An initiative by the Department of

Marketing, Xiss, Ranchi

BULL

Dear readers,

Team Proxy extends a heartfelt gratitude to you for accommodating „Proxy‟ in your heart. We are

absolutely overwhelmed by your response to this magazine. This is the second edition of Proxy and

the prevailing emotion of team Proxy is similar to one which a mother has when she looks at her

child trying to crawl for the first time. To us, proxy is like our baby, our brainchild, and the

happiness we get from seeing it grow day by day, edition by edition is incomparable. This is the level

of emotional attachment that we experience for this brand. A day will come when every student in

XISS will have the same feeling for „Proxy‟, and that day we will, in marketing parlance, achieve the

pinnacle of brand success. That day brand „Proxy‟ will transcend its image of a student magazine and

become a living magazine personified.

Now, the actual purpose for writing this letter from team Proxy is to convey the meaning of the

word „Proxy‟ which we attribute to this magazine. There were several reasons in fact for selecting this

name. Firstly, this magazine is mainly written by students and serves for students. So, we wanted to

have such a name for the magazine that every student could connect with. And suddenly we found

that, the word Proxy has a high emotional connect and recall probability with students. Students

think of this word while making their friends attendance by proxy, or, while getting access to some

website through a proxy ID. So, we decided that no other word could excite the imagination of

students but the word „Proxy‟, and named our magazine „Proxy‟.

Secondly, one of the major purposes of starting Proxy is to supplement the classroom lectures with

articles and research papers on management concepts., It will give a platform to express the creative

skills of students in writing. Again, students can also keep themselves abreast of the latest market

trends and activities.

Thirdly, one of the meanings of the word Proxy is “implied action taken or status gained through

association with or „closeness to‟ another” (Urban Dictionary). Now, look at the phrase „closeness to

one another‟. This is just what we wanted actually. We, the passing batch of Marketing 2010-12,

are laying a solid foundation for our college and department, so that the future batches of XISS

student fraternity could take this initiative further ahead. This is how the baton could be passed from

one batch to another. And, simultaneously, every passing batch (The Alumni fraternity) could also

facilitate their contributions by proxy. Therefore, we chose „Proxy‟ to remind every junior as well as

senior of „the story of passing the baton‟ from one batch to another.

Team Proxy

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The R3 concept By Vikash Kishore, Marketing II

raditional CRM was all about acquiring and retaining of customers, to fulfill the goal of profit maximization of

the company. But, in doing so, the companies were going about devising strategies, not keeping the

customer as the epicenter of the entire agenda. This was termed as the ARC concept i.e. “Acquisition and

Retention of Customers.

But, with the changing nature of competition, the companies were not able to satisfy the customers to the fullest

in their quest to meet the profit goals and at the same time, did not meet to the enhanced customer desires and

wants. This concept needs to be re-engineered, along with the business practices carried out by the company. This

change in the outlook of the company towards its customers gave birth to a new concept called “TheR3 Concept”.

What is this R3 Concept?

The R3 concept comprises of 3 elements which are linked to each other – Requirement Analysis, Re-designing the

product and sales concept, and at last Relationship marketing. According to this concept, any company should

focus on twin success areas, which includes Profit realization and maximization as well as Customer satisfaction.

Joseph M. Juran, Japanese Quality Guru stated that earlier customer was the Kaustoamaar (Pain) for the

companies, but these days, they are being treated as Keshtoamaar (God). This ideology can be explained

through the R3 Concept.

Firstly, firms should try to understand customer requirements as well as

their resource requirements, so as to facilitate the product planning

and selling process. Once these things are understood, the company

can go ahead with the product designing, marketing and selling

strategies. It is essential to understand that customers are the most

important stakeholders. It is to be noted that a single satisfied customer

brings 11 new customers to the company, whereas a single dissatisfied

customer may lead to losing out 11000 customers. Therefore, the

product offerings made available to them should be carefully done.

Once these two things are properly executed, the company may find it easier to build not only short-term, but long

term relationship as well with the customers and this is termed as “Relationship marketing”. The companies are

not here to sell to a customer only once, but they target them as a long term source of revenue.

T

Case: Pan Dukan

The Panwala has a proper understanding of what are his customer wants, likes and dislikes.

Accordingly, he customizes his offerings for every particular. As the consumer approaches the

pan dukan, the Panwala , in advance makes the pan for him . This is how a relationship gets

nurtured between them, termed as relationship marketing. This is one case where we can see

the application of R3 Concept.

MARKETING FUNDA

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Stepping stones of society By Anurag Singh, Marketing II

Ever thought how has our society evolved? The multiple forces of society that act on us, have evolved

and modified every time depending on the circumstances prevalent around us. So, when we talk about

society, first of all, we should understand the different systems of society that influence various forces

of the society and its changing dynamics.

Social understanding tells us about political, economic, religious, behavioral, demographical and

geographical aspects of lifestyles of individuals in the society. On the basis of these divisions, there arise

few vital questions regarding poverty, recognition, justice, equality et cetra.

The first stage of the societal forces followed the principles of “ANCIENT COMMUNISM” (countries like

China and Israel). It was the oldest form of the society in which everybody had a common ownership to

earn their livelihood. There was concept of COMMON. Collective labor force worked for the optimum

satisfaction of needs and wants of human being.

With the passage of time and gradual enhancement of experience, society had entered into the second

stage called “FEUDALISM” or landlordism (countries like England). Feudalism thrived on power. In this

form of society, there was a biased and unequal distribution of the land among the people of the

society, that is, the landlord class and the serf (farmers) class. People became either very rich or very

poor. Women section of the society lost their power and hold. It became a male dominated society.

Gradually with the technological advancements and the birth of industrialization, the focus shifted from

agriculture to setting up industries. Some of the landlords, other than agriculture thought of going for

marketing of the industrial product. Thus the third stage of the society came into being with the name of

“CAPITALISM” (countries like USA, Japan & most of the European countries). In capitalism these workers

were no more farmers, they became laborers from serfs.

In the capitalist society, the semi-industrial production pattern of the products started taking place.

Therefore there was no complete dependence on seasons for agriculture. The capitalist society started

paying wages. Two different classes of people emerged namely, the “BOURGIOSIE” (CAPITALIST CLASS)

and “PROLATARIATES” (LABOURER CLASS). Three important players of capitalism- capital, technology

and laborers came into centre stage. It worked on the principal of “lassissez faire” that followed the free

flow of economy & development.

The suppressed labor class under the exploitation of the capitalists was now on the verge of end almost

as the laborers were now growing with broad thinking and experience backed up by education and

industrial establishments. Therefore the fourth stage of society grew up at fast pace i.e. “SOCIALISM”

(countries like Laos, Cuba, and North Korea). Socialism is a political economy which worked on the

“principal of welfare oriented state”. In this form of society the state becomes the owner of all the

“means of production, distribution & exchange”. Socialism therefore was the general criticism of the

SOCIETY

3 | P a g e

‘private ownership’ and ‘control of capital’ (i.e. cause of poverty, low wages, unemployment & lack of

economic securities).

The fifth stage was inspired and molded by the Marxist and Leninist philosophies. This was termed as

“communism” (countries like Vietnam), (i.e. not yet fully prevalent & is likely to occur). The core reason

for the occurrence of this class was the gradual development of the economy. . KARL MARX and LENIN

proposed & advocated the “creation of planned economy”. There was enhancement of knowledge and

educational awareness among the poor laborer class. The urge to become rich like landlords, desire

backed up by willingness to purchase & also the ability to pay made the poor people belong to the

middle section of society in positive progression.

Now, the world is again undergoing a seismic change as many autocratic regimes (Iraq, Egypt et cetra)

are being brought down by people and democratic governance is being demanded and implemented in

many countries.

This is the story of the evolution of society from time to time. But the problems of poverty, famine,

inequality et cetra have not been eroded irrespective of any form of society. The puzzle remains still

unsolved.

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Hindi Film Industry: A Saga By Shah Atif Mohammad, Marketing II

Indian movies have been a significant identity for India in the world. Today, we

are making world class movies covering almost all the issues of the society and for all kinds of viewers. Our

movies are not confined to Indian subcontinent now; rather, it caters to the global viewers.

The first Indian movie was ‘Raja Harishchandra’ produced by Dadasaheb Phalke, which was a silent movie

1913. By late 30s, 200 movies were produced annually. The first talkative movie was ‘Alam Ara’ (1931),

directed by Ardeshir Irani and hence the huge demand for talkies and musicals emerged. But, later due to

Great Depression, World War-II, Indian independence movement and the Partition, the Indian Film Industry

was highly affected. Even during its initial era; movies were specially made towards tackling tough social

issues.

Film historians name the period between 1940s to the 1960s as the "Golden Age" of Hindi cinema. Some of

the most critically acclaimed Hindi films of all times were produced during this period. Examples include Guru

Dutt’s films ‘Pyaasa’ (1957), ‘Kaagaz Ke Phool’ (1959), Raj Kapoor’s films ‘Awaara’ (1951) and Shree 420

(1955). Films like ‘Awaara’ showed the life of a working class in urban city. ‘Pyaasa’ pictured the show-off

sentiments of then’s urban life. On the contrary, Mahboob Khan’s ‘Mother India’ which was nominated at the

Oscars and Bimal Roy's ‘Do Beegha Zameen’ (1953) showed how a poor farmer brings up his/her children

facing various social and economic problems. This movie also depicted a bitter truth of our society that how

poverty gives birth to crime. K. Asif's ‘Mughal-e-Azam’ (1960) ‘Madhumati’ (1958), directed by Bimal Roy and

written by Ritwik Ghatak are termed as the epic of Indian Films. Actors like Dev Saheb, Dilip Saheb, Raj

Kapoor, Guru Dutt, Ashok Kumar, Kishre Da, Nargis, Vyjanthimala,Meena Kumari, Nutan, Madhubala,

Waheeda Rehman were the stars of this era.

Some of the internationally acclaimed Hindi filmmakers involved in the movement included Mani Kaul, Kumar

Shahani, Ketan Mehta, Govind Nihalani, Shyam Benegal and Vijaya Mehta.Ever since the social realist film

‘Neecha Nagar’ won the Grand Prize at the first Cannes Film Festival, Hindi films were frequently in

competition for the Palme d'Or at the Cannes Film Festival throughout the 1950s and early 1960s, with some

of them winning major prizes at the festival. In fact, Guru Dutt Saheb is considered to be one of the greatest

Indian film makers along with Satyajit Ray. Time magazine ranked Guru Dutt Saheb at 73rd in “All-TIME”

movie makers.

The 60s and 70s witnessed the emergence of romantic movies which gave us stars like Sunil Dutt, Rajesh

Khanna, Dharmendra, Sanjeev Kumar, Shashi Kapoor, Amitabh Bachchan, Sharmila Tagore, Mumtaz, Zeenat

Amaan, Perveen Bobby and many more. Critics and expert say that 60s and 70s is the best era of Indian Film

Industry as it has produced so many good movies giving us some of the greatest actors and among them

came to become legends. Some Hindi filmmakers such as Shyam Benegal continued to produce realistic

Parallel Cinema throughout the 1970s, alongside Mani Kaul, Kumar Shahani, Ketan Mehta, Govind Nihalani

and Vijaya Mehta. Amitabh Bachchan, the star known for his "angry young man" roles, rode the crest of this

trend with actors like Mithun Chakraborty , Jackie Shroff, Sanjay Dutt and Anil Kapoor, which lasted into the

early 1990s.

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THE GLOBAL ECONOMIC COLLAPSE By Ashwani Kumari Pathak, Marketing II

It has been more than six months since we have been listening and reading about the European crisis

and the fall of global market. This article will tell you about the emergence of European crisis and its

future implications.

As we all know US has a lot of bills to pay almost to the tunes of almost $4 trillion per year in the form of

Homeland Security, Foreign wars, Federal Salaries, Medicaid, Pensions, Foreign Aid, Medicare, Defense

and Farm subsidies and its income is little over $2trillion ($2.2trillion). To make up the difference (Fiscal

Deficit-When a government's total expenditures exceed the revenue that it generates), US does what

most of the countries do i.e to borrow money. When US takes a loan they called it a Bond (Bonds can be

held by banks, investors and foreign governments).

US promised to pay interest on these loans just as we do when we take a loan from a bank or any other

sources. From here the bubble started blowing, because of the deficit US was unable to pay the interest

on loan. They started taking new loans, new bonds so that they can make payments (Principle + Interest)

of the other loans they have already taken. All those loans and all those interest add up ,right now US

owes about $15.2 trillion which is almost equal to their Gross Domestic Product( GDP- The total value of

all the goods and services produced by the entire country in a year). It is such a huge amount of money

(National Debt) that compelled US to default and they are in trouble just paying the interest on their

loan.

ECONOMY

6 | P a g e

Figure 1: TAX vs. SPENDING

(1940-2011)

SOURCE-WIKIPEDIA

Historically, US income comes from tax but every increase in tax is followed by increase in spending

(figure no.1) i.e (if government collects more tax they have to spend more on public services and

welfare). Anyway in the last few years the differences between the tax and income has become so huge

that it will be pretty difficult for US to make up for the difference.

Figure 2: TAX CONTRIBUTION

(1940-2011)

SOURCE- WIKIPEDIA

0

500

1000

1500

2000

2500

3000

3500

4000

1940 1960 1980 2000 2011

TAX(BILLION)

SPENDING(BILLION)

0

500

1000

1500

2000

2500

1940 1960 1980 2000 2011

INDIVIDUAL INCOME TAX(BILLION)

SOCIAL SECURITY(BILLION)

CORPORATE INCOME TAX(BILLION)

EXCISE TAX(BILLION)

Year

7 | P a g e

So, raising tax is not a very appealing option for them and majority of the tax comes from social security

and individual income tax corpus rather than from corporate tax because US government has some

friends in business community (figure no.2).

US has one more way to come out of this situation, by making money

so they requested Federal Reserve (Central Bank of US as we have RBI

in our country) to print more currency . Like magic, money is created

and deposited in banks all around America. But the problem is ‘the

more something is the less is its worth’, same goes with the US dollar

‘the more dollar is in the economy, the less will be the purchasing

capacity of each dollar’. That’s why commodities like food, fuel, gold

etc becomes more expensive when US prints more dollars through its

money making magic. Remember the Foreign governments (China,

Brazil etc) that lent money to US, when they lent money to US

something interesting happened; US started looking richer in their countries. When another country

looks poor and US look rich then 1 dollar of US can buy a lot of their money. Those countries (China,

Brazil) which gave loans to US, they started showing themselves poor in their own country so that they

can pay their workers only few pennies a day, and with such low labor costs they can sell their products

at lower prices both in America and outside America than other manufacturers can. Let’s try to

understand it in a simpler way, If a dollar buys much of other country’s currency, being a developing

country the other country would pay less to its workers; this would further lead to US companies trying

to relocate in that country as this would lessen the cost and make them more competitive. Suppose the

US pays its worker a dollar per hour for manufacturing steel. Let us also assume that one dollar equals

60 Yuan. Now china, being a developing country, would not like to pay its worker 60 Yuan per hour as it

is the amount a laborer gets in a developed country like the USA. Instead, it would like to pay only 30 or

40 Yuan, thus making the country cheaper for companies in other country by paying less it will also

attract foreign companies as this will directly impact their cost of production.

So, the easiest way for any American company to compete is to move their factories overseas and pay

their foreign workers few pennies a day too and this causes a recession (Because of overseas transfers

people started losing their job in America which caused recession). When they lost their job the

employed people started paying tax for unemployed people in the country (Unemployment benefit are

part of a large social security scheme) so that unemployed people can collect federal benefits like

8 | P a g e

Medicaid and unemployment benefits and at the same time the employed people who were paying

unemployment tax can get a huge rebate at the time of final tax payment, which means US has even

less income and even more expense (Jobless Americans have collected $434 billion in unemployment

benefits over the past four years taxpayers have only contributed about $185 billion of the bill). At the

same time the people who had jobs are desperate to keep it so they tend to work more but not to get

paid anymore. So, the declining value of Dollar and increased unemployment resulted into Stagflation

(When inflation is accompanied by an increase in unemployment rate then the situation is called

stagflation). Now US is in a Catch 22 situation i.e US can’t raise tax and cut spending without making the

recession worse and they can’t create the more money without making the inflation worse. So for now

US can’t even keep borrowing money because they can’t even pay the interest on the loans they already

have. If they borrow again it will

make the eventual bankruptcy even

worse. Hence, whether in two

months or two years the day will

come when US will no longer pay its

bill when that happen the banks,

investors and foreign governments

who are counting on that money will

not be able to pay their bills either.

If investors do not pay their bills, the

corporate will not be able to pay

salaries to their employees,

similarly, if banks will not pay their bills, you will not be able to take out loans and this will destroy

returns on bank savings, again, if foreign governments can’t pay their bills, their own banks and

corporations will have the same problem which will create a global economic collapse and it will be

really difficult to cope up with this situation. As it never happened before, so nobody really knows how

to tackle this downturn and how long it will last or eventually how to get out of it. The only thing we can

do is to educate ourselves and try to figure out what actually is going on and to prepare ourselves for

some extraordinary circumstances.

9 | P a g e

By Ashwani Kumar Pathak, Marketing II

1. The government has formally notified its decision to allow 100% foreign direct investment in single-brand retail. (Refer 11th January, ECONOMIC TIMES)

2. Dell Plans Consumer Tablet by Late-2012. (Refer 12thJanuary, ECONOMIC TIMES)

3. The cash-strapped UK parent of Thomas Cook has decided to sell its Indian arm to raise money to bolster troubled global operations after heavy debt and write down pushed the world’s oldest travel firm to the brink of collapse last year.(Refer 12thJanuary ,ECONOMIC TIMES)

4. Manufacturing Boosts IIP Numbers-Industrial production grows by a better-than expected 5.9% in Nov.(Refer 13th January, ECONOMIC TIMES)

5. FIRST-OF-ITS KIND CASE -Sony Seeks Trademark for “Kolaveri Di”. (Refer 13thJanuary, ECONOMIC TIMES)

6. EU Crisis Deepens, S&P set to downgrade France-Standard & Poor’s is stripping France of its AAA credit rating for the first time.(Refer 13th January, ECONOMIC TIMES)

7. Google Likely to Choose LG for TV Software-Google Inc is planning to give LG Electronics Inc first access to the next version of its Google TV software so the Korean company can build a compatible set.(Refer 14thJanuary,ECONOMIC TIMES)

8. Following a day-long strike on Saturday (14th Jan), pilots of Air India offered to return to work from Sunday after the national airline’s management promised to clear their “salary backlog in phases”. (Refer 15th January, ECONOMIC TIMES)

9. National debt of U.S has been increased up to $15.2 trillion. More than its total GDP (Gross domestic product) $14 trillion.(Refer 15thJanuary,ECONOMIC TIMES)

10. Bharti Airtel has outsourced all its advertising inventory management and mobile-commerce initiatives to Mogae Media, a firm promoted by former Dentsu India chairman, Sandeep Goyal, in a first such deal in the Indian telecom industry. (Refer 16th January ECONOMIC TIMES)

11. The wholesale price index (WPI), dropped to 7.47% in December on lower food prices, as compared with 9.11% in November, government data released on Monday showed. (Refer 17

th January, ECONOMIC

TIMES)

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Investment Mantra

By Suman Saurabh, Marketing II

veryone today is running after money and has a desire to multiply their investments. It is a very

good sign for a reforming economy like India, because when a single money is spend in economy,

it gets multiplied, resulting into a phenomenon called Money multiplier effect. It is considered to

have a positive effect on the economy and accelerates the economic development.

Now the big question arises where to invest, how much to invest and for what period to invest. Indians

are considered to be very good savers. But saving the money in the bank is not

the only solution, we have to plan and allocate our investment in such a way

that the returns to the investors get maximized. This is possible when there is

an increased level of awareness among the investors.

Think before investing:

1. First, have a thorough assessment of yourself, with regard to the

amount of disposable income, how much to invest and for what period

to invest.

2. The investors need to come up with a clear motive, specifying the purpose of making the

investment and how much they are expecting out of their investments.

3. Then, the investor needs to evaluate the investment properties. Each investment is assessed

using two parameters – RISK and RETURNS. There exists a direct relationship between risk

associated with a particular investment and the returns to be gained. Thus, the two parameters

show a positive correlation. On this basis, the investors seek the investment avenues.

E

BEAR AND BULL…

11 | P a g e

Further, this principle of risk and returns has classified the investors into 3 categories:

Aggressive

Defensive

Moderate

Table: Investment analysis – risk and returns

Who are Aggressive investors?

Aggressive investors have a liking for the investments with higher

risks, irrespective of the rate of returns. They have a perception

that higher the risk, higher will be the returns, just like having

sehwag in Indian cricket team, if he clicks then India scores faster,

and if not, then the rate of scoring comes down. These investors

are considered to be as risk-seekers.

Who are Defensive investors?

Defensive investors are determined to play safe and believe in steady performance, where both the

risk exposure and returns are low compared to the aggressive bets. It is like riding a bike within a

speed limit of 40km/hr, though the speed is low but probability of meeting an accident is also low.

The ultimate motive of such investors is to avoid capital losses, even if the investment has low

yields. Such investors are called to be risk-averse.

Who are Moderate investors?

These investors emphasize on such investment options that have a moderate risk and returns level,

thereby facilitating the investors to strike a balance between the risk and the returns. These

investors are termed as risk-neutral.

Types of investors Risk Returns

Aggressive High High

Defensive Low Low

Moderate

Moderate Moderate

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My lost world By Shahadat Hussain,

Although, the 21st century has brought to us the iPads, iPods, Netbooks, laptops and other

gadgets with plenty of opportunities for the generation to flourish, it also has deprived us

of the treasure of nature, its liveliness and its splendid bounty.

When I was a kid I remember my involvement with nature. Aside from school activities I

used to go to the riverside, sit by it with my friends who are still with me. I see that time

has rapidly changed and I have graduated by now. Today, when I look at the children going

to schools, I am reminded of my time. But sadly, for these children there is no time to

catch the caterpillar or run after it with excitement. Rarely some children get time to

explore the nature, like waterfalls and torrents.

These days, they live with their parents in a 2 BHK flat and play on the ground floor but

they would never realize what it feels to see- rivers, lakes, jungles and large grassy lands.

They will always be deprived of these.

Yes, when I was a kid, I was closer to these things. I would go fishing to the riverside with

my counterparts. I would lie on the green grass under the tree. I sometimes would pluck

dates, mangoes etc with my peers. We would make homes of tiny sticks of the bushes

though it could only accommodate only one of us at a time. We played football matches in

the heavy rain on the wet soil. All that continued with my studies. Thanks to my parents

and school who had gifted me these places nearby me. Gradually these things starting

disappearing and now we have concretes and buildings all around that was once covered

with the beautiful nature.

My life seems unparalleled to any of the children today because of their busy life schedules.

It may lead you to think that I belong to a village. I belong to one of the developing cities

and the capital of Jharkhand, Ranchi which is known as a land of forest, hill station, lakes

and rivers. But, fortunately, I could say that I have grown up with Mother Nature around

me.

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