| From the desk
of Strategic Resources For any query, discussion or feedback, please contact Pavan Chandra, Head of Strategic Resources at pchandra@zenithoptimediaindia.com, +91-124-4195100. Office Address: 10th Floor, Vatika Tower, Block-B, Sector 54 Gurgaon -122002, Haryana, India. |
| Volume: XXI | March, 2009 |
In these hyper charged times where news comes in as fast as it becomes
outdated, we need a source that can keep track of what matters to us. At
ZenithOptimedia we have created Wavelength to apprise all of us of the happenings
in three areas i.e. 1. Trends in Digital, Retail, OOH, Consumers and
the International Advertising 2. Media & Advertising Research 3. Environment
Also included here are innovations and news that ZenithOptimedia is making
across its network globally, under three sections 1. ZO Zone 2. Fast Forward
3. Touchpoints.
Simply click on any of the sections on our snazzy control panel and you
will have the latest updates at your fingertips. Wavelength will reach you
in the first week of every month so that you have information that leads
to insights.
Drop in a mail at pchandra@zenithoptimediaindia.com with your suggestions
and comments.
1. Linkedin.com ropes in NetworkPlay to monetise Indian traffic – Apr 02
The US based business
networking site, Linkedin.com, is gearing up to earn more advertising
dollars from the Indian market, which contributes about 60 million page
views per month and has more than one million unique users from India.
Source:
AgencyFaqs![]()
2. People Interactive outsources ad sales to AdMagnet – Apr 02
AdMagnet Select, a
part of DGTL Media, will handle the ad sales function of the various
websites owned by People Interactive -- Shaadi.com, a matrimonial portal;
Makaan.com, a real-estate portal; Fropper.com, a social networking portal;
an astrology website named Astrolife.com and Shaaditimes.com, a wedding
related site.
Source
AgencyFaqs![]()
3. Idea Cellular takes its democracy campaign online – Mar 26
Idea
Cellular has extended its recent television commercial, which shows a
politician asking for public opinion before finalising a development
project, to real life. The MyIdea campaign uses the Internet, TV and radio
media to engage people, demonstrate the power of collective decision making
and the usability of mobile phones in that process
Source
AgencyFaqs![]()
4. Yahoo! India eyes growth through verticals – Mar 23
In the last three months, Yahoo! India has launched three new verticals on lifestyle, travel and elections. The idea is to increase the affinity among the audience through the specialised content.In fact, Yahoo! India is focusing on several similar verticals. In the last three months, the company has also revamped three of its existing verticals on finance, movies and cricket.
Source
AgencyFaqs![]()
5. Interactive Avenues becomes certified Google Analytics agency – Mar 20
Interactive Avenues, a digital marketing agency, has become a certified Google Analytics Authorised Consultant (GAAC). Interactive Avenues claims that it is the second agency after Communicate2, a search marketing agency, which has got GAAC certification in India.
Source
AgencyFaqs![]()
6. BCCL eyes additional revenue from online video advertising – Mar 17
Bennett, Coleman & Co. Ltd (BBCL) the publishers of The Times of India is eyeing the online medium to earn additional revenue from the video content produced by its TV channels.It has set up an online video arm, called Times Audience Network, which will pick up some of the video content from its TV channels and package it for online consumption. Times Audience Network is actually a rebranded version of the Zoom Audience Network, which offered video content online from Zoom TV.
Source
AgencyFaqs![]()
7. Search for Gandhi and discover Advani– Mar 16
“Do You Know Why Advaniji is a better leader, BJP a better party? If you don't, visit Lkadvani.in.” This message is a part of the search marketing technique adopted by the BJP for many political leaders. The political party has used search marketing and contextual advertising tools on Google (AdWords and AdSense) so that whenever anyone searches for Sonia Gandhi, Rahul Gandhi, Manmohan Singh or even Mayawati, the landing page will have sponsored links from the BJP.
Source
AgencyFaqs![]()
8. Komli launches an online media planning tool – Mar 12
Komli Media, which launched Vizisense.com, a free online audience measurement tool in December 2008, has now extended its utility to incorporate an online media planning tool called Media Mix.
Source
AgencyFaqs![]()
9. Red FM takes Bajaate Raho Awards out and about– Mar 25
Red FM is known for the hard hitting outdoor campaigns around its theme, Bajaate Raho. The radio company has now used the outdoor medium to promote its annual event, Bingo! Red FM Bajaate Raho Awards 2008. The awards celebrate ‘mediocrity’ in fields such as Bollywood, music, cricket and television, and ‘empowers’ people to get back at those who have caused them irritation over the last year!.
Source:
Agencyfaqs![]()
10. Pepsi’s Nimbooz’ outdoor campaign attracts parched throats, and eyes– Mar 20
Summer is here and so are the soft drink launches and their campaigns. PepsiCo India has recently launched its packaged ‘nimbu paani’ or lemon water, ‘Nimbooz by 7Up’. Inspired by fresh, homemade nimbu paani, PepsiCo claims that Nimbooz contains real lemon juice with no fizz and no artificial flavours.Nimbooz comes in three packaging formats of 200 ml returnable glass bottles (RGBs), 350 ml PET bottles and 200 ml tetra packs, priced at Rs 10, Rs 15 and Rs 10 respectively.
Source:
Agencyfaqs![]()
11. Hype Integracomm inks deal for grab handles in Mumbai local trains– Mar 13
After successfully launching the Smile TV network in western route of local trains in the financial capital, OOH media company Hype Integracomm has inked another deal with Railways in the same route to put up designer grab handles in Mumbai’s trains. Hype has won a five year contract to put up these handles in the trains run on the western route (WR). While exploring a very innovative advertising medium, this will also bring in hefty revenues for the railways.
Source:
Agencyfaqs![]()
12. Laqshya Media works on strengthening backend operations– Mar 17
Laqshya Media is focusing on improving its designs with a design unit. It also launched a research unit towards the end of 2008, which operates on inputs from outsourced professional field survey teams. The design unit has 18 full-time professionals, including product designers, graphics designers and engineers. This group is supported by a project management team.
Source:
Agencyfaqs![]()
18. Global trends in marketing-at-retail– Mar 09
The trend state that almost everything, except mega-store chains and formats, will be downsized during the decade -- products/packaging, retail chains, store footprints and living spaces. More people will look for smaller, more personalized spaces -- both to live and to shop. Another trend will be the ‘glocalization’ of retailing. For many big retailers, the next growth phase will come from segmentation and localization. Big retailers will focus on operating multiple formats and multiple concepts, targeted at specific customer segments, in specific local markets, for specific end-use needs and occasions, while operating in specific shopping modes.
Source:
Agencyfaqs![]()
1. Television ad volumes has seen a 12 times growth during 2008 compared to 1999.
2. TV ad volumes of 'soaps*' category witnessed 43 per cent growth during 2008 compared to 2007.
3. 'Shahrukh Khan' had endorsed for maximum number of advertisers on TV during 2008 closely followed by 'MS Dhoni'.
4. 'Aerated soft drink' and 'cellular phone service' were the top categories for celebrity endorsement on TV during 2006 and 2008 respectively.
5. 53 per cent rise in TV ad volumes of 'shampoos/conditioners' category during 2008 compared to 2007.
1. Flashed
Yesterday: It’s confirmed: IPL 2 stays with MSM – Mar 26
After nearly a week of to and fro on the paperwork, the deal between World Sports Group (WSG) and Multi Screen Media (MSM) has been clinched. Even MSM was the frontrunner for this according to many sources in the industry, a foreboding sense of uncertainty was omnipresent on the matter, especially because the deal was once nearly clinched in an out-of-court settlement, which later failed due to BCCI’s rejection of the non-terminable clause that MSM has included in the deal. Sources close to the situation now inform that the deal has been closed and the telecast rights of the IPL remains with MSM.
Source:
Exchage4media![]()
2. India’s first HDTV channel Sakshi launched – Mar 20
Sakshi, a Telugu news channel claiming to be the country’s first HDTV channel, has started full-fledged operations. This 24-hour free-to-air channel is promoted by Jagati Publications of which YS Jaganmohan Reddy, son of Andhra Chief Minister YS Rajashekhara Reddy, is the Chairman. The channel was initially named Indira Priyadarshini. According to Ramakrishna Reddy, Editor-in-Chief of Sakshi TV, it was renamed to cash in on the popularity of the Sakshi brand of the Telugu daily brought out by Jagati Publications. This popular newspaper has about two dozen multi-coloured district editions.
Source:
Exchange4media![]()
3. NGC India set to launch FX, Fox Crime & Baby TV in 2-4 weeks’ time – Mar 13
It would be almost a year now since National Geographic Channel (NGC) India has been working towards strengthening the Fox brand name in India. Now with the legal requisites cleared for the Fox channel brands, FX, Fox Crime and Baby TV, the three channels would launch in India in the next two to four weeks. Nikhil Mirchandani, MD, NGC Network – South Asia, said, “The three channels are in different genres, and also focus on different kinds of target audiences. In the case of Baby TV, even the model is different since the revenues are dependent on subscription and not on advertising.”.
Source:
Exchange4media![]()
4. Reuters news to power The Economic Times’ new television channel – Mar 16
Reuters announced an exclusive collaboration with the Times Global
Broadcasting Company’s new business and financial news channel, ET NOW,
marking a key strategic alliance for Reuters in an increasingly competitive
financial news marketplace. This agreement was designed to unite India’s
largest financial publication and Reuters global real-time content to tell a
comprehensive and market moving story to India’s growing and influential
professional audience via the ET NOW channel.
Source: Exchange4media
1. LED-fitted auto-rickshaws to wheel around NCR– Mar 12
Nyayabhoomi, an NGO working with auto-rickshaw drivers for the betterment of the public transport system in the national capital region (NCR), has come up with an initiative called the ‘Autorickshaw Star Club’ (ASC). Through this initiative, the NGO will offer auto-rickshaw branding opportunities to advertisers.The NGO has been working with auto-rickshaw drivers since 2002, to help address their problems. Around 8,000 drivers are registered with it.
Source:
Agencyfaqs![]()
13. WOC Advertising bags creative duties for Megamart – Mar 23
Megamart, the value retail chain of Arvind Brands, has brought Chennai-based WOC Advertising onboard as its creative agency. The agency will handle the creative business for the state of Tamil Nadu. Meridian has been handling the creative duties for the chain across India, for the past two years. With WOC in the picture, Meridian will continue to handle the creative duties at all other places, except Tamil Nadu.
Source:
Agencyfaqs![]()
14. Lite Bite Foods to open 162 outlets – Mar 19
Lite Bite Foods Pvt Ltd, promoted by Mr Amit Burman, Vice-Chairman of FMCG major Dabur India Ltd, will be investing Rs 160 crore in next three years to establish a pan-India network of 162 restaurants.The Delhi-based company, which runs brands such as Food Union, Fresco, Baker Street and Pino’s Pasta Pizza, will be rolling out 20 food and beverage outlets next year in the northern part of the country.
Source:
Hindu Business
Line![]()
15. With IPL 2 moving to South Africa, will radio ad revenues take a hit? – Mar 30
After much drama over the last few weeks, it is now decided. The second season of the Indian Premier League will now be held in South Africa. So what happens to the various media partners of the eight IPL franchise? exchange4media asks a few FM radio players, who are partnering the IPL teams, on what would be the impact of IPL shifting out of India.
Source:
Exchange4Media
![]()
16. Elections 2009: Political parties tune in to radio in a big way – Mar 23
Radio is emerging as a strong ally for most political parties in their campaigns for the forthcoming Lok Sabha elections. While it is not known how much of the total Rs 10,000 crore poll spend would be cornered by radio, it is expected to be sizeable considering the widespread reach of the medium and the scope for innovations. Radio is a localised medium that reaches out to 19 crore listeners (above the age of 12), and unlike print and TV, where there are time and space restrictions, radio allows parties to communicate with listeners in their language.
Source:
Exchange4Media![]()
17. I&B Ministry nod to community radio stations in Ahmednagar, Solan - Mar 14
The Ministry of Information & Broadcasting has signed a grant of permission agreement for establishing, maintaining and operating community radio stations at Krishi Vigyan Kendra, Babhaleshwar in Ahmednagar district in Maharashtra. Meanwhile, Himachal Pradesh has got its first wireless community radio station in Solan district.
Source:
Exchange4Media![]()
19. We should drive people’s habits – Mar 19
A few months ago, I was wary of switching on the television and being bombarded with ads on where to spend my money, how much to invest and which insurance scheme gave you a bang for your buck. But in recent weeks my fears seem to have been dispelled as most of these ads have gone into hibernation (hopefully until the economy recovers). What one sees now are ads sending out a different message to the consumer.
Source: Hindu Business Line
Touchpoints is a unique tool for ZenithOptimedia clients that provide clear actionable metrics for all contact points used in marketing products and services.
For a
detailed presentation on Touchpoints contact Mr. Pavan Chandra at
pchandra@zenithoptimediaindia.com or call at +91-9899-3767-68
TV Viewership
Analysis of Chat/Talk show
for the year 2008

The chat/talk show genre has more likeability in the metros.
Period : Jan Dec 2008
TG : 15+ AB MF CS
Market : All India, 6 Metros
Source: TAM

Top 10 Chat/Talk Shows in 2008 w.r.t various audiences
Period : Jan Dec 2008
Market : All India, 6 Metros
Source: TAM
Advertising
Spend Analysis for the Year 2007 & 2008
Sports Life Style Brands

The category spends have gone down by 44% in 2008 compared to 2007
Source: MAP
Down weighted fig
Category Players
– Brand wise Spends

Reebok India leads category with highest media spends in 2008.
Source: MAP
Down weighted fig.
Medium Breakup


Genre Breakup


Nine steps towards a more effective website rebranding
Time and time
again we are asked our thoughts about what it takes to successfully rebrand
a website. All too often we are asked specific questions such as “should my
site be programmed in Flash?” or “are drop-down menus a good idea?” Sadly,
questions like these do not get to the heart of the issues to consider when
rebranding your website.
The biggest -- and most common -- mistake we see is that people begin their
redesign without a clear set goal for the initiative. Most sites are
redesigned for purely cosmetic reasons, overlooking the more crucial
content, navigational, and marketing challenges that lie underneath.
Here are nine tips that can help ensure that the website you design today
will be an effective investment for years to come.
1. Start with a plan. Just like blueprints in architecture, a properly
executed wire frame shows you how the new site will function before it’s
built. It is far easier to move a wall during the planning stage, as opposed
to an actual wall during the construction phase. The same principle applies
to websites.
2. Don’t be seduced by technology. A website that is well thought-out and
easily navigable will always outperform the latest technology in the long
run. Hot technology features should be integrated only if they serve the
needs of the site. Don’t feel that you need to include the latest feature du
jour just because everyone else is doing it.
3. Get buy-in from all stakeholders. Too often we see one person (or
division) within an organization pushing for a website overhaul without
seeking a buy-in from their colleagues. Website redesigns are an enormous
investment of time, and the late entry of a key decision maker always
undermines the intentions of the group. Anyone worth getting feedback from
at all should be involved during the planning stage.
4. Consider the writing on the wall. Seek feedback from your customers about
what is and is not working on your existing website. Send out a
questionnaire, conduct a phone interview, or make a few house calls…
whatever it takes. You should hear what the people who use the site are
saying.
5. Guarantee freshness. One of the biggest challenges with any website is to
keep the content fresh and encourage repeat visitors. Plan specific areas on
the site that can pull feeds from your blog (you do have a blog, don’t
you?), along with designated areas that can be updated seasonally. This
flexibility will allow your site to evolve naturally over time without
changing its fundamental structure.
6. Be memorable. Our philosophy is that websites should give something back,
rewarding the visitor with every click. That means turning the ordinary into
the extraordinary. This can be an interesting navigational element, a splash
screen to set the tone, or simply the way the content is written. If people
are looking at your site, they are probably also looking at your
competitor’s. Be better.
7. Plan to promote from the beginning. If you don’t tell people about your
new website, trust me, no one will ever hear about it! We have seen the
greatest sites launch, draining all their budgets in the process, only to
see no results. A detailed marketing plan will enable you to create
innovative promotions that will drive traffic towards the new site.
8. Search and succeed. The best websites are ones making effective use of
search engine optimization practices. This elusive art is something that
should be considered from the outset, as it can affect the website’s very
content.
9. Hire a professional. Your website will likely become your most important
marketing tool. That’s why you should interview the most qualified team to
lead this initiative. The best way to evaluate their work is to see their
websites, and speak to their clients.
Following these steps will ensure that your investment of time and money is
successful, generating income for you and interest for your audience.
This tracker has been compiled from external sources and
does not necessarily reflect the views of the company.
Links provided will take you to the full articles appended at the end of
the file.
© 2008 Zenith Optimedia.
1. Linkedin.com ropes in NetworkPlay to monetise Indian traffic
Apr 02
Agencyfaqs
The US based business networking site, Linkedin.com, is gearing up to earn
more advertising dollars from the Indian market, which contributes about 60
million page views per month and has more than one million unique users from
India.
It has appointed NetworkPlay, an online ad network backed by Goosefish Media
Ventures and Capital 18, to exclusively represent it in the Indian market
and get advertisers for the site.
“The portal has already roped in Airtel and Citibank as advertisers and it
will target advertisers across automobile, FMCG, consumer durables, telecom
and technology sectors,” Rammohan Sundaram, founder and chief executive
officer, NetworkPlay, tells afaqs!.
He adds, “Only brand related campaigns will be offered to advertisers and
they will not be able to carry out lead generation campaigns.”
Advertisers will be allowed to target and reach consumers based on the type
of industry and work they are engaged in. Advertising options ranging from
video ads to text and banner ads will be made available to the advertisers.
In banner ads, the advertisers can choose between static, rich media and
expandable banners.
It is interesting to note that the cost per thousand ad impressions (CPM)
for regular banner ads on Linkedin.com is much higher than the social
networking sites.
According to an industry estimate, Linkedin.com charges between Rs 400-500
per thousand banner ad impressions, while CPM rate for banner ads on social
networking sites such as Facebook.com and Orkut.com are Rs 130 and Rs 118,
respectively. The CPM rate for banner ads on BigAdda.com is Rs 110.
Brijj.com, the business networking portal in India owned by Naukri.com,
still does not offer advertising on its site. Speaking to afaqs!, Hitesh
Oberoi, chief operating officer, Info Edge, says, “We are not planning to
monetise our traffic in the near future.” The website claims that it has
more than 1.5 million registered users.
Linkedin.com has more than 38 million registered members worldwide.
2. People Interactive outsources ad sales to AdMagnet
Apr 02
Agencyfaqs
AdMagnet Select, a part of DGTL Media, will handle the ad sales function of the various websites owned by People Interactive -- Shaadi.com, a matrimonial portal; Makaan.com, a real-estate portal; Fropper.com, a social networking portal; an astrology website named Astrolife.com and Shaaditimes.com, a wedding related site.
DGTL Media runs an ad network named AdMagnet, which ties up with advertisers and publishers. It also has a separate arm named AdMagnet Select, which handles the ad sales function of various websites on an exclusive basis.
According to the deal, the ad sales team of AdMagnet Select will exclusively
represent the People Interactive group and approach advertisers directly to
sell ad space on the sites at premium rates.
Previously, the group used to sell advertising inventory on its various sites through its own ad sales team, present across Mumbai, Delhi and Bengaluru.
People Interactive earns the majority of its revenue through the subscription and listing model, while 8-10 per cent of its revenue comes from ads on the websites. In an e-mail response, Anupam Mittal, chairman and managing director, People Group tells afaqs!, “We are targeting to earn 15 per cent of revenues from advertising on our sites over the next two years.”
“More than 200 million ad impressions across all the sites will be available for advertising,” Ratish Nair, co-founder, DGTL Media tells afaqs!
He adds, “In case the ad sales team is not able to fetch or fill the total number of ad impressions on premium rates, it may use the ads gathered from its own ad network to fill the remaining inventory.” Banner ads, ranging from static to rich media, will be offered to advertisers.
Nair disclosed that the company is also talking to six or seven websites to exclusively handle their ad sales function.
People Interactive will share a part of the revenue earned through
advertising with AdMagnet. Although Nair declined to talk about the revenue
sharing part of the deal, industry observers point out that usually, ad
networks keep about 40 per cent of the advertising revenue earned through ad
sales.![]()
3. Idea Cellular takes its democracy campaign online
Mar 26
Agencyfaqs
Idea Cellular has extended its recent television commercial, which shows
a politician asking for public opinion before finalising a development
project, to real life. The MyIdea campaign uses the Internet, TV and radio
media to engage people, demonstrate the power of collective decision making
and the usability of mobile phones in that process.
A website, myidea.co.in, has been created, which allows users to raise or
submit questions related to issues in their cities or districts, politics,
society, economy, entertainment and sports in 150 words. Users are also
allowed to upload pictures to support their questions and can forward the
questions submitted by them to their friends.
Users are also empowered to garner support and votes for their ideas. A user
can also submit his vote on questions raised by others.
Ideas such as ‘Criminals shouldn’t stand for elections’, ‘Should LK Advani stop his online campaign?’, ‘Save the girl child’ and ‘Ban plastic bags’ have been entered by users.
Within three weeks of its launch, the website claims that a total of 1,29,758 votes have been received for 1,806 questions raised by users, with 755and 479 questions submitted under the politics and society categories. The website has received 3,06,896 page views.
The Lintas Media Group, in association with Pinstorm Technologies, has
conceptualised and managed the creative, media planning and technology part
of the campaign.
Speaking to afaqs!, Mahesh Murthy, chief executive officer, Pinstorm, an
interactive agency, says, “Idea Cellular wanted to demonstrate the
participative democratic process in reality and that’s why we were briefed
to develop an interactive application or website which will engage and
enable users to submit their opinions.”
A spokesperson from Idea Cellular tells afaqs!, “In a mobile market, where the call rates offered and the technology available to all mobile operators are almost similar, Idea wanted to differentiate its communication from the other players. That’s why, it has opted for the participative decision making route to demonstrate the efficient ways of using mobile telephony.”
He adds, “Idea Cellular is not doing the campaign for any social cause. The website has been created to amplify the communication put forward by the current television commercial.”
Apart from the website, the mobile operator is also using TV and radio platforms to engage users with the MyIdea campaign.
Idea Cellular has tied up with TV news channels such as Zee News, STAR News, CNBC Awaaz, CNBC, NDTV India and NDTV 24x7, and FM radio stations such as Radio Mirchi, Radio City, Big FM and My FM to execute the campaign.
Every day, the news channels pick up a topic and ask a question on the
same. Viewers are requested to vote and send in their replies via SMSes. The
results are announced on the news channels at 8-9pm.
On radio, radio jockeys ask a question of the day and invite listeners to
call and discuss the issue.
Sathyamurthy NP, president and chief operating officer, Lintas Media Group, tells afaqs!, “Everyday, 18,000 people participate on TV, while 3,000 people take part in the MyIdea questions through radio.”
Idea Cellular is using search engine marketing (SEM) and display
advertising across all major portals such as Yahoo! and Rediff to promote
the MyIdea website. It has even developed a special application for iGoogle
and will launch MyIdea applications on social networking sites such as
Orkut.com and Facebook.com as well.
![]()
4. Yahoo! India eyes growth through verticals
Mar 23
Agencyfaqs
In the last three months, Yahoo! India has launched three new verticals on lifestyle, travel and elections. The idea is to increase the affinity among the audience through the specialised content.
In fact, Yahoo! India is focusing on several similar verticals. In the last three months, the company has also revamped three of its existing verticals on finance, movies and cricket.
In an exclusive chat with afaqs!, Nitin Mathur, director, marketing, Yahoo!
India, says, “We are looking at some serious money through these verticals.”
“Some huge monies is flowing into the media, be it TV, print or other traditional media formats. We also hope to get a share of it through our special elections vertical,” he adds. The vertical on elections has been conceptualised keeping in mind the upcoming general elections. It hopes to extensively cover the general elections this year.
Similarly, the horizontal portal has also started a new microsite on the Wills Lifestyle India Fashion Week, which has exclusive content from the event. The company has already got Wills Lifestyle on board as the main sponsor and hopes to bring in a few other lifestyle brands as advertisers.
In the recently launched Lifestyle vertical, Yahoo! has packaged and clustered the scattered content from different sections onto one platform.
Mathur believes that these niche verticals will pull in advertisers from the specialised segment – the same way as it happens in the print media.
However, Mathur agrees that the biggest challenge is to draw the FMCG advertisers. He thinks it’s more of a perception issue among brand owners that they stay away from the digital media.
The other factor that keeps the advertisers away from the digital media is the absence of tools to measure the return on investment, as it happens in the traditional media such as print or television. He adds that once these tools are in place, advertising money on the online media could see a jump.
Mathur further adds that Yahoo! India is ready to invest in this area and
educate the advertisers. ![]()
5. Interactive Avenues becomes certified Google Analytics agency
Mar 20
Agencyfaqs
Interactive Avenues, a digital marketing agency, has become a certified Google Analytics Authorised Consultant (GAAC).
Interactive Avenues claims that it is the second agency after Communicate2, a search marketing agency, which has got GAAC certification in India.
This certification implies that Google has verified that the digital agency is proficient or has expertise to use Google Analytics, a free tool to track and analyse the performance of display and search marketing campaigns.
For the uninitiated, getting the GAAC certification is a long process. A few
employees of the agency have to clear an exam conducted by Google to test
the usage of Google Analytics.
Apart from the exam, the agency has to submit case-studies or details of three different paid clients for which Google Analytics has been deployed at an advanced level. Google can contact these clients to scrutinise and get their feedbacks on the implementation of Google Analytics on their campaigns by the interactive agency.
After passing the exam, the employees, along with a senior member of the agency, have to appear for an interview with Google, where questions related to the usage of Google Analytics and the vision of the agency to use the tool are evaluated.
Google awards the GAAC certification to the agency only after clearing the exam and the interview, which usually takes more than six months.
Several digital agencies, including Interactive Avenues and Communicate2, use Google Analytics on many of their clients. What is the benefit that agencies get after getting this certification?
Speaking to afaqs!, Amar Deep, vice-president, Interactive Avenues, says, “GAAC certifies and reinforces the fact that the agency has the expertise in Google Analytics and it can implement and help its clients in analysing the performance of their campaigns in a better way compared to other agencies.”
Vivek Bhargava, chief executive officer, Communicate2, says, “The certification authorises the agency to charge an implementation and consultation fee for offering Google Analytics services.”
According to the details mentioned on the Google Analytics website, the GAAC certified agency gets listed on the Google Analytics Partner page. Google provides technical support for Google Analytics and offers client referrals to the listed agencies through the Google sales teams. The agency also gets invitations to attend annual GAAC summits at Google offices and Google provides access to the exclusive GAAC web forum to share ideas and technical tips with Google and other GAACs.
6. BCCL eyes additional revenue from online video advertising
Mar 17
Agencyfaqs
Bennett, Coleman & Co. Ltd (BBCL) the publishers of The Times of India is eyeing the online medium to earn additional revenue from the video content produced by its TV channels.
It has set up an online video arm, called Times Audience Network, which will pick up some of the video content from its TV channels and package it for online consumption. Times Audience Network is actually a rebranded version of the Zoom Audience Network, which offered video content online from Zoom TV.
“Apart from Zoom TV, video content from various channels and companies such as Times Now (news channel), ET Now (business news channel to be launched soon) and Times Music (music company) will also be offered online,” Sameer Pitalwalla, head, digital, Zoom Television, tells afaqs!.
The online video content developed by the group will be distributed through the content syndication route. TOI has tied up with 40 websites and will provide free upload of its video content on these websites.
Apart from its own network of websites, portals which have entered into partnerships with Times Audience Network include BigAdda.com, Cinecurry.com, Smashits.com, Erosentertainment.com and Chakpak.com. Websites can pick up any number of online videos and upload these on their portals.
Times Group will use online video advertising to monetise the video content made available to its partner sites. Pitalwalla says, “We have set up our own ad sales team which will get advertisers for the video ads. Our partner websites can also sell online video advertising inventory. In both cases, the advertising revenue will be shared between the website which will host the videos and Times Audience Network.”
Video advertising options such as pre-roll, mid-roll, post-roll and overlay video ads and branded skins will be offered to advertisers.
Times Audience Network has already roped in 15 advertisers such as HDFC, Tata Sky, General Motors and Travelchacha.com.
The size of the online video advertising market is estimated to be Rs
30-35 crore.
![]()
7. Search for Gandhi and discover Advani
Mar 16
Agencyfaqs
If you happen to search for the Congress president, Sonia Gandhi, on Google, the landing page with results on Sonia Gandhi will also display a message by the Bharatiya Janata Party (BJP) – “Do You Know Why Advaniji is a better leader, BJP a better party? If you don't, visit Lkadvani.in.”
This message is a part of the search marketing technique adopted by the BJP for many political leaders. The political party has used search marketing and contextual advertising tools on Google (AdWords and AdSense) so that whenever anyone searches for Sonia Gandhi, Rahul Gandhi, Manmohan Singh or even Mayawati, the landing page will have sponsored links from the BJP.
For instance, when you search for Manmohan Singh, the sponsored link on the
landing page says, “Do you share the dream? 21st Century India's Century,
Advani for PM – Lkadvani.in.”
This strategy is also called brand-jacking on Google.com. The BJP has actually bought 850 keywords, including the names of its rivals such as Sonia Gandhi, Rahul Gandhi, Manmohan Singh, Mayawati, Congress and Samajwadi Party to run search ads on Google.com.
“Already 619,695,254 ad impressions promoting the LKAdvani website have been served on Google.com and its network of sites since the inception of the campaign on January 2,” Prodyut Bora, chief, IT, BJP, tells afaqs!.
Speaking to afaqs!, Ansoo Gupta, head, global business, Pinstorm, says that
the practice of purchasing keywords related to the competition is not new in
the world of search marketing.
A Google search for ‘Taj Hotel’ results in sponsored links of ‘Oberoi Hotels’. Similarly, a search on Go Air leads to sponsored links related to Jetlite.com and SpiceJet.com, the rival airline brands.
However, a Google search on Jet Airways only generates sponsored links for JetAirways.com. JetaAirways.com is registered as a trademark. If an advertiser owns a trademark on its name or brand, it can ask Google.com to block the usage of its trademark keywords by its competitors. A complaint can also be filed with Google in case any advertiser uses a particular keyword owned as a trademark by its competitor.
“Usage of keywords such as ‘Sonia Gandhi’, ‘Rahul Gandhi’ and ‘Congress’ implies that these words are not registered as trademarks and that’s why the BJP is exploiting and capitalising these keywords in their SEM campaign,” says an industry observer.
Interestingly, the US President, Barack Obama, owns copyrights on his name.
It seems that search marketing strategy will work for BJP, as the search volume patterns derived via Google Insights for Search, clearly indicates that ‘Sonia Gandhi’ and ‘Rahul Gandhi’ keywords received 1.5 times more searches than LK Advani.
This means higher number of searches for Sonia Gandhi and Rahul Gandhi can help BJP to drive traffic to the LK Advani’s website. Bora claims that on an average basis, LKAdvani.in receives 20,000 unique visitors daily.
Google.com is managing the SEM campaign of BJP.![]()
8. Komli launches an online media planning tool
Mar 12
Agencyfaqs
Komli Media, which
launched Vizisense.com, a free online audience measurement tool in December
2008, has now extended its utility to incorporate an online media planning
tool called Media Mix.
So far, under online audience measurement, Vizisense.com allows anyone to
type in the name of a website and extract demographic and geographical
details of the users of that website in India. It provides details related
to page views, unique users, age, gender, marital status, income, Internet
usage pattern, education and the regions from where the users logged on to
the particular site.
Now, using Media Mix, a media planner will also be able to find out a
relevant set of websites, where the client’s campaign can be executed, based
on the target audience.
To use the tool, a media planner has to specify various audience-related
parameters, such as age, gender, income, education and location. Based on
these parameters, the tool will extract a list of relevant sites, where the
specified target audience is available. For each of these sites, Media Mix
also reveals the number of unique users, page views and percentage of reach
among the target audience specified by the media planner.
To extract these traffic-related details for various websites, Komli Media
has established a representative panel of 15,000 members across India. These
members download a special application on to their computers, which records
their Internet surfing habits. and thus, helps Komli Media to collect
traffic related data across websites. The traffic details extracted from the
panel are extrapolated to make them representative of the overall Internet
audience in India.
Besides, the company has also tied up directly with various websites in
India, such as ZeeNews.com and Jeevansathi.com, to find out about their
traffic details. Publishers can insert a special software code in their
website, which allows Komli Media to track visitors’ details.
Speaking to afaqs!, Prashant Mehta, chief operating officer, Komli Media
says, “Media Mix will be offered to media planners for free for three to six
months. Later, the company will sell it on annual subscription basis.”
Mehta claims that the tool has been conceptualised after consultation with
various online and offline media planners in India.![]()
9. Red FM takes Bajaate Raho Awards out and about
Mar 25
Agencyfaqs
Red FM is known for the hard hitting outdoor campaigns around its theme, Bajaate Raho. The radio company has now used the outdoor medium to promote its annual event, Bingo! Red FM Bajaate Raho Awards 2008. The awards celebrate ‘mediocrity’ in fields such as Bollywood, music, cricket and television, and ‘empowers’ people to get back at those who have caused them irritation over the last year!
Commenting on the awards, Abraham Thomas, chief operating officer, Red
FM, says, “Bajaate Raho Awards set off on a high note last year with the
awards being aired on TV for the first time. We are now back with these
awards to engage, entertain and enthral our listeners.”.
The campaign, titled Bajaaney ka mausam aa gaya, is created by O&M and
consists of three colourful yesteryear-type film posters, one with a girl
collecting eggs from a tree, another showing a boy picking a tomato from a
farm and a third featuring a girl taking in the ‘chappal ki barsaat’ (shower
of sandals). The campaign has been launched in Mumbai, Delhi and Kolkata.
The outdoor formats used include hoardings, bus backs, seat backs of BEST buses, bus panels, bus shelters and gantries. Ambient media was also effectively used with branding in malls and multiplexes; the interiors of gold cabs; BEST bus grab handles; and flyers, posters and forms.
Discussing the creative idea behind the campaign, Anuj Singh, national marketing head and station head, Mumbai, Red FM, says, “In the fourth year of its inception, we want to tell our listeners through our concept that the annual honour for flop stars is back.
“Thus, with Bajaaney ka mausam aa gaya, we are saying that it is ‘that’
time of the year when you get to ‘bajaao’ (take revenge on) all those who
have caused you grief over the past year. Our creatives have originated from
this thought.”
The posters, designed along the lines of old film posters, are in line with
the theme. The idea was to use illustrations to break clutter and capture
the essence of the campaign. Since Bajaate Raho Awards are intended to be
light-hearted and fun, the creatives needed to reflect this thought. Thus,
the agency came up with the idea of using eggs, tomatoes and chappals as
means to ‘felicitate’ the esteemed nominees.
Commenting on the extensive use of outdoors, Singh says, “Today, consumers spend more time travelling than ever before and this makes outdoor an extremely powerful medium with better reach and cost efficiency. Radio being a local medium, outdoor can garner a high degree of visibility that caters to a local audience, thus acquiring higher number of eye balls, and in effect increasing the impact of the campaign.”
In addition to the outdoor campaign, there is also an interesting lineup of on-ground activities in each city. One of the activities at malls and colleges invites people to choose their nominations out of the list by throwing eggs and tomatoes at them. To ensure further visibility and participation, forms containing the nominations are also being distributed at all major stops, inviting people to SMS their votes to Red FM.
Singh adds, “The objective of the on-ground activations is to engage with our listeners at the ground level and empower them to express themselves through our radio station, which is the essence of the awards.”
Other prominent media being employed include radio, print and digital in the
form of web mailers.
Commenting on the association of Bingo! with the awards, VL Rajesh, head, marketing, ITC Foods, says, “We are extremely pleased to be associated with Red FM’s Bingo! Bajaate Raho Awards for two years in a row. Arguably one of the most differentiated awards that exist in India today – the awards are hilarious, real and reflect public opinion. They are just the right fit for our brand.”
The media campaign will span over two weeks and the final culmination will be a grand awards ceremony in Mumbai on March 27. It will feature the witty Suresh Menon in his many hilarious avatars, Dr. Hoezay, other celebrities and star Red FM RJs Malishka, Nitin and Mantra. The awards will be aired on Sony Television.
This year, Red FM brings 11 hilarious categories, with four nominations in each vying for the Bajaate Raho Awards trophy. While sarcastic categories such as ‘Sabse zyaada mehnat karnewala music director’, ‘Ajeeb-o-gareeb harkattein’ and City Special awards have been repeated, there have also been some new additions such as ‘Yeh judge kaise ban gaya’ and ‘Best on-field dramebaaz’, based on some of the important ‘achievers’ of the year 2008.
For the record, Red FM’s flagship event property, Bingo! Red FM Bajaate
Raho Awards, has already won two awards for New Event Property of the Year
and Event/Property of the Year by a Radio Station at the WOW awards for
Events and Experiential Marketing.![]()
10. Pepsi’s Nimbooz’ outdoor campaign attracts parched throats, and eyes
Mar 20
Agencyfaqs
Summer is here and so are the soft drink launches and their campaigns. PepsiCo India has recently launched its packaged ‘nimbu paani’ or lemon water, ‘Nimbooz by 7Up’. Inspired by fresh, homemade nimbu paani, PepsiCo claims that Nimbooz contains real lemon juice with no fizz and no artificial flavours.
Nimbooz comes in three packaging formats of 200 ml returnable glass
bottles (RGBs), 350 ml PET bottles and 200 ml tetra packs, priced at Rs 10,
Rs 15 and Rs 10 respectively.
To introduce the beverage, as part of the teaser campaign which kicked off
on March 15, an 18-foot tall wooden lemon squeezer with a four-foot lemon
replica in it was placed outside various malls and junctions. The message on
it read, “Asli Refresher Coming Soon”. This innovation was executed at Ambi
Mall, Gurgaon; Great India Place, NOIDA; Court Chowk, Amritsar; and Fun
Republic Mall, Chandigarh. For the revealer, the lemon was replaced with a
20-foot high Nimbooz bottle on March 18.
The teaser in Mumbai was spread across five days. For this, a knotted
gunny bag stuffed with lemons was mounted on a canter at Mahim Causeway. The
message on the sack read, “4 Din Mein Asli”. Day 2 saw an untied sack with
lemons scattered around it and a similar message, with the number of the day
changed. The sack got shorter for the next two days and on the fifth day, a
returnable glass bottle (RGB) of Nimbooz appeared on the canter.
Portland Outdoor, which is part of Kinetic Worldwide, worked along with
Symbiosis Advertising to execute the innovation at Mahim Causeway. Mangesh
Borse, chief executive officer, Symbiosis Advertising, says, “Mahim Causeway
is the perfect location to create buzz about Nimbooz. Though the sack
innovation has been placed on a canter, the lighting has been done to ensure
that only the sack is clearly visible during the night. Innovations like
these will give reason to clients to advertise in the time of economic
slowdown."
Another innovation was creating a motorized 2D squeezer on a hoarding to demonstrate how nimbu paani is made. A lemon replica was placed between two panels of the wooden squeezer. The upper portion of the squeezer comes down, crushing the lemon placed on the lower panel and drops of lemon juice fall from the squeezer into a Nimbooz bottle placed on the lower portion of the hoarding. This innovation can be seen at Defence Colony and Vikas Puri in Delhi, Bhandari Bridge in Amritsar, Hazratganj in Lucknow and Bhagwan Talkies in Agra.
Besides, Pepsi has used three JC Decaux shelters at Janpath, SP Marg and Patel Chowk in Delhi innovatively, by placing a four-feet high Nimbooz bottle inside the MUPI unit with lemon replicas.
Hoardings with huge cut-outs of the Nimbooz bottle can also be seen at various locations in Mohali, Dehradun and Meerut.
With this campaign, PepsiCo decided to focus on North and West India, because of the high consumption of nimbu paani in these regions during summers. The outdoor campaign that is spread across this month has been ideated and executed by creative agency, BBDO Delhi and specialist outdoor agency, Portland Outdoor.
Alpana Titus, executive vice-president - flavours, PepsiCo India tells
afaqs!, “Our product will appeal to consumers across all age groups. In
spite of the presence of a mushrooming carbonated soft drink industry,
homemade nimbu paani is still preferred by many across the country. We are
not pitching our product against the homemade nimbu pani, but offering a
drink that is as healthy and hygienic. The proposition of the Indian
refresher perfectly captures the mass appeal of this product and will
certainly drive consumer connect. We have used outdoor as an eye-catching
reminder to drive buzz around our campaign.”
Manoj Deb, executive creative director, BBDO says, “In times of tough
competition, branding needs to stand out and this is where outdoor media
helps, by making the communication as big as possible. Lemon is central to
the idea of Indian refreshment and the same thought goes in the making of
Nimbooz. We decided to keep the brand proposition simple, yet appealing, by
dwelling on the authenticity of Ekdum Asli Indian Nimbu Paani.”
Madhuri Sapru, managing partner, South Asia, Kinetic feels that the beginning of the summer season is the correct time for soft drink advertisers to connect with their TG. "The idea of drinking a cool refreshing Nimbu paani will be welcome to one and all in summers. Ambient media works well in this case, because it empowers the TG by giving their mind and eye the option to pick what is powerful", she adds.
PepsiCo has drawn up an intensive consumer activation campaign to market Nimbooz. The 360 degree marketing communication plan will revolve around building awareness through multi-city launches and road shows, comprehensive 3D activation and leveraging radio and press.
Complementing the on-ground initiatives is the TV commercial, which reflects Nimbooz’s ‘Ekdum Asli Indian’ proposition. Aggressive trial generation and sampling initiatives will also be undertaken in major cities. A special ‘Nimbooz Highway Gaadi’ has been created, which will visit the four major highways connecting Delhi to Jaipur, Dehradun and Agra, to drive trials and consumer education.
The size of the largely unorganized nimbu paani market is 1 billion
cases, which is double the size of the carbonated soft drink industry in
India.![]()
11. Hype Integracomm inks deal for grab handles in Mumbai local trains
Mar 13
Exchange4Media
After successfully launching the Smile TV network in western route of local trains in the financial capital, OOH media company Hype Integracomm has inked another deal with Railways in the same route to put up designer grab handles in Mumbai’s trains.
Hype has won a five year contract to put up these handles in the trains
run on the western route (WR). While exploring a very innovative advertising
medium, this will also bring in hefty revenues for the railways.
To start with, Hype installed the handles in three WR trains, but the good response from advertisers and commuters has egged it on to install these in all the trains of WR.
Each compartment of the trains will have about 125 handles, which is 40 handles more than the current number of metal and wood handles. About 67 trains of WR will have these handles installed over the next couple of months. Hype is investing nearly Rs 10 crore for the entire project.
Jignesh Sharma, executive director, Hype Integracomm, tells afaqs!, “The attractive ad space of each of these designer handles is 7x 3.5 inches on both sides. Advertising on these handles, say for a month for a whole train, could cost an advertiser anywhere between Rs 1.5-2 lakh.”
Hype has also won contracts to install similar handles in trains of central
route (CST to Kalyan), BEST buses and has installed these in the local buses
in Bengaluru.
Through this deal, the railways will earn substantial revenue and also be able to offer a comfort feature to the commuters by way of the designer handles. The new handles are made of polycarbonate, which is as tough as iron or steel, and have specially designed finger grooves for a better grip.
The handles have a smart design and give a cheerful, vibrant look to the compartment when they display uniform images of the advertisement on top of these grooves. Commuters have welcomed these sleek, comfortable handles in the place of the hard iron handles.
One of the first advertisers on board for these handles was Hindustan
Unilever Ltd. (HUL) –with its brands, Red Label tea and Knorr Soups, in the
first two trains. Other brands such as Century Ply and Max New York Life
Insurance have followed suit.
Commenting on this new medium, Sharma says, “Railways is the lifeline of this city. About 7.77 million passengers travel daily by train and each train carries about 75,000 passengers daily. The journey time generally varies between 20-100 minutes. Advertisers will be able to reach these consumers for the average journey time. Grab handles is the medium that is closest to the eyeballs and offers a very high brand recall value. Thus it’s a win-win for everybody.”
Hype Integracomm is one of the growing OOH (out of home) media companies in India, owning media assets in Mumbai, Bengaluru, Hyderabad and Pune. Hype owns all the media assets that it markets and follows the BOT (build-operate-transfer) model in conjunction with the local governing bodies.
12. Laqshya Media works on strengthening backend operations
Mar 17
Agencyfaqs
With the economic slowdown hitting all businesses, including OOH media companies, some of them have resorted to cutting costs, and offering better deals and packages for advertisers; while others have decided to focus on strengthening backend operations.
Laqshya Media is focusing on improving its designs with a design unit. It
also launched a research unit towards the end of 2008, which operates on
inputs from outsourced professional field survey teams. The design unit has
18 full-time professionals, including product designers, graphics designers
and engineers. This group is supported by a project management team.
Overall, the two units have engaged more than 30 people on full-time basis. “We see this as a major investment initiative in adding significant value to the Laqshya enterprise,” says Indrajit Sen, president, projects, Laqshya Media.
The research unit engages in audience and media research and focuses on determining audience delivery, both quantitative and qualitative, at Laqshya’s sites in each city. It has also developed proprietary tools for optimised location planning and for optimal selection of sites, where multiple choices exist for a buyer. Besides, the research unit tracks and monitors usage of outdoor advertising opportunities by brands in 20 cities across the country, both by quantity and value. This is done on a monthly basis.
The design unit works on developing better structures, engineering designs, material, aesthetics, adherence to standards, optimal illumination, cost optimization, motion displays and new and innovative formats. It works on innovative displays on specific briefs for clients, but not on general advertisement designs.
Sen informs that the design unit has contributed hugely to the air-conditioned bus shelters that were installed in Dubai, which incidentally, is a global first. “Nowhere in the world were air-conditioned bus shelters installed before this, and that is a major feat, considering the ambient temperature in Dubai is around 55 degrees Celsius. This unit contributes hugely to all our projects.”
He adds that the research unit has just been set up; however, Laqshya is already seeing results from the better preparations that this unit is enabling.
Laqshya is viewing the economic slowdown as an important time to strengthen the backend. Sen says, “We also felt the need to establish these functions as a result of our periodic benchmarking sessions, where we benchmark our working processes and results against global leaders in the business. This is done as a conscious and rigorous exercise periodically, to ensure that we stay on the cutting edge and completely updated on global events that are shaping this industry for the future.”
Discussing the investments in setting up these units, he points out that right-minded people with specialized competencies and proven, high-quality skill sets don’t come cheap; and then, they need correct tools to work with, which also come at a hefty expense. So, Laqshya has invested quite a bit on both these functions.
In these tough times, the company is also rationalizing and right-sizing existing operations and businesses. On the other hand, it is also cautiously and selectively investing in building values that will serve them in good stead in future.
With regard to the slowdown, Sen believes that there is much greater pain in future, particularly in 2009 and 2010. There will be temporary sunshine phases, but the trend cannot be upward for some time now.
He opines, “Too many of the determining factors are outside the control
of our actions. There are enormous weaknesses in our systems, reserves and
process disciplines. So, the gloom will take a long time to lift and well
after major economies first turn around. So, it’s bound to last long and it
would be best to prepare for a long haul.”. ![]()
13. Global trends in marketing-at-retail
Mar 09
Agencyfaqs
At the POPAI (Point-of-Purchase Advertising International) India Chapter, held in Mumbai on March 6, Richard Blatt, president & CEO, POPAI presented his thoughts on the new marketing model and the latest trends in marketing-at-retail.
POPAI, a global non-profit association, is the trade association of the marketing-at-retail industry. It is dedicated to serving its members by promoting, protecting and advancing the broader interests of the industry through research, education, trade forums and legislative efforts. POPAI is now present in 20 countries across the globe, including India.
Richard ‘Dick’ Blatt, president & CEO, POPAI started his presentation for the evening by stating that the industry should come together to bring about consistency in processes and terminologies. He also thinks, “The traditional marketing mix is changing, but no one has finalized what the new model will be yet.”
Blatt went on to quote Elliott Ettenberg, chairman and CEO of Customer Strategies Worldwide, New York and former chairman and CEO of Bozell Retail Worldwide, who said that the days of the four P’s -- product, price, place and promotion -- are a thing of the past; this has given way to the four R’s -- relevance, relationship, responsiveness and repetition.
Current trends in marketing-at-retail
“Consolidation will be the biggest and most impactful of trends,” said Blatt. Many brands are starting to consolidate the marketing-at-retail function and responsibility under one department, instead of these functions being decentralized among the brands.
Other trends include agencies attempting to understand marketing-at-retail for their client’s benefit and sustainability, which took a downturn with the economic recession. Also, manufacturing in China will decrease, with cost being a continuing trend. Brazil, Blatt pointed out, also has some great manufacturing capabilities.
There will also be a growing demand for the medium, as brands move away from network TV advertising. Also, multinational retailers would continue to cross borders. Digital signage, too, is receiving a great deal of attention as a new medium that could be applied at a store.
Blatt also shared the case study of British-based Tesco that competes with Walmart in America. While Walmart’s USP is the discounts it offers across all products, Tesco’s research showed that consumers are price-sensitive to only some products and product categories. Using this information, the chain began to offer discounts only on those categories that consumers are price-sensitive to and effectively maintained price margins on others.
He went on to share excerpts from the TNS Retail Forward report that forecasts 15 trends for 2015, which will redefine the retail business environment.
Top 15 Trends for 2015
The trend state that almost everything, except mega-store chains and formats, will be downsized during the decade -- products/packaging, retail chains, store footprints and living spaces. More people will look for smaller, more personalized spaces -- both to live and to shop.
Another trend will be the ‘glocalization’ of retailing. For many big retailers, the next growth phase will come from segmentation and localization. Big retailers will focus on operating multiple formats and multiple concepts, targeted at specific customer segments, in specific local markets, for specific end-use needs and occasions, while operating in specific shopping modes.
A third trend will be breaking the 80/20 rule. The future of retailing is selling less of more. The traditional rule of thumb that 20 per cent of SKUs equals 80 per cent of sales will no longer hold. In 2015, the other 80 per cent of units will represent an increasing share of the sales and a disproportionate share of the profits. With expanded access, consumers will buy less of what’s “popular” and more of what “suits me”. Retailers, who can figure out how to deliver what niche markets are looking for, will reap the profits.
Another important trend will be the ‘unstoring’ of retailing. It will get harder to answer the question of what a store is. Distribution and marketing models will proliferate. Harbingers include pop-up stores, virtual stores, and retailers partnering with service/experience purveyors, such as spas, cruises and hotels.
Another trend would be the emergence of the consumer as a co-creator, where the line between maker and consumer will blur. Consumers will have almost limitless opportunity to get what they want by participating in the value chain as creator, co-creator, adapter, editor, re-mixer and re-packager.
Another big trend will be ‘power to the people’. Tools and technology will change the balance of power in retailing. Consumers will have almost perfect information access about products and pricing. If they can’t find what they want, they will expect the opportunity to conceive or create it.
Suppliers defending their turf will also be an important trend. Supplier-retailer relationships will be increasingly collaborative, but also increasingly competitive. With the Internet, consumers will have visibility into the full supplier offer -- not just what is on the retail shelf -- emerging as the ultimate consumer-pull strategy.
Other important trends include the ‘unchaining’ of retailing, where size will not equal success. Specialty retailing will be reincarnated by going back to its roots and getting closer to the customer. Next, global consolidation of big box retailers will happen, where one can expect even greater concentration of market share on a global scale.
‘Share of life’ retailing will emerge, where retailers will define themselves by the customers they serve, rather than by the products they sell. The decade will also see the rise of the ‘anchor place’. Like the store of the future, the shopping centre of the future will be closer to the customer. New generation lifestyle centres will offer the ultimate in simplification and convenience to busy consumers.
Exclusivity will escalate, with the proliferation of private brands and manufacturer exclusives across virtually all categories. Retailers will focus on differentiation, versatility, newness and return on inventory investment. A new technological environment will also emerge as a trend, where technology will pervade the living and shopping experiences of 2015. Consumers can expect to shop location-free, via wireless broadband, wireless devices and instant translation.
The value chain of 2015 will also support niche merchandising, down to the location, time and customized individual unit. The final, but important, trend will be the ‘triple bottom line scorecard’, where retailers and suppliers will need to become better global citizens, taking into account environmental and social performance, in addition to financial performance. They should expect to be measured against an expanded set of criteria -- planet and people as well as profit.
The event was organised by POPAI India in association with VJ Media
Works. ![]()
1. Flashed Yesterday: It’s confirmed: IPL 2 stays with MSM
Mar 26
Exchange4Media
After nearly a week of to and fro on the paperwork, the deal between World Sports Group (WSG) and Multi Screen Media (MSM) has been clinched. Even MSM was the frontrunner for this according to many sources in the industry, a foreboding sense of uncertainty was omnipresent on the matter, especially because the deal was once nearly clinched in an out-of-court settlement, which later failed due to BCCI’s rejection of the non-terminable clause that MSM has included in the deal.
Sources close to the situation now inform that the deal has been closed and the telecast rights of the IPL remains with MSM.
Earlier in the week, the Bombay High Court had announced its judgment on the MSM-BCCI case, where it had allowed BCCI to initiate conversation with any broadcaster for the IPL telecast rights. In turn, BCCI had left that side of the negotiation with the WSG. It is learnt that the deal between the two parties is now closed.
As is known, IPL is now taking place in South Africa and would begin on
April 18, 2009. ![]()
2. India’s first HDTV channel Sakshi launched
Mar 20
Exchage4media
Sakshi, a Telugu news
channel claiming to be the country’s first HDTV channel, has started
full-fledged operations. This 24-hour free-to-air channel is promoted by
Jagati Publications of which YS Jaganmohan Reddy, son of Andhra Chief
Minister YS Rajashekhara Reddy, is the Chairman.
The channel was initially named Indira Priyadarshini. According to
Ramakrishna Reddy, Editor-in-Chief of Sakshi TV, it was renamed to cash in
on the popularity of the Sakshi brand of the Telugu daily brought out by
Jagati Publications. This popular newspaper has about two dozen multi-coloured
district editions.
Sakshi TV has entered a crowded Telugu TV news market with about a dozen
Telugu news channels like Gemini, ETV, Teja, TV9, RTV, TV5, and Maa TV
already present, besides the Telugu channels of Doordarshan and Zee TV. “Our
channel stands out because of its cutting edge technology, superb
transmission quality, excellent content and great look and feel,” stressed
Reddy.
According to Reddy, Sakshi TV’s strength also lay in its vast editorial
network. “We have a team of 500-600 correspondents across the State.
Besides, we are also utilising a 1,500-strong reporter network of Sakshi
newspaper. We also have our editorial representatives in Delhi, Mumbai,
Kolkata, Chennai, and Bangalore. We are focusing on real time news, which
has been made possible by the largest fleet of 25 OB vans,” he added.
Sakshi TV airs hourly news bulletins, besides doing current affairs
programmes. The channel has also launched special election bulletins and is
beefing up its poll programming in a week’s time. The channel is being
distributed through cable and DTH platforms. Reddy further revealed to
exchange4media that the Jagrati Group had plans to launch a national English
news channel as well. ![]()
3. NGC India set to launch FX, Fox Crime & Baby TV in 2-4 weeks’ time
Mar 13
Exchange4Media
It would be almost a
year now since National Geographic Channel (NGC) India has been working
towards strengthening the Fox brand name in India. Now with the legal
requisites cleared for the Fox channel brands, FX, Fox Crime and Baby TV,
the three channels would launch in India in the next two to four weeks.
Nikhil Mirchandani, MD, NGC Network – South Asia, said, “The three channels
are in different genres, and also focus on different kinds of target
audiences. In the case of Baby TV, even the model is different since the
revenues are dependent on subscription and not on advertising.”
While FX is a male-skewed channel that would house “risqué, irreverent
content”, Fox Crime, as the name suggests, focuses on the crime genre. The
programming mix of both the channels would consist of properties that are
already popular in India, such as CSI and JAG in addition to new shows.
Mirchandani explained, “The idea is to get shows that audiences in India are
familiar with, so you get the imagery of the channel. The driver shows would
be first run, top-of-the-line properties.”
Mirchandani also spoke on The History Channel’s changed programming strategy
after the channel was rechristened Fox History last year. Mirchandani said,
“We now have 10 to 12 weeks of data, which shows that the programming of the
channel has paid off. The viewership has gone up thrice in our core TG.”
Fox History had seen significant changes in the content line-up, where the
channel even aired movies such as ‘Rang de Basanti’, ‘Mangal Panday’ and
would air ‘Bhagat Singh’. The channel said that the objective was to be more
local and more entertaining. The channel also invested on acquiring
“factual” content in the genres of war, crime, terror and sports. “The
slowdown was in fact the right time to invest, and we went ahead and made
the necessary moves. The upside is that the advertisers have also looked at
it positively and Fox History is now a part of media plans that it was not
earlier. All our efforts are now to see how we can monetise this.”
But doesn’t the airing of Hindi movies blur the content proposition of Fox
History? Mirchandani stated, “We are the only channel in the history space,
and we own that genre. If you can have other history stories told by movies,
then why not the stories from India?”
According to Mirchandani, not only has the channel managed to get more
revenues from the same advertisers for Fox History now but has also managed
to rope in new ones such as Idea, Fiat, Sony TV, MRF and Mahindra & Mahindra
amongst others. ![]()
4. Reuters news to power The Economic Times’ new television channel
Mar 16
Exchange4Media
Today, Reuters announced
an exclusive collaboration with the Times Global Broadcasting Company’s new
business and financial news channel, ET NOW, marking a key strategic
alliance for Reuters in an increasingly competitive financial news
marketplace.
This agreement was designed to unite India’s largest financial publication
and Reuters global real-time content to tell a comprehensive and market
moving story to India’s growing and influential professional audience via
the ET NOW channel.
Thomson Reuters is the world’s leading source of intelligent information for
businesses and professionals. With headquarters in New York and major
operations in London and Eagan, Minnesota, Thomson Reuters employs more than
50,000 people in 93 countries. Thomson Reuters shares are listed on the New
York Stock Exchange (NYSE: TRI); Toronto Stock Exchange (TSX: TRI); London
Stock Exchange (LSE: TRIL); and Nasdaq (NASDAQ: TRIN).
“This is exciting,” said Chintamani Rao, CEO, Times Global Broadcasting.
“The Economic Times is the biggest business media brand in India, and
Reuters is the most respected and trusted brand in business news globally.
Together we will make ET NOW the channel of choice for business news
viewers. Following on the success of Times Now, we will build our next
market leading brand.”
“For more than 150 years, Reuters has been an integral part of India's
marketplace,” said David Schlesinger, Editor-in-chief. “We recognise that
there's a very compelling financial story to be told in India and we are
committed to working with The Economic Times on telling this story in new
and innovative ways.”
“We are delighted to begin this journey with Reuters,” said Ravi Dhariwal,
CEO-Publishing, BCCL. Times Global Broadcasting, Asia’s largest media house.
“With them as our partner, we are sure to make ET NOW the clear,
authoritative and credible voice of India Inc, just as the Economic Times
has been for over four decades.” ET NOW will receive real-time breaking
financial news content powered by dedicated Reuters reporters based in New
York, London and other financial centres, including Frankfurt, Singapore,
Tokyo and Hong Kong.
“This agreement is the latest move in our long standing commitment to
investing in the growing Indian media market,” said Chris Ahearn, President
of Reuters Media. “With the launch of our new consumer Indian website last
year and the enhancements being made to the region specific mobile
applications, we are truly committed to providing the business professional
audience access to our content through a multitude of platforms.”.![]()
1. LED-fitted auto-rickshaws to wheel around NCR
Mar 12
Agencyfaqs
Nyayabhoomi, an NGO working
with auto-rickshaw drivers for the betterment of the public transport system
in the national capital region (NCR), has come up with an initiative called
the ‘Autorickshaw Star Club’ (ASC). Through this initiative, the NGO will
offer auto-rickshaw branding opportunities to advertisers.
The NGO has been working with auto-rickshaw drivers since 2002, to help
address their problems. Around 8,000 drivers are registered with it.
For this initiative, it has tied up with approximately 1,000 auto-rickshaws
for this initiative; and 500 more will be added each month after April.
From the advertiser’s’ perspective, this is a CSR (corporate social
responsibility) activity , as the primary objective is to offer auto drivers
a better living, and provide better services to commuters. Considering that
the Commonwealth Games are round the corner, this is also an effort to bring
about a change in the way people travel in auto-rickshaws.
The NGO, along with its partner, Shades of Yellow (SOY) Communications, a
brand communication agency, has been working on this project for the past
three months. Diya Singhal, CEO, SOY Communications, says, “A part of the
revenue that will come from this effort will be used for providing education
for the children of the auto drivers, and also an insurance cover for the
drivers.”
For starters, the soft top of rickshaws will be replaced with hard tops, the
backs of which will be fitted with a 3 ft x 2 ft LED screen. The sides will
be fitted with 2ft x 1 ft LED screens, and all three spaces will be made
available to advertisers. The initial investment for this will be made by
Nyayabhoomi, which is also looking for partners for this. The cost of
modification per vehicle would be around Rs 8,000-10,000.
ASC will also ensure that the drivers are courteous and properly dressed. To
become part of this initiative, drivers have to register with the ASC,
following which they will also be trained in rules and etiquette.
Branding will be offered on 75 per cent of the exterior and 100 per cent of
the interior of the auto-rickshaw. Inside the rickshaw, brands can place
pamphlets, brochures, and so on in specially created pockets. These
rickshaws can also be used as brand activation points, where semi-educated
drivers could help in the process. For example, for a telecom company giving
away free SIM cards, the drivers could help the passengers to fill the
forms.
Initial estimates suggest that advertisers will have to shell out around Rs
120 per day per auto for the branding. However, a minimum quarterly
commitment for 100 rickshaws will be needed.
ASC is already in talks with telecom, finance, insurance, consumer durables
and other mass consumption brands for this. To start with, Delhi will be the
focus market, but going forward, ASC will try to replicate the same model
across the country. Singhal adds, “This is a great branding idea and may
work well in a number of other cities.”
She adds that while the feedback received has been positive, one fear in the
minds of clients is the maintenance and monitoring of these rickshaws.
However, she assures, “Rickshaw drivers will report to the office once a
week for updates and a report will be given to the client.”.
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13. WOC Advertising bags creative duties for Megamart
Mar 23
Agencyfaqs
Megamart,
the value retail chain of Arvind Brands, has brought Chennai-based WOC
Advertising onboard as its creative agency. The agency will handle the
creative business for the state of Tamil Nadu.
Meridian has been handling the creative duties for the chain across India,
for the past two years. With WOC in the picture, Meridian will continue to
handle the creative duties at all other places, except Tamil Nadu.
Talking about the win, CS Amudhan, managing director, WOC Advertising, tells
afaqs! that the chain's communication was so far restricted to
promotion-driven print advertising. “However, the brand is now looking at
positioning itself and reaching out to the consumers in a better way, for
which they needed a partner, who could cater to their local needs. That's
where we stepped in,” he says.
Ganesh Raman, marketing head, Megamart India, reveals that the most
important thing they were looking for was a local agency that was familiar
with the retail business in the state. WOC currently works with retail
chains such as Textile India, Jainsons and Studio Gessato, a designer wear
brand. In the past, it has handled the creative duties for Highstyle,
Chennai Silks and Jewellery Mahal.
Though the agency has worked and continues to create work for retail chains,
Amudhan understands that Megamart is a totally different brand.
“Retail is undergoing a lot of change, and so is the advertising for retail.
Though garment retail is not as badly hit as consumer durables, overall, it
is a challenging mode right now; budgets are shrinking too,” confesses
Amudhan.
Arvind Brands has an ad budget of Rs 5- 10 crore for this year, of which
approximately Rs 2 crore would be allotted for Megamart.
The media duties for Megamart are handled by Maxus -- the agency won the
account last year. Prior to that, The Media Edge, Rediffusion Y&R's media
arm, handled the media duties for about five years.
Talking about Tamil Nadu as a market for Megamart, Raman says that the state
is an important market and is on the priority list. Approximately 17 stores
are located in Chennai, and 10 more across the state.
Megamart has 125 stores in India, in cities such as Mumbai, Delhi, Bengaluru,
Pune, Kolkata and Chennai. Karnataka is the most important market for
Megamart; the chain has about 40 stores in the state.
WOC has presented its creative for television, print and below-the-line
media, which will be released across Tamil Nadu around mid-April.
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Lite Bite Foods to open 162 outlets
Mar 19
Hindu Business Line
Lite Bite Foods Pvt Ltd,
promoted by Mr Amit Burman, Vice-Chairman of FMCG major Dabur India Ltd,
will be investing Rs 160 crore in next three years to establish a pan-India
network of 162 restaurants.
The Delhi-based company, which runs brands such as Food Union, Fresco, Baker
Street and Pino’s Pasta Pizza, will be rolling out 20 food and beverage
outlets next year in the northern part of the country.
Currently, the company has 38 outlets. “Our capex for the coming fiscal is
Rs 25 crore and we’ll be funding this through internal accrual,” said Mr
Burman on the sidelines of Food Forum 2009.
He said they plan to take their F&B brands overseas over the course of time,
but there are no active considerations.
“We will be opening a Fresco and Baker Street at the Delhi domestic
airport,” he said.
Corporate catering
Lite Bite does not have much presence in the South, but engages in corporate
catering with clients such as Infosys and Microsoft in Bangalore.
“Corporate catering is an emerging business opportunity. A vibrant and
ever-growing business of the corporate catering industry today tends to be
around Rs 250 crore and is growing at a healthy pace of 20 per cent.” ![]()
With IPL 2 moving to South Africa, will radio ad revenues take a hit?
Mar 30
Exchange4Media
After much drama over
the last few weeks, it is now decided. The second season of the Indian
Premier League will now be held in South Africa. So what happens to the
various media partners of the eight IPL franchise? exchange4media asks a few
FM radio players, who are partnering the IPL teams, on what would be the
impact of IPL shifting out of India.
Of course, the decision to shift IPL outside India has left millions of fans
disappointed, who were looking forward to seeing their favourite players –
Indian and international – battling it out. The cities that were to host the
IPL games have also lost out on the hype and revenues. On-ground promotions,
media partners, event managers, local partners – all would be an unhappy
lot.
The second season of IPL is also seeing the various teams roping in radio
partners for team promotions, ticket and merchandise sales, etc. Will IPL
now being held in South Africa adversely impact the radio partners’
advertising revenues?
“Cricket always has had healthy revenues. Now, even though the matches won’t
be played in India, the viewerships would not be affected,” asserted Nandan
Srinath, Chief Operating Officer, Radio Mirchi. He added, “So, basically
other than the venue change, everything else pretty much remains the same.”
He further said that the ad campaigns for IPL would go on air at the FM
station in the coming week.
Anand Chakravarthy, Senior Vice President - Marketing, Big FM, sounded
equally enthusiastic and peppy about the IPL tournament. He said, “Although
we have not finalised a fixed revenue figure, we have already started
working towards the campaigns and various advertising packages. With the
change of venue now, the only difference in terms of advertisements is the
variation in the content that we are going to create. There is a little
ambiguity regarding the dates, but once that is cleared, we will be out with
our ad campaigns.”
Neeraj Chaturvedi, Delhi Station Head, Fever FM, however, admitted that
there would be a significant loss of revenue when one talked talk about the
campaigns built around the sale of tickets. He further said, “According to
me, all the three media – print, television and radio – will miss out on
some revenue with the tournament being played outside India. Personally, I
would have never wanted the venue to be shifted.”
Elections 2009: Political parties tune in to radio in a big way
Mar 23
Exchange4Media
Radio is emerging as a
strong ally for most political parties in their campaigns for the
forthcoming Lok Sabha elections. While it is not known how much of the total
Rs 10,000 crore poll spend would be cornered by radio, it is expected to be
sizeable considering the widespread reach of the medium and the scope for
innovations.
Radio is a localised medium that reaches out to 19 crore listeners (above
the age of 12), and unlike print and TV, where there are time and space
restrictions, radio allows parties to communicate with listeners in their
language.
BJP spokesperson Sidharthanath Singh told exchange4media, “With the poll
panel putting restrictions on the expenditure for campaigns, parties are
looking at less expensive outlets. It is natural for political parties to
use radio channels, which are popular among youngsters.”
He further said, “We have launched our campaigns in 298 constituencies
across the country. Our radio campaign involves 280 FM stations across the
country. We have found the radio to be a very effective medium.”
Fever 104FM, which claims to be the No. 2 FM radio station in Delhi, has
already begun airing the BJP campaign. Neeraj Chaturvedi, Station Head,
Delhi & Mumbai, Fever 104, said, “We are already running the BJP campaigns
and also pitching for the Congress party. I am sure very soon we will air
the Congress campaign as well.”
He further said, “We are expecting radio to have a 10 per cent share of the
political advertisement budget. It is a happy situation for the entire radio
industry as it is being considered as a strong medium of advertisement by
even political parties.”
Praveen Malhotra, Senior Vice President – Sales, Big FM, said, “We are
airing the ‘Jai Ho’ campaign for the Congress and the ‘Majboot Neta Nirnayak
Sarkar’ campaign for the BJP.”
Radio City is also airing BJP’s ‘Majboot Neta Nirnayak Sarkar’ campaign,
which has been on air since March 16. Rana Barua, National Head –
Programming, Radio City, was not available for comments at the time of
filing this report.
My FM did not give any official confirmation on the political ad campaigns,
but did share some different plan of action for the general elections.
Harrish M Bhatia, COO, My FM, said, “We are planning several programmes for
the masses, which are focused on the elections. In an effort to increase
awareness about the responsibility and the right to vote, My FM has
partnered with the Election Commission and each of the 17 My FM cities will
have special vans with officials from the Election Commission in a special
road show to urge people to get their voter ID cards made.”
He further said, “The OB vans will have officials having the complete
infrastructure to get the voters ID card made on the spot. We have also
planned a social initiative called ‘Your Vote Counts!’ to urge the masses to
get actively involved and vote intelligently during the elections. Apart
from that, My FM is planning to invite political leaders to come on air and
interact with the listeners.”
I&B Ministry nod to community radio stations in Ahmednagar, Solan
Mar 14
Exchange4Media
The Ministry of Information & Broadcasting has signed a grant of permission
agreement for establishing, maintaining and operating community radio
stations at Krishi Vigyan Kendra, Babhaleshwar in Ahmednagar district in
Maharashtra. Meanwhile, Himachal Pradesh has got its first wireless
community radio station in Solan district.
A Letter of Intent had been issued to the Krishi Vigyan Kendra on January 2,
2008 after recommendations of an Inter Ministerial Committee and seeking
requisite clearances from various Ministries. The community radio station is
expected to be operational within three months as per the agreement. With
this, the number of community radio stations in the country will go up to
44.
The community radio station to be established at Krishi Vigyan Kendra,
Babhaleshwar is intended to further take the programmes and activities of
the Kendra to a wider farming community and replicate the success stories so
that the benefit of information services increases the livelihood
opportunities for the target community. The Krishi Vigyan Kendra station
would serve a population of over 8.15 lakh.
Meanwhile, Himachal Pradesh’s first wireless community radio station was
launched in Solan district recently. Asha Swaroop, Chief Secretary,
Government of Himachal Pradesh, inaugurated the community radio at MS Panwar
Institute of Communication and Management (MSPICM), Solan. The MSPICM 90.4
FM community radio would cater to an area of 10 km radius from the main
station. This community radio service is the first to be launched in the
state and the 43rd in the country.
It is learnt that there are over 100 applications pending for sanction of
community radio stations across the country.
We should drive people’s habits
Mar 19
Hindu Business Line
A little more than a month after he was announced the new Chief Executive
Officer of Unilever in October 2008, Paul Polman had made his first visit to
India. And that was a visit that he would remember for more than one reason.
For, that was on the infamous date of 26/11. On that very day, he was in
Mumbai, more specifically at the Taj hotel, when it was under siege by armed
terrorists. He, along with his colleagues in the Unilever family, was
trapped inside a room in the hotel for several hours before he was rescued.
On his second visit to Mumbai last week, Polman was more relaxed as he
recalled the first visit and had a word of praise for those who handled the
rescue operation.
During a nearly two-hour interaction with the media, he dwelt on his plans
for Unilever at a time when recessionary winds are blowing across the globe.
He is not daunted by the recession and, instead, believes that the present
economic environment provides the company a challenge and an opportunity to
grow its business. Excerpts from the media interaction:
How do you feel on your second visit to India after taking over as
Unilever’s CEO?
Well, whenever I come to India, I feel energised. I always say that if our
company worldwide did as well as Hindustan Unilever, we would be four times
as big. On my way from the airport, I had the opportunity to visit some of
our stores and a cancer hospital, where our hygiene products are being used.
It was one more opportunity for me to see how important our products are and
how these are improving people’s lives. We will continue to improve our
business here. India is a country of hope, opportunities and progress.
In times of recession, how does Unilever see the market growth in developing
and emerging markets?
We are fortunate that in markets where we are relatively strong, there has
been encouraging growth. For example, in India, Indonesia, Brazil and South
Africa, where we are strong, there has been a good growth — the Indian
market is growing at 5.3 per cent and in Brazil the growth rate is between 5
and 6 per cent. So in these markets, we will continue to build and extend
our brands. In markets where we have a relatively weaker position, such as
Russia or China, where we are not in the number one position yet, we are
looking at ways to accelerate growth. So I see the current economic
environment as an opportunity to grow. Despite the recession in the US and
Europe, I think we can still see growth in our business. Our industry is one
which actually drives the economy.
What would be the share of developing and emerging (D&E) markets to your
total business?
D & E markets continue to play a key role in Unilever’s global operations.
About 48 per cent of Unilever’s global sales are from these markets. As part
of our growth strategy for these markets, we aim to add one billion new
consumers in the next ten years.
How does Unilever see its Indian operations?
Well, I think that the Indian model is a cushion against recession. It will
continue to grow. The first thing we did was to strengthen our three R&D
centres, including the ones in Bangalore and Shanghai. We are emphasising on
research in this part of the world. Research plays a key role, as our
company is driven by innovation. I do not see anything missing in terms of
quality or innovation (in its Indian operations). What we are now trying to
do is to have a better organisation and structure so that we can make bigger
innovations here for faster expansion around the world. For example, we
launched the Axe Chocolate deo in 52 countries simultaneously.
But your food business in India has not had the kind of growth other brands
had in India …
I think there is a tremendous opportunity to expand our food business in
India. In fact, just a little while ago, we had a two-hour meeting to talk
about how to accelerate our brands in the foods category, such as Knorr
soups and Brooke Bond tea. The brands we have in this segment are
tremendously strong. It is not that we need more brands in this category —
all we have to do is consolidate our existing brands.
But consumer habits in India are still not fully tuned to packaged foods.
Will you wait for consumers to change their habits or will you …
No, no. We should drive people’s habits — there is no doubt in that. Knorr
is a good example. It is changing people’s habits for a healthier diet.
People are realising that the product is a healthier way of eating — so we
have to create these habits. Take our Pureit water purifier brand. We are
using India to develop the Pureit brand worldwide. We are looking at a
long-term viable economic model with Pureit that can be extended to other
places in the world. I expect to see more of this in the future. I would
expect us to create tea brands of the future in India for our worldwide
markets.
Do you think the recession has affected consumer spending?
It is like this. Even in times of recession, people may postpone buying a
car or TV, as we are now seeing, but they will not stop shopping for their
everyday needs. So I do not think we will see any significant drop in sales.
We also have a strong portfolio of brands to retain our customers in the
current financial environment. Take our laundry business, for example. We
have brands such as Wheel, Rin and Surf that cover different price points.
Where we have such broad portfolios of brands, we tend to do better, as we
can keep our customers in franchise — the consumer can choose from any of
our brands. And that is what we are trying to create in most countries. That
is what I tell everybody: Do not use the recession as an excuse to tell me
that business goes down.
How are you battling recession?
I am not a pessimist, I am a realistic optimist. I think this recession is
going to be a deep one — it is going to be with us for 24 months or more. We
have not seen the bottom of it yet. I hope I am wrong, but even if I’m wrong
it is better to be prepared. We are going to focus on protecting our cash
flows and operating margins, with emphasis on growing our volumes. We also
are better managing the supply chain — it is important that even if there is
a pressure of credit to supply chain, we do not suffer. Likewise, we need to
watch the retail side — there was the recent example of an Indian retailer
which had to file for bankruptcy. So we have to be careful that the supply
chain works and we spend time on that.
Internally we use the opportunity to get some cost out of the system quicker
than we otherwise would have done. So we took some measures earlier, which
we believe are the right steps to make us more cost competitive. And we used
the money to reinvest in our brands to give the consumer a better value.
Could you give us some examples of the cost-cutting measures?
For example, we have frozen the fixed portion of our salaries, but we are
giving our people opportunities to earn more on the variable side if we grow
our business. So we share the upside and protect the downside.
Similarly, we are negotiating with our suppliers on prices. We are now
looking at global buying of some of our ingredients to get better economy of
scale. We are also cutting travel by 30 per cent and using video
conferencing a lot. We are hiring selectively, but not as much as before to
protect the people who are there. We are making these small adjustments to
be ready for the storm that is coming.
Could you shed more light on your global buying initiative?
Yes. We have looked at some of our products and we discovered that we can go
through more harmonised formulas and harmonised material to get more
benefits of scale. A simple example will be display containers you see even
in stores. Now instead of every country doing its own (buying) we have
decided to buy at the European level. We have appointed a global procurement
officer. These are simple examples of how we can become more efficient. We
have always being doing these, but now we have just accelerated (these
measures). At the same time, let me tell you what we are not doing - we do
not dilute our formulas and we do not cut corners on our packaging.