MxMIndia

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  • Industry executives and experts believe the consolidation trend will pick up momentum in 2012, separating the men from the boys in this highly splintered sector that is being increasingly hobbled by cost pressures and revenue challenges in a slowing economy

    Recent deals point to consolidation in media, say experts

    By Ravi Teja Sharma & Meenakshi Verma Ambwani

     

    Purveyors of news are rarely objects of news themselves, but India’s splintered media landscape has made news in the past two weeks. A flurry of deals or talk of more similar transactions have stirred up the sector in recent days, putting the spotlight on the possible motivations and some crystal ball gazing on what lies ahead.

     

    Last week saw a little-known chemical and fertiliser company Oswal Green Tech buying a 14.17per cent shareholding in New Delhi Television (NDTV) through two block stock market deals. Media reports said Mukesh Ambani-controlled Reliance was looking at buying into Network18, which runs CNBC India. Before him, younger brother Anil’s firm Reliance Capital increased its shareholding in UTV News, which runs Bloomberg TV, by buying out UTV founder Ronnie Screwvala’s 66 per cent stake.

     

    Industry executives and experts believe the consolidation trend will pick up momentum in 2012, separating the men from the boys in this highly splintered sector that is being increasingly hobbled by cost pressures and revenue challenges in a slowing economy.

     

    With more than 700 television channels in India and only few making money, experts believe consolidation in the industry is inevitable.

     

    “Consolidation has to happen. It is required,” said Mr Haresh Chawla, who recently announced his resignation as group chief executive officer of Network18 and Viacom18 after leading the company for more than a decade.

     

    One major problem for the industry is that it has been too dependent on advertising revenues, while subscription revenues have been elusive.

     

    Analysts say some signs of consolidation are already visible, as media companies cobble together bouquets of channels.

     

    “It is already starting to happen and going forward, media companies will look at building a portfolio of broadcast assets across genres, geographies and languages to create a national setup,” said Mr Jehil Thakkar, head of the media and entertainment practice at KPMG.

     

    The move towards regional channels, spread across geographies and genres, is triggered by the high growth in advertising revenues in the segment. Growth in advertising revenues in big cities has been around 12-13 per cent even in good times because of an inventory overhang, while regional advertising has been growing at more than 20 per cent for the last few years, say analysts.

     

    Analysts say this could explain why Network18 may be looking at Eenadu TV. “Network18 does not have any regional channels in its portfolio. This move will give them an entry into the fast growing regional market,” said one analyst. Buying Eenadu TV could give Network18 a bouquet of 11 regional channels.

     

    What may also be attracting new investors such as the Ambanis and foreign media companies such as Walt Disney is the promise of higher revenues and growth as the full benefits of digitalization kicks in. Collateral benefits of media ownership include access to content sources to power non-media business and potentially even some influence.

     

    In the case of Reliance Industries, which is setting up a national 4G broadband service, ownership of a media company will give it an edge over competition, with access to exclusive content from a bouquet of channels as well as web properties.

     

    The Cable Television Network (Regulation) Amendment Act, enacted two weeks ago, could help subscriptions finally become a good source of revenues for media companies, reducing their dependence on advertising. Today, a viewer pays as little as 50 paise to watch an hour of TV. Even this revenue does not reach the channels completely because of under-reporting by local cable operators.

     

    “This (the digitalisation law) will be a game-changer for the television business if well executed,” said Mr Sunil Lulla, managing director and chief executive officer of Times Television Network, which runs Times Now, ET Now and Movies Now channels.

     

    Meanwhile, some deals have already happened in the non-news segment, in anticipation of large changes in the sector. In July this year, Walt Disney Co said it is buying out rest of the 49.56 per cent stake in UTV Software Communications that it does not own from public shareholders and other promoters of the company for Rs 2,000 crore.

     

    “There is clearly a need for sellers to look at strategic investors. For the buyers, in the long term there is value in Indian media,” said Mr Nikhil Vora, managing director and head of research at IDFC Securities.

     

    India’s entertainment and media industry is estimated to grow at a compounded annual rate of 13 per cent to Rs 1,19,890 crore in 2015 from Rs 64,600 crore in 2010, PwC’s India Entertainment and Media Outlook for 2011 revealed earlier this year.

     

    The sector’s woes, notably because of high costs and low subscription revenues, coupled with the general weakness in the markets have cast a dark shadow over media stocks. The market value of NDTV stood at Rs 171 crore on December 21, 2011, the day Oswal Green Tech, formerly Oswal Chemicals & Fertiliser, acquired its stake for around Rs 24 crore.

     

    The company was worth Rs 215.66 crore on January 3, 2012, Rs 552.5 crore at the beginning of 2011 and Rs 3,300 crore at its peak in January 2008. Network18’s market value has dropped from Rs 1,540.7 crore on January 1, 2011, to Rs 535 crore as on January 3, 2012, while that of TV18 has dropped from Rs 2,122.4 crore to Rs 1,220.13 crore in the same period.

     

    The sector trades at price earnings multiple of 18.3 compared with nearly 19 for the telecom sector or 21.43 for the technology sector.

     

    While digitalisation will help increase subscription revenues and remove capacity constraints, it will also aid the process of consolidation in the sector by forcing smaller regional channels into the embrace of larger, pan-India players. Smaller regional channels are enjoying better advertising growth today, but after digitalisation they could face problems in getting themselves well placed in the line up of channels and may feel the need to be aligned with larger players either by selling out or through a distribution deal.

     

    “Larger players with a bouquet of channels will have more bargaining power with cable operators. Smaller channels will find it difficult to get into prime tiers,” said Mr Chawla.

     

    With valuations low, experts feel now may be the time for consolidation. “The overall multiples for media companies have been low for a while. This is a good time to buy. Broadcasting does present a good opportunity,” said Mr Thakkar.

     

    Source: The Economic Times

    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved

  • Online viewers of the new HFZ videos can earn points on the leaderboard and upload their own video to stand a chance to win gadgets or a trip to Spain.

    Airtel’s HFZ campaign goes viral

    Bharti Airtel, a leading global telecommunications company with operations in 19 countries across Asia and Africa, after the success of its ‘Har Friend Zaroori Hai, Yaar’ (HFZ) campaign, has extended this brand idea with the launch of an all new online viral campaign on its YouTube channel (www.youtube.com/airtel).

     

    Created by Taproot, these 20 videos are inspired by interesting ‘friend types’ or tags created by the online audience on Facebook (www.facebook.com/airtelindia) during an outreach programme which had been initiated by Airtel earlier.

     

    Over the coming weeks, the company will periodically release a total of 20 videos on the web and use the concept of ‘Gamification’ to excite viewers to unlock, access and share them.

     

    An interesting trend that depicts the way the current generation consumes and accesses information, Gamification is an infusion of gaming techniques and unique story telling that makes discovery content more fun and engaging. As part of this Gamification-led initiative by Airtel, everyone keen on watching these videos will need to visit www.youtube.com/airtel and will be provided interesting cues, by responding correctly to which they will be able to ‘unlock’ video levels and gradually move ahead.

     

    Commenting on the launch of the new HFZ viral campaign, Bharat Bambawale, Director – Global Brand, Bharti Airtel, said, “The youthful rendition of Airtel’s ‘Har Friend Zaroori Hai, Yaar’ campaign and its accompanying foot-tapping friendship anthem have resonated well with people of all age groups and backgrounds – much like the brand itself. Given the theme itself, focusing on the discerning online audience was a natural choice for us. With this in mind, Airtel launched an online campaign that encouraged everyone to create unique friend types on Facebook which received 65,000 entries in a span of days. We have now chosen the most interesting friend tags like ‘Status Update fried, Activist Friend, Dhinchak friend’, ‘Filmi Friend’, ‘Chipkoo Friend’ and ‘Proxy Friend’ to create new HFZ online viral videos. These videos will follow the increasingly popular global trend of ‘Gamification’ to encourage viewers to spread the word on these evocative videos that bring alive ways in which friends touch different aspect of our lives.”

     

    Tagging others and sharing these videos on social networks like Facebook, Twitter and Google+ will allow viewers to gather points on the leaderboard. And then finally one can upload their own friend type video in order to win a Nokia Lumia 800 and a trip toIbiza,Spainas the grand prize.

     

    A complete deviation from traditional media strategy, Airtel will release these videos on the web starting January 4.

     

    The original HFZ soundtrack is now also available through new interpretations in laavni, bhangra, hip-hop, folk etc.

     

  • As a company, we are keen in doing a more stable business; we hope to deliver quality products with emphasis on strong customer satisfaction, says Bajaj Allianz product development head Rituraj Bhattacharya.

    Bajaj Allianz: ‘Not keen on chasing numbers’

    With the current economic crisis casting a dent on the prospects of certain industries, it is turning out to be a testing phase for many players. Not the one to be spared, the insurance sector too has been jolted by the sudden turn of events. Adding to its woes is the recent shift in policy decisions that have been issued by the government in streamlining the industry, but the industry players are responding positively to the new diktat as it would ultimately mean netting in more customers. One of the players who is doing everything right to face the future is Bajaj Allianz.

     

    As Head-Product Development and Market Management, Bajaj Allianz Life Insurance, Rituraj Bhattacharya is taking the onus on himself in adding new customers but not without doing enough ground work and coming up with solutions tailored to meet the needs of the customers. In conversation with MXM India’s Johnson Napier, Mr Bhattacharya shares the reasons behind launching new schemes and why ULIPs would be a suitable investment option for most customers, especially those from the tier 2 & 3 towns and cities, in the future. Excerpts:

     

    Q: As Head of Product Development & Market Management what are your key responsibilities at Bajaj Allianz?

    It is relatively a difficult time for the industry at large. The new regulation that has come in is customer-centric and has resulted in insurers reassessing their business models. Some of the basic practices that were being followed by retail insurers are being revisited. So it is a period for a lot of consolidation in terms of business models, where players will be forced to develop long-term practices in the organization. A lot of emphasis in our organization has gone in training our work force and preparing them for the future. Once this entire process of training and consolidation is over, we expect better results to come out of the exercise.

     

    Q: How have the insurance players responded to the sudden shake-up in systems and practices?

    The industry is still in a learning phase and therefore the regulations as a practice will also have to keep evolving. It’s part of the ecosystem. I don’t think it’s only the regulator that is to be blamed; there is some amount of uncertainties in the consumer’s mind. Inflation, fuel prices, etc have taken its toll on the consumer. And where the insurance players are concerned, they too have not been able to replenish their product basket. This has led to consumers being exposed to lesser product offerings from the players. All these factors put together have contributed to the current situation.

     

    Q: Despite the decibels, insurance is still perceived as a ‘fragile’ investment option. Why are customers still apprehensive about opting for an insurance policy?

    I don’t think that’s the case. If you see, globally, insurance has been a successful offering. It has survived two world wars and other natural calamities where Allianz has settled so many claims. In India, most insurance players like us are financially very stable. Our capital is high, we have a higher solvency than what the guidelines prescribe, etc. So the issue is not about financial stability, it is about the current economic situation that affects different practices as well. It’s just a matter of time before we overcome this crisis.

     

    Q: What are the investment trends you foresee from the tier 2 and tier 3 towns across India?

    One thing that can be said with certainty is that the insurance penetration is definitely high. Recent studies conducted by IRDA reveal that the awareness levels around insurance products are on the up. People see insurance as a tool, device, instrument that helps them diversify their risks, assets and at the same time get adequate coverage for life. In fact, insurance is the only device which a person with a low disposable income can use to diversify his portfolio. If you see a person with low income around Rs 10-15,000 he finds it difficult to manage his assets around so many different instruments; but he finds it easy to do that within various offerings of a single insurance company.

    In Bajaj Allianz we are happy to cater to the tier 2 and 3 cities. Around 75 per cent of the business comes from these two segments. That’s because we have been able to develop a personal relationship with the consumers from these belts.

     

    Q: Could you share the growth pattern that has been observed at Bajaj Allianz?

    We have consistently added new customers to our portfolio. In the last financial year, we have issued around 2.2 million policies. We have a total customer base of 8 million insurers. We currently occupy a market share of around 2.8 per cent.

     

    Q: Could you elaborate on the objective and need for launching new ULIP schemes recently?

    GMIP is a completely new offering from us. We are trying to cater these offerings to certain new growth pockets where we are trying to offer solutions that suit these segments of the population. As a company, we are keen in doing a more stable business. We are not keen in chasing numbers; we hope to deliver quality products with emphasis on strong customer satisfaction.

     

    Q: What do the newly unveiled commercials seek to propose to the customer?

    If you look at our current communication campaign including the one around GMIP – I think we are more keen on what we as a brand want to deliver to the customer. We want to tell the customer what is the very essence or the insight behind our products that we offer. It is about learning facets about the customer and offering him products tailored to meet their needs. Our latest GMIP commercial talks about uncertain situations that we face in our lives and how we can overcome the same. Given the uncertainties that exist today, is the common man willing to go back to traditional ways of investing? We don’t think so. He is aware of the complex regulatory policies and is therefore on the lookout for products that are simple and address his needs. That’s what we seek to address through our communication.

     

    Q: Apart from regulations, what are the other challenges facing the industry?

    Changes in regulations are not a challenge as such; it is ultimately being done for the betterment of the industry. It has come as a jolt in the short term because that will mean change in systems and processes. The real challenge is not regulations, it is about how we do our business and develop products for our customers.

     

    Q: With the coming of several new private players, do you see the dominance of the country’s largest insurance player LIC on the wane?

    LIC is and will continue to be one of the strongest players. We are very small compared to them but customers have opened up and are keen to try out other insurers as well. Most of the customers who have tried us have an LIC policy also, but they are also satisfied with what we have to offer.

     

    Q: What would be your core focus areas for 2012?

    Over a period of time, I see ULIP getting more preference amongst customers especially those with lower incomes as it promises them more options to save and manage their money. If you see Bajaj Allianz, we have already lined up many products under ULIP. That’s because our focus as an organization is to cater to the masses. So the plan is to increase our portfolio of ULIPs while at the same time we will keep our portfolio of divisional products equally prominent. This will be our key focus in coming years.

     

  • CMCG's Samir Kale on how 2011 was a good year for the agency, how education is a sector to look forward to and why it is important for clients to give agencies their due by way of increased premiums.

    Samir Kale: ‘We are specialists, not generalists’

    With Enron for its first client, the journey for the just-formed CMCG India in 1994 was clearly not an easy one. Anyone would know the agony that the AoR would have to face having to back a client with questionable leanings. But that was then. Today, CMCG India has made steady and progressive headway and is being seen as an agency of choice for many clients. The credit for this turnaround goes to Founder and Managing Director Samir Kale, under whose leadership the agency has grown to great heights in the communications world.

     

    In conversation with Johnson Napier, Mr Kale strolls down memory lane and analyzes how 2011 was a good year for the agency, how education would be a sector to look forward to and why it is important for clients to give agencies their due by way of increased premiums. Excerpts:

     

    Q: The year 2011 was a one that had its fair share of highs but it was the lows that had the industry on its toes. How would you define the year for CMCG India?

    In terms of our growth this year, I would say we have performed reasonably well. Typically if you observe, globally, whenever there is a downturn what gets slashed are the big advertising budgets. And then people start looking for value – what can you deliver that can get me as much value from spending as little as possible? And that’s what PR as a practice actually provides. So economic downturns actually help the PR industry; that’s how it should be. We have to be able to sell it to the clients that now is the time to look at PR. The thing to be noted here is that India is still a growing economy – whether 6 or 9 percent, it is growing. And therefore the demand for our services will keep on growing in a growing economy.

    So to put it positively, it has been a good year for us.

     

    Q: Have you outlined a vision for 2012? What are the immediate objectives for the team?

    What is happening today is that PR business as such is getting segmented – PR agencies are offering different services across different segments and different levels of services. In this scenario, we have to identify what is going to be the positioning for us in this matrix. Traditionally as an agency, we are more towards value proposition – we charge more but we give you more value. You have agencies which offer standard services, which I call ‘call centre’ services and we know what they have to offer. I am not saying that it is bad or good; our DNA has been towards value proposition. So we already have a positioning where value is concerned now the focus would be to get the call centre side of the business right.

     

    Q: What was different in the way you went about netting clients in 2011? Any stand-out clients that you were particularly excited about?

    Disney was one such client but I would say that the important thing for us last year was the setting up of Campus PR, a division that caters to the educational sector. I think we are the only players doing that right now. We have a good response to the product from some of the leading players in the education space. We would be increasing our focus around education in 2012 and I feel that offering segmented services would be key going forward.

     

    Q: Apart from education, how have the other specialized offerings performed for CMCG?

    We have done well across our other offerings as well and if you ask me am I satisfied with what we have achieved, I would say yes.

     

    Q: Given the hue and cry around digital, specifically social media, how have you increased your emphasis around the medium?

    Digital today has become a bit of a fashion. Also, today there are a lot of media agencies who focus on providing technological expertise. But we have focused on tapping the digital platform to communicate with the media. A case in point is IPCC, where we were dealing with journalists across the UK, US, Australia, New Zealand sitting here in India and trying to push the message across. That’s what we have being doing because the journalists are also on the internet and we don’t want to go and do things which we are not capable of. Our focus is how can we capture the attention of the media on the digital platform?

     

    I think what happens is it’s not the method, it’s the message we look at. Today it is digital but tomorrow it may be mobile. So what you want to say and communicate is more important and then the medium you want to do that on follows next. It’s content that will drive the way, not technology.

     

    Q: How is CMCG placed in the PR pecking order? What is the market share you seek to achieve in 2012?

    All I will say is that we are a mid-sized agency. We are specialists, we are not generalists for sure.

     

    Q: How would you rate your contemporaries?

    I can’t rate them as I have not been tracking them closely. But if it is said that they are offering differentiated services then it is good for the industry as such as it would help it achieve greater heights.

     

    Q: How do you see foreign players changing the fortunes of the PR industry in India? Is it beneficial having them increase their base on our shores?

    It’s a good thing for the industry. We have always had tie-ups with many international players. The industry has witnessed the buying out of many Indian agencies in the past few years. Having said that, we at CMCG already work with most international clients. They see the value that we bring to the table and they are willing to pay for that value. It is important for international agencies to build a good understanding of the country, regions, politics, etc; be able to offer that level of service that the client expects in the developed world. They need to be able to develop strong local capabilities to be able to work with their local clients in India. Otherwise it is not worth it. So while coming in is a welcome step, developing and understanding the market is a bigger challenge.

     

    Q: Are you still being chased by foreign agencies for a JV?

    If there is a good deal I will certainly consider it. As I said in terms of value proposition we deliver it well, what we need is to build our capabilities at the low-end or basic strata of the business. And doing that across geographies in India is what we will look at. So if my partner has a similar vision then it could be a win-win situation for both.

     

    Q: Consolidation would be the order of the day for the industry going forward. Would it help steer the industry in getting more organized?

    Typically, consolidation happens when you offer mass services to a large number of customers. But the thing about PR is that anyone can go ahead and start his own business, including a single individual himself. I think consolidation will help the top 10-15 players but beyond that it’s unclear what role it would essay as there are many small players too.

     

    Q: What are challenges facing the industry?

    I think we need to attract good talent in this industry. And that will come only if we pay better money, which will only come if clients pay us well. The thing is that the clients must pay the agency for every single activity that they do. Why should they expect everything in one fee? Does that happen in any other profession? I don’t think so. Today PR is still the last mile for the client; that perception has to change.

     

    Q: What would be your key focus areas for 2012?

    We will have a clearer idea in terms of how we can grow apart from the value-added services, the base services and how we can add on the expertise across verticals. These would be our key focus areas going forward.

     

  • Ms Rebello will be a part of Rajeev Raja's team and her immediate mandate will be to head the creative team at DDB Mumbai.

    DDB Mudra Mumbai appoints Louella Rebello as ECD

    By A Correspondent

     

    DDB, one of the three branded agencies under the DDB Mudra Group, has recently appointed Louella Rebello as Executive Creative Director. Her appointment will be effective from the first week of February 2012.

     

    She will move from OgilvyIndia, where she is currently serving as Senior Creative Director.  Louella will be a part of Rajeev Raja’s team and her immediate mandate will be to head the creative team at DDB Mumbai.

     

    Commenting on her appointment, Louella Rebello said: “It’s been a glorious nine years at Ogilvy, where I worked on some of the best brands, did some fun campaigns, worked with some fine people, and more importantly, made friends for life. But, I feel that it’s time to try something new. DDB Mudra seems like the right fit in terms of brands, the people, and their vision for the place.”

     

    Rajeev Raja, a consultant with DDB Mudra said: “Rebello has created some of the finest automobile communications in the country for Tata Motors. I have worked with her in the past and have seen her evolve over the last decade or so into one of the country’s leading creative talents. I look forward to work with her to make DDB Mudra an agency to reckon with in 2012.”

     

    Rajiv Sabnis, President, DDB India, called Rebello a bright, young talent waiting to explode on the big scene. “Her coming on board gives her a larger role and canvas to paint on. She has infectious enthusiasm and energy, and some path-breaking work in the automobile, financial, and FMCG categories,” he said.

     

    Ms Rebello has more than 14 years of experience in advertising. A post-graduate in Social Communications Media from Sophia Polytechnic, Rebello began her career in Pressman Advertising and Marketing as a copywriter in January 1998. After spending about two years at the agency, she joined Triton Communications in 1999 as senior copywriter. She joined Bates as copy supervisor in 2001. In January 2003, Rebello joined OgilvyIndiaas creative supervisor and held the post for about four-and-half years before she was promoted as associate creative director in 2007. In April 2011, she was designated senior creative director.

     

    DDB Mudra Group isIndia’s largest integrated marketing communications and services network. Its customized and collaborative approach helps its clients build valuable and enduring brands. With over 1,100 employees and 26 offices, they offer direct contact across 1,75,000 villages, 4000 towns, 3500 schools and nearly 7 million students. They wereIndia’s most awarded agency network at Cannes 2011.

     

  • The plan reflects Nestle's business philosophy that it must create value for its shareholders as well as the communities where it operates

    Nestle India rolls out the Nescafe Plan

    By A Correspondent

     

    Nestle India has announced the implementation of the Nescafe Plan in India. Nescafe Plan is a global initiative by Nestle S.A. to bring under one umbrella the company’s commitment on coffee farming, production and consumption which will help Nestle to further optimize its coffee supply chain.

     

    To start the roll out of the Nescafe Plan in India, the first Nescafe coffee demo farm and training centre was inaugurated in Kodagu District of Karnataka by Mr. Jawaid Akhtar, I.A.S, Chairman, Coffee Board of India, Mr. Nandu Nandkishore, Nestle executive Vice President and Zone Director for Asia, Oceania, Africa and the Middle east, and Mr. Antonio Helio Waszyk, Chairman & Managing Director, Nestle India.

     

    This first coffee ‘demonstration’ farm in India will help farmers improve quality, productivity and sustainability. The company is assisting coffee farmers in the states of Karnataka, Kerala and Tamil Nadu to develop their agricultural practices as demand for soluble coffee grows in the country. Furthermore, Nestle research and development teams aim to provide farmers with high-yielding, disease resistant plantlets suitable for Indian conditions.

     

    Through the initiative, the company seeks to source coffee sustainably by working closely with Indian coffee farmers and ensuring competitive prices, transparency and traceability.

     

    Mr. Jawaid Akhtar, I.A.S, Chairman of the Coffee Board of India, said: “I am happy that the nescafe Plan is being launched in India. It will provide coffee farmers with technology and best practices for sustainable production of high quality coffee and also benefit them with improved access to markets.”

     

    During the event, a group of 20 farmers who have been trained under the Nescafe Plan were felicitated. While releasing the training manual ‘Nescafe Better Training Practices’, Mr. Nandkishore, Nestle executive Vice President and Zone Director for Asia, Oceania, Africa and the Middle east, said: “Nescafe is the world’s leading coffee brand. The Nescafe Plan demonstrates our commitment to working with thousands of farmers around the world, including in India, to provide training and technical assistance.”

     

    In recent years Nestle India has been doing extensive work to improve penetration of its Nescafe instant coffee amongst consumers and expand the market. The Nescafe Plan is important to ensure that the business is sustainable and that the coffee farmers also benefit. It reflects Nestle’s business philosophy that it must create value for its shareholders as well as the communities where it operates.

     

    Mr. A Helio Waszyk, Chairman and Managing Director, Nestle India said: “Indian coffee is currently amongst the best in the world and we would like to use our own expertise in coffee to help it retain its excellence in the future as well. In the Nescafe Plan our team will work with coffee farmers as well as other experts to combine the traditional wisdom with the benefits of modern science to make coffee farming more sustainable.”

     

    Currently The Coffee Board of India assists in research, development, extension, quality checks, market information and the domestic and external promotion of coffee from India. Nestle India agronomists will also work with coffee farmers and train them on how they can further improve the productivity and quality of coffee in a sustainable and efficient manner.

  • Mr Malhotra will handle experiential businesses and retail cluster along with his current responsibility as Head, OOH

    Mandeep Malhotra is President & Head, Mudra Max

    By A Correspondent

     

    Mandeep Malhotra has recently been elevated as President & Head at Mudra Max. He will be in-charge of the Mudra Max offerings comprising of experiential businesses (Kidstuff, Celsius, Terra and Concrea) and retail cluster which include Prime Retail, Prime Consult, Prime Wayfinding, Multiplier and Pratham.

     

    Mr Malhotra will handle these responsibilities in addition to his current role as Head, OOH. He will be reporting to Pratap Bose.

     

    Commenting on his appointment, Mr Malhotra said: “I am proud to be part of Mudra Max, a specialist agency that offers its clients an integrated approach to brand and business solutions. The agency is a great place to work as it provides a supportive and enabling environment that helps people realize their full potential. I look forward to taking charge of this mandate and leading my team in achieving new highs for our clients.”

     

    Pratap Bose, COO Mudra Group said: “Over the last 3 years, Mandeep has done a commendable job in driving the growth and profitability of our OOH businesses and also in creating the finest Outdoor team in the country. That apart his charm, confidence and ‘never say die’ spirit, which has always been his biggest asset, has been extremely endearing and infectious.”

     

    With a Masters in Business Advertising fromMelbourne, Mr Malhotra has over 12 years of professional experience in outdoor media. Prior to this appointment, he has worked with Clear ChannelIndia, Rediffusion DY&R,141 Wall Street (the OOH arm of Bates 141), Asian Age, Pioneer and Total Media Melbourne.

     

    He has managed brands such as Tata Indicom, Airtel, Reebok, Discovery, CNN-IBN and Nokia among others. He has won 4 One Show awards, 3 Pencil Awards and a few dozens Outdoor Advertising Awards (OAA).

     

    He was a part of the Gold Lion team atCannes and has also received an award as ‘The Entrepreneur of the Year’, along with bagging ‘The Suit of the Year’ twice at Ogilvy & rmg. He is the brain behind the recent successful launches of Aircel, Pepsi, Reebok, HT, Jet Airways, Reliance Capital, Micromax, Amway among others.

     

    The DDB Mudra Group isIndia’s largest integrated marketing communications and services network. The group’s customized and collaborative approach has helped its clients build valuable and enduring brands. With over 1,100 employees and 26 offices, they offer direct contact across 1,75,000 villages, 4000 towns, 3500 schools and nearly 7 million students. They wereIndia’s most awarded agency network at Cannes 2011.

     

  • There is no courage out here, only exploitation. Remove the prize money, and no one would want to appear on the show, that’s the hard truth.

    Anil Thakraney: Sach Ka Saamna: A new low in TV programming

    By Anil Thakraney

     

    I watched two episodes of Sach Ka Saamna (SKS) Season 2, and I must say in contrast, Bigg Boss feels like a house of angels. SKS is a completely debauched and exploitative format, where the poor and the desperate are encouraged to wash their dirty linen in public. And in return, they could take home a crore of rupees. A few lakhs in the bag is almost a certainty.

     

    Some of the questions put out by the host would make even hardened souls cringe. They range from cheating at workplace to hatred for parents to adultery in marriage. And all this as the contestant’s family sits in the audience. Hottie host Rajeev Khandelwal sweetens the bitter pill by complimenting the buggers for being courageous, and that’s total bullshit. There is no courage out here, only exploitation.

     

    Remove the prize money, and no one would want to appear on the show, that’s the hard truth. So careers get destroyed, families get broken, marriages lie in ruin… but all justified under the garb of ‘speaking the truth’. Wow!

     

    The show’s TRPs for season 2 are quite poor. But that could be because this time it’s being aired on the channel Life Ok, Star One’s new avatar. More people will discover the channel and the pathetic show, so with time the ratings will go up. Who on the earth would want to miss out on such depraved programming? It appeals to the ultimate sadist in all of us.

     

    No, I am not being moralistic out here. And I am aware that desperate for viewership, channel heads would push the envelope on programming. But how can anyone justify blatant exploitation? I would be okay if they only featured loaded celebrities on the show. Richie-rich people who want us to enter their bedrooms only because they enjoy the trespass. But feeding on people’s poverty cannot be condoned at all. Hope Sach Ka Saamna dies a miserable death. Sooner the better.

     

    * * *

     

    PS: Must read for all creative people. Great tips on how to energize inspiration and battle creative blocks.

     

    Link: http://m.guardian.co.uk/culture/2012/jan/02/top-artists-creative-inspiration?cat=culture&type=article

     

    Former editor and ad man Anil Thakraney is editor-at-large, MxMIndia. The views expressed here are his own

     

  • Call it the mystique of art or just hardboiled application of effort, creativity still does not get its due in India. Sandeep Bomble draws up the chargesheet.

    The Anchor: 9 reasons creativity in advertising is underpaid

    By Sandeep Bomble

     

    Famous Myths

    #1 India still believes in paying for tangibility. Working hard is often recognized. Man hours matter and define work. Thinking is still an intangible quality which is perceived to be present in everyone.

     

    #2 Creative beings are often mistaken and perceived as souls only hungry for quality work. They can go to any extent to attain their desired passion. Money is secondary for them as long as their passion is groomed on the right track.

     

    #3 In India, qualifications and degrees are everything for a well-settled life. A degree holder can demand a big pay cheque. And why not! After all he has spent a bomb on his professional course. How could he consider a 10th pass Art professional as his peer? How can creativity come with a ‘qualified’ tag? “He can’t possibly be creative with no degree backup,” is something often heard, whereas this creative fellow could be a visionary with immense guts to break every clutter.

     

    #4 It is about the client’s attitude towards creativity. The “anyone can do what you do” attitude. Today, a creative agency goes all out to crack a brilliant communication strategy. Intensive research. Deep thinking. Uncompromised approach on the final execution. Great efforts together bring out that distinctive piece of work. Which can be simple in nature. And the simplicity which isn’t so easy to achieve after reading the most complicated brief often draws the comment: “Oh, even my secretary can write better than this.” Or “My 6-year-old son can draw a better logo for me”. Well, so how would creativity get its due respect and worth?

     

    Brutal Facts

    #1 The clients have become better negotiators than the agencies. With the advertising market expanding, the retainer figures are going down considerably. even the biggest of the agencies are going low on retainership. Consequently, suppressing the quality small agencies to further compromise on creative fees. As a result, the agencies aren’t comfortable in approving heavy salary cheques down the line. It’s sad but true. This is definitely affecting the quality of work. As the industry isn’t working on what they deserve, but is rather content with what is available.

     

    #2 The growth in advertising revenue, though being healthier every passing year, can in no way be compared to a lot of its major peer sectors. The turnover of the advertising industry is significantly less in contrast to telecom, IT or financial sectors. Thus the advertising agencies cannot afford to pay their creative employees more than their annual budget.

     

    #3 Many of the budding creative people lack confidence to ask for the best price for their creative abilities, during their onset. It is only after some years that they realize their creative potential and develop enough self-esteem to rely on the instincts, abilities, conviction and gain the right exposure to demand a more lucrative pay slip.

     

    #4 The young guns who are fresh entrants seek a break to release their potential to the best of their abilities. They vie to work with the best of the creatives, so, if they go to the well-known industry they come mentally prepared to work for peanuts in bargain for their own development. They fear losing an opportunity in a reputed, sought-after ad agency, and thus sadly settle for whatever the agency wishes to pay them.

     

    #5 If the creative guys ask for double the salary as compared to their peers or what the agency thinks is best for them, then they have a greater possibility of not being selected because equal numbers of creatives are ready to work for the same or even lesser amount than the industry standards. Thus the agencies rather go the cliched way of having two brains for the price of one expensive quality brain.

     

    If only we could break these hardbound myths and dispose of them, by practising a common slab of retainership. For instance, charge Rs 5 lakh as retainer fees even to the smallest client. In return, the client enjoys the gradual brand growth, justifying the creative fees in the long run. This way we could standardize the industry format, solving some of the brutal realities, so that creativity breathes fresh and takes pride in matching shoulders with other mighty sectors, head-on.

     

    Sandeep Bomble is the founder of Palasa.

     

  • Ranjona Banerji reviews the content on news television and the morning papers

    Electoral politics or keeping people happy

    By Ranjona Banerji

     

    The poor BJP must be quaking in its shoes. There it was, happily chugging along on its collision course with the Congress over corruption and the government’s inept handling of the Lokpal Bill. And then, wham! India’s star TV anchors have turned against the party for a little transgression – nothing more the usual games played in electoral politics.

     

    But were Arnab Goswami and Rahul Shivshankar of Times Now and Newsx, to name just two, willing on Wednesday night to accept that election compulsions made strange bedfellows? Of course not – by admitting Babu Singh Kushwaha, recently chucked out of the Bahujan Samaj Party by Mayawati on corruption charges, the BJP had walked into indefensible territory. In television land, at least, where no person is too unlikely to be made into a saint if an anchor desires it and what goes up can also come down.

     

    On Times Now Meenakshi Lekhi screamed in defence of the BJP and though Goswami gave her time enough, he did not accept her explanation that the Congress was more corrupt or that Kushwaha was admitted into the BJP to help with the elections and not because there were corruption charges against him and that the Congress was also to blame for the CBI filing charges against Kushwaha.

     

    On Newsx Dr CP Thakur was far more subtle and distinctly un-hysterical as he provided the cynical explanation for the BJP – this was the way things were done during elections. You looked for the caste and community politicians to push your party’s case forward. Like Goswami, Shivshankar was also unsympathetic.

     

    They both refused to accept that politics was a dirty game, in spite of what everyone else said. The BJP, they said, had sworn to fight corruption. LK Advani, they said, had gone on a rath yatra against corruption. The BJP had supported Anna Hazare and the anti-corruption movement. And now the BJP had taken into its fold a man sacked by Mayawati on corruption charges and they were supposed to accept it as part of electoral politics? Never!

     

    If I were the BJP, which depends a lot on TV to keep its middle class supporters happy, I would be scared. Is winning UP more important that losing the hearts and minds of middle India which watches TV news? I wonder.

     

    **

     

    Newsx and Shivshankar went a step further than Times Now and put Anna Hazare’s committee in the dock as well. Mayank Gandhi tried to explain how Team Anna (which is what it calls itself now) was not looking at individual cases but systemic change, although it condemned the BJP. This was not good enough for Shivshankar and definitely not for Team Anna supporter and former bureaucrat Arun Bhatia who slammed Gandhi for being mealy-mouthed in his condemnation and his explanation.

     

    To make matters worse, on Thursday morning, Headlines Today carried a detailed report on the rifts within Team Anna over the Mumbai fiasco and support to the BJP.

     

    **

     

    One small sliver of hope for the BJP and Team Anna is newspapers are still slightly more balanced. And the only thing that can save them is if the eagle eye of our anchors shifts to India’s remarkable performance on the playing fields of Australia.

     

    Otherwise, hell hath no fury…

     

  • Ranjona Banerji reviews the content on news television and the morning papers

    Kejriwal’s TOI article: same old same old

    By Ranjona Banerji

     

    Arvind Kejriwal has reached out to fellow Indians in a plea in The Times of India today. The front page of The Times of India says ‘Team Anna confused, does not know the way forward’. It quotes from an article which Kejriwal has written for the paper. But while the front page report talks about the “apparent” confusion in Team Anna, especially after it has been attacked for going after the Congress while being soft on other parties, Kejriwal’s article is, in fact, the same old same old. He does not talk about the Mumbai debacle; he adds a throwaway line about the BJP and corruption but concentrates the article on the perfidy of the Congress.

     

    Anna Hazare’s ill-health, he conjectures, had more to do with the bad Lokpal bill presented by the government than anything else. If one can venture an opinion, it is this single-minded insistence on attacking only the Congress which has worked against Team Anna. If it loses media sponsorship, it might find the way forward a tad tough. Kejriwal has asked concerned citizens for ideas on how the movement should proceed. It will be interesting to see those suggestions.

     

    Meanwhile, Hazare’s health remains a matter of concern, with most newspapers and channels focusing on it. TV continues to target members of the anti-corruption movement. The BJP is not the flavour of the week at the moment and if you do not come out strongly against it, then TV will not forgive you – this week at least. This leaves the leaders of the anti-corruption movement floundering a bit since they have not had their core committee meeting to decide on what to do yet! Till the triumvirate speaks, all are lost!

     

    * * *

     

    The Indian traders who were detained/ tortured/ attacked in China got so much play on TV that newspapers have started giving the incident more attention. Of course, newspapers have the advantage of setting aside nationalistic outrage and looking at the larger picture. Which includes: other traders not wanting to stop going to that part of China since stuff there is cheap and China requesting Indian traders to follow their laws! This makes for a much larger and more complicated story.

     

    * * *

     

    Inflation is down the newspapers tell us and interest rates may be cut as well. Presumably, this is good news.

     

    * * *

     

    Will Friday night and Saturday morning be all about slamming the Indian cricket team for its dismal performance so far in Australia? I’m not a fortune teller but my crystal ball says that heavy weather is approaching for MS Dhoni and company!

     

  • While some marketers don't think it's unethical and the practice is good money for FM stations, will RJ mentions escape the regulator's ears?

    Should ‘RJ Mentions’ be regulated?

     

    By Robin Thomas

     

    Long relegated as being the poor cousin of other vibrant forms of media – namely television, print and digital – on the popularity and ROI front, radio today is increasingly engaging in an exercise that is alleged to be aiding the medium in reviving its dwindling fortunes. Though one may argue that this exercise was being pursued since the birth of the medium in the country, it is the ubiquitous manner in which it is being persisted upon by radio stations that is a cause of worry.

     

    RJ Mentions, a term that is becoming synonymous as an alternative form of advertising by the radio players and clients alike, is a phenomenon that has taken the industry by force. While the practice seems to be a fair one for the radio stations, who see it as just another way of promoting a message or cause for a client, questions are being raised on the misuse of the popularity of the RJs, who are known to influence the buying patterns of the listeners.

     

    Adding to the worry is the fact that radio stations fail to put a disclaimer along with the promotional message, leading many to term the move as being a “paid news” initiative. That leads one to the moot question: while the print and television players face flak over flashing “paid” news, how could a high-decibel medium like radio go scot-free in delivering the same?

     

    Is it because the medium is so under-valued that authorities are failing to take notice or is it that there are no clear-cut rules that define what is permissible and what is not leading to the players engaging in the “questionable” exercise unhindered?

     

    Agreeing to the use, or rather abuse, of RJs for promoting a brand, a source from a leading radio station, requesting anonymity, said that it is a practice that is being pursued by most players. “RJ Mentions play an important role in the radio business as it brings in more revenues to the station. Radio stations usually charge 4-5 times more than the regular radio ads for RJ Mentions, depending upon the cities and the RAM and IRS figures.”

     

    Another senior industry official, again requesting anonymity, agreed that while the practice is being followed, it is important for players to issue “statutory warnings or some kind of disclaimer, particularly on sensitive issues like health and insurance. “Radio stations must indicate ‘RJ Mention’ as advertisement and treat it as such otherwise it is deception. If the RJ does not know what he is testifying is right or wrong, then it is an act of irresponsibility by the RJ and the radio station and therefore, it is unethical.”

     

    As an industry veteran and having donned advisory hats across mediums, Paranjoy Guha Thakurta seems unconvinced of the tactical advertising route being adopted by the radio players. “The issue of credibility is very important and if that credibility is damaged, it becomes very difficult to regain the trust of the listeners.” When asked whether it was right for radio stations to charge exorbitant fees for such an exercise, he asserted: “If radio stations take money for RJ Mentions then it is completely unethical because it is as corrupt a practice as any other corrupt practices.”

     

    But amidst all the brouhaha over what is right and what is not, it is important to understand the perspective of the marketer, as ultimately it is they who benefit from this practice, however dubious. And given the fact that they do not approach the medium with as much vigour as they do the others, it is even more noteworthy to question whether it is an effort worth the trial for them?

     

    Sanjay Tripathy, Executive Vice President-Head Marketing and Direct Channels, HDFC Life feels that the choice between RJ Mentions on radio and radio ads depend upon the objective of the communication activity. “While radio ads are effective when the goal is to just disseminate information, RJ mentions are useful when the brand needs to engage the listeners,” he suggests.

     

    For Sandip Tarkas, President (Customer Strategy) and CEO Future Media and T24, radio is seen as a less serious medium, unlike print which is more about news and such. “Since radio is more of an entertainment medium, I have no moral dilemma about RJ Mentions. As a practice, I feel RJ Mentions are very effective as RJs have a huge following and listeners can relate to what the RJ speaks. However, if it is overdone, it may become less effective,” he quips.

     

    Lending support to the views endorsed by Mr Tarkas, a few media agency players feel that RJ mentions is a growing trend and most brands today want to be part of this trend. According to them, the success of the brand plug depends heavily upon how the RJ carries it forward to the listeners.

     

    Rajneesh Chaturvedi, National Director, MEC Access observed: “RJ Mentions have a high brand recall. It is a form of branded content, therefore, brand recall is more than the regular radio spots. It is another way of communicating brand proposition, and certainly not misleading.”

     

    Echoing similar thoughts, R Venkata Subramanian, Senior Director-Investments, MPG India noted: “RJ Mentions are very effective for brands, as the brand definitely has a higher brand recall value.”

     

    Ajay Rao, Vice President, Dentsu expressed a similar feeling: “It depends on the RJ and the manner in which he plugs the brand. If done in a relatable way, it could establish the benefit which the brand strives to deliver.”

     

    In this confused scenario, where neither the client nor the player wants to let go of the enterprising opportunity, it would require the intervention of an industry body to decide what would be the ethical way to go about doing business. On being asked, Uday Chawla, Secretary General, Association of Radio Operators for India (AROI) informed that AROI is working on a Content Code for radio. Mr Chawla stated that listeners should be made aware whether any recommendation is a sponsorship or advertisement and if not, it should be clearly stated that this is a personal view of the presenter or the RJ. “Sponsorship and advertising are the main revenue models for any media vehicle. Hence sponsorship, if stated clearly as such, is fine. However, surrogate advertising and recommendation is an issue, and clear ethical guidelines for journalism and presenters need to be defined, which should be applicable for all media, including radio which should not be singled out,” he stated.

     

    Mr Chawla’s stance probably sums up what the radio industry needs to do on the future around RJ Mentions. It is only a matter of time before rules are formulated to define the practical from the unethical.