. A Euromonitor report on India states that for the burgeoning middle class, the spending area is shopping for brand names. Consumerism is a significant aspect of the new, younger middle class which gives a lot of importance to lifestyle and branded goods. (Euromonitor International, 2007) A look into the Indian consumers luxury needs In their qualitative research of the Indian consumers, Glyn Atwal and Shaziya Khan discovered that the Indian consumer associates luxury with perceptions of not just quality and performance but with comfort, beauty, pleasure and style. The product is no longer the sole criteria for choice, the service and experience of shopping are crucial to the decision making process. When societies experience fast economic growth, the phenomenon of luxury usually gains popularity because the acquisition of luxury is a symbol of prestige and signifies how fast you have climbed up the ladder of social mobility. A similar phenomenon is being seen in India but the motivations to acquire luxury brands go beyond displaying social status. Consumers are moving on from an outward expression of luxury to an inward directed emotional experience. Luxury brands are helping people â€Å"define identities and express values†. (Atwal Khan, 2008) CHAPTER 2: INDIAN ADVERTISING- AESTHETICS CONTENT ADVERTISING INDIAN CULTURE William Mazzarellas ethnographic study of ‘globalizing consumerism in the context of Indian advertising talks about how advertising is produced in metropolitan India and transformations in the Indian public culture along with the rise of mass consumerism. As Mazzarella puts it: â€Å"As an aesthetic interface of post colonial capitalism, the everyday practice of advertising constantly calls into question the conceptual alignments that ground business discourse: local and global, culture and capital, particular and universal, content and form† (Mazzarella, 2003) Goods possess meaning of two kinds: 1. given and propagated by manufacturers and 2.that have been created by the users themselves because of the way they use them, symbolic meaning etc. Material culture is not simply about objects but about the â€Å"intimate connection between the object and its users†. The value of any material is co-constructed by the manufacturer/seller, the user and the society/social norms/perceptions/evaluations. While necessity is culturally associated with lower incomes and to an extent poverty, luxury stands at the other extreme being associated with wealth as well as taste. Comfort comes somewhere in between. Again, what we define as necessities or luxury comes from our cultural framework. In India, the cultural framework is defined largely by the middle class for whom, say, not just food, shelter and clothing but hygiene too may be necessity. (Nayar, 2009) The Indian culture has deeply embedded in it values of saving and economic prudence. This is why trade promotion deals like 25% extra on packs, free gifts etc. work so well in the market. This economic prudence is not just monetary, it also has a strong influence of moral economy i.e. economy that is good for the family as a whole. A married woman feels she has been a good mother and wife if she has saved money on her daily grocery shopping. The other fundamental values are those of safety and privacy of the family and to be aesthically and culturally presentable. (Nayar, 2009) With the rise of globalization and proliferation of MNCs into the country post 1991, ironically, a new movement began that of the New Swadeshi. In the increasingly ‘global scenario, Indians were searching for what is their own. The term swadeshi re-entered the vocabulary of India during 1996-97. Over the last decade, the swadeshi and the global have merged, adapted and evolved from the transnational media of the 1990s which were supposed to have an â€Å"Indian soul and international feel†. The formula here was to show stereotypical exotic imagery of the Indian â€Å"tradition† and place it in an international context. < Constructing Luxury for Consumers Constructing Luxury for Consumers WHAT IS LUXURY? The word ‘luxury derives from the Latin word ‘luxus , which according to the Latin Oxford dictionary signifies ‘soft or extravagant living, indulgence and ‘sumptuousness, luxuriousness, opulence (Christodoulides, Michaelidou, Li, 2008). THE TRADITIONAL, ECONOMIC VIEW There are two aspects to consider when defining luxury, the psychological value and the value of the product/service itself. The psychological value of luxury comes from its function as a status symbol and from a highly involved consumption experience that is strongly congruent to a persons self-concept. From a product perspective, luxury brands are frequently defined in terms of their excellent quality, high transaction value, distinctiveness, exclusivity and craftsmanship (Fionda Moore, 2008). In his paper on International Retail Marketing, T.B. Jackson proposes the following as the core characteristics of a luxury product: ‘†¦ exclusivity, premium prices, image and status which combine to make them more desirable for reasons other than function (Jackson, 2004). Dimitri Mortelmans, in his paper ‘The concept of luxury, says there are three main characteristics in [a narrow] definition of luxury: extra value, high quality and exclusivity. The fourth, derived, characteristic is high price. * Extra value Extra value here is loosely defined to include design, aesthetic value any innovation or attribute that makes the product unique. * High quality Superior quality is an essential component of luxury products. Luxury products have been typically been associated with fine craftsmanship, precision and skill. * Exclusivity Exclusivity in luxury products comes from two factors: (a) the goods are made in limited quantity and distribution is strictly controlled. Haute couture began when royal tailors custom made garments that were made only for one user. Till date, products belonging to the highest category of luxury are made in scant quantities. It is also crucial to decide where all these products will be available in order to make them rare. (b) Luxury goods are typically priced so high that they automatically exclude a majority of the population from their target group. In the world of luxury, rarity value sells, because it is the rarity that the customer wants to own. Owning such a product makes the consumer feel privileged to be part of a select group of people. High price When a product or service is superior in quality has extra value and also has to be exclusive, then the price automatically becomes high. (Mortelmans, 2005) Traditionally, there were four principal categories of luxury goods: fashion (couture, ready-to-wear, and accessories), perfumes and cosmetics, wines and spirits and watches and jewellery. Today, luxury has expanded to include many more categories such as luxury automobiles, hospitality (hotels, tourism, airlines) private banking and home furnishings among others. Among these, the luxury fashion goods category accounts for the largest proportion of luxury goods sales (with a 42 per cent share in 2003) and also showed the strongest product category growth in 2007 (Fionda Moore, 2008). NEED FOR LUXURY MOTIVES FOR CONSUMPTION In their paper ‘The specificity of luxury management: Turning marketing upside down Kapferer and Bastien express that for the outward oriented motivations, â€Å"Luxury converts the raw material that is money into a culturally sophisticated product that is social stratification†. Where the inward directed motivations are concerned, â€Å"luxury should have a very strong personal and hedonistic component; otherwise it is no longer luxury but simple snobbery†. (Kapferer Bastien, 2008) According to Wiedmann, Hennigs and Siebels, â€Å"luxury is a subjective and multidimensional construct†. When studying consumer motivations for consumption of luxury, both outward (conspicuousness, snobbery, status) and inward (hedonism, perfectionist) directed motivations need to be taken into account. Additionally, these must be placed the situational and cultural context of consumption. (Wiedmann, Hennigs, Siebels, 2007) Wiedmann, Hennigs and Siebels have proposed four dimensions that add value to luxury purchases in the consumers mind: Financial Dimension of Luxury Value Perception The financial dimension captures the monetary value that consumers are willing to put on the purchase. This will take into account aspects like price, return on investment, resale value and discount. Functional Dimension of Luxury Value Perception This is the core benefit or utility derived from the luxury product or service purchased. This will take into account the attributes of the product such as its quality, durability, reliability, usability etc. Individual Dimension of Luxury Value Perception The individual dimension addresses the inward oriented motivations or the personal value derived from luxury. This includes benefits like self identity, materialism and hedonism. Social Dimension of Luxury Value Perception This dimension has been the most researched and appears to be the largest contributor to the value derived from luxury. The social dimensions of luxury value include recognition or being identified as a part of a particular social group, conspicuousness and prestige value within a social group and a sense of power in a social context. (Wiedmann, Hennigs, Siebels, 2007) In â€Å"A Review and a Conceptual Framework of Prestige-Seeking Consumer Behavior†, Vigneron and Johnson have suggested that the primary driver for the purchase of luxury is prestige-seeking behaviour. The prestige benefits derived out of luxury purchases are of two types: inter-personal (outward oriented) and personal (inward oriented). (Vigneron Johnson, 1999) Interpersonal effects:  · The Veblen effect perceived conscious value Veblenian consumers attach greater importance to price as an indicator of prestige. This comes from the fact that these consumers often use price as evidence to judge quality. They also tend to perceive higher quality products as granting higher prestige.  · The Snob effect perceived unique value ‘Snobs have a need to be unique and seek prestige through differentiation. The snob effect manifests itself in two forms: (a) when a new product/collection is launched, these consumers will want to be the first to buy (innovators) (b) they will choose not to use a product once the general masses have adopted it. Snobs see higher price as an indicator of uniqueness and exclusivity.  · The Bandwagon effect perceived social value This is the reverse of the snob effect. These consumers, the followers, seek prestige through group affiliation. In the words of Vigneron and Johnson, â€Å"bandwagon consumers attach less importance to price as an indicator of prestige, but will put a greater emphasis on the effect they make on others while consuming prestige brands† Personal effects:  · The hedonic effect perceived emotional value Luxury purchases have emotional value attached to them beyond their functional utility. These emotions could be aesthetic appeal, sensory pleasure, excitement etc. The consumer here is more concerned about her own feelings than those of others around her. The luxury product could be fantasy or self rewarding behaviour.  · The perfectionist effect perceived quality value These consumers seek superior quality as an indicator of prestige. They rely on their own judgements about the quality of products and services. They may see higher price as an evidence of better quality. (Vigneron Johnson, 1999) (Husic Cicic, 2009) THE ESSENCE OF LUXURY In her book ‘Let them eat Cake: Marketing to the masses as well as the classes, Pamela N. Danzinger (Danziger, 2005) explains that consumers link luxury to fantasy fulfilment. They fantasize about how their life will change once they own a luxury product; â€Å"Luxury takes on a transcendent quality linked to the persons hopes, wishes and dreams†, she says. Once we have achieved this fantasy, bought that luxury product, after some time it becomes ordinary and then we wish for something else, something even more luxurious and unattainable which then becomes the new object of fantasy. As Danzinger puts it, â€Å"that which is unattainable is overwhelmingly attractive and desirable†; once we have attained something, it loses its mystique and charm and becomes ordinary. Thus, to consumers, luxury is ultimately the unattainable. OLD vs. NEW LUXURY (MASSTIGE) There was a time when â€Å"luxury† as a category was restricted in the hands of the affluent and was meant only for the crà ¨me de la crà ¨me of society. Today, however, the scenario has changed more and more people can now afford a small piece of the pie with the democratisation of luxury. According to a study done by IBM Business Consulting Services (2004), todays consumers are demanding lower prices on basic goods but at the same time, they are willing to pay premiums for products that matter more to them. (Florin, Callen, Mullen, Kropp, 2007) Traditional luxury, now commonly known as ‘old luxury, was all about conspicuous consumption and its appeal was derived from the status and prestige that came with the ownership of these products. The attributes and quality of the offering itself were of supreme importance as it was a cultural symbol of high taste. In the years after the Second World War, material wealth was highly sought after. The generation that witnessed World War II and subsequently the great depression had seen immense scarcity; this generation basked in the joy of material things and sought luxury as a symbol of wealth. (Danziger, 2005) While old luxury was about the thing itself, new luxury is about the experience. The economy, worldwide, improved continuously in the 80s and 90s leading to increasing disposable incomes, lower unemployment rates and a growing wealthy class in emerging countries. Simultaneously, the democratisation of luxury meant that luxury has now become more accessible to a larger population. Goods that fall under the ‘new luxury category are less expensive than traditional luxury goods yet, they have some confines in terms of their price as exclusivity. They are affordable, yet they enjoy a reasonable level of perceived prestige as compared to middle-range products. The prices of ‘new luxury items are kept only slightly above those of middle ranges. This helps in targeting a much larger segment than the traditional luxury niches. The consumers for this new luxury come from middle and upper middle classes for whom luxury purchase is a form of self reward and indulgence. Their focus is a desire for living the good life and private pleasure. As Twitchell says in his book ‘Living It Up: Our Love Affair With Luxury â€Å"These new customers for luxury are younger than clients of the old luxe used to be, they are far more numerous, they make their money far sooner, and they are far more flexible in financing and fickle in choice. They do not stay put. They now have money to burn. The competition for their attention is intense, and their consumption patterns if you havent noticed are changing life for the rest of us.† (Truong, McColl, Kitchen, 2009) The term masstige was introduced by Michael Silverstein and Neil Fiske to refer to a new category which aims at providing luxury to the masses. The term is derived from the words mass + prestige goods and services that occupy the space between mass and class (Silverstein Fiske, 2003). These products are priced at a premium over the convention but are not always positioned at the top of their category in price. A recent survey by the Boston Consulting Group (2004) said that the top four categories for ‘trading up are homes, cars, appliances and dining out (Florin, Callen, Mullen, Kropp, 2007). Examples of new luxury goods are the urban BMW 1-series starting at $ 19 000, Ralph Lauren Polo shirts sold in outlets for $ 9 and Swarovski crystals with prices as low as $ 20. (Truong, McColl, Kitchen, 2009) MASSTIGE TO MASS? Critics argue that brands which enjoy the tag of ‘masstige today, could become the ‘mass brand tomorrow. By definition, it is contradictory to sell prestige and exclusivity in mass (because when something is owned in mass, it would no longer be prestigious). These products may be successful at first, but their enchantment for the consumer would be inversely proportional to their success. The critical success factor, then, for masstige brands would lie in maintaining the equilibrium between prestige differentiation and a reasonable price premium. â€Å"In order for a masstige product to be successful in the long term, it must have a noticeable differentiation in design and/or technology compared to the regular products in the category. This differentiation must be real and marked. Promises of â€Å"improvements† are not enough if they dont really exist or are imperceptible to the consumer† (Smith, 2007). LONG LIVE LUXURY! With the advent of masstige, top end luxury houses like Armani and LVMH are entering into the affordable luxury arena. Critics argue that as luxury becomes more and more affordable, the concept itself will die out. Here is where understanding the sign-value of luxury is important the concept is not absolute but relative. Over the centuries, what constitutes luxury has changed, but the concept has endured. Brands that are at the top may not remain there, even objects that are considered to be part of luxury may change, but because of human social needs, the concept of luxury will persist. (Mortelmans, 2005) LUXURY vs. MASSTIGE Motivations for consumption When defining masstige, price is not the only criteria to differentiate between the realm of luxury and that of accessible luxury. An extremely important difference lies in the motivations for consumption. While the reasons for consumption of luxury can be both internally as well as externally driven, consumption of masstige is in most cases externally driven. Conspicuous consumption, which formed the basis of luxury when the concept originated, now forms the basis for the masstige category. Hence, a Valentino gown does not have a logo printed on it but a Tommy Hilfiger product will always have a label, logo and some visible identification mark on it so that others can see it. Global versus local Luxury is global, it remains the same across the world luxury brands target the elite who expect the same experience from their brands whether they are in the United States, Europe or in Asia. Although various brands have specific associations with the heritage of their countries of origin, a luxury brand is not modified to suit a particular geography. It is meant for people who are global, and hence the brand perception and delivery has to be ‘global in approach and consistent in delivery everywhere. Masstige on the other hand needs to be localised to an extent because the consumption of masstige is directed outwards. It has to adapt to the cultural ethos of the geography in order to remain relevant and in the process also gets absorbed into the culture of any society. LUXURY IN THE INDIAN CONTEXT TRACING THE ROOTS Luxury in India has its roots going back to the era of the Maharajas who, for centuries, splashed their enormous wealth and lived opulently. The Mughal dynastys wealth and power was a legend but as it waned, the old Indian maharajas began to re-emerge, and new ones began to rise. With the arrival of the British Raj, western influences began to show in the collections at the royal courts. Then began the romance with brands like LVMH, Cartier, Gerrard and Asprey. â€Å"Indian courts commissioned all sorts of fine art like jewellery, woodwork, painting, enamelling, inlaid weaponry and intricate floor coverings† (Gopinath, 2009). Jewellers like Cartier and Van Cleef Arpels, Louis Vuittons bags and luggage and watches by Jaeger-Le Coultre, which were the icons of luxury in Europe, were frequently commissioned by kings. At the same time, western styles of dressing were being adopted. (Forster) The Maharajas, who were patrons of music, arts, poetry and craftsmen, began to patronise European and Indian artists and designers as well. The Victoria and Albert Museum, London, has opened an exhibition ‘Maharaja: The Splendour of Indias Royal Courts in November, which will be on display till January 2010. The exhibition explores the lives of the Indian royals beginning from the 18th century till the end of the British rule. The exhibition showcases 250 items a number of which have been loaned from the private collections of the erstwhile royal families of India. Some of the objects on display are the Maharaja of Indores Modernist furniture, a Louis Vuitton travelling case, French designed sarees, a Rolls Royce Phantom and the studding diamond necklace of Maharaja Yadarendra Singh of Patiala. The necklace which was completed in 1928, originally contained 2930 diamonds, weighed almost 1000 carats and was part of the largest single commission that Paris jeweller Cartier has ever executed. Though Western brands are now flocking to India after its new found affluents, India has clearly been consuming western luxury since way before. LUXURIFICATION OF THE INDIAN SOCIETY The Indian luxury landscape is rapidly transforming owing to a combination of economic and social factors: Rising Affluence Merrill Lynch and Capgemini report that the number of high-net-worth individuals in India (at least US$1 million in financial assets) increased by 20.5% in 2006. According to the McKinsey Global Institute, consumers earning more than 1,000,000 rupees a year will total 24 million by 2025 larger than Chinas comparable segment. Their share of private consumption is projected to increase from 7% to 20% in 2025. However, it is the emergence and steady rise of ‘mass affluence of the Indian middle class coupled with aspirational mindsets and lifestyles that is driving consumer demand. The scope for luxury today is larger than it has ever been in India before owing to the strength of the population that can now afford luxury goods. According to sereval reports by McKinsey Global Institue, the Indian middle class (household disposable incomes from Rs. 200,000 to 1 million a year) will increase from approximately 5% to 41% of the population and will become the worlds fifth largest consumer market by 2025. (Foreign Policy) Exposure to Media Media explosion in the form of television, radio, internet and print has led to increased product knowledge and awareness of brands. Fashion and lifestyle media have established a strong following as mainstream media are taking greater interest in consumer lifestyles, fashion trends and luxury brands. A milestone here was the launch of the Indian edition of Vogue magazine in 2007. Along with the platforms available for advertising, the spending on advertising is also rising. According to ZenithOptimedia, advertising expenditures in India increased from US$1.1 billion in 1996 to US$4.7 billion in 2006 and forecasts suggest that this number will exceed $7 billion in 2009. Accessibility of luxury brands A couple of decades ago, in order to purchase luxury brands such as Gucci, Cartier and Chanel, Indian consumers had to travel to Europe or the U.S. Today, the biggest names of the world like LVMH, Armani and Tommy Hilfiger are present in not only Delhi and Mumbai, but are also setting shop in the upcoming metros like Pune and Hyderabad. Inadequate retail space has also been a challenge to luxury brands operating in India which have been, until recently, hidden in lobbies of five star hotels. The retail boom is changing this scenario. Organised retailing, which currently comprises 6% of the market, is expected to rise to 15% in the next two years. Retail space has increased from 22 mn sq ft in 2002 to 101 mn sq ft (almost 5 times) in 2007 and is predicted to increase by a further 200% to 300 mn sq ft by 2012. (Jindal, 2008) With the retail revolution, newer formats like luxury shopping malls are evolving. An example of these new avenues for luxury brands is the Delhi luxury-goods mall, Emporio which opened in March 2008 which houses over 70 international high-end brands. In 2006, again, AT Kearney has ranked India at the top of its Retail Development Index as the worlds most attractive market for mass international retail expansion. Brands like Marks Spencer, McDonalds and Tommy Hilfiger have entered the market with franchisees due to market regulations which are in the process of loosening up further. (Euromonitor International, 2007) Market Regulation The further liberalisation of the Indian economy has made the market attractive to international players despite heavy import duties on luxury goods and foreign investors are looking to make long-term investments in the country. (Atwal Khan, 2008) THE CHANGING FACE OF THE INDIAN LUXURY CONSUMER In an interview the Pitch magazine, Radha Chadha, author of the book ‘The Cult of the Luxury Brand said that India currently is at an early stage of the luxury brand culture. â€Å"Typically, it starts when a country goes through a rapid economic growth and that has been happening in our country for the past few years. It puts money into peoples hands, at some point they want to demonstrate that. The third stage is what I call the show-off stage, where China is today and some of India is moving towards. Then comes the fit-in stage where we see a large scale adoption of luxe fuelled by the need to conform. The last stage is way of life where people are habituated to luxe products; they become confident and discerning buyers, like in emerged markets†. (Chadha, 2008) The luxury market in India has traditionally been segmented according to two distinct customer groups the affluents and the non-affluents. With the pace of economic development, rise of the middle class and the transition towards a consumer society, the profile of the luxury consumer has also evolved. Clustering luxury consumers into segments based simply on socio-economic classifications is erroneous. Todays luxury consumer is much more diverse and hence the old segmentation and classifications need to be reassessed. The regular classifications of customers based on income or SEC are not sufficient today to gauge clearly who are the consumers who are actually consuming luxury (Pant, 2009). India has always had a small elite segment that has been shopping abroad and buying western brands for ages. This elite class consists of the descendants of the royal families, nawabs and small rulers and long standing industrial families like the Birlas, Tatas, Godrej, Bajaj, Mahindras, some tracing their roots back to pre independence days. (Chadha Husband, 2007). This was the select, privileged segment that was exposed to and could consume luxury. In todays scenario, a typical BPO operator in Mumbai or Delhi is spending a substantial proportion of their monthly salary on international brands of clothes, accessories and cosmetics. â€Å"These are consumers are not affluent in the traditional sense of originating from wealthy family backgrounds, but are ambitious and successful in their chosen professions. Personal performance based on merit has got them to where they are today. Todays luxury shopper could be a broker, an entrepreneur, IT specialist or a student† (Atwal Khan, 2008). They purchase luxury not simply to show off, but as a self-reward. As Atwal and Khan say in their paper ‘Luxury marketing in India: because Im worth it, this generation consumes brands, goes shopping and purchases luxury as they firmly believe in the sentiment â€Å"because Im worth it†. The Indian Affluents In her article in the Brand Reporters special issue on luxury marketing, Vatsala Pant says that it is to try and understand these diverse consumers that one such measure, the Nielsen UMAR (Upper and Middle Rich) survey has redefined affluence using lifestyle and ownership of consumer durables factors (Pant, 2009). On the basis of these factors, Nielsen has estimated that there are 2.6 million affluent households across 35 cities (metros and upcoming metros) of India. Affluent Households in India (Source: Nielsen UMAR survey) — LANGUAGE Luxury is no longer reserved for the English-speaking elite. The survey reveals that 51% of these affluents have been educated in languages other than English and dont speak English as a primary language at home. The primary language spoken, then, becomes the preferred language for media consumption. — FAMILY STRUCTURE Ninety percent of these households live in nuclear families or nuclear families with elders living with them. The average size of the family is 4 members with the chief wage earner typically over 35 years of age. — DURABLES While all the households have the basic durables like TV, refrigerator, washing machines and mobile phones, the Rich segment is seen to have more expensive double-door refrigerators, front loading washing machines and microwaves as well. 20% of the affluent households have two or more TV sets. — MEDIA CONSUMPTION While the most popular medium is TV (watched in 98% of the HH), the next most popular is print where 70% HH read English dailies. However, only 10% read English business dailies. Popularity of watching cinema outside the home is more (67%) than radio listenership (54% of HH). 55% of the HH browse the internet while only 38% read magazines. (Pant, 2009) Changing Trends of the Affluent Indian Consumer Indian consumers are value conscious and highly value driven. Not just products, but the delivery and experience are becoming increasingly important. With the advent of international luxury brands with a bang into the country, consumers want world-class brands, and expect world-class quality, service and experience. They expect the latest designs and most modern technologies available. As the purchasing power has gone up, so have aspirations. The concept of wealth to be enjoyed rather than just display and badge value has emerged. Indulgence and self-rewarding behaviour are on the rise rather than simply the need to show-off. (Raman, 2007) NEW LUXURY FOR INDIA In their paper ‘Luxury marketing in India: because Im worth it Glyn Atwal and Shaziya Khan say that â€Å"the establishment of different levels of luxury ranging from ultra luxury to affordable luxury is a reflection of luxurys increasing mass appeal in India†. The concept of masstige or new luxury is extremely relevant in the Indian context for two reasons firstly, the market for masstige is huge is India owing to rising disposable incomes and a burgeoning middle class. Secondly, Indians are extremely value conscious and new luxury would, for many, be the first opportunity to experience luxury. This, then, could be the first step for a large population to move on to luxury. Rising incomes and the recent retail boom in the country coupled with increasing awareness has sparked off consumption of new luxury brands in India. At the same time, the arrival of international brands and players on the scene has provided accessibility to global resources and efficient supply chains. â€Å"The Indian society is moving towards NUF (Nuclear Urban Family) where each individual has their own tastes and preferences† (Marketing Funda: Masstige, 2007). The consumer is becoming more demanding in terms of value, quality and service. A Euromonitor report on India states that for the burgeoning middle class, the spending area is shopping for brand names. Consumerism is a significant aspect of the new, younger middle class which gives a lot of importance to lifestyle and branded goods. (Euromonitor International, 2007) A look into the Indian consumers luxury needs In their qualitative research of the Indian consumers, Glyn Atwal and Shaziya Khan discovered that the Indian consumer associates luxury with perceptions of not just quality and performance but with comfort, beauty, pleasure and style. The product is no longer the sole criteria for choice, the service and experience of shopping are crucial to the decision making process. When societies experience fast economic growth, the phenomenon of luxury usually gains popularity because the acquisition of luxury is a symbol of prestige and signifies how fast you have climbed up the ladder of social mobility. A similar phenomenon is being seen in India but the motivations to acquire luxury brands go beyond displaying social status. Consumers are moving on from an outward expression of luxury to an inward directed emotional experience. Luxury brands are helping people â€Å"define identities and express values†. (Atwal Khan, 2008) CHAPTER 2: INDIAN ADVERTISING- AESTHETICS CONTENT ADVERTISING INDIAN CULTURE William Mazzarellas ethnographic study of ‘globalizing consumerism in the context of Indian advertising talks about how advertising is produced in metropolitan India and transformations in the Indian public culture along with the rise of mass consumerism. As Mazzarella puts it: â€Å"As an aesthetic interface of post colonial capitalism, the everyday practice of advertising constantly calls into question the conceptual alignments that ground business discourse: local and global, culture and capital, particular and universal, content and form† (Mazzarella, 2003) Goods possess meaning of two kinds: 1. given and propagated by manufacturers and 2.that have been created by the users themselves because of the way they use them, symbolic meaning etc. Material culture is not simply about objects but about the â€Å"intimate connection between the object and its users†. The value of any material is co-constructed by the manufacturer/seller, the user and the society/social norms/perceptions/evaluations. While necessity is culturally associated with lower incomes and to an extent poverty, luxury stands at the other extreme being associated with wealth as well as taste. Comfort comes somewhere in between. Again, what we define as necessities or luxury comes from our cultural framework. In India, the cultural framework is defined largely by the middle class for whom, say, not just food, shelter and clothing but hygiene too may be necessity. (Nayar, 2009) The Indian culture has deeply embedded in it values of saving and economic prudence. This is why trade promotion deals like 25% extra on packs, free gifts etc. work so well in the market. This economic prudence is not just monetary, it also has a strong influence of moral economy i.e. economy that is good for the family as a whole. A married woman feels she has been a good mother and wife if she has saved money on her daily grocery shopping. The other fundamental values are those of safety and privacy of the family and to be aesthically and culturally presentable. (Nayar, 2009) With the rise of globalization and proliferation of MNCs into the country post 1991, ironically, a new movement began that of the New Swadeshi. In the increasingly ‘global scenario, Indians were searching for what is their own. The term swadeshi re-entered the vocabulary of India during 1996-97. Over the last decade, the swadeshi and the global have merged, adapted and evolved from the transnational media of the 1990s which were supposed to have an â€Å"Indian soul and international feel†. The formula here was to show stereotypical exotic imagery of the Indian â€Å"tradition† and place it in an international context. <