MxMIndia

Category: MEDIA

  • Invests in state-of-the-art warehousing facility to service a single product to a single consumer anywhere in the country

    Raymond ventures into e-tailing with RaymondNext.com

    By A Correspondent

     

    Raymond Limited has announced the launch of their official online store - ‘RaymondNext.com’. RaymondNext.com integrates all Raymond products, brands and services under a common e-commerce platform.

     

    The launch of RaymondNext.com is a step forward for the company to ensure increased visibility and availability of its products, as consumers can now see and purchase from the wide range of products from the house of Raymond acrossTextile, Apparel brands, Home Furnishing and Accessories.

     

    In a first, Raymond has launched five individual eCommerce enabled brand websites of Raymond, ColorPlus, Park Avenue and Parx with a common shopping cart. All of these websites are optimized to be viewed on Smartphones and Tablets.

     

    Commenting on the launch of RaymondNext.com, Vijay Basrur, Head – eCommerce, Raymond Limited said, “We are thrilled to offer our customers an exciting new avenue for shopping with the launch of RaymondNext.com. E tailing at present is a small contributor to retail and is fast emerging as an alternate commercial channel across multiple product categories amongst a rapidly evolving Netizen base in the country. According to industry estimates, E tailing market is set to reach $32 billion by 2020 and hence makes perfect business sense for Raymond to capture this growing demand.”

     

    RaymondNext.com comes with an array of exciting features and the user interface has been designed to ensure the ease of discovery and selection with a quick check out. The online shopping website is a one stop shop for the entire brand season collections that can be viewed with high resolution graphics. It also plans to introduce streaming videos of garments donned on models & mannequins along with virtual dressing rooms and 360° viewing and zooming tools making online shopping a fascinating experience.

     

    ​”We have further invested in the state-of-the-art warehouse, having the capability to service a single product to a single consumer anywhere in the country and offers the capability to service a pan India consumer base with relatively minimal investment. We are confident that with the launch of exclusive lines from brands available on RaymondNext, unique E tailing features like style look purchase and online fashion advisory coupled with the first of its kind concierge service from Raymond MTM is set to offer our customers a world-class shopping experience going forward,” explained Vijay Basrur.

     

  • Backlash on social media even as Flipkart claims of sales of over $100 million in 10 hours

    The Big Sale: Hit or Flop?

     

    By Harsimran Julka & Aditi Shrivastava

     

    Flipkart declared on Monday it had created Indian e-commerce history by clocking $100 million (Rs 600 crore) in sales in just 10 hours of its much-heralded discount sale, but not before its hard-won reputation for customer service excellence suffered knocks amid technical glitches and recriminations from angry buyers disappointed with the pricing and availability of products.

     

    As India’s largest online retailer and the posterboy of its startup boom took pride in successfully seeing through what it termed as an unprecedented event, competitors took advantage of its missteps and cut prices, diverting traffic away from Flipkart on what was supposed to be its big day.

     

    Backlash on Social Media

    “It feels a bit like a boxing bout in which one boxer accidentally knocked himself down before the opponent even entered the ring,” said Kartik Hosanagar, professor of internet commerce at The Wharton School in the United States.

     

    Flipkart’s so-called ‘The Big Billion Day’ is the first time in India that a discount sale of this magnitude has taken place. Modelled after the Black Friday shopping bonanza in the US, Flipkart said its aim is to create an online equivalent for India.

     

    Sachin Bansal, the cofounder and CEO of Flipkart, said he was pleased with the outcome, admitting at the same time that there were surprises and some errors. The company said it sold goods worth $100 million (almost Rs 1 crore every minute) within 10 hours and its site recorded one billion hits. “This was unprecedented. It is an historic day for ecommerce,” the 32-year-old entrepreneur said.

     

    Online sales of goods, while they are growing rapidly, are still a minuscule part of India’s retail sector. Flipkart, Snapdeal, Amazon and others account for just $5 billion in annual sales compared to the retail industry’s size of over $500 billion but projected to grow exponentially.

     

    Flipkart ended up with lot of backlash on social media sites as its system continued to change prices of products during the day. A Delhi-based customer who had paid Rs 27,000 for an LCD TV listed at a pre-discount price of Rs 49,000 was declined purchase as Flipkart said that the product had gone out of stock. “Mean sites for the same product,” the customer wrote on Twitter.

     

    Another customer who wanted to buy an LCD set on Flipkart saw the price change by Rs 10,000 within two hours. Customers were also peeved as Flipkart did not allow cancellations. Many shoppers who encountered better deals or changed their mind after clicking the buy button had no choice left, unlike on other days when cancellations and replacements are allowed.

     

    Flipkart attributed some of the problems to the “largest scale of traffic and customer visits e-commerce has witnessed across the country”, noting that it had got a billion hits on its website. As angry customers took to social media, rivals gained traction. “Amazon was the most trending site on our site on Tuesday,” said Swati Bhargava, CEO of CashKaro, an online cashback site which directs user traffic to sites such as Flipkart, Amazon and Snapdeal.

     

    “People are loving the Amazon discounts which keep on getting bigger and Monday compared to Sunday, making October 6 its biggest day ever in India. The company attributed this to deals every hour and “ensuring the availability of the deals advertised.” Amazon India’s site was redirecting to bigbillionday. com during the day.

     

    Rival Snapdeal, which cocked a snook at Flipkart with an advertisement that sought to make light of its rival’s big day (“For others, it’s a big day. For us today is no different), also did not leave any stone unturned. Its co-founder and CEO Kunal Bahl said Snapdeal had also sold goods worth Rs 1 crore a minute. “The best part of the day: we didn’t really spend much to bring customers to Snapdeal,” Bahl said, in an apparent dig at Flipkart’s advertising blitz that preceded Monday’s sale that, industry watchers say, would have cost the company tens of crores of rupees.

     

    Bansal admitted errors with “a few products and few customers.” These he attributed to mistakes on Sunday night while uploading prices of products and promised to rectify the problem. “it was not intentional at all. We are sorry for that,” he said, adding that the Flipkart team had burnt the midnight oil ahead of the sale. “I slept only 2-3 hours last night. Living on Red Bull.”

     

    Despite the backlash, there was optimism about the future of the ecommerce sector. Experts said that the Flipkart sale and the Diwali bonanza from Amazon and Snapdeal will help change the habits of the Indian consumer used to thronging bazaars and malls during the festival season.

     

    “This looks like a transformational move for ecommerce in India, a tipping point,” said Arvind Singhal, CEO of retail consultancy Technopak.

     

    Source:The Economic Times

    Copyright © 2014, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

     

    Companies accuse e-retailers like Flipkart, Snapdeal, Amazon of devaluing brands and threatening livelihoods

     

    By Writankar Mukherjee & Sagar Malviya

     

    As Flipkart’s discount sale ran into a storm of protests in the virtual world, the company and its ilk of online retailers found little comfort in the real world too.

     

    A parade of big name consumer goods makers and brick-and-mortar retailers took aim at the e-retailer flock of Flipkart, Snapdeal and Amazon, accusing them of devaluing their brands and threatening their livelihoods, further marring a day that was billed as an important milestone in the evolution of the fledgling sector.

     

    LG Electronics, the country’s largest white goods maker, issued a rare advisory on Monday in which it explicitly stated that it had not authorised any e-commerce company, bar its own online store, to sell its products in India and hence it retains the right of not extending additional services, warranties on such products as it does not vouch for their genuineness.

     

    “This is to safeguard our consumers,” a company spokesperson said. Flipkart, however, sought to reassure customers that all products sold on its site were genuine.

     

    Tightening the noose

    “We can assure our customers buying LG, Sony or Canon products on Flipkart.com that they are genuine. Our customers will continue to enjoy the warranty and services extended to all original LG products as always,” a company spokesperson said. But officials at several consumer goods makers, many of which have also had an uneasy relationship with the lot of e-retailers, said they would henceforth tighten the noose on online discounting.

     

    LG’s rival Sony said it will not allow massive online discounting of its wares because it impacts the company’s brand image and accused e-retailers of having violated business arrangements. “The online sale war of Monday was really disappointing and alarming. This is not the way we have agreed to do business as partners,” said Sony India sales head Sunil Nayyar. He said Sony televisions had borne the maximum brunt of discounting and that it had taken a toll on the company’s brand image as customers who brought the same product a day earlier at its correct market price could feel cheated and blame the brand.

     

    “We have decided to handle online discounts now with an iron hand and will ensure Sony is not involved again and there is a fair play for all channels,” he said. The maximum discounts at Monday’s flash sales were for electronic products, notably items such as Apple’s iPhone, iPod and laptops, Sony’s televisions and smartphones, Canon’s cameras, lenses and printers, Samsung’s television, smartphones, refrigerators and washing machines, LG’s televisions, refrigerators, microwave ovens and smartphones, and tablets and computers of Lenovo, Asus, Dell and HP.

     

    Camera maker Canon said it would henceforth ask distributors to have separate sets of products for brick-and-mortar stores and online stores. “We have just reached an agreement with Amazon and Flipkart that while they can sell offline models, they cannot discount it. We hope Monday’s sale is just one-off scenario and will not be repeated,”said Canon India Executive Vice President Alok Bharadwaj, adding that the hefty discounting of its products on online marketplaces was not endorsed by Canon and was also difficult to control.

     

    “Probably, the best way to reduce disruptions like these is deeper engagements with these online marketplaces which we now plan to do.” Lenovo, which had earlier this year urged customers against buying its products from online retailers only to subsequently withdraw its advisory, said it would also have different models for its online and offline sales channels. Lenovo India MD Amar Babu said his company was keen to have fair competition in the marketplace and did not favour one sales channel growing at the expense of another.

     

    The tongue -lashing from the consumer goods biggies on Monday followed a huge brouhaha created by traditional retailers, upset that the hefty discounting by online sites would hurt their business. Brick-and-mortar stores remain the mainstay sales channel for consumer goods brands, but fear that their businesses are threatened by the fast march of online retailers. In categories such as smartphones, online retailers now account for more than a 10% market share, so much so that some new model launches now happen exclusively on these sites. Online retailers also account for 5% of television sales.

     

    As Flipkart’s discount sale and Snapdeal’s riposte captured shoppers’ imagination on Monday, small retailers and trader lobbies said they wanted the government to intervene.

     

    The All India Mobile Retailers’ Association, a new body that claims to represent the interest of around10,000 mobile retailers, said it would approach the government and the Competition Commission of India (CCI) to stop such predatory pricing deals by e-commerce marketplaces.

     

    “The way e-commerce is progressing, several shops may have to shut down, which will jeopardise lakhs of jobs,” said the organisation’s secretary general Dhiraj Malik. He accused e-commerce firms of cartel-like behaviour, discounting products and selling them below cost prices. “This in turn has impacted our sales by 30% and profitability by 60%,” he said.

     

    The Confederation of All India Traders, an umbrella body representing some six crore traders and small retailers, has already written to Commerce Minister Nirmala Sitharaman to stop discounting by online marketplaces. It said discounting by these sites had affected store sales of items such as cosmetics, footwear, apparel, jewellery, watches, electronics, computer hardware and software, mobiles, sports goods, travel luggage and books.

     

    “Since e-commerce firms merely provide a technology platform for sellers who are registered with them and because the ownership of the inventory is not their’s, how can these marketplaces offer discounts?” asked its secretary general Praveen Khandelwal. He said his association would complain to the competition watchdog this week.

     

    Officials at large retail chains, also taken aback at the aggressive discounting offered by online players, said e-retailers not only antagonised brands by selling products at throwaway prices but also affected distributors who might now demand unreasonable margins.

     

    “This event will perhaps now trigger many brands to go against all online channels for spoiling their imagery and pricing strategy,” said the owner of a leading electronics store chain. Vijay Sales managing director Nilesh Gupta said when it comes to appliances and durables, consumers still want the touch and feel factor, especially in smaller cities.”Also, most of the popular products are not sold online and consumers will have to visit stores if they want latest collection,” he said.

     

    Source:The Economic Times

    Copyright © 2014, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

     

     

  • Continuing with our extracts from the second edition of the MxMIndia Annual, we present contributions by Rohit Ohri and Ferzad Palia

    What Ticks for Indian Consumers/ Teens – Rohit Ohri and Ferzad Palia

    Continuing with our extracts from the second edition of the MxMIndia Annual, we present contributions by Rohit Ohri and Ferzad Palia.

     

     

    The message is the medium: Connecting effectively with teens

     

    By Rohit Ohri

     

    Back in 1964, the renowned Canadian communication theorist Marshall McLuhan coined the terms “The medium is the message.”

     

    In the media-fragmented, choice-exploded consumer economy of India today, perhaps the opposite is true. Especially when it comes to reaching that mercurial group of constituents, teens. In a multi-screen media environment with the average teen holding the reins to each of the multiple screens, there is no predicting the most opportune time or location to connecting with them.

     

    So what’s a brand to do?

    As Bob Dylan sang immortally,

    “The old order is

    Rapidly fadin’

    And the first one now

    Will later be last

    For the times they are a-changin’.”

     

     

    		  

    Focus on fresh content & social engagement will be vital

     

    By Ferzad Palia

     

    The major growth in terms of viewership for both English comedy (Comedy Central) as well as international music (VH1) will come from the youth.

     

    Let’s talk about Comedy Central first. When we launched the channel last year, it was already well known as an international channel that does quality programming. So it wasn’t very difficult for us to create awareness around the brand. We knew that what would matter at the end of the day would be content that would be liked and watched by Indians between the age bracket of 14-44 years. So our TG is a mix of youth as well as some mature audience.

     

    For the past two years, I’ve seen the channel grow in popularity in India. That is because a lot more Indians now speak and understand English. Thanks to the Internet, we’ve become a far smaller world, and people are more exposed to western culture and trends, which is why we can even accept standup comedy today.

     

     
     

    A quick reality check of how brands today are trying to connect with teens reveals an approach that basically is based upon bombarding everybody everywhere in the slim hope of hitting a ‘target’ audience somewhere. Technology and social media, have only served to compound that. In effect, as an anonymous internet cartoon aptly put it, marketers are telling teens daily that “we just tweeted you that we facebooked you that we googleplussed you that we blogged that we’ve sent you an email newsletter with an update.”

     

    It seems like the medium is the mess, rather than the message. So instead of trying to figure out when teens might be most receptive (which, even, many brands are not doing), what brands ought to be doing is creating messages that they would want to be receptive to. The 3-word mantra for that is I.R.E. Create a message that scores on Interest, Relevance, Engagement.

     

    So that neither the time nor the location of the medium matter. Pause and think for a moment for what teens consume. They may use words such as “hatke” or “different” to describe what they’re drawn to. But from the cat videos they consume by the millions to the vocabulary they are constantly inventing, morphing while texting, to the games they addictively, endlessly play on their mobiles, what reels them in and keeps them hooked are things and people that are interesting, relevant and engaging.

     

    It’s how Brand Aamir Khan doesn’t ever get old, reinventing himself from the chocolate hero of QSQT and JJWS (that’s Jo Jeeta Wohi Sikander for the oldies) to the coming-of-age, generation-defining protagonist of DCH, to the rebel with causes of RDB, TZP, to the psyche explorer of Peepli Live, Talaash, and Satyameva Jayate. It’s how Airtel reinvented itself by finding a fresh, new slice of sharing and friendship with HFZ and Jo tera hai woh mera hai.

     

    It’s how Old Spice made itself cool with a generation that thought it was as uncool as dad with The Man Your Man Could Smell Like. The examples are endless. The principles are the same. And have probably been the same always. To reach teens when they are most receptive, be interesting, be relevant, be engaging. Right here. Right now.

     

    		  

    In the next five to six years, we will be the largest English speaking population. And this growth is not just coming from the seven metros, but also from smaller towns and cities. For VH1, however, there is a big growth happening in the metros. This growth can be attributed to live events/concerts and of course due to a higher demand of international music on TV.

     

    For both the channels, our strategy is to offer fresh content and keep our audiences engaged via social platforms – that’s absolutely critical as our viewers spend maximum time online, from multiple devices. That’s where consumers openly talk about celebrities, music, gossip, so on and so forth.

     

    As a channel brand catering to that audience, the endeavour is to participate in those conversations. Quality of social conversations is also a measure of how your channel is doing, if you’re a channel catering to an audience that has an affinity for international content.

     

     

     

     

    Tomorrow: Thursday, October 9: Family – Shashi Sinha and CVL Srinivas

     

     

  • The Call for Entries was launched along with the campaign "Let the Numbers Tell Your Story" by Leo Burnett Indonesia

    APAC Effie Awards 2015 calls for entries

    By A Correspondent

     

    The 2015 Asia Pacific Effie Awards has announced the Call for Entries. The 2015 Awards features 34 Single Market categories and 2 Multi-market categories, with 5 new categories, namely Branded Utility, Business-to-Business, Shopper Marketing, Sponsorship & Event Marketing, and Youth Marketing.

     

    “The introduction of these new categories will ensure that the competition keeps on the forefront and stays current with the market trends,” said Jarek Ziebinski, the 2015 Awards Chairman. He further added, “As the gold standard of marketing effectiveness, winning an APAC Effie is an affirmation of the best in its class in the region. It represents agencies’ success in delivering ideas that work for their clients. I certainly look forward to seeing the exceptional cases from the region.”

     

    The Call for Entries was launched along with the campaign “Let the Numbers Tell Your Story” by Leo Burnett Indonesia. The objectives, the goals, the insights, the execution and most crucially, the results, are all measured in numbers. Let numbers prove the effectiveness of your campaign, that’s what Effie is all about.

     

    Organised by the Confederation of Asian Advertising Agency Associations (CAAAA) and Tenasia Group, the Asia Pacific Effie Awards honours the region’s most outstanding campaigns which have been brilliantly executed and proven results in meeting challenging strategic objectives.

     

    The 2015 Awards is now accepting entries through to 15 December 2014 for all marketing communication efforts that have ran in Asia Pacific during the qualifying period.  Winners will be announced at the Awards Gala in Singapore in April 2015.

     

  • The overall packaging, with enhanced HD and sports bouquet will encourage viewers in the metros and larger cities to subscribe to new offerings from, Dish TV

    Dish TV announces new HD feature for North India

    By A Correspondent

     

    Dish TV has introduced an all-new package for its new and existing customers in North India. Special variant of these packages are also available for its customers in South India.

     

    Speaking on the occasion, Salil Kapoor, Chief Operating Officer, Dish TV said, “The initial response to the new packaging for this festive season has been overwhelming for Dish TV. As Asia’s largest DTH operator, we have always focused on offering premium and exclusive packages with a value proposition offering for both new and existing customers. Dish TV has always been at the forefront for being pioneers and introducing a host of customer- centric products and services.  Our new packaging with an enhanced focus on HD is in response to our consumers viewing habits making quality entertainment more accessible and economical.”

     

    In High Definition, Dish TV now has maximum content, 36 HD channels, making it highest in the country. The growth of the High Definition category over the past year together with rising sales of flat panel TV’s has added a new dimension to the superior HD viewing experience. The overall packaging, with enhanced HD and sports bouquet will further encourage viewers in the metros and larger cities to subscribe to new offerings from, Dish TV.

     

    With the addition of 2 sports HD channels Star sports HD 1 and Star sports HD 2, Dish TV has a complete offering & mix of entertainment, music, news and regional language channels (for its viewers).

     

  • She will work with the agency's global CEO Charles Courtier; the company's global Executive Committee

    Marie-Claire Barker joins MEC as Global Chief Talent Officer

    By A Correspondent

     

    Marie-Claire Barker

    MEC has announced the appointment of Marie-Claire Barker as their first Global Chief Talent Officer. Marie-Claire Barker joins from the Ogilvy Group, where for the past six years she has been Chief Talent Officer, responsible for driving and delivering talent strategy for their 22,000 staff, globally. She is one of the most senior and respected talent professionals in WPP and the industry.

     

    She will work with the agency’s global CEO Charles Courtier; the company’s global Executive Committee; discipline leaders and People and Culture teams around the world, to deliver a consistent talent strategy and approach to how MEC attracts, evaluates, motivates and grows their people.  The goal is for MEC to be the company of choice for talented individuals who want a challenging, rewarding and exciting career in the marketing industry.

     

    Marie-Claire Barker said, “I want to be in a business with a palpable culture.  MEC’s talent manifesto, which encourages each employee to thrive within the context of work, is something that really intrigues me.  I have a strong desire to change the face of talent management in our industry, so operating in an environment that encourages uniqueness and innovation in a culture where employees feel there are no barriers to reaching their potential is what has drawn me to MEC.”

     

    Commenting on the appointment Charles Courtier said, “Talent is the single most important ingredient to the future success of MEC. Marie-Claire has an absolute passion for the growth and development of people, and I know that she’s looking forward to working with MEC leaders to drive a culture where each employee is able to contribute in a meaningful way to improve business results, and reach their own personal potential.  This is why MEC appealed to her, and why under her leadership and experience we’ll be able to truly thrive as a company.”

     

  • The report documents important specifics of the month of August including presence of each category and brands in cinema

    Interactive TV releases Cinema Audit & Monitoring report

    By A Correspondent

     

    Interactive Television, a unit of WPP, in collaboration with IPSOS-MEDIA CT released the CAM report August 2014 (Detailed trends and tracker for the movie Singham Returns). CAM report by Interactive Television is an initiative seeking to capture and present the trends and developments in the Indian Cinema advertising industry. The report documents important specifics of the month of August including presence of each category and brands in cinema, brand recall, placement and distribution strategy of each brand and traces the developments in the Indian cinema advertising.

     

    CAM report August 2014 captures that Food and Beverage continues to be the top category present in almost all the screens in cinema advertising in the last one year & has emerged as a biggest spender on this medium followed by Beauty & Personal Care and Apparel.

     

    Ajay Mehta, CEO- Interactive Television Pvt. Ltd says, “CAM completed 12 rounds of audit with ‘Singham Returns’. With this month’s CAM report, 298 brands were active on cinema out of which 55 are new brand entrants. On an average, 120 new brands are associating with cinema every month and looking at it as a useful medium to advertise. In the coming months, we are expecting to see rise in number of brands advertising on cinema because of big releases like Happy New Year, PeeKay expected to generate higher footfalls.”

     

    Key highlights of the report include cinema is India’s greatest passion and has been enchanting audiences for almost a century now. The core objective of CAM report is ‘to understand the potential of cinema as a medium of advertising, track how is it moving over time.’ The Report examined advertising investments in Indian multiplexes or theatres and offers a comprehensive overview of where the money is flowing in cinema advertising. Chocon continues to be the top advertised brand on screen with presence in 3/4th of the screens and the ads are being played in all premier slots. The brand continues to be most recalled brand followed by 7up. Also the difference between the top brand recalled and the others is quite high.

     

    The report also highlights that 55 new brands were screened, out of which Parle Marie & Tropicana were present on more than 100 screens. Parle Marie with highest slots balanced their ads for ‘Before Movie’ and ‘During Interval’ equally.

     

    CAM reporting is done on a monthly basis and monitoring is done with big releases in that particular month.

     

  • During his tenure in the mobile industry Roger has been engaged in creating and driving deployment of content globally

    Roger Davies joins Robosoft as VP & GM

    By A Correspondent

     

    Roger Davies, a digital & gaming industry veteran, has joined Robosoft as Vice President & General Manager of the Games & Entertainment division and will be based out of London, UK. He has extensive experience across marketing, business development and strategy having worked with leading technology and entertainment companies like BT Global, Shell, Medio Systems, Real Networks, Nazara Technologies. During his tenure in the mobile industry Roger has been engaged in creating and driving deployment of content globally, building relationships with key participants in the digital ecosystem.

     

    Robosoft Technologies, a premier mobile solutions provider known for creating over 1400 ground breaking mobile applications for its global clients, sees immense potential in the Games & Entertainment category. Rohith Bhat, CEO of Robosoft observes: “according to Smartphone & Tablet Gaming 2013 report by Casual Games Association, already, 378 million consumers worldwide, or 39% of all mobile gamers, spend a monthly average of $2.70 on or in mobile games. By 2016, these figures will amount to 50% and $3.07 respectively.”

     

    “We want to be the premier go-to company in mobile games. Given our capabilities in game design & technology and our track record, we are confident of making a mark in the Games & Entertainment domain. There is a huge potential between movie franchises, game developers and brands for bespoke mobile games,” added Roger.

     

  • The stakes couldn't be higher for Apple and Samsung this Diwali as they unleash their newest devices – the iPhone 6 and 6 Plus will be ranged against the Galaxy Alpha and Note 4

    Samsung, Apple to spend Rs 200 crore on promotions

    By A Correspondent

     

    The stakes couldn’t be higher for Apple and Samsung this Diwali as they unleash their newest devices – the iPhone 6 and 6 Plus will be ranged against the Galaxy Alpha and Note 4.

     

    Both companies will hurl almost everything they have in their advertising budget into a short, sharp burst of promotions as they seek to influence buyers seen to be emerging from slump-induced austerity – car sales for instance have picked up in the last five months. Diwali falls on October 23.

     

    As much as Rs 200 crore will be pumped into ads for the four products. According to trade partners and media planners, Samsung has lined up around Rs 100-120 crore on a big-bang launch of the two devices.

     

    Q3 Earnings to Plunge 60%: Samsung

    Apple is going to spend around  Rs70-80 crore along with its two telecom partners, Reliance and Airtel. Experts say this is among the highest amounts spent on new launches in Indiafs consumer goods industry. The iPhone 6 has a 4.7-inch screen, the same as the Galaxy Alpha, while the 6 Plus has a 5.5-inch display compared with the Note 4’s 5.7-inch size.

     

    The South Korean company has booked front-page jackets in all leading newspapers and primetime spots on television channels well in advance, forcing Apple to focus more on digital media and below-the-line activities such as in-store branding and product demonstrations that will be extended even to some small, neighbourhood stores.

     

    Apple’s media agency and company officials are also negotiating for prime space in leading newspapers. “Samsung has progressively increased their booking of advertisement spots during Diwali and they have indeed picked up huge ad inventory,” said a senior sales executive at a leading broadcaster with multiple television channels across genres.

     

    To be sure, Samsung needs to push products harder to gain an edge over Apple because of the US company’s skill at creating a media splash and generating public interest in its products. Meanwhile, Samsung also needs to counter the slowing demand for high-end phones, given the perception that newer devices in the high-price band only offer incremental advances. That trend has been bolstered by Chinese companies such as Xiaomi offering phones with advanced features at lower price tags. Such phones also include those made by Motorola and Micromax besides the recently launched Android One handsets.

     

    In fact, parent Samsung Electronics warned on Tuesday that its thirdquarter earnings would plunge 60% from the year before because of competition from Chinese rivals, Bloomberg reported.

     

    “It appears that Samsung has been cutting prices to maintain market share but has lost market share anyway,” analyst Richard Windsor told Bloomberg. “If market share continues to fall… Samsung will come closer to joining the long-suffering ranks of every other Android handset maker.”

     

    Samsung will also be keen to avoid the fate of Nokia, once the world’s leading cellphone maker, which was unable to cope with competition as iPhones and devices made by the South Korean company gained popularity. In 2013, Apple spent $1.29 billion (or 0.6% of sales) globally on marketing campaigns compared with Samsung’s $14 billion (5.4% of sales), although this includes spending for the latter’s vast range of electronics goods such as televisions and appliances.

     

    At the premium end, Samsung’s last major release, the Galaxy S5, failed to generate high demand. According to the latest figures from market tracker IDC, Samsung’s share of the Indian smartphone market dipped from 31% in the second quarter last year to 29% in the same period this year. As per estimates, Apple is the market leader in the Rs 30,000-plus smartphone segment in India, controlling almost half the market followed by Samsung with around 25% share.

     

    “In the premium segment, Samsung is facing intense competition as most of the international device vendors have aggressively revised their pricing strategies,” said Karan Thakkar, senior market analyst, client devices, at IDC. “On the other hand, in the affordable segment, most of the international brands are challenged by Indian and Chinese vendors, who attach a value-formoney proposition. The latest price reduction by Samsung for most of its products is one step to retain the leadership position.”

     

    A senior executive with a leading retail chain said Samsung would price the Alpha and Note 4 cheaper than Apple’s two new devices to get the attention of consumers.

     

    “Since Monday, after Apple announced the India launch of the new iPhones, the Samsung sales force has been meeting all trade partners to boost confidence in the two new models. In the same way it wants to bombard consumers with far more communication than Apple for topof-the-mind recall,” he said. Samsung and Apple will be deploying the bulk of their ad budget for the year in a short period, a reflection of how critically both sides regard Diwali sales.

     

    “The presenting sponsor of the Indian Premier League spends Rs 50-60 crore in 60 days,” said a media planner. The two companies will spend almost 60% of their total budget in the first six weeks, while the rest would be spread over the next few months.

     

    Samsung has told trade partners that while the Galaxy Alpha will hit stores this week at around Rs 39,990, the launch of the Note 4 will be on October 15-17 and is going to be priced at Rs 50,000-Rs 52,000. Apple’s two new iPhones will be launched in India on October 17. The iPhone 6 will start at Rs 53,500 and the biggerscreen iPhone 6 Plus at Rs 62,500. A Samsung India spokesman said the company would announce the launch dates of the Alpha and the Note 4 in a few days. “We are working on the pricing formula for Note 4. But yes, we have been aggressive on media buying this festive season since it’s a good time and would be launching new products,” he said. Apple didn’t respond to an email query as of press time.

     

    Samsung is going to become a highly visible brand this Diwali and may draw more eyeballs right from outdoor activations to in-store promotions, said D Sathish Babu, founder of leading cellphone retailer Univer-Cell. The intense competition will see demand revive across the board, he said. “Of course, the iPhone will have its own dedicated customers. It’s going to be an interesting fight and would revive smartphone demand since after almost 10 months some good models are going to hit the market,” Babu said.

     

    Apple started taking bookings for the iPhone 6 and 6 Plus on Tuesday, generating a substantial amount of interest. Industry executives said all top retail chains have ordered a few hundred devices each, while more than 1,000 have been booked at Infibeam. com, which is Apple’s official e-commerce partner in India.

     

    Going by the pre-order numbers, Infibeam expects demand to exceed that for the iPhone 5s and 5c launched last year, said a spokesman for the site. He, however, refused to share any numbers. However, sources said Infibeam has already received more than 1,000 orders. Samsung too is planning to start pre-orders for Note 4.

     

    Both Samsung and Apple have assured trade partners that they would ration stocks and supply strictly in line with actual sales to ensure that there is no online discounting by any seller. “However, there will be no shortage of inventory at anytime,” said a senior executive at a top retail chain.

     

    Source:The Economic Times

    Copyright © 2014, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • Girish will work closely with the leadership team at Avian Media to further align and strengthen company’s operations in India

    Girish Balachandran joins Avian Media

    By A Correspondent

     

    Girish Balachandran

    Avian Media has announced the appointment of Girish Balachandran as National Head of Marketing and Group Business Director. In his new role, Balachandran will lead the agency’s business development and marketing efforts across India while advising clients on their communication strategy. Girish will work closely with the leadership team at Avian Media to further align and strengthen company’s operations in India, thereby driving growth and profitability for the firm.

     

    Nitin Mantri, CEO, Avian Media, said, “Over the past few years, Avian Media has achieved steady growth as we focused on adding more marquee businesses to our client portfolio across centres. The company has grown rapidly in the last ten years and the time has come for our next big leap. Girish will initiate a new marketing drive for Avian as well as manage key client relationships. With his vast experience and business expertise, we aim to further strengthen our capabilities to become India’s Most Trusted Advocacy Firm by 2025.”

     

    An industry veteran with over 14 years of international experience in business development and marketing communication, Balachandran returned to India after 9 years in the UK and 3 years in the Middle East. In 2011, Girish was appointed as a Board Director at Ketchum UK to lead the firm’s business development and oversee key account growth for Oracle. In his six years of employment with Omnicom agencies, Pleon and Ketchum from 2006 – 2012, he served as a core member of the leadership teams responsible for growing the business, developing new offerings in change communications, field marketing and digital consulting.

     

  • Indiahomes.com is India's multi-award winning and leading Property Advisory Company

    ZO wins media mandate of Indiahomes.com

    By A Correspondent

     

    ZenithOptimedia has won the entire media mandate for Indiahomes.com after a selection process that involved a multi-agency pitch. This mandate covers all aspects of the company’s media planning & buying, and will include digital duties as well.

     

    Indiahomes.com is India’s multi-award winning and leading Property Advisory Company.

     

    Indiahomes.com has also finalised its new positioning, “Aap Ke Saath”, and is in the process of rolling out its multi-media campaign. With the new positioning and partnership with ZenithOptimedia, it is all set to take on the online real-estate category, which has seen increased levels of intensity with several brands becoming active in the media.

     

    Anupriya Acharya

    Commenting on the business win, Anupriya Acharya, Group CEO, ZenithOptimedia said, “The proposition of professional property advisors fills a crying need and we are excited to be the communication partner of a company that is introducing this big change in the Indian market. It represents a big opportunity. We are looking forward to creating innovative solutions for Indiahomes.com.”

     

    Himanshu Arora, VP – Marketing, Indiahomes.com added, “We needed a partner who has a deep understanding of consumers and their ever-evolving relationship with media. ZenithOptimedia impressed us with their strategic framework and ability to execute with speed and accuracy.”

     

  • Voylla has become one of the top most searched and on its partnering channels like Amazon, Flipkart, Snapdeal

    Voylla unveils first-ever television campaign

    By A Correspondent

     

    Jewellery e-seller brand Voylla.com has launched its first-ever TVC. The TVC was strategically launched in the West Bengal region last week and has been well received by the consumers. The TVC has now gone viral on multiple social platforms.

     

    In less than a week of the launch of the TVC, the ads have crossed over 22,000 views on Youtube and Voylla has become one of the top most searched and on its partnering  channels like Amazon, Flipkart, Snapdeal.

     

    The campaign is targeted at women in the age group of 25-44 years, residing across urban India. The idea has been drawn from the impulsive insight of a modern contemporary woman who loves to indulge in self-pamper. The attractive price points and ease of navigation through Voyllla’s mobile website, have always been the fundamental objective of the brand, which will now reach the masses through the TVC campaign. If a woman likes something, she should be able to buy it. That is the brand promise in a nutshell.

     

    Keeping upbeat with the Hashtag trend, the company has launched two Ads, #windowshopping and #ridofromeos, while the campaign is led by #AlwaysBeautiful theme.

     

    The campaign will see two Ads being aired directed towards the young Indian Woman who wants to look #AlwaysBeautiful.

     

    The ad #windowshopping breaks with a young woman crossing a jewelry store’s window while shopping, which has on display a beautiful necklace. While she stops in excitement and tries to adjust the necklace around her neck in the mirror reflection, she catches the eye of the salesman inside the showroom. The woman unaware of the leering, loves the necklace around her neck and the next moment is seen surfing through the Voylla website for a similar necklace, clicks buy and walks away.

     

    The second Ad, #RidofRomeos, opens with a young girl at cash counter, standing next to a dude wearing reflector shades. While the guy coughs to draw her attention, she girl looks back at the guy intently making the guy think that he has got her attention. The young woman suddenly whips out an earring from her bag and is seen checking herself out in the reflection of the guy’s sunglasses. She next whips out her phone, browses through Voylla’s website for a similar piece, clicks buy and walks away leaving the guy perplexed.

     

    Vishwas Shringi, Founder and CEO, Voylla, comments, “The imitation/fashion jewelry operates in what can be called the most fragmented market. Two years of sustained efforts in understanding customer behaviour, setting up a robust back end supported by the technology edge and a fine detailed curating, Voylla is focussed towards redefining and organising the industry. We hope the Ad campaign is received well by our audience.”