BUSINESS UPDATES

Times of India's `Lead India' Campaign

© 2008 ICMR. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic or mechanical— without permission. To order copies, call +91-40-2343-0462/63 or write to the ICMR, Plot #49, Nagarjuna Hills, Hyderabad 500 082, India or e-mail: info@icmrindia.org. Website: www.icmrindia.org

Fabindia : Marketing Indian Craft Traditions

© 2008 ICMR. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic or mechanical— without permission. To order copies, call +91-40-2343-0462/63 or write to the ICMR, Plot #49, Nagarjuna Hills, Hyderabad 500 082, India or e-mail: info@icmrindia.org. Website: www.icmrindia.org

CASE IN FOCUS

Tata Steel's Acquisition of Corus

-- Vivek Gupta

On January 31, 2007, Tata Steel Limited (Tata Steel), one of the leading steel producers in India, acquired the Anglo Dutch steel producer Corus Group Plc (Corus) for US$12.11 bn (€8.5 bn). The process of acquisition concluded only after nine rounds of bidding against the other bidder for Corus—the Brazil-based Companhia Siderurgica Nacional (CSN). This acquisition was the biggest overseas acquisition by an Indian company. Tata Steel emerged as the fifth largest steel producer in the world after the acquisition. The acquisition gave Tata Steel access to Corus' strong distribution network in Europe. Corus' expertise in making the grades of steel used in automobiles and in aerospace could be used to boost Tata Steel's supplies to the Indian automobile market. Corus in turn was expected to benefit from Tata Steel's expertise in low-cost manufacturing of steel. However, some financial experts claimed that the price paid by Tata Steel (608 pence per share of Corus) for the acquisition was too high. Corus had been facing tough times and had reported a substantial decline in profit after tax in the year 2006. Analysts asked whether the deal would really bring any substantial benefits to Tata Steel. Moreover, since the acquisition was done through an all-cash deal, analysts said that the acquisition would be a financial burden for Tata Steel.

© 2008 ICMR. All Rights Reserved. For accessing and procuring the case study, log on to www.ecch.com or www.icmrindia.org

Pfizer Inc.'s Lipitor : The Celebrity Endorsement Controversy

-- Adapa Srinivasa Rao and Debapratim Purkayastha

In 2006, Pfizer, Inc., the world's largest pharmaceutical company, was facing a big challenge in sustaining the sales of its cash cow Lipitor. Though the marketing of Lipitor had attracted criticism and many lawsuits, Pfizer's marketing muscle had ensured that Lipitor was the highest selling drug in history with sales of US$12.19 in 2005. However, the problem for Lipitor in 2006 was sustaining the high sales of the brand and fuel further growth as it faced intensified generic competition as two of its main competitor drugs went off patent. Among other initiatives, Pfizer banked heavily on its strategic move of getting Robert Jarvik (a medical scientist who is better known as the inventor of the artificial heart) as its brand ambassador. Though the campaign featuring Jarvik was considered by many as a successful campaign, it also attracted a huge controversy. In addition to giving a comprehensive background of Pfizer's marketing of Lipitor and the various controversies Pfizer faced regarding its marketing of Lipitor, the case discusses in detail the controversy surrounding the celebrity endorsement by Jarvik. In early 2008, Pfizer decided to pull out the campaign and introduce a new campaign in its place.

© 2008 ICMR. All Rights Reserved. For accessing and procuring the case study, log on to www.ecch.com or www.icmrindia.org

The Russian Economy in the Post-Soviet Era

-- Barnali Chakraborty, Sachin Govind, and S S George

Emerging from the dissolution of the Union of Soviet Socialist Republics (USSR) or the Soviet Union, the Russian Federation (Russia) had to contend with huge economic problems. The case discusses the macroeconomic stabilization policies and economic restructuring implemented by Boris Yeltsin, the first President of Russia, to transform its centrally-planned economy into one that was more market-based. The case goes on to explain the policy measures introduced subsequently by Vladimir Putin, Russia's second President. The case discusses Russia's economic condition under the two Presidents and the impact of the policies implemented by Yeltsin and Putin on the Russian economy. The case ends with a discussion on the challenges facing the Russian economy.

© 2008 ICMR. All Rights Reserved. For accessing and procuring the case study, log on to www.ecch.com or www.icmrindia.org