GREY MATTERS November'20
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GREY MATTERS November’20 Edition A Monthly Magazine by Finance and Marketing Club “Don’t save what is left after spending; Instead spend what is left after saving.” ~ Warren Buffett NATIONAL INSTITUTE OF AGRICULTURAL EXTENSION MANAGEMENT (MANAGE) (An Organization of Ministry of Agriculture & Farmers Welfare, Government of India) Contact us: [email protected] Follow us on: CONTENTS 01. Brand Sentiment Analysis: Why is it necessary 2 for the brands? 02. Mergers & Acquisitions: COVID Boost to 5 Consoli-dation Among Indian EdTech Sector 03. Microfinance: Boon for Entrepreneurs from 9 poverty traps 04. Airtel IQ & Cloud Communication Market 11 05. How CSR helps to improve Brand Equity? 14 06. The New Bulls – Increase in Retail Investors 17 07. Reader’s Corner: “Qualified Institutional 21 Placem-ents (QIP)” – Bhavya Kapoor 08. Reader’s Corner: “ESG Funds” – Sigilipalli Ravi 23 Kumar 09. Startup-Watch 26 10. Quiz Matters & Agri Scan 30 © Grey Matters | 1 Brand Sentiment Analysis: Why is it necessary for the brands? A brand is alive as long as its heart is “Highlights” beating, i.e. its customers need it and they remember it. To measure a brand’s health According to a research report of from time to time is very important, for the 2019 by PwC, no company in the brand to survive sustainably for a long market is immune to crisis. 69% of period. How do we do this? Is there any the participants in their survey have experienced a crisis in the past 5 doctor who can measure a brand’s health? years. Sentiment analysis can play No! But there is a doctor like a tool that two important roles in the crisis. does the work for us i.e. ‘Sentiment Analysis’ – the way to track the heartbeat of a brand. Tracking the sentiments after big interviews and articles by key people in the company, help the company to understand the people’s reception of these things. How does it work? What is the Sentiment Analysis? The best and the easiest way for sentiment analysis is to opt for the media monitoring Sentiment Analysis is the way to tools like Hootsuite Insights, Rapid Miner, measure the attitude, emotion, and the Talkwalker’s Quick, Lexalytics, Social tone of the customers towards a brand, Searcher, Brandwatch, Social Mention, through their online written (reviews, Sentiment Analyser, and many more. comments, likes, mentions, etc.) content. It is also known as emotion AI or opinion The reason to go for these is that mining. It includes data mining, customers often express their views about processing the data obtained, understand the brand on social media platforms the public opinion, and giving out (comments, reviews, mentions, etc.) so it valuable suggestions or results, which can is impossible to manually pick out all the be used to understand a brand’s health or mentions about your brand and analyze performance. them for the customer opinion or emotion towards the brand. Instead, these tools analyze all the mentions of your brand on © Grey Matters | 2 social media and give you insights about customers. Following are the areas of your brand’s position in the customer’s business where sentiment analysis will be eyes. The sentiment is captured in the of great benefit: form of positive, negative, or neutral. Brand customer reviews For example: Detection and mitigation of the “I like the new packaging of the biscuits” – crisis Positive Campaign performance analysis Key people of the company “The new packaging of the biscuits is pathetic” Competitive analysis – Negative “I am not sure if I like the new packaging of 1. Brand customer reviews the biscuits” – Neutral Social media platforms like Facebook, Twitter, Instagram, etc. contain reviews, ratings, opinions, etc. about brands, products, people, and mention whatnot. It happens many times that people comment on the feedback for a product or a brand but fail to tag the concerned company. In such cases, the companies often miss out on the feedback from these customers. In such cases sentiment analysis tools are the saviors, they perform data mining and find out all the mentions about your brand, which will give you insights about your brand's perception. If the majority of the mentions But even these have certain are negative, then the company will have limitations like human sarcasm cannot be to work on finding the problem and fixing correctly interpreted by computers. The it, to not lose their customers. output won't be 100% accurate but will give the trend of the customer's sentiment 2. Detection and mitigation of the towards the brand. crisis Why is it important for the brands? According to a research report of Knowing the customer’s sentiment 2019 by PwC, no company in the towards our brand will help us make better decisions to improve our brand’s perception and reception among the © Grey Matters | 3 market is immune to crisis. 69% of the key people of the company is as important participants in their survey have as monitoring the mentions of the brand. experienced a crisis in the past 5 years. It happens sometimes that an Sentiment analysis can play two interview with the company’s CEO can important roles in the crisis. bring about drastic changes in the sales of the brand. So, tracking the sentiments after Firstly, it can be a reliable indicator big interviews and articles by key people of a company’s upcoming crisis. When the in the company, help the company to company receives the majority of the understand the people’s reception of these sentiment as negative, it can start things. preparing on its crisis management strategy or implement the one if it already 5. Competitive analysis has, to avoid further damage to the brand. In a competitive market, tracking Secondly, if the brand is already in the sentiment towards the competitor’s the middle of a crisis, then it shows brand is as important as tracking whether the mitigation efforts are working sentiment for our brand. This will help in out or not. If the sentiment trend starts a lot of ways. You can compare the moving from negative to neutral and later sentiments analysis of your brand with positive, then the mitigation strategy is that of the competitors and if any lacuna, effective, or else will have to change the can understand the relative shortcomings strategy accordingly. and correct them to offer better services 3. Campaign performance analysis and products. Sometimes when the customers have a negative sentiment for Is your ongoing campaign for your the competitor’s brand, we can pitch in target customer, effective or not? and recommend our brand to the Sentiment analysis can answer this customers. Competitive analysis will question. By tracking the customer's provide both learnings and opportunities sentiments on social media during the for our brand improvement. campaign, can give you valuable insights To sum up, customer sentiment to make necessary changes in the ongoing analysis for a brand is a great tool, which campaign to make it a success. provides one with valuable insights to 4. Key people of the company understand one’s brand perception among the people and further improve Monitoring the mentions about the for better reception of one’s brand © Grey Matters | 4 Mergers & Acquisitions: COVID Boost to Consolidation Among Indian EdTech Sector Mergers and acquisitions have become the “Highlights” new norm of the corporate world in recent times. Companies are actively involved in Globalization has institutionalized mergers and acquisitions domestically as the fact that a company can’t stay in well as internationally. The increased the top league if it is growing global competition is the primary force internally. It has to combine with others to catch up its internal growth. driving the companies to adopt M&A as a strategic tool to grow quickly. Globalization has institutionalized the fact Telecommunications, Financials, that a company can’t stay in the top league Healthcare, EdTech and Consumer if it is growing internally. It has to combine staples are some of the sectors which with others to catch up its internal growth. have experienced an upward trend Different strategic motivations have been in the M&A activities during the last 6 months. responsible for bringing paradigm shifts in M&A strategies of the companies. These strategic motivations are greatly affected The Ministry of Human Resource by the macro economic environment of a development estimated in June 2020 nation. So, it is quite evident that the that EdTech expenditure would recent shift in M&A strategies of different cross $10 trillion by 2030. Start-up companies is the result of the economic data research firm Tracxn has downturns caused by COVID-19. reported that in the first six months of 2020 seven ed-tech companies COVID-19 and M&A Strategies: were acquired. -50.3%, -39.3%, -23.3%. These are the respective GDP contractions in construction, manufacturing and mining of funding in some sectors whereas some sector in India during Q1 of 2020. These niche sectors of the economy have come to unprecedented numbers are the result of the limelight. According to a report by the economic fallout caused by the Refinitiv, India Inc's M&A deals fell to a 3 dreading COVID-19. Due to the economic year low of $38.1 billion in the first half of devastation caused by the pandemic, 2020, a 14.1 per cent decline compared to companies are either abandoning their the first half of 2019. In the first half of investment plans or changing their 2020, out of all deal categories like targeted sectors. This has led to dearth inbound, outbound and domestic, the greatest M&A deal activity was witnessed © Grey Matters | 5 in the domestic category which recorded responsible for the tremendous growth of 179 deals compared to 38 inbound and 24 the EdTech sector are significantly lower outbound deals.