Professional Consulting and Political Campaigns

Cash guzzling political campaigns are the talk of the town whenever the election season arrives. With the world zooming into the 21^st century, these campaigns have evolved into a serious business of complex strategic planning and mass marketing with a single aim of getting the candidate into power. The advent of technology and a high degree of professionalism into this field has led to a ripened business of niche consulting catering to politicians and political parties.

Consultants and political advisors have been around forever, but the modern political consultants differ from their traditional counterparts in two major aspects:

• Traditional political consultants tend to have personal interests in the candidate, the office and the issues. Election work is not their primary source of income nor is it their full time profession. On the other hand professional political consultants completely redefine this image. They often possess a certain level of emotional detachment from the candidate and the campaign. They possess expertise in specialized aspects and treat politicians like clients rather than partners in victory.
• In the era prior to the 1990s, political advisors were experienced people with a strong insight into the strategy game and were considered political gurus. They have been relied upon for many years but are almost always limited in their reach and resources, but with the rapid progress in technology, rising campaign budgets and focus on results in the past two decades, the professional consultants have revolutionized campaigning for political parties. They rely upon solid business fundamentals and research to develop efficient and effective strategies for their clients.

Professional political consultants undertake projects under three major aspects of political campaigning.

1. Generating financial resources

The Obama-McCain presidential race in 2008 alone cost a staggering $2.4 billion. This showcases the need for massive funding and thus the expertise that is required to raise the money. This has been a major area where political parties turn to experienced professional political consultants.

2. Designing strategies

Voter base profiling, ground research and hours of analysis go into collecting data to build a strong foundation for a successful political campaign. Consultants specialize in these activities and can be the difference between success and failure.

3. Promotion and advertising

Developing promotional and advertising programmes has been the most dominant work for the political consulting firms. This area of work has evolved hugely with technology, web based campaigning and a constant need for breakthrough promotion strategies.

Political Consulting in India

The developed form of political consulting as described above is an evident characteristic of political campaigns in the United States but it is yet to find its feet in young democracies such as India. The political scenario in India is hugely different and more volatile than those in countries like the United States. As a result, dependence on new age professional consulting firms is limited to advertising, promotional activities and analytics. However, the Indian political picture is changing rapidly and professionalism seems to be the way to go. With young leaders bursting onto the scene and a spark of development politics, there is huge scope for such consulting expertise in India. Although it would still take some time before we see all this in mainstream action, budding firms (eg. Leadtech) are slowly gaining acceptance in India.

Read More

Landmark deal for Indian defence industry

The Government of India (GoI) has embarked upon an ambitious plan of developing about 2,600 new-generation Future Infantry Combat Vehicles (FICVs) to replace the currently ageing fleet of the Indian Army.

The defence ministry has mandated that only Indian companies will be eligible for this deal and has shortlisted four companies that will be eligible for this bid. The shortlisted companies are Tata Motors, the Mahindra Group, L&T and the Ordnance Factory Board (OFB). This would mean that three private companies and one public company are in the fray for the deal.

Infantry Combat Vehicles (ICVs) look similar to small tanks and can carry about 7-8 people on board. They are lightly armoured and highly mobile vehicles which can travel deep into the army territory. The FICV to be developed for the GoI must be bullet-proof, amphibious and transportable by air. Also, the FICV should have atleast 50% indigenous content.

The defence ministry is soliciting an Expression of Interest (EoI) from each of the four companies in which the companies will detail their plan about developing the FICV, the technologies that they intend to use, the timeline involved and the estimated capital expenditure on the project. The companies are also expected to state a minimum order quantity which will make the project viable.

After careful evaluation of the EoIs, two contractors will be selected to develop the FICV prototypes. The FICV prototype which gives better field results will be finally chosen. The company finally selected will be allocated 65-70% of the order whereas the other contractor will get the remainder of the order.

The cost of the project will not be borne by the MoD alone. The MoD will fund about 80% of the total cost while the contractor will fund the remaining 20%.

It is believed that the Ordnance Factory at Medak might be utilised for making the FICVs since building a new facility for the same purpose would be a waste of resources. The FICVs should be ready for use by 2018.

Read More

Managing Glitz

Be it brand endorsements, launch parties, special appearances or stage performances, being a celebrity in India means big money. The ever increasing influence of celebrities on consumer choice and a growing demand for their presence at events across the country has translated into an entirely new business area of celebrity management. Although still in its infancy in India, it is garnering huge interest and has resulted in the emergence and establishment of numerous celebrity management firms in the recent past. The corporate big wigs realize that they live in an era of cut throat marketing and celebrity associations are simply essential for market presence.

Celebrity management firms have traditionally acted like brokerages, but a paradigm shift is in process as they turn professional and replace madness with method. Virtually anyone with strong contacts can setup shop. A lot of veterans still perceive “Celebrity management to be more of an art and much less of science”, but the science is emerging with companies like Percept and Celebtrack who systemically focus on research and their roles as consultants rather than just being gatekeepers for celebrities.

Celebrity endorsers can be classified into three major categories. The first set consists of celebrities who follow the gold mantra and will endorse any brand as long as the price appeals to them (Shahrukh Khan, Amitabh Bachchan etc.). The job of managing them is essentially cutting the deal and negotiating rates. Concepts like brand fit hardly exist and only hard cash matters. The second set comprises of stars who position their image in the market and associate with a brand only when they think that it suits them. The third set is of celebrities who are smaller in stature and are interchangeable. They come relatively cheap and rarely have preferences. The third set of celebrities is the one that will be most attractive for firms in the industry. This category witnesses frequent deals and does not depend hugely on celebrity preferences.

The industry is still trying to find its feet and recent events like IPL have turned the game into a gold rush for the companies involved. Recent deals between Madison Mates and John Abraham, Priyanka Chopra and Krossover are signs of aggression and competition in the industry. It is a mix of glamour and professionalism as good as it can get. The numbers speak and nine digit figures are common. Experts believe that the industry is well on its way to become worth more than INR 10 billion in the near future. Ample opportunities, low entry barriers and lucrative economic benefits continue to boost growth and interest. It still remains to be seen whether all of this can actually induce some so called “management” and change anything about the tantrums and craziness that is generally associated with celebrities in India.

Read More