MxMIndia

Category: MEDIA

  • The growth will be primarily driven by MNCs investing inIndiaand stronger MCG sector, and there could be upward revisions made in the second half of 2012

    Indian adspends to see +8.7% growth in 2012: MPA study

    By A Correspondent

     

    Media ad sales will grow by 8.7 per cent in net terms this year, against the background of a slowing economy (~7 per cent real GDP growth versus historical range of 8-9 per cent) and the high first half of 2011 base last year resulting from the Cricket World Cup (which happens once in four years) plus an extended IPL season according to Media Partners Asia.

     

    The growth will be primarily driven by MNCs investing inIndiaand stronger MCG sector, and there could be upward revisions made in the second half of 2012. The outlook for advertising growth across key categories is mixed.

     

    Some of the highlights are:

    • FMCG 

    Media buyers expect robust growth from the FMCG sector, which is the largest advertising category, contributing 30-35 per cent to total ad spend. MNCs are expected to report robust numbers, while a few large MNC accounts (with annual ad budgets in the region of Rs2-3 billion) are looking to increase spends by 50-70 per cent for the coming year. Domestic FMCG companies are expected to see only marginal growth as the profits of these companies have deteriorated due to rising input costs.

     

    • Auto 

    Traditional companies such as Maruti and Hyundai have reduced their spends; but global car manufacturers investing inIndiaare driving the overall growth for the sector. As suggested in the recently held Auto Expo 2012, the sector will benefit this year from new launches in the two-wheeler and utility vehicle segments in subsequent quarters.

     

    • Life insurance

    The forecast is for a steady growth, a prevailing trend seen in this category since 2008. A reversal of interest rates will be the underlying factor influencing consumption and ad spend across sectors. The rising interest rate cycle seems to have peaked out. After raising interest rates by 13 times since March 2010, RBI (Reserve Bank ofIndia) may shift its approach towards the country’s monetary policy. Inflation is likely to fall considering the high base last year, and in order to bring the country’s economic growth back on track, the RBI is likely to reduce interest rates gradually in 2012. This will encourage investments and spending, in turn benefiting the ad market.

    Consumption demand has held up reasonably well though rural demand may be a concern, highlighted by a recent slowdown in sales of two wheelers and durables.

     

    Other key factors that will have an impact on the ad marker include:

    • Competition in Hindi GEC

    Competitive intensity in the Hindi GEC space is nothing new, though new competition is accelerating amongst second-tier channels. There has been a change in the pecking order of top three Hindi GECs, with Sony climbing up to the No. 2 spot while incumbent Zee TV has now slipped to No 4. Based on discussions with some of the major media buyers, the genre currently has limited supply of inventory, which should keep ad rates healthy.

     

    • Digitalization to create new niches

    Before the first phase of digitalization is implemented in June 2012 (it may be delayed to December 2012), broadcasters are already rolling out new niche channels in various genres like action and comedy. This will attract advertisers who are willing to target and segment their audience, not just from demographic but also psychographic parameters.

     

    • FDI in single-brand retail

    Opening up of FDI in single-brand retail (precursor to opening up multi-brand retail) will benefit regional print companies.

     

    • State elections

    In the near to medium term, print media will benefit from the upcoming closely contested elections to be held in five states: Uttar Pradesh, Uttarakhand, Punjab,Goaand Manipur.

     

  • Perfectly serviceable words are being replaced by silkier ones

    Gouri Dange: Smooth new words for same old fare

    By Gouri Dange

     

    I love the print and TV media advertiser’s smooth transition to silky new words.

    Nothing is ‘free’ anymore, it’s ‘complimentary’. No one wears underwear anymore, it’s inner wear – somehow under has become a crass word. But inner, like inner beauty and inner strength, has a more sophisticated ring to it.

     

    What we knew as a second-hand car, is now only ever referred to as a ‘pre-owned car’. Is this fancy term somehow supposed to take the sting out of not being able to afford a new car?

     

    Everyone’s on to the jargon. Now when you’re asked in a restaurant if you’ll go in for the ‘exec thali’ or ‘open thali’, you have to know that these are the brave new words for the old words ‘limited thali’ and ‘unlimited thali’. In ice-cream parlours no one uses the word scoop anymore. It’s all about single-serve and double-serve. Remember the time there were little ads and banners for shops that would sell ‘novelty’ or ‘fancy items’? No more. Everything is ‘exclusive’ now.

     

    When you go shopping for something to wear, get on with the program and use the right words. Never say you’re looking for readymades. That word has been thrown into the shredder. The gushy-mags have changed that word. Now it’s prêt that you’re looking for. Briefly it was ‘off the rack’. But French fakery always wins hands down when it comes to fashion-speak and food-speak. So what our moms used to call imitation and our older sisters used to call fake and we used to call junk jewellery, is now ‘faux’. Remember, faux. And don’t go and pronounce it ‘fox’ and look all gauche.

     

    The French connection is everywhere: now you got to say haute. You can’t call anything ‘high fashion’ now; it has to be haute couture. There’s nothing like ‘fancy cooking’ anymore. It has to be haute cuisine. Take the word cuisine, itself. In English we had the perfectly serviceable word ‘cooking’. But no, that was not good enough – too easy to pronounce and maybe smelt of boiled cabbage or something. So it’s all about cuisine now.  Even if it’s good old dahi-bhaat or taair-shadam, you’re serving Maharashtrian or Tamil ‘cuisine’.

     

    Remember when your ma used to dye her hair? Now we colour, or even more obliquely, we ‘treat’ our hair. We never dye. If you ask for your hair to be dyed in a fancy beauty salon (not beauty parlour, that word’s out and used only by aunties who will wax and pluck – oops, I mean ‘exfoliate’ – in their balcony-turned-into-a-parlour), they’ll look at you as if you’ve crawled out from under a flat stone. You must say: I want to colour my hair. And if you want to clarify that you’re not looking for red and gold tints or anything, but stuff that covers that tell-tale inch of white at your scalp,  then you can say airily: “I’m looking for ‘grey coverage”. And oh ya, salon is so yesterday, it’s spa now. Even a hole in the wall with only a glass door is a ‘spa’, no less.

     

    And these spas now refer to everything, mysteriously, as ‘product’. So it’s never shampoo, conditioner, moisturizer (god forbid you use really ancient and doddering words like vanishing cream or snow or lotion or hair dressing or that pre-historic word ‘pomade’); remember, it’s always ‘product’. And no one’s skin is ever called ‘old’ or ‘ageing’ or ‘sagging’ in ads and in spas. The right word is ‘mature’ skin.

     

    There are two phrases that seem to have no meaning whatsoever, but are such a hit with interviewers and journos. One is ‘personal favourite’. A celeb shares his ‘personal favourite’ recipes with you. A singer plays us his ‘personal favourite’ song. My question is: What other kind of favourite can there be? A favourite is a personal choice in the first place.

     

    The other phrase that defies logic but is a ‘personal favourite’ of so many journos and corporate types is ‘leading from the front’. The last I knew, there is only one position from which you lead – which is the front. Only cowherds and shepherds lead from the back, shouting halyaaa, thirrrr as they direct their flock forward.

     

    But then what do I know? I’m just a mature type who needs to use some product for grey coverage.

     

  • Chinese mobile ad network Madhouse enters India to offer comprehensive mobile marketing solutions

    Chinese Madhouse looks to wow India

     

    By Johnson Napier

     

    Countless comparisons could be drawn on how two of the biggest and most admired economies are driving brands from all across the world to be a part of a growth story that is unparelled. Or how the APAC region is all about just these two economies today, putting the other developed nations in the region in a state of oblivion. Having wowed the world with growth stories that defy market odds, China and India today command attention from business stalwarts and entrepreneurs like no other, especially entrepreneurs from emerging mediums like Digital and Mobile that are shaping the way the world goes about doing its business. But despite the huge buzz around these two economies, there is very little that transpires when it comes to the two economies trying to venture into each other’s territory to gain mileage and expand base – especially in the digital space.

     

    But all that could change with the advent of the largest mobile solutions and advertising network firm from China- Madhouse. Launched in 2006, the company enjoys the reputation of being tagged as the most intellectual and largest mobile ad solutions company in China. In India, Madhouse will work towards providing brands, advertising and media agencies and marketers with a host of comprehensive mobile marketing solutions. It has already tied up with a host of strategic partners including WPP, Vivaki, Omnicom, Aegis and so on from the media agency side of the business and would work towards providing them holistic mobile marketing and advertising network solutions.

     

    The Madhouse India team would be headed by Vinod Thadani, who until now was handling mobile responsibilities for Group M India andSouth Asia. Given that the two countries share market complexities that are similar in nature and have a population base that is very high, it seemed like a natural extension for Madhouse to step in to India, making it the first such venture into foreign territory in APAC.

     

    Throwing light on how the APAC market compares to the other regions and reacting on his choice of targeting India as the hub for launching the venture, Joshua Maa, Founder & CEO, Madhouse Inc. said: “Today APAC occupies ad spends growth to the tune of 32 per cent, making it the largest in the world. These are led by the economies of China , India and Indonesia that are the key drivers of this growth in APAC. To gain success in a market like India requires the ability to manage complexity, and this is an area where we excel.”

     

    Hoping to leverage the opportunity of using mobile as a mass media device, Maa went on to elaborate the business module by stating: “If you compare the mobile markets of India and China, they are almost identical. While China has a mobile user base of 960 million, India’s number stands at 894 million. But where mobile internet users are concerned, China has 356 million users while India’s number stands at 150 million. Therefore, we foresee a huge growth in India and decided to make this our first market to launch in APAC.”

     

    In India, the agency’s focus would be centred around disciplines of mobile ad serving, mobile ad network and mobile marketing solutions. Having wowed clients in China like HP, KFC, Unilever, Intel, Coke, and others, Maa hopes to emulate a similar example here by getting important brands to align with the network: “Being the only full-service provider in the market and having a skilled and experienced team in place, we hope to attract a lot of clients in the days to come.”

     

    Emphasising on the partnership, Vinod Thadani, COO, Madhouse said: “Madhouse will offer mobile marketing solutions created and carried out for advertisers by a team of experienced media professionals that understand this medium. On a technical level, mobile advertising can now achieve accurate intelligent targeting and provide real-time reporting – a very convincing proposition for advertisers.” According to Thadani, the need of the hour is to unlock the potential of the mobile medium and they are therefore determined to grow the Indian Digital Media market from Rs125 crores to Rs1,000 crores in the next 3 years. “The need of the hour is to understand the medium thoroughly and this would be possible by partnering with the right partners and going back with the right solutions to clients.”

     

    Perhaps the best reason for elation among mobile clients in India was provided by Ranjan Kapur, Country Manager, WPP, who began by discussing how India, as an advertising market, was highly undervalued. “Despite India boasting such a good growth in economy, the advertising spends in China stand at US $55 billion while for India it is at US $6 billion, this shows that we are still an under-advertised and under-branded market.” Citing the reason for China leapfrogging ahead of India, Kapur said that the single biggest factor for India’s dismal record in getting more ad spends was because it jumped on to the services bandwagon and chose to ignore the manufacturing sector. “While the Services sector contributes about 55 per cent to the GDP growth, it is still very shy on spending on marketing and promotional activities. And this is an area where Manufacturing excels. But all that is changing and the Services industry is opening up and spending more.”

     

    On the ad spends growth in India, Kapur said that while there is a 15-20 per cent growth, it is digital that is intriguing the advertisers the most. “Digital ad spends recorded a growth of 30 per cent.Mobile, specifically, is a Rs125 crore industry today and given that there are 300 million internet users predicted by 2015, mobile advertising is expected to account for about one-fourth of conventional traditional advertising. So it can be said that a revolution in digital in India is beginning to happen now.” This growth will be boosted further by the Government’s efforts to spread mobile and internet usage in rural areas for which it has promised 2,50,000 nodes for broadband in the next four years. “So mobile marketing in the rural areas will be a mass phenomenon, once this plan gains momentum.”

     

    Another interesting addition to the venture would be Rovio Entertainment that is more popular for its Angry Birds concept around the world. “Madhouse is a valuable partner for us in China , and we are excited about the opportunity to extend our collaboration to India as well,” said Bijay Gurung, Key Account Director, Rovio Entertainment Ltd. “With India being the second largest Facebook market, it opens the door for us to entertain even more fans as we are aiming for one billion downloads by the end of the year.” The current number stands at 700 million. Apart from that, Rovio would also focus on pushing itself as a publishing firm, a large-scale animations firm and further look to enhance its merchandise business.

     

    In an era where it is becoming difficult to lead lives without smartphones, iPads and other such mobile gizmos and with a lot left to be accomplished in the Data, Voice and Text domain and lack of established tools and systems that makes it difficult to answer the question of how this medium can be leveraged by advertisers to reach out to their consumers, probably an established Chinese mobile dragon could well show Indian mobile companies the way this medium could be harnessed to its full potential.

     

  • Gaurav Mishra-led team develops proprietary tools to scale the SM space and help businesses embrace innovations

    MSL Group on overdrive with social media

     

    By Rishi Vora

     

    MSL Group, the Publicis Groupe’s flagship speciality communications and engagement network, is upbeat about its foray into the growing world of social media. Afer it acquired communications major Hanmer & Partners and later PR and social media firms 20:20 Media and 20:20 Social respecitively, it has now clubbed the social media practices of Hanmer and 20:20 Social under the umbrella of MSL Group India Social.

     

    The group has adopted a unique approach towards tapping the social space for clients in India and abroad – it has created three key capabilities: Plan, Build and Engage. Of the two, Plan and Build are the revenue-drivers, wherein a lot of work goes into providing insights, strategy planning and developing web, mobile and social applications; creating content, communities and conversations.

     

    The company recently launched its proprietary tool – The People’s Lab, a global crowdsourcing platform and approach designed to help businesses embrace innovations. It is a platform which works across multiple application areas; provides end-to-end support, including custom design and content creation.

     

    In 2010, Dell India used an early version of People’s Lab platform to create the Dell Go Green challenge for design students and others to share ideas on how to redesign, reuse and recycle gadgets to make them go green. The idea to create Dell Go Green challenge came from the fact that the client owned a recycling programme, besides having conducted several other CSR programmes.

     

    A mini site was created using the People’s Lab and the result was quite pleasing: About 650 ideas got shared, 25,000 members on Facebook and 8,000 votes.

     

    As is known, Gaurav Mishra launched 20:20 Social and now heads the group’s social media business in India. He is Asia Director – Social Media, MSL Group. Mr Mishra told MxMIndia that the company now plans to launch many more tools that will offer clients comprehensive social media solutions. “Our core differentiation in the social media space is in offering tools; we are in the business to create platforms which bring people together and programmes which energise people. We want to create more tools, more frameworks, so that we can go to clients and offer them solutions that’ll contribute in solving much bigger problems.”

     

    Parveez Modak

    People’s Lab was created in India, led by Parveez Modak and is now sold to clients in Singapore and Italy. “We’re discussing with clients in US, Poland, Taiwan, and in India,” informed Mr Mishra.

     

    He added: “Once we have developed enough tools and capabilities in India, we will look to educate whole of our network and make efforts to spread awareness to our group companies in different parts of the world.”

     

    MSL Group India Social is now working towards creating a corporate citizenship offering globally. As Mr Mishra explained, it is a network of 150 senior members of the group spread across regions – board members, global board members, regional presidents and others. The idea is to bring forward a thought leadership team that can provide insights, views and opinions on various topics ranging from “How clients are looking at Change Management Differently” to Employee Engagement, Corporate Citizenship, Innovation, business opportunities and so on.

     

    How will the Social space evolve in India? Where is it headed? What kind of solutions are clients seeking from specialists? According to Mr Mishra, the market for social media services will pick up dramatically now, and clients will be on the lookout for companies that possess the talent to develop in-house capabilities, and solve greater and much complex marketing solutions within the social space.

     

    Globally, MSL Group has about 200 professionals dedicated to social media; about 60 of them in Asia and, for now, 30 in India. Mr Modak, who other than social media also leads the integration function at Hanmer and Mr Narendra Nag at 20-20 Social constitute Mr Mishra’s core team for MSL Group India Social.

    “Revenue-wise, India is still fairly small, China is becoming increasingly big in terms of size of the market, but there is ample opportunity in India,” concluded Mr Mishra.

  • For good to triumph over evil, what better place to start than one’s own backyard?

    The Anchor: 10 media evils we’d like to see banished this Dassera

    By Pradyuman Maheshwari

     

    It’s Dassera tomorrow, a festival that symbolises good winning over evil. Here’s my list of 10 media evils that I would like to see the end of. You can say that some of these are predictable since I have written about the issues in the past, but they are genuine evils. Banish them!

    #1 Corruption

    The 10-letter word is not just a preserve of government and politicians. It exists in plenty in corporates and the private sector. Our business included. Bribes to get sales deals through, generating revenues by way of money payouts and favours. Sending media buyers and clients to see the FIFA World Cup or Wimbledon tennis is nothing extraordinary these days. Nor is selling of magazine covers, or newspaper or website stories, in lieu of monies very surprising. Ditto with awards: money or just for old times’ sake. Har ek friend zaroori hota hai!

    #2 Paid news

    This has been institutionalised by certain publications even if it’s for just for lifestyle, glamour and brand launch news. It needs to stop, and a dubious disclaimer won’t do. Paid News is prostitution of editorial space and I don’t have to spell out what its practitioners should be called.

    #3 Industry fiefdoms

    Trade associations are supposed to help the lowest common denominator, but in the media we have a situation that some of the aasociations have become fiefdoms and people hardly mentor or help the weaker players. In fact they often attempt to crush them.

    #4 The ratings race

    Revenues happen only if there is proof that your product is read or seen or heard. Nothing wrong with it. But some newspapers are rumoured to go to any extent to fix things. And channels see nothing wrong tweaking storylines for better numbers. Ratings ke liye kuch bhi karega!

    #5 Dearth of talent and disparity in salaries

    There is need for dramatic change here. Some wings of media and marketing are paid fantastically, others pathetically. Journalists, for instance, are very poorly paid in many establishments. Ditto with staffers in Tier 2 cities. The media needs to attract quality talent and offer great content. Both are critical for good content. Alas, I don’t see this changing in a hurry.

    #6 Abuse of Intellectual property

    In Indian media, copyright is mostly defined as the right to copy. Our media companies are fortunate that legal action takes its time or never happens. Else a few of them could be giving the more high profile criminals company in Tihar or Arthur Road. The discipline has to start from the ground-up. Googled pictures must be a no-no and only licensed content must be used.

     

    #7 Fake ads

    It’s not as severe as other issues here, but the fake ads that advertising agencies craft to win awards are not on. Yes, they are a given these days and some leading agencies patronise the practice. But there has to be a way to end it. Perhaps some introspection?

     

    #8 Content sucks

    The self-regulation mechanism has been set up, but I think some of our channels, especially a few newswallahs, could do with a drive to improve content. And a news channel must air news and possibly some kutta-billi stuff. Not the other way round.

     

    #9 FDI blues

    Foreign direct investment in radio was hiked to 26 percent last week and in news channels it’s restricted to 26 percent till date. However, GECs can be 100 percent owned by foreigners. And creative and media advertising agencies too can be fully owned by non-Indians. Given that ad agencies influence media buying decisions and hence can in turn influence the media, why not allow full FDI in news and radio?

     

    #10 No Ethics!

    It’s a dirty word in most media organizations. Look at how many have a Code of Ethics, and insist on employees (and the promoters) agreeing to practise it.

     

     

    The views expressed here are my own and are not endorsed by MxMIndia.com

  • The Times of India Group launched TWeek, first of its kind digital magazine at the INMA platform.

    TOI launches TWeek at INMA

    By Tuhina Anand

     

    The Times of India Group launched TWeek, first of its kind digital magazine at the INMA platform. The weekly will be released every Friday and can be accessed from iPhone, iPad or any Android tablet device.

     

    Elaborating on the product, Rishi Khiani, CEO, Times Internet Ltd, said, “The idea to launch this came seven days ago and digital provides the platform where content can be put together at such a short time. TWeek is largely sourced from content that is available on our blog verticals that we put together. Its content that has long shelf life and brings out the flavor of a week.”

     

    He added, “Its content that is repackaged in a format that works on iphone, ipad and whatever other android tablet devices available. It allows interactivity associated with the medium but at the same time is low on cost of production.”

     

    Mr Khiani calls TWeek the first digital magazine that doesn’t have print counterpart in India. However, he did add that the print version of the magazine could be planned in future. The magazine will cater to the youth. Apart from content that is available in form of blogs, it will also have original content like its cover story to attract more consumers to access it.

     

  • is the No. 1 channel in the region with leading prime time shows like Jerry Di Adaalat, Veer Hawaii De, Amreeka Di Top Model and international movies

    Spark Punjabi emerges winner for BIG-CBS

    By A Correspondent

     

    Spark Punjabi, the innovative international Punjabi channel launched by BIG-CBS, the Reliance Broadcast Network and CBS  jv, has reported excellent ratings by TAM. The channel has been rated as the leader during primetime of 7pm-12am, according to TAM reports, week 3-6 2012 (TAM India: CS4+ Males, Punjab 1 Mn+)

    With its endeavour to offer hand-picked world class content, dubbed in Punjabi to the audiences, the channel offers advertisers the best possible platform that they could seek, to reach out to audiences with minimal spill-over. The region is one of the richest regions and boasts of a strong base of affluent consumers. The market offers a good business opportunity for this channel format as it has excellent TV and C&S penetration, coupled with limited local language entertainment options.

     

    The channel is being supported by an integrated marketing plan leveraging multi-media platforms. With RBNL’s existing radio brand 92.7 BIG FM reaching 22 cities in the region and its OOH arm BIG Street’s 3,000+ ambient media options across the markets, BIG CBS Spark Punjabi offers marketers an integrated media opportunity.

     

    Speaking on the rating, Vishal Rally, Business Head, BIG CBS Networks said: “The strategy of taking world class content, tailoring it to meet local sensibilities and catering to the entertainment requirements of the people of Punjab has worked! Audiences have lapped up the channel, while advertisers are seeing excellent value for their brands.”

     

    The channel is available across Punjab, Haryana, Chandigarh and Himachal Pradesh (PHCHP) region and distributed on digital and analog platforms, with an extensive reach of over 6mn+ C&S households in the region.

  • Xtra is the first ever 24-hour news channel geared towards movie buffs in Andhra Pradesh

    AP viewers to get Xtra dose of Bollywood

    By Rishi Vora

     

    Monica Broadcasting Pvt Ltd, a Hyderabad-based broadcast company has launched Xtra, tthe first ever 24-hour Telugu news channel geared towards movie buffs in the state of Andhra Pradesh (AP).

     

    Launched on January 13, it caters to young audiences in the age bracket of 15-30 in all regions of the state. The content includes news centred around Bollywood, Hollywoodand Tollywood; comprising of celebrity interviews, gossip, events/page 3 news, lifestyle and so on.

     

    Mr. Nagesh Nagi, one of the promoters of the channel said that a unique part of the channel is its hi-fi graphics and presentation, which is a huge audience puller for the industry which produces 200-300 movies a year.

     

    Commenting on the how the channel has progressed in a month’s time, Mr Nagi said: “The channel has a mass appeal, though it caters primarily to the youth. So far we have got a very good response. Our interesting line up of content and the on-going marketing campaign will help us cover a fair amount of ground in a few days from now.”

     

    He further informed that Xtra is the first channel in the genre of filmy news in AP and that they expect competition in form of new channel launches in the near future. The channel has tied up with all cable operators in the region. And, by the end of this month, it expects to cover every TV household in the state.

     

    When asked on the response from advertisers, Mr Nagi said: “We expect advertisers to come in and advertise with us, as we are targeting the youth. We’ve already got a few advertisers on board – Santoor is one such advertiser. We’re expecting to close a few more deals in the near future.”

     

    As for the channel’s marketing efforts, the broadcast company has undertaken an extensive outdoor campaign in Hyderabad and other key locations in AP. It has also tied up with Big FM for promotion on radio. The channel’s tagline, 100% Filmy, is based on the passion that people of AP have for movies.

     

    Monica Broadcasting, founded in 2008, airs Telugu news channel – Mahaa news – in AP.

     

  • E-shopping could get a major boost as familiar & friendly grocery stores come online

    Networking the neighbourhood kirana @ AaramShop

     

     

    Aaramshop, a venture that makes shopping for essentials in FMCG and CPG (Consumer Packaged Goods) easy with just a click of the mouse, may be just about seven months old but has been making steady progress. As the name suggests, it is about shopping aaram se, the difference being that it has brought the local kiranas/ banias/ mom-n-pop store on its platform thus making possible for consumers to purchase their daily needs online and what better than it is delivered by your trusted neighbourhood shop that you have been visiting all this while. Aaramshop.com has partnered with1400 independent retailers across the country and plans to grow this number significantly by the end of the year.

    A concept that has not been tried before especially in the e-commerce where its largely dominated by players catering to travel, gifts and apparels and even when there are few who have ventured into selling grocery, fruits and vegetables, the AaramShop model is different as it is bringing into its fold the existing local shops into its domain. Vijay Singh, CEO & Managing Director, AaramShop, talks to MxMIndia’s Tuhina Anand in an exclusive interview and explains the concept behind his venture and the dynamics behind the ever-changing face of e-commerce in India.

     

    In the last few months that you have been running AaramShop, what has been some of the key learnings?

    It is always fantastic to see raw thoughts and ideas turning into reality – and that’s what being happening at AaramShop over the last 7 months. We launched the site in mid-June last year and it was the one of its kind of venture, anywhere in the world, so we did not really have clear benchmarks to follow.

     

    So far, almost all our thoughts and ideas have been reinforced and we are very positive about the future of what we have created. Every member of the brand marketing & retailing eco-system has embraced the idea of AaramShop with enthusiasm.

     

    How do you see the venture going further?

    Today, we are the commerce partner to over 1,400 independent retailers across the country and we will grow this number multi-fold by the end of the year to ensure that every household in the top 10 cities can order their preferred FMCG brands via their trusted independent neighbourhood retailer (AaramShops as we call them) and get it at their doorstep in a matter of a few hours. We intend to scale to approx 20,000 AaramShops.

     

    We are starting to see brands integrating the advantages of the AaramShop platform within their digital marketing assets. This will extend the integration to all marketing initiatives by brands, including print ads, social media, campaign sites, and so on, as it will enable to them to ensure a critical last mile connect.

     

    In a move to make the online shopping experience exciting, AaramShop has introduced its unique product listing option that envelops the shopper in a complete brand experience. The innovation would enable marketers across FMCG / CPG categories to take advantage of the proliferation of online videos and all other digital content and consumers’ increasing engagement with that content.

     

    You have said that AaramShop is just a platform and your revenue model is not dependent on it. Can you elaborate on the revenue model?

    We don’t believe that the typical e-commerce models would work for the FMCG/CPG brands, predominantly on account of absence of deep discounting by brands and the fact that FMCG brands are extremely well distributed across the country and widely available across 12 million plus stores across the country.

     

    At AaramShop, we believe there is no need for more shops (on-ground or online) – the opportunity, however, is in making the existing shops available on the web so that the consumers can do their shopping with added ease, without needing to trudge down to the market.

     

    AaramShop, therefore, has been created as a hybrid retail platform for sales and marketing of FMCG/CPG brands to busy urban consumers. The platform offers the consumers the convenience of selecting from thousands of FMCG brands and then leverages the strengths of neighbourhood retailers to ensure last mile fulfillment of the orders.

     

    AaramShop is a free-to-use platform, not just for the consumers, but also for the retailers and, therefore, it does not disrupt the financial arrangements that the brands have already put in place.

     

    We have created a number of premium opt-in services for brands to use to connect in a more meaningful manner with consumers. These premium services are predominantly built around analytics-driven marketing, advertising options online and offline, AaramShop centric opportunities, and so on. Our revenue model is centred on premium services and brands have started to use some of these services.

     

    Buying grocery online, what are some of the logistics nightmare that you have faced in the last few months?

    Since the last mile of our model is completely managed by independent retailer partners who undertake the warehousing and the fulfillment of orders within their stores’ normal footprint – we do not face any logistics related nightmares. This is the core strength of the retailers within their geographical footprint.

     

    How open have the local kiranas been of joining this platform?

    The ‘kirana’ (independent retailers) are extremely keen to join the platform. They see it as an opportunity to become more relevant to the modern consumers. AaramShop, as a free to use platform, is open not only to ‘kiranawalas’ but also to neighbourhood “pharmacies” as they tend to stock and sell a lot of personal & beauty products.

     

    The independent retailers realize that they are unable to ensure a great “shopper experience” within their small stores and hence tend to lose out on larger orders. However, when they merge the online convenience of AaramShop with its access to thousands of brands with the local distribution and delivery capabilities that they already have, they realize that the combo could be a possible winner.

     

    The digital readiness of a lot of these retailers is still low, but I believe these are quite easily addressable with some technology innovations – and that is when the number of partner retailers would shoot up.

     

    You have been venturing into new and innovative arenas. So what is it that an entrepreneur should keep in mind when going alone especially looking at long term sustainability solutions?

    I don’t believe there is any fun in trending a path that is well-walked.

     

    The environment around us has changed completely in the last five years and consumer behaviour has transformed, however we tend to keep throwing the same set of solutions for the marketing challenges that the brands face. It is important to reboot.

     

    My religion is still marketing; it is the rituals that have changed. This change is dictated by what I see as incredible changes that are happening all around us and, to stay relevant, one needs to change.

     

    We have created a solution which integrates Local + Social +Mobiletrends of the days and it enables the interlinking of the Zero Moment of Truth of brands with their First Moment of Truth.

     

    So long as we can continue to provide an important connect for the brands, consumers and retailers and creating value across the eco-system, we believe that our premium services would be much sort after.

     

    How have you been promoting AaramShop?

    We have not aggressively started to promote AaramShop yet, as the focus is still on building the channel and ensuring we get the technology right. However, in the past and also going forward, our promotion strategies are based on:

    • Extensive use of social media – for example we were the first grocery store on Facebook.
    • Micro-geographic marketing, using the excellent footprint of AaramShops.
    • High quality CRM – grocery buying is a done 20 times a year by an average household, and we want to reach out in a meaningful manner and based on past purchase behaviour to ensure repeat usage.

     

    What are two key goals for your venture this year?

    While we have already released our mobile apps for all platforms, our focus would stay on making AaramShop more easy to use on mobile devices. We believe that mobile is the future and we will release a number of apps that will address different needs of different users in the year ahead.

     

    The other big focus area is going to be the BrandEngagementCenter. The BEC (www.brandengagementcenter.com) enables brand owners and their agencies to seamlessly manage and monitor their brand/products performance on the AaramShop platform. It is also our ad & analytical centre and we would like to ensure more users to start trying their hands on it.

     

    Having said that, I think the list of priorities is very long and we will be fighting on a number of fronts.

     

  • Happy days are here again for the Indian cricket board. The Board of Control for Cricket in Indian and Sahara India Pariwar have concluded their discussions and, as they say, kissed and made up

    All’s well as BCCI gets back its Sahara

    By A Correspondent

     

    Happy days are here again for the Indian cricket board. The Board of Control for Cricket in Indian and Sahara India Pariwar have concluded their discussions and, as they say, kissed and made up. Here are the terms of endearment… specifically, the BCCI “took note” of the various requests put up by Sahara and has agreed to the following:

     

    1. To extend the trading window, which was due to close on Friday, February 17, until Wednesday February 29 to give Pune Warriors India the opportunity to have successful negotiations with other franchises as it looks to strengthen its squad.

     

    2. Reactivation of the Auction Purse of Pune Warriors India so that it can take a number of players, subject to the squad composition regulations.

     

    3. BCCI and Sahara have agreed to start the arbitration proceedings initiated by Sahara through appointment of an arbitrator to address Sahara’s claim for a reduction in franchise fee for 74 matches.

     

    4. BCCI does not have any issues with Sahara seeking a strategic partner in the Pune Warriors India franchise, subject to terms of the Franchise Agreement.

     

    5. In respect of their request to sign overseas players who were not included in the Auction Register, subject to the relevant player regulations, BCCI agrees to the request subject to the views of all other franchises.

     

    6. Sahara has requested for one of the play off matches scheduled to be played in Bengaluru to be played in Pune. The right to host the Play Off matches is awarded to the finalists from previous edition, in this case Royal Challengers Bangalore. BCCI, in principle, is agreeable to hold one of the Play Offs in the new Pune stadium, subject to the consent of RCB.

     

    7. Sahara has requested to furnish the Bank Guarantee against the Franchisee fee in two instalments; BCCI will consider it at the next available opportunity.

     

    8. Notwithstanding the recent working committee’s decision of rejecting five foreign players in the playing eleven, in consideration of the exceptional circumstance and the non-availability of Yuvraj Singh, Sahara has offered to obtain the consent of all the franchises for the submission to the BCCI.

     

    The joint statement signed by Messrs N Srinivasan, BCCI President and Subrata Roy Sahara, Managing Worker and Chairman of the Sahara India Pariwar adds that Sahara confirms that it will continue sponsorship of the Indian team adding Sahara may want to exercise its right to assign the sponsorship as per the agreement.

     

  • Red Digital will make use of consumer-centric platforms to help connect the online and offline worlds

    Red Digital bags social media duties for Mirinda

    By A Correspondent

     

    Red Digital has been awarded the social media mandate for PepsiCo’s Mirinda. Red Digital will build and execute social media strategies that will help Mirinda, as a brand, reach out to their audience on social media platforms. The agency will play a key role in creating online buzz about the brand’s new offerings along with launching various campaigns and building engagement across social networks.

     

    For Mirinda, Red Digital’s immediate mandate on social media is to create an impact for its latest breathless campaign, with which it has launched two new flavours, Mirinda Orange Masala and Mirinda Orange Mango, while continuing with the base Mirinda Orange flavour.

     

    The launch is supported by a robust 360-degree campaign called the Taste Twister Challenge, supported via Radio, Outdoor and On-Ground activities, along with social media.

     

    Red Digital will help in bringing the experience to Facebook and On-ground. The program requires consumers to call or SMS at 08800033333 to choose the Taste Twister of their favourite flavour and recite it repeatedly in one breath for as long as possible; longer the recording, greater are the chances of winning exciting prizes, including 10 MP3 players and 1 tablet PC every day. Red Digital has replicated this experience on Facebook and Android tablets for on-ground activation, making the programme truly 360-degree.

     

    Red Digital is also geared to exploit the new disruptive full sleeve packaging that captures the taste and fun experience of drinking Mirinda through applications on Facebook. These applications use the most prominent aspect of the packaging: the emoticons, to bring alive the new flavours. The applications range from allowing fans on the Mirinda India Facebook fan page to enter into an augmented reality world and play with the emoticons to classifying friends in various taste categories. The agency will also be creating an augmented reality iPhone and Android application.

     

    The campaign, for the first time ever, will also see Red Digital creating TweetMobs through the duration of this campaign. These will be high-impact subjects being tweeted by Mirinda and re-tweeted by a group of people within a specific time frame. Red Digital will connect with the Twitteratis and get as many people to tweet about the topic with various Mirinda branded hash tags creating a plethora of endorsements for Mirinda.

     

     

    Commenting on the development, Harsh Jain, Founder & Managing Director, Red Digital said: “Social media provides seamless opportunities to build interest groups. Digital is no longer just about showing banners and clicking on them. It’s about generating engagement, activation and creating convergence between the online and offline worlds. We are glad to have an innovative partner like Pepsi Co onboard and look forward to creating path-breaking innovations in new media in the near future. The new activities for Mirinda brand emphasize our continued focus on digital innovation aimed at bringing value to our clients.”

     

    Speaking on Mirinda’s partnership with Red Digital, Ruchira Jaitly, Executive Vice President – Marketing, Beverages (Flavours), PepsiCo India said: “Social Media has become a very important tool for engaging with consumers and having a dialogue with them on a constant basis. We are pleased to have Red Digital on board as our social media partner for this initiative. Their prior experience in handling leading brands coupled with a deep understanding of consumer behaviour in the digital space will ensure there is a high level of engagement and traction for Mirinda’s campaign on three flavours.”

     

  • Tweek can be accessed via iPad and will soon be launched for iPhone and Android devices. The application has been developed in partnership with GENWI

    Times Internet’s ‘Tweek’ hits the market

    By A Correspondent

     

    Tablet users can now discover a whole new world of information and entertainment at their fingertips, with the launch of India’s first tablet magazine, Tweek. Created by Times Internet Limited (TIL), Tweek can be accessed via iPad and will soon be launched for iPhone and Android devices. The application has been developed in partnership with GENWI, inventor and leader of cloud-based mobile publishing.

     

    The weekly magazine will offer content with an urban perspective. Keeping in mind people’s wide range of interests, Tweek will feature stories from around the world across business, entertainment, lifestyle and sport. Its interactive format will allow readers to not just instantly share stories through social networking sites, including Facebook and Twitter, but also share their feedback with the Tweek team. Tweek has also enabled the reader to not just read a story, but also to listen to and watch it and thus, experience the content.

     

    In a first-of-its-kind, readers will be able to actively shape a magazine. They will be able to connect directly with the writers of Tweek, and share their feedback about the stories they enjoyed, effectively ‘Tweek’ing the magazine to something they would look forward to reading every week.

     

    “Tweek offers its readers an unparalleled experience in terms of interactivity, customization and usability. Its content will be kept fresh and relevant by the large database of content available within the TIL network. With its launch, we intend to pioneer the tablet magazine space in India” said Rishi Khiani, CEO, Times Internet Limited.

     

    Mr Khiani also said that they are interested in experimenting with different ways to monetize the content beyond traditional web advertising. Taking advantage of this new medium which incorporates the rich engagement features of the web into a mobile touch experience on a larger screen they hope can deliver new advertising concepts.

     

    GENWI’s Cloud Publish solution enables has enabled Tweek to deliver contextual commerce, rich-media advertorials that are geo-location aware, and switch out advertisers or ad units on the fly.

     

    Given the flexibility of GENWI’s mobile content management system, the partnership with GENWI will allow TIL complete creative freedom and control to deliver a beautifully branded magazine-like experience on an app.

     

    PJ Gurumohan, Founder and CEO of GENWI said: “With the power of the cloud, Tweek will save time and production costs by reusing design layouts from week to week – all in standard web-based protocols such as HTML5, CSS, and JavaScript. But, the most groundbreaking aspect of the application is the way it surfaces existing content and takes full advantage of the tablet experience to create higher levels of reader engagement and the flexibility to explore new monetization channels.”

     

    Times Internet Limited, (TIL), is the internet and mobile venture of India’s largest media house – the Times Group. Indiatimes.com, TIL’s flagship brand, commands more than one billion views per month. The other key properties in the TIL portfolio are Timesofindia.com and economictimes.com.

     

    GENWI ( www.genwi.com ) makes mobile publishing simple – in the cloud. As the inventor and leader of cloud-based mobile publishing, GENWI enables publishers and enterprises to easily manage content across mobile platforms, deliver an excellent brand experience, and find new monetization opportunities.

     

    Also read
    http://www.mxmindia.com/2011/11/inma-toi-launches-tweek/