Friday, August 19, 2011

Efficient way to collect solar energy

The secret of Fibonacci Sequence in Trees

13-Year-Old Aidan Dwyer makes A Solar Breakthrough With Fibonacci Sequence. His keen observation of the way tree branches are organised led him to think that there is a reason behind it. Aidan has used the Fibonacci sequence he observed in tree branches to devise a more efficient way to collect solar energy, earning himself a provisional U.S. patent . The tree design takes up less room than flat-panel arrays and works in spots that don't have a full southern view. It collects more sunlight in winter. Shade and bad weather like snow don't hurt it because the panels are not flat. It even looks nicer because it looks like a tree.


Sunday, August 07, 2011

Harish Hande Co-founder of Selco wins Magsaysay Award

Harish HandeHarish Hande, 43, who was one of the Magsaysay Awardees for this year, is a rare commodity in India—a true champion of the underprivileged, and of solar lighting. The Solar Electric Light Company or ‘Selco’ that Hande co-founded is now synonymous with solar-powered lighting in Karnataka, parts of Gujarat and parts of Kerala.

Hande co-founded Selco with Neville Williams in 1995, and came face-to-face with many a prophet of doom telling him about the futility of the effort. Driven more by ideals and less by finances, Hande ignored them and decided to leverage the model of micro-finance and rural banking to sell solar lighting to villagers.

“We started with Rs 1,000 because that is all the money we had,” Hande had told Business Standard earlier. With his model of social enterprise he wants to prove that one can make profits while trying to meet social objectives. He decided to follow an open source model and has refused to hold the Intellectual Property for his solar powered lights, hoping, in fact, that people will copy it.

Hande is known for his simple ways. Those close to him say that he is someone who can easily get lost in a crowd. “He never talks of what he has achieved over the last 17 years,” said a member of his team at Selco.

The seeds of Selco were planted on a trip to the Dominican Republic while Hande was pursuing his studies in energy engineering at the Center for Sustainable Energy at the University of Massachusetts. He saw the poor there using solar lighting.

Soon, Hande was in touch with Neville Williams, who had founded an NGO, Solar Electric Light Fund, or SELF, to promote solar energy in developing countries. In 1993, SELF received $40,000 from the Rockefeller Brothers Fund to install solar lights in 100 rural Indian houses. It asked Hande, still studying, to run the project.

But Hande was concerned about the servicing of the lights in the long-run, which only a company could ensure. A sustainable supply chain was an issue.

For over two-and-a-half years, Hande travelled the length and breadth of Karnataka, explaining how solar lighting worked and installing it in homes of wealthy farmers who could afford the Rs 10,000 system. He convinced rural banks to lend to poor families who wanted to buy the lights. All this, while he was on, as he puts it, “a subsidised living”; he lived with friends and relatives while travelling and even worked as a day-labourer at a bus station once so he could buy his ticket home.

After Hande had installed some 400 solar light systems, Selco received $128,000 from USAID, through its partner Winrock, to finance the first three rural service centres that sold, installed and serviced solar lights. With this, he took his first step towards building a sustainable rural delivery system. “This can succeed if you provide service and financing at the doorstep,” he says.

As of now, the company aims to reach over 200,000 homes from the current 125,000, and is focusing on providing service to those in the income levels of Rs 2,000-5,000 per month—something that very few in India would want to, or are able to do. That’s Hande for you.

Source - Praveen Bose-BS

Monday, July 25, 2011

A 20-year marathon for 9 sensex players

Sunday, July 24, 2011

Rome 2 Rio - An excellent Travel planner

Rome 2 Rio is an excellent search engine which will help you discover the best option to travel to a destination. In a matter of moments it will search 670 airlines worldwide, Trains in Europe, China & India and present you with driving directions and Airfares. You will be surprised to see some of the multiple transport options like part of the journey by train which saves on travel cost. Users can input any address, town or landmark as the origin and destination. Airfares are integrated from kayak.com Rome 2 Rio is based in Australia and is founded by Bernhard Tschirren and Dr Michael Cameron, two ex-Microsoft software engineers.

Check it out at http://www.rome2rio.com/

Saturday, July 16, 2011

Amazing Health Benefits of Mudra

Mudra is a symbolic or ritual gesture in Hinduism and Buddhism. A brain research paper published in the National Academy of Sciences in November 2009, demonstrated that hand gestures stimulate the same regions of the brain as language. Check this presentation to view some of the mudras like Gyan, Prithvi, Varuna, Vayu, Shunya, Surya, Prana, Apana, Apana Vayu & Linga Mudra and their health benefits.

http://bit.ly/oVe60s

Friday, July 08, 2011

El Hierro - The Renewable Energy Powered Island

A small Spanish island is breaking its fossil fuel addiction by using solar energy and wind power to supply all its electricity needs. El Hierro, also known as Isla del Meridiano (the "Meridian Island"), is the smallest of the Canary Islands and one of Europe’s most popular tourist destinations.

Its 11,000 or so inhabitants have traditionally sourced their electricity via diesel powered generators - an expensive and greenhouse gas intensive exercise, amounting to some 18,200 tonnes of carbon dioxide emissions a year. El Hierro had been importing around 40,000 barrels of crude oil each year for power generation purposes. But the people of El Hierro can look forward to a clean, renewable energy future - and very soon.

A major project is under way that will see a 11.5 megawatt (MW) wind farm and an 11.3 MW hydroelectric pumped storage plant constructed to provide the island's residents and visitors with 80 percent of their electricity needs. The remaining 20 percent will be generated by solar thermal units and grid-connected solar power systems. The €54 million project will also provide enough electricity to power three water desalination facilities on El Hierro.

The hydro storage system will store surplus wind power by pumping water to fill the crater of an extinct volcano; creating what is in effect a massive battery. When winds are not favorable, the water will be released, driving turbines to generate electricity. When favourable conditions return, water will be pumped back up into the crater; ready for the next time demand exceeds supply.

Switzerland-based engineering company ABB is playing a lead role in the project by providing technology to electrify and control the hydroelectric pumped storage plant and integrate electricity generated by hydropower and wind turbines into the island's mains grid.

The project is expected to be completed by the end of 2011. According to Spain's Ministry for Industry, Tourism and Commerce, El Hierro will become the first island in the world to be energy independent.
Source - Energy Matters

Wednesday, July 06, 2011

For God's sake, stop digging up temple treasures

Around Rs 90,000 crore worth treasure has been found in the secret cellars of the Sree Padmanabhaswamy Temple in Trivandrum. The treasure from the cellars of the famous temple dedicated to Lord Vishnu has triggered a debate -- should the wealth be used for public purpose or should it be kept a secret?.
R Vaidyanathan
, a professor of finance at Indian Institute of Management-Bengaluru, believes that the time is just not right to reveal details of the temple's treasures. Professor Vaidyanathan talks to rediff.com'sVicky Nanjappa.

Saturday, June 11, 2011

All you wanted to know about TDS for NRIs

Like the long hand of law, the taxman has an extended reach too. You would know this, especially if you are a non-resident Indian (NRI). For every income that you earn in India after becoming an NRI, tax will most certainly get charged and furthermore, it would be deducted at source. And the rates for tax deducted at source (TDS) are widely different from the rates applicable to resident Indians. In this column, we will look at the various incomes that an NRI could earn in India and what TDS rate would apply.

Before we begin, it is important to clarify that tax will be deducted only on incomes that are liable to tax in India. If the income is tax free in India like long term capital gains from equity shares, there would be no TDS. Another important thing to remember is that you should be an NRI at the time of receiving the income. For instance, you may have purchased a long term debenture of a company while you were a resident Indian. But any interest that you receive during the period after becoming an NRI will be subject to TDS.

Interest on bank deposits

Interest earned on Non Resident External (NRE) accounts and Foreign Currency Non Resident (FCNR) accounts are tax free in India. Hence, there would be no TDS.

However, interest earned on the Non Resident Ordinary Account (NRO) is taxable and will be subject to a TDS of 30 per cent. There is no basic exemption limit. For example, interest earned by resident Indians from bank deposits is subject to TDS only over and above a limit of Rs 10000. No such limit applies for NRIs.

Interest on all other investments

Interest earned on all other investments like corporate deposits and bonds will be subject to TDS at 20 per cent. In all these cases, the company or party making the payment will deduct this tax.

Dividends

Dividends from equity shares, equity mutual funds and debt mutual funds are exempt in the hands of the share or unit holder.

Capital gains on securities

- Equity shares and equity mutual funds (mutual funds with more than 50 per cent in equities)

Long term capital gains, that is profits made on sale after 1 year from date of purchase, on
equity shares and equity mutual funds are exempt from tax. There will be no TDS applicable.

Short term capital gains, that is, profits on sale within one year of date of purchase, will be
subject to a TDS of 15 per cent.

- Debt mutual funds, corporate debentures

Long term capital gains from debt mutual funds and corporate debentures (when sold in the secondary market) will be subject to TDS at 10 per cent.

Short term capital gains will be subject to a TDS of 30 per cent.

Capital gains on other assets like house property, gold

Long term capital gains will be subject to a TDS of 20 per cent.

Short term capital gains will be subject to a TDS of 30 per cent.

Now in case of sale of assets like gold and house property, the question arises as to who will deduct the tax at source. If the property is sold to an individual, does the individual need to deduct tax at source and deposit the same with the Government? Will the individual then issue a TDS certificate to the NRI?

Sandeep Shanbhag, Director of Wonderland Investments explains, "Yes, the payer of the sale proceeds, even if he is an individual will be responsible for deducting tax at source and paying it to the Government. He must get a Tax Deduction Account number (TAN) and issue a TDS certificate for the same."

What if the individual does not go through this process and fails to deduct tax? "The onus of deducting tax is on the payer. So in case the individual does not deduct tax and the NRI too fails to declare the income and pay the tax, the income tax authorities can hold the payer responsible," Shanbhag says.

Rent

There is no separate rate prescribed for TDS on rent paid to NRIs. Therefore, this would fall under the category of other income and be subject to a TDS of 30 per cent.

Again, just like in the case of capital gains on assets, the payer of the rent is responsible for deducting the tax at source. The same process of getting a TAN and issuing a TDS certificate applies in this case too.

Professional services and royalty

If you are an NRI and are receiving a payment from a company in India for providing professional services, your income would be subject to TDS. The rates are slightly complicated.

If your agreement is dated between 1st June 1997 and 30th May 2005, you would be subject to a TDS rate of 20 per cent.

If your agreement is dated on or after 1st June 2005, you would be subject to a TDS rate of 10 per cent.

The same applies to royalty. For definitions of professional service and royalty, please refer to section 115 of the Income Tax Act.

All other income

All other income that you earn as an NRI and which are liable for tax as per Indian laws, will be subject to a TDS of 30 per cent.

All the above incomes would also be subject to surcharge and education cess. If the income exceeds Rs 10 lakh, a surcharge of 10 per cent would be applicable on the TDS. Further, an education cess of 3 per cent would apply to all TDS.

Waiver of TDS, possible?

Yes, in some cases. When you are an NRI, you are obviously a resident of another country for tax purposes. And all countries tax residents on their global income. So it may happen that as per provisions

of the Indian Income Tax laws, tax will be deducted at source on a certain income earned in India. But at the same time, that income will be subject to tax in your country of residence. In such cases, we need to refer to the Double Taxation Avoidance Agreements (DTAA) that India has entered into with various countries. The DTAA overrides the provisions of the Indian Income Tax Act. The DTAA provides certain further concessional rates of TDS. You can even get a TDS waiver if your total income is less than the basic exemption limit.

It will be our ongoing attempt through these columns to bring you clarity on all these issues. So watch this space for more!
Source - ET - Deepa Venkatraghvan
(The author is a chartered accountant and a finance writer. She also blogs at http://blogs.economictimes.indiatimes.com/moneyhappyreturns/.)

Monday, April 11, 2011

Tatas bag record deal to modernise Air force bases

The Rs 1,094-crore contract with Tata Power SED involves upgrading 30 airbases to handle next generation fighter aircraft.

A Tata company has won the largest-ever defence contract awarded to an Indian private sector company through a competitive global tender. On March 16, the Ministry of Defence signed a Rs 1,094-crore contract with Tata Power’s Strategic Electronics Division (Tata Power SED) for modernising 30 Indian Air Force (IAF) airbases across the country. Tata Power SED has 42 months to execute this strategically vital contract, officially called Modernization of Airfield Infrastructure, or MAFI.

Starting with the Bathinda airbase in Punjab, Tata Power SED will refurbish and modernise airfield infrastructure so that the IAF can operate its next generation of modern combat aircraft from there. State-of-the-art Air Traffic Management systems will be installed, along with Category-2 airfield lighting systems and hi-tech navigational aids that will permit flying operations at night and in adverse weather.

The 30 IAF airbases that will be modernised under MAFI include eight key airfields along the Sino-Indian border such as Chabua, Tezpur and Hashimara. The IAF has already begun deploying frontline Sukhoi-30MKI fighters to the Tezpur air base in concert with the army’s raising of two new divisions to strengthen defences along the Sino-Indian border.

This will be followed by the MAFI Phase II contract for refurbishing another 28 airbases. The current contract has an option clause, which allows the ministry to invite Tata Power SED to execute the Phase II of MAFI at a pre-determined rate.

The ministry has not yet announced the award of this contract. Approached for comments, Tata Power SED declined comment until an official announcement was made.

India’s private sector defence companies view this as a major milestone in their protracted struggle to enter the defence sector on equal terms with defence public sector undertakings and foreign companies. On January 13, the ministry released the first-ever Defence Production Policy that explicitly encourages the private sector to enter defence production.

The MAFI contract has been bitterly contested, with Italian giant Selex Sistemi Integrati petitioning the Delhi High Court after its price bid of Rs 1,141 crore narrowly lost by Rs 47 crore to Tata Power SED’s winning quote (figures from Selex Sistemi Integrati’s petition to the Delhi High Court). Despite legal delays — in which the Delhi High Court and then the Supreme Court rejected Selex’s contention that the Tata consortium did not have the technical capability and experience to upgrade the 30 IAF airfields — the ministry managed to finalise the MAFI contract in just over three years.

The Defence Procurement Policy stipulates two-three years to finalise a contract.

Tenders for the MAFI contract were issued on January 4, 2008, and vendors submitted bids within six months. After a technical evaluation of the vendors’ proposals, the ministry opened their commercial bids on August 2009. Selex went to the court in November 2009 but, on November 24, 2010, the Supreme Court rejected its petition, declaring, “This court is not a Robin Hood… do you want us to stop the modernisation of the airfields?”

Selex Sistemi Integrati has executed several major contracts to modernise airfields in Pakistan and China over recent years. This fact, along with the legal challenge that it threw at the ministry, has seriously damaged its prospects of winning future defence contracts, say senior ministry officials involved in procurement.

Notwithstanding the courts’ relatively speedy rejection of Selex’s plea that the MAFI contract had been improperly awarded, the Italian company’s petition spun off a broader legal question —- whether foreign companies are entitled to the protection of Article 19 of the Constitution of India. This article, which Selex cited in its petition, provides citizens of India (note, not foreign nationals) freedoms such as those of movement, speech, assembly, formation of unions, etc.

The two-judge Delhi High Court Bench that considered Selex’s petition referred the question to a higher Bench, noting, “Almost all large tenders today are being challenged in writ proceedings before the Court and are coming up for judicial scrutiny. It is thus necessary to settle the legal issue in question.”

The Supreme Court is expected to pronounce a verdict on this question on May 19.

Source - Ajai Shukla - BS

Monday, February 28, 2011

ONGC Power plant to start operation by Dec 2011

ONGC's first power venture in India , the 85 billion, 727-MW gas-based power plants in Tripura, is likely to be completed by December, a year before schedule. "The project will start earning revenues a year earlier than scheduled, which will add to the topline as well as the bottomline of the company," AK Hazarika, chairman and managing director, told Economic Times.
An MoU signed between ONGC Tripura Power Company (OTPC), a unit of ONGC, and the Bangladesh government in November 2010 for moving very heavy equipment through Bangladesh waterways will help OTPC save a year. ONGC, which is setting up two gas-based power units each of 363.3 MW in Tripura, had earlier planned to complete the first by December 2011 and the second by December 2012.
Source - ET

Tuesday, February 01, 2011

ONGC discovers shale gas in India

Shale gas found in Durgapur is expected to cost the user $2 per million British thermal unit (mBtu), which is much lower than natural gas and coal-bed methane and can change the pricing norms for the gas industry.  “The shale gas production is expected to cost around $2 per mBtu compared with $4.2 per mBtu for natural gas and coal-bed methane,” D.K. Pande, director for exploration of ONGC, said.

In the US, shale gas has significantly reduced the country’s dependence on LNG. In India, too, the gas can help to strengthen the country’s energy security and set new pricing standards. Gas prices vary depending on the source. For instance, gas sourced from the KG basin block operated by Reliance Industries is sold at $4.20 per mBtu, while gas from the Panna, Mukta and Tapti fields run by British Gas is priced at $5.73 per mBtu.

Companies pay $5.50 per mBtu for gas from Cairn India’s Ravva field in Andhra Pradesh. Gas from ONGC’s C-series field is priced at $5.25 per mBtu. Firms have to pay more than $10 per mBtu for imported LNG. ONGC has tapped shale gas from a 2,000-metre well at Icchapur village near Durgapur in Bengal’s Burdwan district — the first in the country. “The breakthrough is significant as India is the first Asian country where gas has been discovered from shale besides the US and Canada,” Pande said.

ONGC will soon start studying the commercial viability of the gas along with the environmental impact on production. “Apart from the issues of land, there are concerns over the environmental impact which will be studied before we seek permission of the government for the commercial exploitation of shale gas,” Pande said. Shale gas production requires large tracts of land as it involves horizontal drilling. Shale gas is natural gas, or methane, trapped in layers of hard rocks called shale that are found thousands of metres below the earth’s surface. A process known as hydraulic fracturing, or “fracking”, is used in the extraction, under which water mixed with chemicals are blasted into a well to break the rocks and release the gas.

There are concerns that this technology can have negative impacts on the environment such as groundwater contamination and air pollution. A report by Washington-based World Watch Institute says “a robust regulatory oversight is an important ingredient to assure environmental and public protection” if any country wants to exploit shale gas. According to the report, chemicals used in fracking could seep into the surrounding groundwater and cause serious health problems. Safe disposal of huge volumes of waste water and loss of green space are the other concerns.

India has signed a shale gas pact with the US to assess the resource available at home and prepare for the auctioning of gas blocks. The petroleum ministry is expected to consult the environmental ministry before putting the blocks on sale. India plans to auction its first shale gas block by the end of this year. According to preliminary estimates, shale gas reserves may be larger than proven conventional gas deposits. India has reserves of 1,074 billion cubic metres of natural gas, according to the oil ministry.

Several basins in India are known to hold the gas. The focus is on three basins — Cambay (Gujarat), Assam-Arakan (Northeast) and Gondwana (central India). The government plans to come out with policies and a production sharing mechanism, including the sharing of profits with state governments, before the first round of blocks are auctioned, officials said.
Source - The Telegraph - R. SURYAMURTHY

Wednesday, January 19, 2011

Tata Consultancy racing to $10-b mark

If Tata Consultancy manages to maintain its current scorching pace of growth, it will be able to realise its vision of clocking $10 billion by the end of fiscal 2011-12.
Being a $10-billion company would place TCS in the envious league of the top-10 IT companies in the world, joining the likes of IBM, Accenture and Capgemini.
The company, which reported annual revenues of $6.7 billion for the fiscal ended March 31, 2010, is expected to end the current fiscal with revenues of around $8.2-$8.3 billion, analysts say. On being asked about the possibility of getting there, Mr S. Mahalingam, Chief Financial Officer, said, “We are in a growth environment and that certainly looks feasible.” He did not elaborate further. It may be recalled that Mr Ratan Tata, Chairman of the Tata Group, had unveiled the $10-billion target for TCS at the annual general meeting of TCS' shareholders in 2006. Mr Tata had stated that TCS would achieve that size by 2010. Though the company was on track to achieve this till 2008, its plans got derailed due to the global financial meltdown that triggered the collapse of several larges institutions such as Lehman Brothers, Bear Stearns and Washington Mutual.
Source - BL, Adith Charlie

Tuesday, January 11, 2011

Vizhinjam Port - 14 Bids received

Kerala has received initial bids from 14 entities for developing a `2,620 crore port at Vizhinjam on the outskirts of Thiruvananthapuram.

Those who have applied for qualification include GMR In- frastructure Ltd, GVK Power and Infrastructure Ltd, Gam- mon Infrastructure Projects Ltd and Reliance Infrastruc- ture Ltd.

The board of Vizhinjam In- ternational Seaport Ltd ap- proved a plan on Monday to mandate State Bank of Travan- core as the lead banker and SBI Capital Markets Ltd as the lead arranger to raise `2,500 crore to fund the project through term loans and bond issues, according to Sanjeev Kaushik, secretary (ports), Kerala. Vizhinjam International Seaport is a special purpose company set up by the Kerala government to implement the project. The multi-purpose port at Vizhinjam will have a capacity to load 2.8 million standard containers and 1.8 million tonnes of other cargo a year.

The project is split into two parts. The first is for the de- sign, engineering, financing, development of superstructure such as buildings and cargo handling equipment at the port as well as the operation, maintenance and manage- ment of the terminals at an es- timated cost of `970 crore.

The successful bidder will have the conditional right of first refusal in the subsequent engineering, procurement and construction tender for the civil infrastructure construc- tion, which is estimated to cost another `1,650 crore.
Source - P Manoj, Live Mint

Tuesday, January 04, 2011

Six ads that changed the way you think

Advertisers have always sought to influence and persuade - no more so than at this time of year. But since the advent of mass communications, there has been only a handful of ads that monumentally changed the way people think about a product.

DeBeers

Engagement ring Before the A Diamond is Forever ads, diamond rings weren't the premier symbol of engagement

Through its bold advertising, diamond giant DeBeers did something extraordinary - it managed to convince generations of men and women that the only acceptable symbol of an engagement was a diamond ring.

Prior to the "A Diamond is Forever" campaign - which launched in 1948 and was named by Advertising Age as the most effective campaign of the 20th Century - diamond rings weren't synonymous with marriage or engagement. Peruse 19th Century literature and there's nary a mention of diamond engagement rings.

But DeBeers changed that.

Diamonds aren't particularly rare, but they are the hardest substance on earth - a quality that lends itself to notions of eternity. In pointing that out, and infusing it with notions of romance, DeBeers literally changed Western culture.

Volkswagen

As fans of TV's Mad Men surely know, American advertisers in the late 1950s and early 1960s fed consumers a steady diet of traditional gender stereotypes, earnest claims of product efficacy and aspirational characterisations of the American dream.

Volkswagen logo VW's Think Small ad pioneered the use of irony and wit in advertising

Volkswagen humbly shattered those conventions.

The Beetle was a car that Americans did not want. It was made by Germans, whose relations with America were mired in post-war tension. It had an odd shape and a loud, roaring engine.

By contrast, the ideal American cars at the time were enormous, powerful machines, sleekly lined and finished with flashy fins. While American automakers were busy seeking inspiration from the burgeoning airline industry, the VW Beetle seemed stodgy and grounded.

Then, in 1959, VW unveiled its "Think Small" campaign, deliberately highlighting the vehicle's perceived flaw.

There was no pretty girl casting her flirty eye over the car. There was no cool guy driving it. It was nothing short of groundbreaking.

"It was self-deprecating. It was the first post-modern ad," Bob Garfield, an advertising industry consultant and former columnist for Advertising Age, told the BBC.

"Hitherto all advertising had been as serious as a thrombosis. That ad ushered in a whole era of humour, wit and irony in advertising."

VW followed up with the famous "Lemon" ad, which informed car-buyers of VW's process of weeding out bad vehicles, while cheekily nodding at worries that the Beetle itself was a lemon.

Many advertisers followed suit. Perhaps most notably Avis rental cars, whose We Try Harder campaign made a virtue out of their second place position in the US market.

The Marlboro Man

The Marlboro Man certainly wasn't the first iconic advertising figure.

Marlboro Man billboard above Sunset Strip, shown Sept 28, 1995, in  West Hollywood, California The Marlboro Man transformed the brand into an ultra-masculine accessory

In 1939, Coca-Cola helped create the modern image of a cheery, rotund, red-outfitted Santa Claus. Before that, representations of St Nick had ranged from skinny and creepy, to stern and downright scary.

Ronald McDonald, like the Marlboro Man, is so recognisable that the product name need not be displayed.

But the Marlboro Man did something more. He transformed the Marlboro brand from a mild ladies' cigarette into a rugged, ultra-masculine accessory.

Unlike Ronald McDonald, men aspired to be the Marlboro Man.

The campaign was wildly successful - Marlboro sales increased 300% in the two years after the ad debuted in 1955.

"There is just a handful of ads ever created that have actually become more important than the product itself, that created wealth and built fortunes," Mr Garfield said.

The Marlboro Man did that through the simple insight that a person's cigarette could speak to his or her self image.

James Twitchell, author of 20 Ads that Shook the World, told that BBC that in addition, the Marlboro Man was an achievement because it found success at a time when Americans were learning that cigarettes were genuinely dangerous, addictive products that could kill you.

"The Marlboro Man was strong, powerful. He never speaks. He's so tough," Mr Twitchell said. "The genius of the ad is that at the same time there was a rising realisation that this thing will kill you, it was identified with a character who was, on the face of it, indomitable."

Sadly, the three actors who played the Marlboro Man died of lung cancer. One sued Phillip Morris and the cigarettes became known colloquially as "cowboy killers".

Nike

In many ways, the differences between pairs of training shoe are marginal. Mr Twitchell calls them fungible, "essentially interchangeable."

Nike swoosh The globally recognized swoosh is one of Nike's advertising successes

But successive savvy advertising strategies turned a little Oregon sports outfitter into the globally dominant sports giant Nike. Their swoosh logo is now one of the most recognizable images on the planet, rendering the actual name unnecessary.

And while Nike may not have been the first company to seek celebrity plugs, its relationship with Michael Jordan is arguably the most successful endorsement in history.

"Nike's great insight was forget the shoe, own the athlete," says Mr Twitchell.

The release of the Just Do It motto in 1988 was a transformative moment for the company, weaving their brand, seemingly forever, with the inspiring and dramatic physicality of sport.

"This was advertising transcending the product. Nike is not a design or a style. It's an idea. They own sport - its passion, its grit," said Mr Garfield.

"They use the same offshore factories and cheap materials as everybody else. But they represent the drama and passion of sport. They just own it."

Absolut Vodka

Absolut Vodka ad Absolut Vodka created a new market (Image courtesy Absolut Vodka)

Like DeBeers, Absolut Vodka's advertising literally created a market where one did not exist.

In 1981, Absolut launched a campaign that would run for nearly three decades using simple ads with prominent images of their distinctive vodka bottle and plays on the word "absolute".

Before that, vodka had seldom been advertised and there was no premium vodka industry.

"Absolut turned a commodity into a badge brand," Mr Garfield said. "They did it on brand name and bottle shape. It was a remarkable visual campaign."

Mr Twitchell agrees.

"Vodka is a hard drink to separate on the basis of taste, so they separated their brand through narrative and package," he says.

These days, premium vodka is an enormous business. Brands like Grey Goose, Ketel One and Chopin owe much to Absolut's pioneering ads.

President Lyndon Johnson

Watch this ad
Although aired just once, this chilling ad is considered one of the most effective US political history

American political advertising is a multi-billion dollar industry these days. Many campaigns have been highly effective, including Ronald Reagan's It's Morning in America campaign or the Republican "Willie Horton" attack ad against Michael Dukakis.

But few campaigns have been as memorable or as devastating as the Daisy ad.

It depicted a young girl playing innocently with a flower in a field. She looks up towards the sky and the camera zooms in on her eye and cuts to a shot of an atomic mushroom cloud.

An announcer urges Americans to vote for Lyndon Johnson because "the stakes are too high for you to stay home".

The ad was chilling and probably unfair, and it paved the way for the modern attack ad.

"It really showed that dirty advertising could produce clear results for the person who could do it well," said Mr Twitchell.

It was also pioneering in a different sense.

The ad was only played once as a paid advertisement by the Democratic National Committee. But it was so controversial it was shown numerous times on news programs and referred to in newspapers and magazines.

The ad was so good it got free publicity - a scenario many campaigns have tried to emulate, but few have actually managed.

Honourable mentions

Calvin Klein ad Calvin Klein continues to make racy ads

Apple's 1984 ad, directed by film legend Ridley Scott, was screened just once, but it imprinted Apple as what Mr Garfield calls "the heroic insurgent against the looming, evil, tyrannical information Big Brother, which at that point was IBM".

With Macintosh, Apple had created a revolutionary operating system, relying on a mouse and desktop icons. But the ad didn't show a glimpse of either. It simply branded Apple as smashing convention.

In 1980, 15-year-old Brooke Shields sparked controversy when she told audiences in a breathy whisper: "You know what comes between me and my Calvins? Nothing."

The overt sexualization of a young girl in the service of Calvin Klein jeans outraged many Americans, but it also sparked a designer denim craze that persists to this day, and encouraged Calvin Klein to continue to produce racy, provocative ads for decades.

"It was the beginning of the shockervertising plague that befell the Western world for five years," Mr Garfield said ruefully. "Calvin Klein wasn't an advertiser as much as an arsonist."

Source - BBC News
http://www.bbc.co.uk/news/world-us-canada-11963364