The descent (2005 film) Essay Example | Topics and Well Written Essays - 500 words - 1

The descent (2005 film) - Essay Example If you mix all these ingredients – it will be really scary. Throughout the film almost all the actions take place in darkness, that keep us in tension and this situation does not give us the chance to relax for a minute. It is so terrible, and here also turns out that the caves are inhabited by eerie creatures that are clearly intended to gobble up the girls. And the panic begins not only at characters but also at the audience. The sense of presence is created, and is not a reason to be frightened? The first half of the movie is really good. Firstly we are showed the good scenery, a house in the woods and of course beautiful views of caves, which I was really impressed. The scene of the girl’s talk after the collapse, I think the most interesting and most memorable moment of the movie (a panic, the flow of all the possible accusations of each other and blame game in this situation was shown excellent). Further, everything is still good enough too. Also an interesting point when one of the girls saw a monster for the first time, and when she began to tell about it her friends who did not believe her. I should notice a good shooting inside the cave. I think that just darkness allows to create the necessary atmosphere in this picture, as if the audience was plunged into darkness and chill of the damp cave. I did not like how the monsters were traced. But how weak and helpless they were in a battle that even weak girls could defend themselves so easy. Since the creation did not see anything and were guided only by the sound, it seemed to deal with them was too easy. It is also not clear why there were such enormous quantity of bones, and in some places even flashed toothy jaw of a wolf or of a bear, although underground creatures, if they went out into the street just could not hunt. When the girls approached the cave they saw the corpse of an elk, which, as I understand

Water Pollution Essay Example for Free

Water Pollution Essay Clean water is extremely essential for a healthy living. It is lifes most important basic necessity while dirty water is one of the deadliest killers. UN has estimated that 10 people die every minute from contaminated water. The World Health Organization estimates that 80% of all sickness and disease in developing countries is due to unsafe water. As water pollution is one of the most widespread problems and it has deadly effects, I chose this topic. Water pollution is the contamination of water bodies (e. g. lakes, rivers, oceans and groundwater). Water pollution occurs when pollutants are discharged directly or indirectly into water bodies without adequate treatment to remove harmful compounds. The project includes the Global perspective, National perspective, possible scenarios and my personal views about this issue. GLOBAL PERSPECTIVE Water pollution today happens all over the world. Many major cities and countries form a part of it. The top five polluting countries are China, USA, Russia, India and Japan. The water and sanitation crisis claims more lives through disease than any war claims through guns. Some 6,000 children die every day from disease associated with lack of access to safe drinking water, inadequate sanitation and poor hygiene equivalent to 20 aircrafts crashing every day. According to UN statistics every day 2 million tons of human wastes are disposed of in water bodies. In developing countries, 70% of industrial wastes are dumped untreated into waters where they pollute the usable water supply. The sources of water pollution throughout the world are, Â · Fertilizers: Synthetic fertilizers can easily leech into lakes or rivers with the help of rainwater or excessive watering leading to water pollution. Fertilizers being drained into the rivers or lakes cause enrichment in nutrients and give rise to growth of algae. Projected increases in fertilizer use for food production and inn waste water effluents over the next 30 years suggest there will be 15% global increase in nitrogen flow into rivers. Â · Chemical industries: They release harmful chemicals into river and water bodies. Today these wastes need to be treated before releasing but not much attention is paid to this and so, waste is released into water without treating. Sewage contains a high amount of pathogens and when it reacts with water causing oxygen to be removed. So removal of oxygen from water life becomes impossible in water. Â · Oil Spills: Africa has highest amount of polluted water, South Africa to be specific is most polluted country. The government has taken control over the pollution by putting measures and treating wastes before disposals. Africa being a developing continent, cannot afford the cost of treating all the waste and in some industries they dispose the waste directly in water bodies. People there don’t focus on harvesting the rainwater like in China or India. In Europe, the most polluted coasts are of Lithuania and Estonia, 70% of all surface water is polluted due to industrial activities. Poland has high rate of water pollution which causes shortage of water for industrial use. Baltic Sea is considered to be most polluted in the world. In Asia most polluted waters are to be found in China. 70% of China’s water is heavily polluted. This is due to untreated sewages and industrial influence. About two million people suffer from serious disease caused by unsafe water. It is well known fact that US tap water is safest in the world, generally safe from microbes and chemicals. However, this is true for some states only, while some states are still getting contaminated water. Many Americans still drink tap water without even knowing it. Congress in America passed The Water Act in 1974 that could set national limits on certain contaminants in tap water. In 2009 the EPA warned that threats to drinking water have increased. Australia has a low rate of water pollution which is declining in near future. Many water projects are going in Australia and people are enthusiastically helping to solve the problem of unsafe drinking water. Main source of pollution at Sydney’s beach is affluent discharge from north head, Bodi and Malabar waste water treatment plants. Natural small creeks and drainage lines have been replaced with networks of canals and pipes. Waste water treatment plants collect waste water and remove solids and then treat waste water before realizing it into the environment. Starting the treatment of water today can help us save large numbers of lives. Thus, it forms a major crisis in the world. Time has come to solve it. NATIONAL PERSPECTIVE- I am an Indian, to be more specific from the state of Gujarat and a city named Rajkot. I’m very privileged to live in a country which is water adequate. It is adequate which means it is enough for need, but unfortunately not enough for greed. Its a fact the water will be the world’s most serious issue in the coming years. Someone rightly said that the third world war will be over water, considering India Fights have already started on small scale over water. At present the following states of India are involved in legal battles over the following rivers. For example the states Kerala, Tamil nadu, Pondicherry and Karnataka are fighting over the river Kaveri and Maharashtra, Andhra Pradesh and Karnataka are fighting over river Krishna. India is amongst the top water polluters in the world. Since several decades, industrial wastes like chemicals, oils and other poisonous things are discharged into the rivers in large quantities. In India, rivers have a great religious importance and they are considered holy. People travel miles to bathe in these rivers. Due to these pollutions, the water which was considered ‘Amrita’ (Immortal Drink) has now certainly become poison. Till some extent bathing in the river does cause water pollution but there are other several religious rituals like ‘Visarjan’ and flowing of Asthiya. Not just the religious customs but even the sewage is drained into these rivers. People even wash their clothes in the river. It has been found that expired medicines and used injections are thrown into the rivers. Out of the 1400 km of the river Yamuna, 600 km from Panipat to Etawa has been officially declared to be dead (this means this stretch of the river has 0% dissolved oxyg en meaning that neither can water support any type of life nor is it suitable for any kind of use). Experts have found out through surveys that the level of coliform (harmful bacteria) in water to be a dangerous 50 in 100ml in drinking water. For bathing water, it is an approximate of 500 per 100ml. More than 500 means that the water is not even fit for bathing and it has been found that Delhi’s level of coliform is between 9,000,000 and 10,000,000. This is the condition of the capital city; it can be assumed that in other parts of the country the conditions are worse. Even though the Indian government has introduced many acts outlawing water pollution it is unable to enforce it strongly and people are still dumping wastes into water. Industrial wastes are also dumped into the ground by injecting them deep inside, this pollutes the underground freshwater. In India water pollution in itself is a major issue, but it is also impacting on the health of the people. The industrially polluted water is treated by ordinary techniques, which still are not able to filter out the heavy metals such as lead and cadmium. This water is used in agricultural practices, and the produced crops for example the fruits and vegetables contain these poisonous substances in small quantities which can cause health problems like: Lead: affects the IQ level of kids. Mercury: affects people’s brains. It also affects pregnant women and maybe passed on to their children through blood and breast feeding. This may also lead to mutation. I all personally face a lot many problems due to water pollution. As I live in Rajkot, a city which lies within the watershed expansion of Aji riverbasin and it is a network of 19 natural drainage courses, loally known as ‘Voklas’. Unfortunately these voklas are being used for sewage disposals resulting in pollution of Aji –river in downsream of Aji dam, which collects the water from Aji and Nyari river, therefore both the dams are fully polluted. An analysis of different water bodies in downstream of Aji dam indicates the most of water bodies within city limit are contaminated. Pollution of underground water due to electro-plating industries and sari-printing industries is also observed. POSSIBLE SCENARIOS : Today, water has become a major world issue. It affects the world, it means it affects each of us human beings. The concentration of water pollution is expected to increase in future, as with the growing trend today, water has become a major world issue. It affects the world; it means it affects each of us human beings. The concentration of water pollution is expected to increase in future, as there is going to advancement in industries, agriculture and may other contributing factors of water pollution. The problems are going to multiply in the future. Starting from the effects on the mankind, 75% of the world’s human population will have fresh water shortages, some of a very serious nature.. This will include Western developed countries. (Already in 2008, 1/3rd of humanity was struggling daily for fresh water for drinking, cooking and washing). Presently the health is already affected badly, if all the water gets polluted the scenario will worsen. Water is a major issue but it can be even more problematic in the future as the quality of the water is deteriorating. Of fresh water that is available for use, a high degree of pollution of all types is likely (organic, chemical and energetic). If this continues to happen than many problems can occur like diseases spread due to bad quality of water will increase and medical facility will need to be provided. If bad water reaches farms than whole of the produce will be ruined and people will fall sick and economic problems will be faced by the farmers and the vegetable market will have chances of collapsing. Clean water will not be available for drinking, the level of pollution will have risen so much that it would be very expensive to get and only a few people will be able to afford it. Again due to this the people falling ill will increase. And filtering water may become expensive as the water would be more polluted than before and so coast of processing and filtering of water will increase by a large number. Salination of the coastal regions form rising seas, with salt seeping into ground waters, again it will add to government’s costs and so people will have to pay more for drinking water than today. Collapse of artesian supplies from overuse and insufficient run back underground, the ground water is therefore depleting. If states today are fighting for water today people might fight for water and small issue about water may start a fight that might be difficult to stop. If not acted now the future of water is going to be very bad. [Word count- 1856] BIBLIOGRAPHY: WEB http://www.nationmaster.com/red/graph/env_wat_fre_pol-environment-water-freshwater-pollutionb_printable=1v=1022 http://www.grinningplanet.com/2005/07-26/water-pollution-facts-article.htm USA http://home.deds.nl/~jamedia/The_last_drop/Water_Pollution.html- WATER POLLUTION (overall) http://www.grinningplanet.com/2005/07-26/water-pollution-facts-article.htm -science WATER POLLUTION http://www.unwater.org/statistics_pollu.html UNITED NATIONS (statistics) http://www.who.int/water_sanitation_health/diseases/en/- HEALTH AND WATER POLLUTON http://www.who.int/water_sanitation_health/dwq/en/-HEALTH AND WATER POLLUTION http://www.satyamevjayate.in/issue12/indiasays/- NATIONAL PERSPECTIVE (INDIA) http://articles.timesofindia.indiatimes.com/keyword/water-pollution- INDIA water issues http://www.livestrong.com/article/268337-future-effects-of-pollution/#ixzzz24e64z8mw- Future scenario

Constructing Luxury for Consumers

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

America Needs Gay and Lesbian Marriage :: Argumentative Persuasive Essays

  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Same-sex marriage--why is it even an issue ?   To put it into perspective, 10% of the American population is homosexual, meaning this is not just a minor issue (Harbinger 681).   Also, with our society making significant strides toward equality in recent decades both in gender and racial issues, one has to think about sexual equality.   I will explain to the reader why we should legalize gay marriage, particularly in terms of justice and the benefits society reaps from same-sex marriage.   Also, the ramifications of the legalization of gay marriage, both for gays and society, will be examined.   Finally, I will refute arguments against same-sex marriage.   Ã‚  Ã‚  Ã‚  Ã‚   Society benefits by having fewer "closet gays."   "Closet gays" are homosexuals who try to abide by society's standards, and marry a partner of the opposite sex (Harbinger 683).   However, due to the different sexual orientations of the two partners, problems often occur, causing emotional harm to"closet gays," their partners, and their children (Harbinger 683).   If gay marriage were legal, homosexuality would be legitimate.   Thus, the number of "closet gays" would decrease, as acceptance of their sexual orientation increases.  In short, society would be spared a lot of trouble--the breakup of a family or dissatisfaction with one's life, especially of the homosexual partner, as she or he tries to comply with society's standards.      Ã‚  Ã‚   Same-sex marriage is just in that it provides gay couples with the same rights as heterosexual couples.   Only marriage binds a couple in the eyes of the law ("Let Them Wed" 13).   It enables partners to make life-or-death decisions, gives them the right to inheritance, medical benefits, and jurisprudence, among others ("Let Them Wed" 13). As in heterosexual relationships, homosexual partners are the significant other of one another.   Unlike heterosexual couples, however, they are denied the right to marriage and all the benefits that go with it.      Ã‚  Ã‚   Gay marriages also provide sufficient reasons for society to promote them.   They at least fulfill two of the most important reasons for marriage:   the domestication of men and the provision of a reliable care giver (Rauch 22).      Ã‚  Ã‚   Civilizing men is one of society's biggest problems (Rauch 22).

Mediated Communication: Connected or Disconnected? Essay

Abstract: We all seem to live and breathe social media. Sending a message and staying connected is as easy as it can get. Technology is essentially transforming traditional methods and revolutionizing the way we communicate with one another. Today, we have to stay relevant, informed, and up-to-date on the newest communication channels and incorporate them into our range of daily activities. However to build meaningful connections between people, we need to let technology enhance our communication, rather than dictate it. As new communication technological advancements become available, our temptation is also to spend less time on face-to-face interactions at the risk of losing the critical context of our message. Of course, texts, e-mails and social media can dramatically impact the speed and volume of messages, but therein also lies the danger in allowing the subtle aspects of dialogue and personality to fall by the wayside Face-to-face discussions are the foundation of human communication; once established, it allows us to build trust, clearly articulate our ideas and minimize misunderstanding. However, for many of us, face-to-face communication seems to be a dying art – replaced by text messaging, e-mails, and social media. Human communication and interactions are getting shaped by available technologies. Thus we have to ask – in today’s tech-savvy world, are we really connected or essentially disconnected? Is social media sabotaging the art of personal communication? On a crisp Friday afternoon last October, Sharon Seline exchanged text messages with her daughter who was in college. They ‘chatted’ back and forth, mom asking how things were going and daughter answering with positive statements followed by emoticons showing smiles, b-i-gï Å  smiles and hearts(/). Happiness†¦. Later that night, her daughter attempted suicide. In the days that followed, it came to light that she’d been holed up in her hostel room, crying and showing signs of depression — a completely different reality from the one that she conveyed in texts, Facebook posts and tweets . (Courtesy; Forbes magazine, April2012) As human beings, our only real method of connection is through authentic communication. Studies show that only 7%  of communication is based on the written or verbal word. A whopping 93% is based on nonverbal body language. Indeed, it’s only when we can hear a tone of voice or look into someone’s eyes that we’re able to know when â€Å"I’m fine† doesn’t mean they’re fine at all†¦or when â€Å"I’m just sad† means they’re thoroughly depressed. Flooded in technology, anyone can hide behind the text, the e-mail, the Facebook post or the tweet, projecting any image they want and creating an illusion of their choice. They can be whoever they want to be and without the ability to see or feel, their audiences are none the wiser. Every relevant metric shows that we are interacting at breakneck speed and frequency through social media. But are we really communicating? With 93% of our communication context stripped away, we are now attempting to forge relationships and make decisions based on phrases, abbreviations, snippets, emoticons which may or may not be accurate representations of the truth. This presents an unprecedented paradox. With all the powerful social technologies at our fingertips, we are more connected – and potentially more disconnected – than ever before. This is where social media gets dicey. Communication Barriers: New Dimensions Social technologies have broken the barriers of space and time, enabling us to interact 24/7 with more people all over the world. The focus is now on communication quantity rather than quality and Superficiality against authenticity? But like any revolutionary concept, it has initiated a new set of barriers and threats. It is an ironic situation where social media has the potential to make us less social; a surrogate for the real thing. For it to be a truly effective communication vehicle, communicators bear a responsibility to be genuine, accurate, and not allow it to replace human contact altogether. In the workplace, the use of electronic communication has overtaken face-to-face and voice-to-voice communication by a wide margin. This major shift has been driven by two major forces: the speed/geographic dispersion of business, and the lack of comfort with traditional interpersonal communication among a growing segment of our employee population: Gen Y and Millennials. Studies show that these generations – which will comprise more than 50% of the workforce by 2020 – would prefer to use instant messaging or other social media than stop by and talk with someone. This new communication preference is one of the  Ã¢â‚¬Å"generational gaps† plaguing organizations as employers try to manage a new set of expectations and norms in their younger employees. The majority of the world’s largest businesses are using social media with little thought as to how it can contribute to the organization’s overall strategy and that its use is destroying the integrity of face-to-face conversations and replacing it with â€Å"hidden conversations†. This is arguably true to some extent with many companies confused as to the role it should play inside the corporate framework. Further, because most business communication is now done via e-mails, texts, instant messaging, intranets, blogs, websites and other technology enabled media, minus body language, the potential for misinterpretation is growing. Rushed and stressed, people often do not take the time to consider the nuances of their writing. Conflicts explode over a tone of an e-mail, or that all-important cc: list. When someone writes a text in all capital letters, does it mean they are â€Å"shouting†? Are one- or two-word responses a sign that the person doesn’t want to engage? On the flip side, does a smiley face or an abbreviated acknowledgement of agreement really mean they are all set and aligned? Unfortunately conclusions are drawn on frighteningly little information. Getting Real In this wired world when we have only abridged words and faceless chats instead of voice, face and body expression how then do we communicate effectively and build more authentic relationships? Leaders must consider the impact on business relationships and the ability to effectively collaborate, build trust, and create employee engagement and loyalty. Susan Tardanico, leadership and communications executive coach, consultant and professional speaker and CEO of the Authentic Leadership Alliance LLC suggests certain ways for keeping communication real Suggestions for Keeping E-Communication Real †¢Address your issues. If you are drawing a conclusion about experiencing a conflict based on an electronic exchange, then pick up the phone or have a face-to-face conversation to clear things up. †¢Me first. Make an effort to check your own communications to ensure you aren’t sending an inaccurate  message. Take steps to put forth an accurate picture of reality. †¢Bridging the gap. As employees and employers, there are chances of dealing with different generations who have noticeably different communication preferences. Talk with colleagues about this aspect and ask for input on the best way to keep communication flowing through the team. †¢Stay connected. Don’t fall prey to the comfort of sitting behind closed doors and doing all your work from behind a computer screen or the hand-held device. No doubt it takes the pressure off many of the complexities of management, but this also disconnects us from face to face connections. Find a way to stay connected with colleagues; employee relationship is one of the determining factors for level of engagement and loyalty to the organization. †¢Beware of the disconnect. An eloquent and motivating online communication is easy to write. But if our words are not consistent with our actions and reality, this disconnect will harm our credibility and impede our ability to work effectively. †¢Two-way communication. Communication is essentially a two-way process. Just because you’ve fired off an e-mail or text, it doesn’t mean communication has taken place. We must pay attention to the feedback to see if our message is understood and accepted. Considering that this trend is here to stay, we need to create cultures where managers, employees and stakeholders renew their efforts to get at the real messages and issues. When colleagues spend personal time we can expect better working abilities. Correlations between face-to-face relationship-building and employee engagement and loyalty are a concept that has been proven again and again over the years. This has also been excellently explored in the concept â€Å"Management by Walking Around† in Tom Peters’ groundbreaking book In Search of Excellence. As global citizens of a technologically-enabled world we must find a way to incorporate all the amazing benefits which mediated communication has to offer while ensuring that we aren’t losing the human touch with the most significant personal and professional relationships.

Motivators of Fraud in Health Care Essay

What are the motivators of Health Care fraud? At first thought, I suspect it was for the love of money but then I felt like it has to be more to it than that. Why would people risk it all to defraud insurance companies and even the government? After a while, it’s clearly not about the money because the longer a company goes without being caught, they won’t be hurting for financial wealth so why continue? How do you know when you are being charged for test and check that you don’t need? During this essay, I will answer these questions as well as describe what acts as motivators for these health Care frauds. According to the text, the health care industry is the (single largest single industry) in the United States economy. The structure of today’s health system, it leaves huge opportunities for fraud to take place. Back in the early 1980’s; doctors would provide medical care to patients and then later file a claim with the issuance company of the patient or send a bill in the mail for the patient. Prior to a doctor submitting his or her bill, it would be reviewed by a medical coder who was able to determine the legitimacy of treatment that was required. With the presence of modern technology, doctors file their claims but now they are reviewed by computers which open the door for more opportunities to defraud the insurance companies. In these situation, I feel the fraud in this case is motivated by the fact that those insurance companies don’t find it very important to review claims and therefore are only getting always with what insurers are allow to. Those committing healthcare fraud include organized criminal groups, individuals, and health care providers. The individuals committing  healthcare fraud see the crime as low risk and high reward since many perpetrators are never caught. If they are caught the penalties are relatively less severe than other crimes. For example, in a 2010 study on the effectiveness of healthcare fraud taskforces, the average convicted offender received three to five years, but the total amount of fraudulent billings in the 200 sampled cases exceeded a billion dollars. The most common form of fraud is false billing. There are a wide variety of billing schemes, but generally a person committing fraud will bill an insurer for a service that was never performed. For example, many perpetrators will obtain patient information from hospitals or other sources and use that information to charge both public and private health programs for false reimbursement claims. How can you tell when you are at risk of being charged for treatment not received or not needed? Picture this scenario, a lady goes into a minimum care facility and tells the receptionist that she has a pain in her hand, the receptionist tells her that she needs an X-rays. The patient responds by wanting to see the doctor first. The receptionist tells that patient that it is protocol that they get X-rays before the doctor will see her. The lady gets the X-ray and is then seen by the doctor who finds a cyst and the patient is treated and released. In that scenario, this medical facility disguised unneeded charges by â€Å"protocol.† No one actually knows the extent or motivators of fraud in healthcare, we have only estimates and the bases for them often seem a tad bit flimsy. I feel that Healthcare frauds happen for two reasons, greed for financial superiority and there is no jail time in most cases. First of all, Healthcare is rarely paid for out of pocket and the consumers of the healthcare services have little incentive to check their bills. Unless the actual payer of the bills follow-up with the receiver of the service or treatment, the crimes of overcharging, will go unnoticed. The insurance companies, private and public third-party payment programs, were not in the room when the services were provided and do not know whether they were needed or actually supplied. Finally, when a doctor makes 10 million dollars because of overcharging, charging for services not required or not given and he is only fined 5 or 6 million dollar and there’s no jail time. He still came out on top and continues to practice medicine because he rationalizes it by blaming it on the patients, bookkeepers and even the government. References Benson, M. L. & Simpson, S. S. (2010). White-Collar Crime: An Opportunity Perspective, research, 9-12. https://www.nampi.org/members/2010presentations/KeynoteAddress.pdf http://mjpetro.typepad.com/7th_circuit_alert/2011/07/42-usc-1320a-7b-medicare-fraud-primary-motivation-doctrine-rejected.html

Le Quebec essays

Le Quebec essays Le Quebec et la Guadeloupe en Comparaison Le Quebec et la Guadeloupe sont deux mondes differents qui sont unis par la langue francaise. Un se trouve au plein nord du continent americain, et lautre se trouve dans la mer Caribe dans les Antilles. Le Quebec a de temps froid la plupart de lan, en meme temps que la Guadeloupe est characterise par un climat tropique. Donc, cette distinction de climat donne deux types de vie vraiment differents. Par exemple, lhiver au Quebec consiste de la neige, la glace, et les temperatures bases. Et a cause de ce temps extreme, les Quebecois ont du sadapter a ses environs et le climat de cette region. Ils ont aussi cree des mots qui sont uniques a leur dialecte. Comme le mot, **motoneige**, qui a ete invente au Canada, est devenu mot quotidien aux mois dhiver. Les Quebecois portent des vetements lourds et chauds pour se proteger de linterperie. Mais cest un cas tout different en la Guadeloupe, les hivers semblent lete du Quebec. Il fait toujours beau a cette isle du Caribe, sauf quand il pleut. Il y a une difference qui fait la Guadeloupe unique, cest les ouragans Mais la plupart des temps, les Guadeloupeens shabillent en vetements legers et frais. Aussi ils portent des chapeaux pour se proteger des rayons du soleil. Lunique chose dont le Quebec et la Guadeloupe partagent, cest la langue francaise. On peut dire quils sont deux mondes completement differents qui ont des bonnes choses et aussi les mauvais comme les extremes dans leurs climats respectifs. ...

Pierre S. Dupont This essay was assigned for analysis of the life and contributions of influential leaders to business and leadership thought.

Pierre S. Dupont This essay was assigned for analysis of the life and contributions of influential leaders to business and leadership thought. Pierre S. DuPont was born near Wilmington, Delaware in 1870. Twenty years later, he graduated from the Massachusetts Institute of Technology (MIT) with a chemistry degree and began working in the DuPont family business. He became an assistant superintendent at Brandywine Mills, and two years later, Pierre and his cousin Francis G. DuPont developed and patented the first American-made smokeless gunpowder at the Carney's Point plant in New Jersey. During the 1890's, Pierre worked at the Johnson Company, which was a steel firm partly owned by the DuPont family. Here he learned a great deal about cost accounting and financial management from the company's president, Arthur Moxham. He left briefly to join his cousin Coleman DuPont in his street railway business in 1899, but he was soon back in the family business when the patriarch of the family, Eugene DuPont, died in 1902. On the firm's 100th anniversary, it was about to go out of business and had no successor for president.PierreSevera l DuPonts wanted to sell the company off, but Alfred, the youngest son would not hear of it. He joined with two of his cousins, Coleman and Pierre and bought the company in one of the first modern large scale leveraged buyouts for $12 million.The company was poorly run at the time, but the three partners managed to keep the company in business. Pierre oversaw the restructuring of the DuPont Company as chief of financial operations. He created a centralized hierarchical management structure, developed complex accounting and market forecasting techniques, and pushed for diversification and emphasis on RD. During this time he introduced the principle of return on investment, return on assets and return on equity as methods for determining the financial stability of a company, and when World War 1 started, he began a period of...

Economics Essay Example | Topics and Well Written Essays - 1500 words - 27

Economics - Essay Example The development of low-cost carriers is attributable to five factors: (1) market liberalization; (2) entrepreneurs; (3) population and relative wealth; (4) airport availability and capacity sold cheap; and (5) internet diffusion for ticket sales, liberating the distribution channel from control of travel agents (Cento, 2009). The greater competition ushered in a market-oriented approach to product optimization (Pels, Njegovan & Behrens, 2009). Industry structure is deduced from the number and size distribution of buyers and sellers, entry and exit conditions, product differentiation, vertical integration and diversification. For brevity, the more active UK airline companies are provided in Appendix A of this assignment, of which five are full-service, eleven are low-cost passenger, and the remaining five are exclusively cargo airlines. There is one more low-cost airline not shown on the non-exhaustive list, Ryanair, which performance shall be in the performance analysis. The distinction between full-service and low-cost airlines, however, are gradually blurring as several of the low-cost companies have turned hybrid, and full-service have aligned their services closer to the low-cost model (Gray, 2003). The number of UK airlines is not the determining factor for structure per se, because airline capacities vary in terms of routes and number of flights. Pels, Njegovan & Behrens (2009) provide the data on the following tables that show route distribution and share among the airlines and airports. It is understandable why Pryke (1987) said that considered ‘route-by-route, the airline industry is incurably oligopolistic’ (p.9). The sentiment is echoed by Button (1989, p. 197) when he said, ‘The key point is not how many airline companies serve the market, but rather the degree and nature of competition which exists between them.† The foregoing tables suggest that airlines operating out of major cities would tend to benefit more from