pratibimb june 2013

PRATIBIMB The Reflection of Management

FINANCE | GENERAL MANAGEMENT | HUMAN RESOURCE | MARKETING | HEALTHCARE | OPERATIONS | SYSTEMS

BC Model –A Revolution in Banking Services

By Souvik Dhar, Priyanka Hazarika, NIT Silchar

Gamification, Social Media and IPL

By Ankit Agarwal, Symbiosis Pune

Licensing of New Banks and Financial Inclusion

By Elma Davies, SIMSR

Cause Marketing and Brand Activations

By Richard Manickam, SIES

Decentralized and Distributed Generation: Policy Recommendations for Implementation

By Rahul Sharma, National Power Training institute

Panacea for the Rural Mass

By Shruti Jaiswal, XIMB

The Sparks and Spikes of Neuromarketing

By Divyanshu Kumar Singh,IIM Lucknow

Volume II, Issue XX June 2013 A Monthly e-Magazine

A Students’ Initiative

Pratibimb | June 2013 | 2

T. A. Pai Management Institute (TAPMI) is a premier management institute situated in Manipal

and is well known for its academic rigor & faculty-student interaction. The Institute has been

recently ranked amongst top 1 per cent of B-schools in India & 4th in the South Zone by The

Week Magazine.

Founded by the visionary, Late Shri. T. A. Pai, TAPMI’s mission is to provide much needed

impetus to the task of building professional management capability in the country. In the

process, it has also played a role in strengthening the existing educational and health

infrastructure of Manipal.

“To excel in post-graduate management education, research and practice”.

Means:

1. By nurturing and developing global wealth creators and leaders.

2. By continually benchmarking ourselves against best in class institutions.

3. By fostering continuous learning and reflection, achievement orientation, creative

interdependence and respect for diversity.

Value Bounds:

1. Holistic concern for ethics, environment and society.

T. A. Pai Management Institute

Manipal, Karnataka

About TAPMI

Our Mission


TAPMI’s e-Magazine - is the conglomeration of the various

specializations in MBA (Marketing, Finance, HR, Systems and

Operations). It is primarily intended to provide insights into the

plethora of knowledge that relate to the various departments of

Management and to give an opportunity to the students of TAPMI

and the best brains across country to exhibit their creative cells. The

magazine also strives to bring expert inputs from industries, thereby

bringing the academia and industry together.

Pratibimb the e-Magazine of TAPMI had its first issue in December

2010. The issue comprised of an interview of well known writer Ms.

Rashmi Bansal along with a series of articles by students and industry

experts like MadhuSudan Rao (AVP-Delivery, Mahindra Satyam) & Ed Cohen who is a global leader

and chief learning officer who led Booz Allen Hamilton & Satyam Computer Services to the first

rank globally for learning & development . It also included a hugely successful and engrossing game

for finance geeks called “Beat the Market” to bring out the application based knowledge of

students by providing them the platform where they were expected to predict the stock prices of

two selected stocks on a future date. The magazine is primarily intended for the development of all

around management knowledge by providing unbiased critical insights into the modern

developments.

TAPMI believes that learning is a continuous process and is not limited to the four walls of the

classroom. This viewpoint is further enhanced through Pratibimb wherein students manage and

contribute to create a refreshing learning environment outside the classrooms which eventually

leads to a holistic development process. The magazine provides a competitive platform and

opportunity to the students where they can compete with the best brains in the B-Schools of the

country. The magazine also provides a platform for prominent industry stalwarts to communicate

their views and learning about and from the recent developments from their respective fields of

business which in turn helps to create a collaborative learning base for its readers.

Pratibimb is committed in continuing this initiative by bringing in continuous improvement in the

magazine by including quality articles related to various management issues and eventually creating

a more engaging relationship with its readers by providing them a platform to showcase their

talent.

We invite all the best brains across country to be part of this initiative and help us take this to the

next level.

PRATIBIMB TAPMI’S MONTHLY e-MAGAZINE VOLUME 2, ISSUE XX JUNE, 2013


TAPMI has taken a major stride towards research and research oriented learning. ‘Pratibimb’ is one such initiative by TAPMI that provides a platform for the students and faculty members to publish and showcase their research activities to the outside world. It brings me great pleasure to see this venture taking purposeful shape in the participation of both students and the faculty members.

The magazine reflects the contemporary thoughts and actions in the management. The quality of the articles

and papers proves that we have taken the step in the right direction and from now on there is no looking back.

I wish the team and the magazine the very best.

R C Natarajan

Director

TAPMI

Director’s

Message


Editor’s corner

Arun Stephen

Abhineet Rastogi

Bhavnita Nareshkumar

Devi Kailas

Kannan Venkat

Shubha Prabhu

Aditya Bhat

Lloyd George

Prof. Chowdari Prasad Dean (PR) & Chairman-Admissions

Prof. Aparna Bhat

Editor in Chief

Marketing & Advertising

Creative & Cover Design

Communications

Operations

Publishing

Faculty Advisors

Dear Readers,

We thank all the participants and readers for their contributions and feedbacks. In this issue of Pratibimb Souvik Dhar and Priyanka Hazarika of NIT Silchar discuss about the BC Model and its impacts in banking services sector. In "Gamification, Social Media and IPL", Ankit Agrawal of Symbiosis, talks about various marketing techniques used by various corporates in the last edition of IPL. "Licensing of new banks and financial inclusion" by Elma Davies of SIMSR talks about how will increase in number of banks in India help the financial inclusion.

Richard Manickam, SIES explains the way by which corporates fulfill their social responsibility through advertisements in article “Cause Marketing and Brand activations”. In the period of increasing energy crisis how can India implement a system of decentralized and distributed power generation? Rahul Sharma of NPTI talks about this in his article. The hot topic of today’s marketing Neuromarketing is explained beautifully by Divyanshu Kumar of IIM Lucknow in his article “The sparks and Spikes of Neuromarketing”. I am sure that this issue of Pratibimb will be a treat to all our readers.

As always, stay safe, celebrate life and keep reading Pratibimb.

Stay updated, like our page to hear more from us at

http://www.facebook.com/pratibimb.reflecting.management

We would like to thank all faculty members who have provided their valuable feedback to help maintain the standards we have strived to achieve. Also, send in your valuable suggestions or feedback to [email protected]

Enjoy Reading!

Arun Stephen


Contents BC Model– a Revolution in banking Services 7 by Souvik Dhar, Priyanka Hazarika, NIT Silchar

Gamification, Social Media and IPL 10 by Ankit Agarwal, Symbiosis Pune

Licensing of New Banks and Financial Inclusion 13 by Elma Davies, SIMSR

Cause Marketing and Brand Activations 16 by Richard Manickam, SIES Navi Mumbai

Decentralized and Distributed Generation: Policy Recommendations for Implementation 17 by Rahul Sharma, National Power Training Institute, Faridabad

Panacea for the Rural Mass 21 by Shruti Jaiswal , XIMB

Spark and Spike of Neuromarketing 24 by Divyanshu Kumar Singh, IIM Lucknow


BC Model—A Revolution in Banking Services

Souvik Dhar, Priyanka Hazarika, NIT Silchar

The reach of banking and other financial services were very limited to the mass

population of India as in spite of so many years after independence of our country half of

our population is unbanked. Although many programs like Co-operative Movement,

Setting up of State Bank of India, Nationalisation of banks, RRBs, Self Help Groups were

initiated on behalf of Government of India and other government bodies like RBI,

NABARD etc. to include the financially excluded population but these programs were not

that of huge success in ground level due to many constraints to cover all sections of

population.

Thus with the primary objective of ensuring greater financial inclusion and increasing the

outreach of the banking sector in India the BC model has been implemented. In the year

2006 RBI initiated the Business Correspondent (BC) Model in which Non-Governmental

Organisations/ Self Help Groups (NGOs/ SHGs), Micro Finance Institutions (MFIs) etc.

were used as intermediaries between the banks and the financially excluded population

of India for providing various financial and banking services. These intermediaries are

known as Business Correspondent or Business Facilitator’s. And RBI has defined the

parameters and criteria for all those entities who can become BC.

The different entities who are working as BC’s of various banks are in proper legal

agreement with the banks. And they cannot offer any new product or services until they

have taken the prior permission of banks. And for each transactions or opening of any

new accounts or for any other services they provide to the customers on behalf of the

bank they are working with they receive an amount of commission for that. And the

banks will be fully responsible for all the activities of the BC and their retail outlet i.e.,

Customer Service Point or CSP. Thus BC is primarily the representative of banks who

provides banking services through use of ICT based solutions in his own or nearby

villages. And the banks give remuneration and or transaction based commission to them

against the service they provide.

RBI also took several corrective measures to promote BC model by allowing banks and

their respective BC’s to open No Frill Accounts to promote the drive of financial inclusion.

The reason to promote No Frill Account was because those accounts could be opened


with either zero or for a minimal balance requirement

which was not present earlier. And thus it was easy for the

banks to open new account especially in the rural sectors

among the BPL i.e. Below Poverty Line people. Even the KYC

norms were simplified to enhance the outreach of banking

in rural sectors.

BC offer its clients a mix portfolio of different financial prod-

ucts and services like micro-loans, micro-savings, micro-

insurance and micro-remittances services etc. The different

scope of activities that BC can offer to its customers are

strictly guided by RBI’s notification and they include (i) dis-

bursal of small value credit, (ii) recovery of principal / col-

lection of interest (iii) collection of small value deposits (iv)

sale of micro insurance/ mutual fund products/ pension

products/ other third party products and (v) receipt and

delivery of small value remittances/ other payment instru-

ments. BC model is increasingly being recognised as the

most suitable approach for achieving financial inclusion in

the long run as it allows banks to service customers and

extend their geographic reach at a much lower cost.

To further strengthen the pace of financial inclusion pro-

gram in India in the year 2011 the Government of India in

association with Indian Banking Association started the

SWABHIMAN SCHEME. And under this scheme the banks

were advised to draw up a road map to provide banking

services in every village having a population more than

2000 by March 2012 either through brick and mortar

branches or through Business Correspondents. Thus 73000

villages were identified and allotted to various banks with

the help State Level Bankers’ Committee’s i.e. (SLBCs).

Initially several banks started pilot project to test the viabil-

ity of BC model and gradually the pace and rate of expan-

sions of Business Correspondents and their retail outlets

Customer Service Provider increased to a greater extent

with the usage of Information and Communication Technol-

ogy i.e. ICT based solutions. Thus, the customer provided

with a Multi-application Smart Card mobile phone enabled

banking facilities, biometric ATMs, Internet Kiosks helped a

lot to gather the momentum of the financial inclusion pro-

gram in India. The Financial Inclusion Technology Fund is

used for investing in Information Communication Technolo-

gy (ICT) based solution for promoting financial inclusion.

Thus new technologies are invented especially for inno-

vating new models and approach to mitigate the demand

and supply of banking services in India.

Government’s decision to use BC Model in transferring

monetary benefits of government programmes like NREGA,

Social Security Pensions etc. is also helping the model to

gain momentum. The recent tie up of direct transfer of sub-

sidies with the help of ADHAAR card i.e. a Unique Identifica-

tion Number with the help of BCs network also shows that

how effective and efficient BC Model has been in reality

that even Government is using it for promoting its own pro-

grams.

Thus BC Model has been a perfectly game changing model

for reaching the financially excluded population of India.

And the pace of growth of BC’s and their retail outlet i.e.

CSP is really a positive sign for the growth story of financial

coverage in India. The banks also actively participated for

caring out new different strategies and plans for making the

BC Model more effective in the ground level. And the latest

data released by RBI can highlight the real success story of

BC Model and why it can be used as a pathway to promote

financial inclusion in India.

Figure 2: Various services offered by BC


Figure 3: BC using ICT based solutions

References

Figure 4: Growth Chart of BC Model released by RBI

Mas, Ignacio (2010), New opportunities to tackle the challenge of financial inclusion

Yeshu Bansal &N. Srinivasan, (2009) ,Business Correspondents and Facilitators: The Story So Far

BinduAnanth, Gregory Chen and Stephen Rasmussen ( 2012) , The Pursuit of Complete Financial Inclusion: The KGFS

Model in India

Ignacio Mas, Akhand J Tiwari, Alphina Jos, Denny George, Krishna UM Thacker, NitinGarg, RaunakKapoor, Shivshankar V.,

Swati Mehta, VartikaShukla (2012) , Are Banks and Microfinance Institutions Natural Partners in Financial Inclusion?

Prahalad, C.K. (2004) The Fortune at the Bottom of the Pyramid: Eradicating Poverty

Through Profits. Wharton School of Publishing. New Jersey.


Gamification refers to the transfor-

mation of passive low engagement

activity to a dynamic high user en-

gagement and involvement activity.

Among all the sources of entertain-

ment gaming has the maximum im-

pact on its users across age and

groups because it has the maximum

user engagement and can enable

multiple level of engagement (from basic digress to starter to a professional embellish-

ment for a serious pro.

The objective is to improve the overall quality of the outcome of the consumption and

increase consumer welfare. Gamification involves applying game design thinking to non

-game applications to make them more fun and engaging. It has been called one of the

most important trends in technology by several industry experts. Gamification can po-

tentially be applied to any industry and almost anything to create fun and engaging

experiences, converting users into players. Few simple examples are things like earning

points and setting goals with Nike+ to motivate oneself to exercise more.

Gamification to arouse the Marketer in you

For marketers, “gamification” is about integrating game mechanics into marketing ac-

tivities to make them more fun to drive engagement and participation by cultivating

desired behaviours through incentives and rewards. The power of games, if they are

based on the right incentives, can create breakthrough engagement with any audience.

Marketers are becoming increasingly aware, game play is now evolving into a gamifica-

tion movement–a significant trend that is altering the way businesses interact with cus-

tomers. Adding a few visual game elements to a brand’s site in order to “gamify” a mar-

keting strategy and increase engagement just isn’t enough. To be done right, gamifica-

tion must take a behaviour-focused approach. So Gamification (like all well done mar-

keting) is 75% Psychology, 25% Technology.

The basic thing is that when you offer rewards for user actions, consumers are more

likely to engage with a brand — that is, visit the site more often, register, linger and

invite friends. Games can “activate communities, build trust and loyalty in a company

and its products, communicate progress and level of expertise, and demonstrate status

and rank.”

Gamification, Social Media and IPL

Ankit Agarwal, Symbiosis Pune


How brands like Pepsi & Vodafone are using Gamification

& Social Media to engage audience?

Pepsi has tied up with Twitter to allow viewers to

play cricket on the social media platform.

Google + is doing special hangout sessions that will

generate post match conversations.

You tube has made the experience of watching IPL

more social with the ability to chat live and has inte-

grated Google.

Vodafone, too, is running its new Zoo Zoo’s cam-

paign online.

PEPSI IPL Tweet 20 Campaign

Pepsi has launched a Tweet20 tournament on Twitter – a

twitter API-based Application, which allows people to play

cricket on twitter. Here the Pepsi India handle tweets a par-

ticular type of ball (for example, short pitched bouncer on

the middle stump) and users have to reply with what they

think is the most appropriate shot for the ball. Tweeting the

correct shots fetches runs and the wrong shots cost wickets.

Unlocking special shots gets users bonus runs.

Figure1 : Pepsi tweet20 contest

PEPSI IPL the Great Indian Catch Contest

Figure2 : Pepsi Great Indian catch Contest

To play the game, one has to visit the Pepsi website and

login with their Facebook accounts. The game is played on

the entire map of India. Batsmen hit the ball to different

parts of the country while fielders have to field the ball.

When participating in the contest, the user has to login via

Facebook and give access to the application to action Face-

book check-ins at different cities on the map of India as de-

fined in the application. Then, one has to select 3 friends

and start fielding. One is a catcher, another is thrower, third

one is the runner who stops the boundaries and saves runs

and the last one is a driver who takes distant catches.

You must first check the batsman’s statistics,

on field weather conditions, incoming balls before starting

to field. This will help you to judge the favoured bowling

type by understanding it. The app also shows the ball type

and batsman’s favourite shots. Then choose from the given

fielding formations or reposition on any other city to cus-

tomize it.

If the batsman’s shot lands on your highlighted fielding cir-

cle, you take a catch or get a run out! If the shot lands on

any other fielding circle, you save runs! You can also up-

grade your fielders by sending gifts to your friends. There

are 300+ cities to field at. Balls are spaced out at different

time intervals and but you can play any 20 balls of the day.

Highest scored will be displayed on the leader board and

the winners get a chance to get VIP box tickets for IPL

matches.

Figure3 : Selected Cities

Vodafone Super Fans Campaign

Vodafone Super Fans give ‘money-can’t buy’ experience.

The new zoo zoo army will target first time users of mobile

internet and sensitise them on what all they can do on the

internet. Vodafone is also running the Super Fan campaign

on social media in the which the company will give 76 Voda-

fone Super Fans a money can’t buy experience where they


match ball autographed by the winning captain on live tele-

vision.

Fan Cam/Photo by Vodafone

After the Vodafone Superfan initiative launched in April

2013, the company takes the IPL theme forward with its

new application based on augmented reality “The Vodafone

Fan Cam/Photo” as a part of their on going IPL 6campaign.

Interactivity, personalization and putting a human face on

the digital experience is at the core of the Vodafone Fan

Cam/Photo campaign. The app takes a step forward from

the Superfan initiative.

Figure4: Fan Cam/Photo-1

Hosted on a dedicated app the new in-stadia digital activa-

tion gives a panoramic view of the stadium for selected

matches where the user can search for themselves and tag

them and then share it on their Twitter and Facebook pro-

files.

Figure5: Fan Cam/Photo-2

A fan can place his/her image using the ‘Wish You Were

Here?’ tab and the app will add their face among the crowd.

The ‘Send A Free Postcard’ feature allows the fan can place

his/her image in the frame and share it with friends and

family. The third tab is a ‘Find & Win’ where one has to

search for the Zoozoo among the audience. The Hint is the

music that plays in the background “The louder the music

the closer are you to finding the Zoozoo”. The fans also have

the option to Share, Tag, and Invite Friends and also view

tagged friends on the left hand corner of the screen

Conclusion

These are some of the fantastic ideas coupled with brilliant

execution that has successfully managed to bring the game

of cricket in the digital world. Not only they are highly en-

gaging, but also have taken gamification to a whole new

level altogether.

References

Mariam Noronha (May 20, 2013). Social Media Campaign

Review: Fan Cam/Photo by Vodafone. Retrieved

fromhttp://www.socialsamosa.com/2013/05/the-vodafone

-fan-camphoto/

Nirali Hingwala (May 10,2013). Social Media Campaign

Review: Pepsi IPL The Great Indian Catch Contest. Re-

trieved from http://www.socialsamosa.com/2013/05/

social-media-campaign-review-pepsi-ipl-the-great-indian-

catch-contest/

economictimes.indiatimes.com/slideshows/advertising-

marketing/ipl-striking-gold-on-social-media/

slideshow/19456452.cms

www.iimsbitesys.in/index.php?

option=com_content&view=article&id=52:gamification-a-

its-scope-in-india&cat


RBI has decided to grant licenses to few private sector banks for which they

have invited entries till July 1, 2013. The circular, ‘Guidelines for licensing of new Banks

in the Private sector’ issued the Central Bank on February 22, 2013 states that the plan

is to provide licenses as per the guidelines set up by RBI. Few of the guidelines include

a minimum 10 year experience, a minimum paid-up capital of Rs. 500 crore and a maxi-

mum level of foreign investment (including FDI/FII and NRI) up to 49 percent.

RBI believes that the licensing of new banks will promote financial inclusion

and infuse competition into the banking sector. RBI Governor, D Subbarao at a function

on financial inclusion, organized by the World Bank and Organization of Economic Co-

Operation and Development (OECD) asserted that an important criterion for obtaining

a banking license is the amount of financial inclusion attained or planning to attain by

the players.

The RBIs move to provide an entry to more private players into banking has been ap-

plauded by many. Yet, the Parliamentary Standing Committee on Finance have ques-

tioned the ‘subjective nature’ of the RBI set guidelines and thus opposed the move.

Even if the guidelines setup for providing licenses to banks is transparent, one question

that arises is who will gain from these new banks? Will the entry of new private players

in banking encourage financial inclusion? Or is the licensing of more private sector

banks an effective solution to reach 6, 50,000 villages and provide them financial ser-

vices?

Financial Inclusion

Financial Inclusion is defined as ‘the process of ensuring access to appropriate

financial products and services needed by vulnerable groups such as the weaker sec-

tions and low-income groups, at an affordable cost in a fair and transparent manner by

mainstream institutional players’. Quoting C. K. Prahalad and Allen Hammond, “While

individual incomes may be low, the aggregate buying power of poor communities is

actually quite large”. Thus the market available is sufficiently huge for the banks to tap

in. Yet, many players have not stepped into the rural platform due to a number of rea-

sons.

Roadblocks to financial inclusion

While implementing financial inclusion, a viability gap arises for the banks due

to the high cost of operation coupled with low probability of growth and expansion and

the issue of recovery of assets in the rural areas. The biggest issue faced by banks in

financial inclusion is the issue of dormant accounts. Rural population may have a sav-

ings account, yet financial activity, which are detrimental for the smooth operation of

bank are absent. Such operations have always turned out to reduce the returns of

Licensing of New Banks and Financial

Inclusion

Elma Davies, SIMSR


banks and thus discouraged them from moving towards

large scale financial inclusion. The other nuances for finan-

cial inclusion include the issues of resolving technological

problems, accessing inaccessible regions, security concerns

and lack of infrastructural facilities.

Will more number of banks help?

Initiatives taken by banks in India towards financial

inclusion have not been very successful due to the lack of

financial literacy among the rural population. Quoting Mr. SL

Bansal, the CMD of Oriental Bank of Commerce, ‘Banking

can finance economic activity, provided it exits there. Banks

cannot create an economic activity’. Thus the efforts of

banks towards financial inclusion are futile unless there is

sufficient financial literacy in these villages. Thus even when

the existing banks could not achieve their financial inclusion

benchmarks, entry of new players cannot assure significant

returns unless they innovate themselves with better models.

Moreover, India has 96 scheduled commercial- 27

public sector banks, 31 private banks and 38 foreign banks

which have been able to serve 53,000 branches around the

country. The entry of 7 or 8 more of new banks may bring in

8000 more branches. Yet the reach is not sufficient to cover

the 6, 50,000 villages in the country. Thus arguing that the

licensing of more private sector banks is the ultimate solu-

tion to financial inclusion cannot be accepted.

How to achieve financial inclusion?

Financial inclusion cannot be achieved unless

the people feel the need for financial institutions. Thus eco-

nomic activity and an environment for economic transac-

tions should first be in place. To achieve this, financial edu-

cation is essential. Financial literacy will empower the rural

population to take control of their lives which will bring in a

need for them to save money or avail credit facilities and

thus bring in the need for financial institutions.

RBI has brought in many initiatives like no-frills

savings accounts, simplification of KYC norms, introduction

of Information and Communications Technology (ICT), Elec-

tronic bank transfers and use of rural intermediaries to

make financial services accessible to the rural people. But,

for wider financial inclusion, microfinance must focus on the

clients. Many a times, large banks may not have the exper-

tise to tap into the rural needs. Local players like small

NBFCs, microfinance institutions, Non Governmental Organi-

zations (NGOs/SHGs) or other civil society organizations may

be better equipped for the same.

SHGs and Non-Governmental organizations

Experiences of developing countries like Bangla-

desh show that a combination of formal and informal finan-

cial intermediaries is necessary to provide sustainable ser-

vices to the rural population. Thus there is a need for sup-

plementary credit delivery system to encourage micro-

finance NGOs to act as facilitators and intermediaries.

Providing financial services to poor through SHGs is propa-

gated as a viable method of credit delivery. In such pro-

grammed, the NGOs have become a formal interface be-

tween the banking system and different SHGs. Thus to de-

velop such a credit delivery mechanism, the SHG-Bank Link-

age Program was introduced in 1992.

RBI has permitted Banks in India to outsource

Banking services and formulated Business Correspondent

(BC) model towards faster penetration of banking services to

less penetrated areas. Thus different banks have collaborat-

ed with different NGOs as their Business Correspondent

(BCs) to enter into this field. Samvriddhi, a NGO aimed at

providing low cost delivery network, has partnered with

State Bank of India (SBI), Central Bank of India, Union Bank

of India and Axis Bank and Punjab National Bank (PNB) has

partnered with a NGO, Labournet.

Microfinance Institutions

Microfinance refers to small scale financial ser-

vices extended to the rural, semi-urban and urban popula-

tion. MFIs are the main players in the microfinance space in

India. They have grass-root level reach and understanding of

the economic needs of the poor. The microfinance sector

and MFIs in India is estimated to have outstanding total

loans of Rs. 160 to Rs. 175 billion, and Rs. 110 to Rs. 120

billion, respectively as on March 31, 2009. CRISIL estimates

that as of March 31, 2009, MFI’s outstanding loans to have

increased to Rs. 114 billion from Rs. 60 billion a year ago.

The growth in disbursement by MFIs was more than that of

the SHG-bank linkage program during 2007-08; MFIs’ dis-

bursements have increased aggressively, at a compound

annual growth rate (CAGR) of 90 percent, over the past four

years. CRISIL estimates the overall disbursements during

2008-09 to be around Rs. 287 billion, of which disburse-

ments of Rs. 185 billion was made by MFIs. This is reflective

of the increased acceptance of MFIs as commercially viable

and their ability to attract capital and resources in the past

two years.


Presently, only NBFCs come under the regulatory and super-

visory framework of RBI. The lack of regulatory frameworks

and uniformity in accounting practices for non-NBFC micro-

finance institutions is a reason for their ineffectiveness and

lack of effective financial inclusion. There was a proposal by

GOI to bring in legislation in 2006 to regulate the entire mi-

crofinance sector in India; the regulation however is yet to

materialize. Thus if RBI and Government turn their focus

towards strengthening such microfinance institutions, effec-

tive financial inclusion can be achieved.

SUGGESTIONS

A proper regulatory mechanism should be instituted to

overview the activities of MFIs, SHGs and NGOs.

Different reputed organizations providing financial services

should be treated as a part of financial sector on par with

other financial institutions like Regional Rural Banks, Com-

mercial Banks, Cooperative Banks, etc and given sufficient

aid.

They should enjoy statutory authority and sufficient powers.

Conclusion

RBI has mandated that, to obtain a banking license,

financial institutions will have to open 25 percent of their

branches in rural area. Opening a branch in rural area does

not ensure financial inclusion as majority of the accounts

opened in such villages are dormant. Thus to achieve finan-

cial inclusion, government should direct its efforts towards

providing financial literacy and empowering and regulating

different segments such as NBFCs and MFIs of the country.

References

A speech delivered by K. C. Chakrabarty, Deputy Governor,

RBI , on ‘FINANCIAL INCLUSION: A ROAD INDIA NEEDS TO

TRAVEL’.

RBI circular dated February 22, 2013 named ‘GUIDELINES

FOR LICENSING OF NEW BANKS IN THE PRIVATE SECTOR’

A speech delivered by Harun. R. Khan on , ‘ISSUES AND

CHALLENGES IN FINANCIAL INCLUSION: POLICIES, PART-

NERSHIPS, PROCESSES & PRODUCTS’.

CRISIL report on ‘INDIA TOP 50 MICROFINANCE INSTITU-

TIONS’

A working paper on ‘FINANCIAL INTERMEDIATION OF MI-

CROFINANCE NGOs-AN ALTERNATIVE ROLE IN THE CREDIT

DELIVERY SYSTEM TOWARDS FINANCIAL INCLUSION -A

STUDY IN THE INDIAN CONTEXT’ by World Finance Confer-

ence.


Does your work actually make a difference to anyone? Does your job profile include

bringing a smile back to a face that has been long lost in this #world? Does your cam-

paign possess a Cause that has the power to bring about a Change apart from Brand

Recall and Sales Figures? Do your brand activations actually connect at the ground level

with your Consumer’s emotions?

These are exactly the same questions that arise in the mind of a Cause Marketer. About

contributing and adding towards building positive human relations.

The term ‘Cause Marketing’ was first coined by American Express in 1983 for the Statue

of Liberty Restoration Project. The 3 month campaign raised close to $ 2 million and the

American Express card use rose 27%.

India has seen significant Brand Activations in recent past through Cause related cam-

paigns. Aircel’s ‘Save our Tiger’ where you could donate funds for WWF Campaigns or

Tata Tea’s ‘Jaago Re’ in which it was estimated that 6.5 Lakh Indians used the platform

to register as voters thereby creating a widespread social awakening.

On similar lines is the on-

going campaign of ‘I LEAD

INDIA’ a Times of India

initiative in association

with Maruti Suzuki is an

activist program. It seeks

to mobilize the youth in

the 18-24 age group and

make them agents of change at the grass-root level. The cause here is to make a differ-

ence in the society by being the change in the society and stop pointing fingers.

Cause Marketing and Brand Activations

Richard Manickam, SIES Navi Mumbai

Figure-1 : Lead India campaign

Figure2 : What people think about cause marketing


The consumer psychology about Cause marketing is well

brought out by insights that the Edelman Research Report

has captured. 82% respondents believe that supporting a

good cause makes them feel better about themselves and

nearly 50% said that ‘Social Cause’ ranks higher than ‘Brand

Loyalty’, ‘Design’ and ‘Innovation’ as a Purchase Motivator.

Coca Cola a brand that resonates with happiness is actively

engaged in Cause Marketing. The brand came up with its

campaign-Happiness without Borders. It invited the people

of India and Pakistan- used to living in conflict-to share a

simple moment of connection and joy through its Hi-Tech

Vending Machines. The vending machines aptly called as the

‘Small world Machines’ brought together human emotions

by displaying real time action and initiating joyful interaction

Brand Activations form an important part of this Cause Mar-

keting in bringing the consumers emotions directly in touch

with the Goodwill of the brand.

European passenger car manufacturer Volkswagen in associ-

ation with the Ministry of Tourism launched the ‘Think Blue’

Campaign. The objective of the campaign was to persistently

put a conscious effort towards a cleaner and a more sustain-

able environment not only for ourselves but our future gen-

erations as well. The campaign included launching Think

Blue pages on Facebook giving helpful sustainability tips and

an Iphone game where in players have to cover the most

ground using as little fuel as possible.

Another significant Campaign for which multiple brands

came together for a brilliant cause is the RED campaign-

Fighting Aids in Africa. By the time we wake up tomorrow,

another 5500 men, women and children would have died in

Africa due to Aids. They die because they cannot afford

treatment costs of 60 cents a day. The Cause and the Goal is

to have an Aids free Generation by 2015.

Partners supporting the

Red Campaign are Apple,

SAP, Beats by Dr. Dre and

Starbucks to name a few.

A Simple Brand Activa-

tion program done by

Starbucks where it used

the technology to estab-

lish the relationship be-

tween the Cause, con-

sumers and the brand

has won laurels.

For 10 days, Starbucks

contributed $1 on every

Check-In at Starbucks

stores in the US & Cana-

da - up to $250,000 - and

they hit their goal 2 days

early!! $250,000 raised in

8 days! That is the power

a Cause, a Brand and its

Loyalty can create to

prove that humanity continues to thrive in our hearts. It is

that part of Marketing which has its heart in the Consumers

but the heartbeats remain with the recipients of the Cause.

We as Cause driven Marketers are as simple a connection as

the blood that flows into these hearts.

References

AFAQS. (2009). Jaago Re - the most 'awakening' message:

MCCS. Mumbai: AFAQS.

AFAQS. (2011). View other Company Briefs Volkswagen

launches 'Think Blue' campaign in India. Mumbai: AFAQS.

IEG. (2008). Forecast: Recession Slams Brakes On Sponsor-

ship Spending. USA: IEG Sponsorship Report.

Trivedi, B. D. (2010). Tiger, tiger burning bright. Afaqs.

AFAQS. (2009). Jaago Re - the most 'awakening' message:

MCCS. Mumbai: AFAQS.

IEG. (2008). Forecast: Recession Slams Brakes On Sponsor-

ship Spending. USA: IEG Sponsorship Report.

Figure4: Red campaign

Figure5: Starbucks coffee

Figure2: Think blue campaign


Power is essential for the socio-economic development of a country and is being recog-

nized as a basic infrastructural requirement. Although the installed capacity has in-

creased to 210 GW but India faced an energy deficit of 10.1 %( Source: CEA) in 2011-

12. Adding to that around 60 percent of population is still deprived of reliable and qual-

ity power supply. Power cuts, erratic voltage and low or high supply frequency have

added to the ‘power woes’ of the consumer.

At present more than 65 percent (Source: Ministry of Power) of the generation comes

from Non Renewable sources of ener-

gy like Coal, Natural Gas etc. but

there is a need to explore various

alternate sources of energy which will

ultimately help India to utilize its

available potential resources to the

fullest. With a unique geography and

demography of India, innovative

forms of producing energy needs to

be explored in order to reduce its

dependence on oil, coal, natural gas

etc. and other nonrenewable sources of energy.

In order to achieve the daunting task of achieving “Power for All” ,Ministry of Power

launched Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) as one of its flagship

program in March 2005 with the objective of electrifying over one lakh un-electrified

villages and to provide free electricity connections to 2.34 Crore rural BPL households.

The Bharat Nirman target for RGGVY was to electrify 1 lakh villages and to provide free

electricity connections to 175 lakh BPL households by March 2012 which was achieved

by 31st December, 2011; DDG was introduced in the XIth Plan to address the issue with

the recommendations of Gokak Committee.

Technologies which can be used for Distributed Generation are:

The Internal Combustion Engine.

Biomass

Turbines

Micro-turbines

Wind Turbines

Concentrating Solar Power (CSP)

Photovoltaic

Fuel Cells

Decentralized and Distributed Generation :

Policy Recommendations for

Implementation

Rahul Sharma, National Power Training Institute


Photovoltaic

Fuel Cells

Small-Hydel

Penetration of DDG: As on 30-11-2012, around 6% of the

villages are still to be electrified and these villages will be

electrified with a mix of GE and DDG.

Table 1 : Benefits and barriers of implementing DDG

To successfully implement DDG, overall strategy that can be

thought of is

Model/Proposed Framework for Implementation of DDG:

Rural Electrification Policy: The current REP Clearly discuss-

es the means of achieving 100% rural electrification but it

falls short of recommending a single nodal Agency for all

rural electrification efforts as shown in Fig 1. The Agency

will have to act as an overseer for channelizing of funds

through various agencies like MNRE, REC etc. and encourag-

ing private participation in the sector.

Under Sec 14 of Electricity Act 2003, no license is required

for electricity generation & distribution in notified rural are-

as (26 states have notified). RE Policy states that for villag-

es/habitations, where grid connectivity would not be feasi-

ble or not cost effective, off-grid solutions based on stand-

alone systems may be taken up for supply of electricity so

that every household gets access to electricity.

Management of DDG systems: Local authority/panchayat/

societies need to maintain the system as they are the real

consumers and a sense of belongingness may incorporate in

them.

Selection of Technology: Relevant technology need to be

adopted by the authorities with adequate feasibility analysis

( in terms of raw materials, feedstock level, transportation

facilities, usage pattern of consumers etc.) of particular re-

gion.

Figure 2-Model Framework for Implementation Source: Publica-tion of IDFC on DDG: www.idfc.com

Capital Subsidy from Government: GenerallyRural coopera-

tive societies manage the high expenditure of the DDG but

owning to huge capital expenditure involved in the prelimi-

nary stage, government should provide adequate subsidy to

the developers or the EPC companies whosoever is involved

in the project. The incentives/subsidy should be based on

the various factors like geographic location of area, planned

capacity addition and output performance.

Enabling guidelines for Tariff revision: Under the purview

of CERC, Tariff setting and revision should be taken care by

the concerned nodal agency which has been assigned the

successful implementation of DDG in a particular area and

moreover there should be crystal clear transparency in this

process.

CDM Benefits: All RE projects are eligible for CDM benefits,

DDG projects can be made financially more viable and com-

petitive after encompassing the monetary benefits associat-

ed with them.

Considerations to be taken w.r.t various institutional Mod-

els recommended by Gokak Committee: Models like

Benefits of DDG Barriers to implementa-tion of DDG

Utilization of waste fuel to Energy

Lack of Adequate Infor-mation for market devel-opment.

Investment Deferral in Transmission Sector

Poor Access to Credit

Power Quality and Ancil-lary Service

Lack of awareness of RET(Rural Energy Technolo-gies) in rural India

Remote Areas Electrifica-tion

Limited Site specific issues may erupt

Power Quality Financial Viability-A major factor


Sunderbans Model, TERI Model, Bangladesh Model may be

adopted after suitable changes in order to increase people

participation at large.

Other recommendations:

Extend RGGVY to fund evacuation infrastructure

Develop transparent and simple interconnection

rules and procedures.

Streamlining Project Approval

In the long run, Distributed generation will help consumers

in two basic ways; 1) to get quality and continuous power

supply and 2) competitive and relatively lower power tariffs

as compared to usual sources of generation.

With the advent and successful implementation of DDG,

India can be transformed from a Power deficit nation to

Power Surplus nation in the near future and the availability

of affordable power may not be a distant dream for many

across the nation.

References:

Biomass Energy for Rural India Society, available at http://bioenergyindia.kar.nic.in Central Electricity Authority www.cea.nic.in)

Village Electrification report of CEA

Gokak Committee Report on Distributed Generation

“Electricity Act 2003”, Ministry of Power, Govern-

ment of India, New Delhi, India, Jun. 2003..

California Energy Commission “Distributed generation

and cogeneration policy road map for California”

2010 (www.energy.ca.gov/2007publications/.../CEC-

500-2007-021.PDF)

ChandrashekarIyer,”Decentralized Distributed Gener-

ation for India” – 2011

Decentralized Distributed Generation on REC

http://www.cea.nic.in

http://www.energy.ca.gov/2007publications/.../CEC-500-2007-021.PDF

http://www.energy.ca.gov/2007publications/.../CEC-500-2007-021.PDF


The Government of India has recently taken up various steps so as to benefit the popu-

lation at the bottom of the pyramid. The sudden activism is not just because of the

carrot of winning the forthcoming elections (which obviously is one of the major cata-

lyst) but also because of the stick that has lashed them in terms of failure of achieving

the past targets by substantial amount.

National Bank for Rural and Agricultural Development (NABARDs) initiative of ensuring

that every person in the rural India should have access to banks by seeking help of mi-

cro-finance companies, has served only half of the platter. Funds were sanctioned to

various organizations and the accounts were created by hook or crook by those organi-

zations in the banks but most of the accounts remained dormant with just one or two

transactions in a year. To fix this issue NABARD has launched Self Help Group Promo-

tion Initiative (SHPI) and Self Help Group Bank Linkage Programme (SBLP). The newly

initiated programme has been the major reason why most of the micro finance compa-

ny are now approaching NABARD for funds for creation of SHGs. NABARD pays INR

7,000 per Self Help Group (SHG) under SHPI programme for creation and training of

the SHGz by the organizations. The organizations sign a contract for three years where

they receive the funds from NABARD for the creation and training of the SHGs and the

SHG’s are assessed through an internal grading system defined by NABARD passing

which the SHGs are linked with banks. By the completion of one year NABARD has laid

guidelines to educate the SHGs about feasible Income Generation Activities (IGA) so as

to ensure that the linkage of the SHGs with the banks is sustainable and smooth repay-

ment of loans by the SHGs.

The focus of NABARD is to create women based SHGs as it has been observed that the

women based SHGs are much more successful and sustainable than the men oriented

SHGs and the SHGs owned by women also have a much less rate of non-payment of

debts.

Panacea for the Rural Mass

Shruti Jaiswal, XIMB


NABARD estimates that there

are 2.2 million SHGs in India,

representing 33 million mem-

bers, which have taken loans

from banks under its linkage

program to date. However, the

programme should not be ap-

proached by the various organi-

zations solely for the creation of

the SHGs. NABARDs initiative of

providing financial services to

the rural India, in the past, had

succumbed mid-way with only

creation of bank accounts with

no or very less transactions.

Therefore, NABARD should lay

stringent rules on the creation

of Income Generation Activities

(IGA) by the organizations operating with NABARD under

SBLP and SHPI programme.

Another initiative by NABARD to promote RuPay cards is a

laudable step which will directly link the farmers of the

country to the financial services. Companies like Oxigen,

Suvidha, PayTM and PayMate have been already providing

non-banking portals for financial transaction and the initia-

tive of NABARD for creation of the RuPayKisan Cards will

directly link the farmers to the financial services on not only

a national but international platform of financial services.

RuPay cards are an initiative of National Payments Corpora-

tion of India (NPCI) so as to compete with the international

players like Master Card and Visa Cards. RuPay cards are

made to reduce the transaction cost paid by the banks to

the international companies. The NPCI claims that by the

fiscal year 2017-18 the investment on the development of

RuPay cards will be break even and such time space to

reach break-even is only because RuPay does not charges its

banks as heavy as the other players in the segment does.

RuPay has been promoted as the only Indian company in

the segment and also as a non-profitable venture. The table

on the left depicts the number of banks that have started

issuing RuPayKisan Cards.

NABARD is also funding 11 such banks for speedier imple-

mentation of core banking systems.

1. There are 3,330 lakh Card holders in the country of

which 3,140 lakh use Debit Cards and 188.5 lakh use

Credit Cards

2. Rs 1,074 billion is the amount Payments made

through cards at point of sale

3. Total number of payments via cards to accounts - 6%

STATES Potential Rural

households to be

Rural households

covered* (SHG:

Total Percentage

Coverage

Chattisgarh 25.92 lakh 16.88 lakh 65.12

Jharkhand 27.86 lakh 11.65 lakh 41.81

Bihar 73.51 lakh 39.66 lakh 53.95

Uttar Pradesh 138.19 lakh 61.25 lakh 44.32

Madhya Pra-

desh

62.09 lakh 21.27 lakh 34.25

Rajasthan 37.11 lakh 32.72 lakh 88.77

Odisha 51.11 lakh 70.20 lakh 137.35

West Bengal 61.75 lakh 89.11 lakh 144.30

Maharashtra 104.39 lakh 107.52 lakh 102.99

Uttrakhad 5.92 lakh 6.26 lakh 105.74

RRB’s Issuing Kisan Debit card

Pragathi Gramin Bank of Canara Bank.

Shreyas Gramin Bank

South Malabar Gramin Bank

Rushikulya Gramya Bank of Andhra bank

Chaitanya Godavari Gramin

NPCI to issue the RuPay Kisan Cards

Vijaya Bank

United Bank of India

Union Bank of India

UCO Bank

Syndicate Bank

State Bank of India

Punjab and Sind Bank

Punjab National Bank

Oriental Bank of Commerce

Indian Overseas Bank

Indian Bank

Dena Bank

Central Bank of India,

Canara Bank

Bank of Maharashtra

Bank of India

Bank of Baroda

Andhra Bank

Allahabad Bank


4. Only 12 lakh RuPay-enabled cards have been distributed

The matter of concern however, is the positive impact of

these policies on the rural mass, which accounts to 68.84%

of India’s population. There are various facts clearly depicts

the meager impact of these policies in spite of the huge

investments by the government. As per a few reports 99 per

cent of lift irrigation schemes are not functioning and have

incurred a loss of Rs. 15,000 crore. In 2010, there were 195

tenders and only 50 of them were approved at 5 per cent

lower than the actual cost. It was also found that in the past

four financial years, 14,537 tenders were awarded at a high-

er cost. Some of which violated government conditions as

well. It has to be noted that one third of the country’s popu-

lation lives under the below the poverty.

Therefore, it is a clear indication that these policies are not

the panacea for the impeding problems in our nation. The

poor socio-economic condition of the rural mass is the cata-

lyst behind the even worse health conditions of the rural

mass. More than 50% of all villagers have no access to

healthcare providers. This can be clearly explained by the

pattern of per capita spending by the government, which

accounts to only $39. It accounts to only 4.1 per cent of our

GDP. Another noteworthy aspect is the nationwide; farm-

ers’ suicide rate (FSR) which 16.3 per 1,00,000 farmers in

2011. The records as per NCRB state that since 1995, a total

of 2,70,940 have committed suicide. The average rate of

farmer’s suicide has been 14,462 from 1995 to 2001. From

2001 to 2011 the average annual rate is 1,67,431. This im-

plies that every day 46 farmers die and every half an hour

there is nearly one farmer that commits suicide.

These facts clearly reveal that the policies framed by the

government are only good on paper. India does not need

policies; it needs an effective monitoring and evaluation

system.

References

Source: Status of microfinance 2012 by NABARD

RBI/NCPI

Indiafacts.in and India Development gateway

www.thehindu.com/opinion/columns/sainath/

farmers-suicide-rates-soar-above-the-rest/

article4725101.ece


Introduction

Figure 1: Confusion in buying

How do we decide to buy a certain item? What activity influences us in making a buy-

ing decision? Answer to all these questions lies in the subconscious and non-conscious

drivers of the brain activity which forces us to buy certain things. Among all plethoras

of options running in the mind, there is one neuronal activity which runs superior to

all and hence pressurizes our mind to buy the item related to that activity. Brain maps

such signals and body acts accordingly. So, it’s all neurons and sensory activities re-

ceiving spikes of feedback from outside world and reverting back with the most suited

image created in the mind. All this subconscious, non-conscious, cognitive, affective

response to market stimuli lies under the domain of buzzword Neuromarketing which

refers to understanding of the brain subconscious activity with respect to outside mar-

ket stimuli. Many large scale companies such as HUL, P&G, Pepsi, Frito-Lay are con-

stantly trying to read the consumers mind via neuro marketing techniques during ad-

vertising or launch of a product.

Brain behind Neuromarketing

Neuromarketing has its origin in the late 1990s in the labs of Harvard University where

group of psychologists were trying to understand the major thinking part of brain ac-

tivity including emotions, pains in the subconscious level of brain activity that goes

below the level of controlled awareness. In the process, they define the basic unit of

brain activity as “meme”. Meme refers to unit of historical information store in the

brain. Large number of meme units of similar kinds refers to remembrance of a partic-

ular thing for a long time. The word “Neuromarketing” was coined later by Ale Smidts

in 2002.

Spark and Spike of Neuromarketing

Divyanshu Kumar Singh, IIM Lucknow


Figure 2: Neuro functioning of brain during buying

Neuromarketing- Altering the marketing minds

Brand and product management through consumer behav-

iour is more of an influencing art rather than a marketing

tactics. Neuromarketing finds its importance in revealing

the taste of the consumers as per their gender composition,

emotional connect, brand importance. Nowadays packag-

ing, messaging, advertisements, marketing themes such as

ambush, subliminal, guerrilla are all influenced by the brain

waves action of Neuromarketing. Neuromarketing is primar-

ily used nowadays to better understand consumers’ wants

and needs and point consumers in the right direction to-

wards right fit by tapping the ‘pleasure center’ of the con-

sumers and then using marketing science tactics for any

product launch.

The new intelligent consumer dialogue

In such an advance social media network and constantly

changing buying behaviour, neuromarketing signals a direct

new brain to brain shared emotion. Every firm, organization

and community whosoever is dealing with consumer or

employer is trying to satisfy the needs and wants in order to

retain the consumer and maintain long term relationship for

better sales of their products. Neuronal sensory system

drives consumer thoughts and behaviour towards anything

and thus appeals to consumer wants, needs and desires.

Neuromarketing techniques serve as a medium to gain the

core of brain activity towards lucrative items, presented and

posted in a marketing world.

7 wonders of Neuromarketing

Decision buying and consumer behaviour is highly reflected

by the below mentioned seven tactics of neuromarketing:

Be visual: the study by neuro marketers suggests

that any item should reflect visibility in front of tar-

get audience and appeals to the desire of the con-

sumer. Visibility matters much more than the con-

tent description.

Create contrast: Since the plethora of products are

available in the market for attracting customers, sale

and maintaining customer base, any firm should

have some USP associated with the product launch.

That USP should posses contrast, should stand out

among other products and should truly reveal the

essence of launch.

“Firsts and Lasts” push: A good marketing strategy

on any product is something which could capture the

mind of customer in its first launch and left an ever-

lasting impression. In such a busy and competitive

lifestyle, neuro marketers suggest an ideology of

“first impression is the last impression.”

Emotional connect: To influence brain activity, any

product should have an emotional connect with the

consumer mind to persuade him towards buying

proposition. Brain to brain association of product


with consumers is essentially important for success

of product.

Keep it simple: Any complicated and complex termi-

nology requires lot of thinking and interpretation.

People are too busy to give a minute of thoughts on

product. They immediately carry an image of product

which has simple but lucrative demonstration in the

outlets.

Concreteness: Simplicity and concreteness is the

guru mantra influencing buying decision and creating

positive image in the consumers mind.

Make it personal: Product should be directly associ-

ated with the needs of consumer. No matter how

much personifying a demonstration will be, it would

carry no meaning and importance until and unless it

is related to the needs, wants and desires of consum-

er.

Recent trends in Neuromarketing

Packaging and Marketing Messages

Neuroscience finds its importance in attracting customers

through lucid and lucrative packaging sense and messages

conveyed to customers for a particular product. Creating

marketing messages to tune accordingly to the mind of cus-

tomer perception towards product is achieved through

Neuromarketing techniques of electroencephalography

(EEG) and functional magnetic resonance imaging (fMRI)

which describes the change in neuronal activity of brain

after going through the details of product or the way prod-

uct is launched in the consumer market.

Figure 3: Packaging to influence customers

Societal Relevance

Neuromarketing through various brain mapping functions is

helpful in several kind of consultancy and provide appropri-

ate solutions. Neuromarketing provide an object oriented

research methodology to track the problem and then look-

ing for solution on the basis of evidence collected. Such

decisions in use of Neuromarketing techniques would be

beneficial in public policy decisions related to health and

society well being.

Figure 4: Health related messages

Tourism Sector

Motivational world of travel agency and package tourists

rapidly uses psychology and neuromarketing methods to

attract customers during tourism period, holiday, vacations

and during festive seasons. The package tourism and travel

agency track the tourist mind in each season and comes up

with various lucrative schemes for homes or stay deals dur-

ing vacation, food, meals and full day tourist package by

offering several incentives to earn revenue.

Figure 5: Neuro activity stimulus while going for drive

Brand equity and management

Neuromarketing techniques have been deployed in pilot

testing where group of consumers from local regions are

assembled and they are required to specify the characteris-

tics of range of products without letting them knowing the

product name. Similar to Pepsi-Coke blind taste test, neuro-

marketing methods were used to gain insights on the taste

of soft drinks in different regions and thereby improving

upon to enhance the brand value.


Figure 6: Brand Perception

Green Ecosystem

There are been lots of talks in preserving ecosystem and

making the environment pollution free. Emphasis has been

given to adopt techniques to change the psychology of con-

sumers towards use of materials which harm our ecosystem

such as poly bags, plastic materials, use of petrol diesel run

vehicles, infra wave emission mobile technology and others

non bio-degradable materials. Neuromarketing helps in

capturing the psyche of consumers and tempting them to

use the eco friendly materials by developing options which

suits the consumer needs and provides pollution free sur-

roundings.

Figure 7: Green Mobile Technology

Medical Treatment and Prevention

Neuromarketing finds its importance in spreading messag-

es related to disease free nation and several campaigns are

promoted in rural and semi urban areas to increase vaccina-

tion and medical facility in the areas through proper region

related population understanding.

Figure 8: Making consumer conscious about cigarettes

Conclusion

Neuromarketing certainly impels the human mind towards

marketing stimulus in terms of buying, taking decisions,

brand perception and will surely be driving the future con-

sumer behaviour and attitudes It is a new marketing game

which moulds the consumer behaviour, perception and

provide new insights about anything which could have

spiked in his mind due to neuro activity. Such brain re-

sponse towards certain mood, personality would surely be

helpful for future marketers in better marketing research

and neuromarketing would be fruitful for companies to

create an impact in the mind of consumers.

References

Douglas L. Fugate, (2007) “Neuromarketing: a layman’s

look at neuroscience and its potential application to mar-

keting practice”, Journal of Consumer Marketing, Vol. 24

Iss: 7, pp.385-394.

Margraf. Ingo and Scheffer. David, (2010) “The needs of

package tourists and travel agents- Neuromarketing in the

tourism sector”, Trends and Issues in global tourism, Jour-

nal of consumer marketing, Vol. 2, Iss: 13, pp. 79-91.


Introduction

`Does the stock market overreact?' De Bondt and Thaler in 1985 gave start to a new wave of thinking

known as behavioural finance. Weak form inefficiency of the stock market was discovered by them after

analysing how people are systematically overreacting to unexpected and dramatic news events which were

surprising and profound. The Efficient Market Hypothesis as proposed by Fama (1970) asserts that the

stock prices reflect the relevant information. The asset prices follow a random walk path i.e. they are

merely random numbers. The study conducted by Caginalp G. and H. Laurent (1998) by the predictive

power of price patterns finds patterns and confirms that they are statistically significant even in out-of-

sample testing and report.

The pattern of the stock index might help in predicting some of the effects of the various events. The

calendar anomalies tends to exist which goes against the efficient market hypothesis. The researchers have

used Gregorian calendar to investigate the calendar anomalies. There are various countries and societies

which follow their own calendar on the basis of their religion. For example, the Hebrew calendar is

followed by the Jewish society, which is strictly based on luni-solar, the Christian society follows the

Gregorian, which is based on solar, and similarly Hindu and Chinese follow their own.

The Hindu calendar is called “Panchanga” and it is based on both movements of the sun and the moon.

The festival of “Diwali” is typically occurs at the end of October and beginning of November.

The special ritual called “Mahurat Trading” can be observed on major stock exchanges like NSE, BSE,

NCDEX to name a few lasts for about an hour. It is performed as a symbolic ritual since many years. It

marks a link with the rich past and brokers look at it on a positive note. It marks an auspicious beginning to

the Hindu New Year. The investors place token orders and buy stocks for their children, which are

sometimes never sold and intraday profits are booked, however small they may be. Thus, it is widely

believed that trading on this day will bring wealth and prosperity throughout the year.

It is interesting to observe the behaviour of trading activities during the period preceding and succeeding

Mahurat Trading. The purpose of this study is to know the effect of the festival prior and post diwali on the

the returns.

Econometric methodology

I have measured stock return as the continuously compounded daily percentage change in the share price

index (S&P CNX NIFTY) as shown below:

Rt = (lnPt – lnPt-1) x 100 …………………… (1)

Where, Rt = return at time t

Pt, Pt-1 = closing value of the stock price index at time t, t-1.

I have used S&P CNX Nifty as it has got the most liquid stocks in its portfolio. Further, the National

Stock Exchange is largest in terms of Market capitalisation and Volume. I have used the data of the

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http://in.linkedin.com/pub/pratibimb-at-tapmi/32/a90/900

pratibimb june 2013

Documents

management knowledge

pai management institute

premier management institute

students of tapmi

tapmis emagazine

knowledge of students

week magazine

monthly emagazine