MxMIndia

Category: NEWS

  • Direct-selling companies seem to have bucked the trend riding on stable demand, direct engagement with consumers, flexibility in market penetration and lower costs

    Direct selling companies like Oriflame, Amway beat economic slowdown, grow 23% in FY12

    By Ratna Bhushan

     

    Sanjana Jalan, an executive with a multinational and mother of two living in upscale Gurgaon, has not shopped for cosmetics at malls for a year or so. “I just call up my Oriflame distributor who delivers the cream and lipsticks I want at my home at the same prices I would pay for a brand in a retail store,” she said.

     

    If it’s convenience that makes Ms Jalan opt for a direct-selling brand, Lata Gupta, a receptionist at an export house in Mumbai, uses only Tupperware containers in her kitchen because of their durability. “These last really long, make my kitchen look smart…and products come with a life-long guarantee that’s something others don’t offer,” said Ms Gupta.

     

    Reasons may be different, but Indian consumers are increasingly buying Amway shampoos, Tupperware containers, Oriflame creams and Herbalife wellness drinks. While traditional FMCG companies are facing slower growth due to economic slowdown and weak monsoon, direct-selling companies seem to have bucked the trend riding on stable demand, direct engagement with consumers, flexibility in market penetration and lower costs.

     

    “The direct selling industry is showing diversified consumption patterns across the country, increasing demand from tier-2 and tier-3 cities and higher acceptability by consumers, distributors and entrepreneurs,” said Chavi Hemanth, secretary general at the Indian Direct Selling Association (IDSA).

     

    Direct selling firms-which sell their products to consumers without routing them through retail stores-are estimated to have posted 21 per cent-23 per cent growth in India in 2011-12, according to IDSA and industry body PHD Chamber.

     

    In contrast, traditional FMCG companies, which sell through retail channels, grew 15 per cent in 2011, and 17 per cent so far this year. Of course, the direct-selling industry with estimated revenues of over Rs6,000 crore in 2011-12, is minuscule compared to the country’s FMCG industry estimated at about Rs150,000 crore.

     

    But direct sellers such as Amway, Tupperware, Oriflame, Herbalife and Modicare are growing faster-the industry is expected to touch Rs10,800 crore by 2014-2015.

     

    “Since we engage directly with end consumers, we haven’t seen a significant slowdown. Traditional FMCG companies are unable to offer a personal connect with their consumers,” said Bill Pinckney, MD of Amway India, the country’s biggest direct selling firm with sales of Rs2,130 crore.

     

    Amway, which sells shampoo, toothpaste, home care products and health supplements in India, overtook traditional firms like L’Oreal, Nivea and Kellogg by revenues last year.

     

    So what helps direct sellers largely avoid the slowdown? For one, say industry experts, the direct selling industry is by and large not impacted by fluctuations in rural demand because most products target urban consumers. Also, these firms have direct engagement with consumers, most companies have brought down prices at par with traditional products, and almost all products offer buy-back guarantees.

     

    Direct selling firms have lower costs of doing business because they don’t invest heavily in mass media and save on expenses involved with distributor and retail channels.
    “Also, their consumer outreach is much higher,” said SP Sharma, chief economist and head of research at PHD Chambers, which brought out the report: ‘Expanding horizons – Indian direct selling industry’.

     

  • While spends may be shifting to digital globally, in India, television and print still rule. Sigh.

    MxM Mondays: Why do marketers not spend enough on digital media?

     

    By Ananya Saha and Robin Thomas

     

    According to the latest IAMAI-IMRB report on Digital Advertising, as of March 2012, the total advertising spends, including classifieds, was valued at Rs2,850 crore. It is expected that by FY2013 the digital advertisement spends will be Rs4,391 crore.

     

    Search advertising constitutes about 20 per cent of the total online advertising spend or about Rs570 crore. Display advertisement, which has many components, forms a sizeable portion of advertising spends. Advertisements on portals and vortals form 13 per cent of the overall pie (Rs369 Crores). Advertisements on Social Media, Email and Videos over the Internet form 3 per cent (Rs94 Crores), 5 per cent (Rs144 Crores) and 2 per cent (Rs59 Crores) respectively. Mobile ads form nearly 4 per cent (Rs90 Crores). A major proportion – around 53 per cent of the overall digital advertising spends – are classifieds listings (Rs1,496 Crores).

     

    These numbers seem impressive, but there has been some concern that marketers are not spending enough on Digital Media. The theme for this week’s MxM Mondays is ‘Why do marketers still not spend enough on digital?’ While marketing spends may be shifting to the digital media globally, in India, television and print still rule. Is it because digital still doesn’t reach the masses, and homemakers, in particular? Or is that the bucks (hence commissions) are still big in TVCs? MxM spoke to some players in the industry to find out:

     

    Ambika Sharma

    Ambika Sharma, MD and CEO, Pulp Strategy

    The shift to digital media is not happening as fast as the industry would like it to be. However, we are witnessing an increase in aptitude and attitude with regards to usage of digital media. Marketers are not using the media aggressively as they prefer to wait-and-watch. Even then, they are aggressive on ‘search marketing’, but not other aspects of digital media.

     

    There is hardly any youth brand which is currently not on digital platform. Education is one prominent category that has been using digital media. The cents for digital, however, remain restricted. But as the impact of digital media grows, the impact of mobile advertising has seen a decrease as most people now do not prefer to click on banner ads on mobile screens. Some studies show that in the past one-and-a-half-year, the user has been ignoring banner ads.

     

    The digital spends depend on ROI, search and impressions, which needs robust backend engine. E-commerce websites have been the heavy users of digital advertising to create impressions. But there is little or no response mechanism on impressions and the visibility is highly fragmented. The numbers, like there is TAM for television, are not available for digital media. If a marketer advertisers on three digital platforms, every platform gives their own numbers. So, there is no comprehensive measurable strategy.

     

    Going forward, digital media will grow, but it will be a long while before it catches up with other media vehicles. Lotof factors such as measurability, reach, people not preferring to buy online are affecting the growth.

     

    Gyan Gupta

    Gyan Gupta, CEO, I Media Corp Limited (IMCL), Dainik Bhaskar

    In the US, the online spend is 29 per cent of the total advertising pie; in UK, it is 26 per cent. Now if you see the figures in India, it is not even 5 per cent. The trend shows that there will be 50 per cent increase.

     

    But I will not say that marketers in India are spending enough yet. The typical spender (who spends on television) is yet not on-board. Till the main spenders come on-board, the growth will be limited. FMCG’s have a deep share of the pocket, and it is necessary that they spend on digital media. Auto companies, e-commerce companies, financial companies have been heavy spenders on this medium.

     

    What are the marketers spending on, and how they spend also becomes important. What needs to be analysed is if the cost of acquisition is happening, if the leads are getting generated, how much a brand is spending on digital activation vis-a-vis on brand promotion. Trending is happening. This year will actually showcase the brands spending on digital media.

     

    Harneet Singh Rajpal

    Harneet Singh Rajpal, Vice President-Marketing, Domino’s Pizza India

    The use of digital media is picking up in India. For any marketer present in India, the digital media is beginning to become a part of their media plan. It is on radar for everyone, especially in the categories where youth is the target.

     

    For Domino’s, digital media has been important ever since we began our online ordering platform. Currently, it helps us drive traction. Hence, our media spends for digital medium have increased over the last two years. For us the return-on-investment is visible for every buck we spend on this media, since it results from direct conversion from inventory to revenue generation.

     

    We now spend close to 4-5 per cent of our total advertising budget on digital marketing, from almost nothing in the last two years. We work with leading publishers in the domain to create applications for Google search, Facebook and social media. I must say that on Facebook, we have the largest number of fans in the food category, and also followers on Twitter.

     

    Social Media management needs time and investment. It is important that the brand keeps the target in mind when planning the digital activations. Going forward, marketers will have to evaluate the prospects digital media brings. Of course, that depends on category to category. Digital media is still limited because of its reach, whereas traditional media garners higher reach. Also, the confidence about using the media is not too high among the marketers since there are no hard numbers to prove its success. The penetration of internet and the efficacy of the media will be tested over time.

     

    Jonathan Bill, Senior Vice President and Business Development, Vodafone India

    Digital Advertising is a growing medium in India. It will be everything we are hoping it to be and that too quicker than we think, so I think the business is starting to get in a healthy shape. The advertisers are starting to embrace digital more openly and they should do so, because India has the third largest internet population on the planet.

     

    On TV and Print bagging bigger ad share, I think that is a legacy issue among advertisers, but I do get a sense that it is fast changing. In the West, however, TV and Print advertising have declined in favour of online advertising. Print, therefore, has very less revenue share from advertisers as compared to online advertising and now online is beginning to even threaten television as a medium.

     

    I think we just need to continue on the path we are going. The quality of sales and, to a certain extent, the market needs to be made. The West took nearly two or three years to be made as far as the start of digital advertising market is concerned and in India we are only about a year ready. So, I am very bullish on digital advertising in India, particularly on mobile on three to five years timeline.

     

    Narayanan SP

    Narayanan SP, Senior Vice President, and Head VAS Mobile Commerce and Long Distance, Idea Cellular

    Compared to the global benchmark, certainly advertisers in India are not spending as much money on digital or mobile, but this is something which will change over a period of time. Marketers are experimenting to see if it makes sense for them to connect digitally for certain set of products/features and whether digital is the right medium to communicate or engage their brands. Thus, lot of experiments are happening.

     

    On the internet front, we are already seeing a significant traction which may not be as big as the international market because of the low internet penetration in India. So if you are looking at a certain type of product wherein the target audience are already digitally connected, then it makes immense sense to go digital. Digital, I believe, will evolve as more and more customer profiling is done and advertisers are able to target their customers precisely. When advertisers are able to measure the ROI (Return on Investment), then we definitely believe that a lot more investment will come into digital.

     

    The fact that TV and Print still bag more advertising share will definitely change over a period of time in terms of mobile being one of the vibrant channels. This does not mean print and television advertising disappear but, you will see an increase in spends on digital advertising and mobile advertising in particular over a period of time. This is because mobile is able to give the advertiser not only a more precise profile of the customer which makes it a lot easier for the advertiser to reach out to its consumers effectively, but it also allows the advertiser to interact with customers and measure the results of their campaigns effectively.

     

    Mobile industry, for instance, has a wealth of data in terms of customer usage, but there has not been much mining of the data which can be heavily leveraged by the advertisers. However over a period of time, you will see a lot more advertisers leveraging this data.

     

    Rakesh Rao

    Rakesh Rao, National Sales Head, Zapak Digital Entertainment

    The digital media has been growing exponentially. The year-on-year growth of this media vehicle is close to Rs2,800 crore, and is supposed to reach close to Rs4,000 crore in a year. So to say that it is not a preferred media would not be the right statement. Of course, it is not a dramatic growth, but given the growth of internet and smart phones, digital media is becoming a part of our daily life. The marketers are also following the trend.

     

    The ROI, when compared to TV and radio, is much more measurable. Cost per lead and cost per click measure actual conversions. This is the only interactive platform too, while rest of the media only give reach.

     

    Education, travel, finance are becoming the biggest spenders on digital because of conversion aspect. E-commerce, and categories like travel that look at selling inventory believe in digital media.

     

    The challenges that this media is encountering is getting TV-centric brands such as FMCG onboard because of reach. It is a given that while TV is cost-effective when it comes to reach, digital media will catch up in some years. About 60 per cent of these brands are on digital, but 40 per cent need coaxing. There is no hindrance apart from the fact that broadband numbers need to grow. Digital media is here to stay and grow.

     

    Sandip Tarkas

    Sandip Tarkas, President (Customer Strategy) and CEO, Future Media and T24

    As far as Future Media is concerned, our advertising spends on digital have been increasing year-on-year. Despite a lot of digital activities done by marketers specifically on social media, it does not reflect in spends. The problem with digital is not a lack of a credible or universal measurement system, but the fact that it is too measurable as people try to measure every little thing. Although there are so many metrics which evaluate the digital medium, I don’t think it is a lack of measurability at all, as in digital we are clearly able to measure our CPM’s (Cost per Thousands) and so on. Digital is something we use for more engagement rather than reach because it does not offer reach.

     

    We look at advertising based on two things – reach and cost efficiency. And then you look at everything else – whether the medium is interactive and so on. So, it is primarily about reach and cost efficiency. Digital media spend in India is a reflective of India’s internet penetration, whereas in a lot of markets digital penetration is very high. In those markets both print and television advertising have declined and digital advertising has been growing.

     

    In India too, digital is growing much faster than the traditional media, and the growth of the media certainly shows the growing importance of digital. The current size of the digital advertising pie is reflective of the kind of inroads it has made in the country.

     

    On digital being a 360-degree medium in itself and the role of online video and social media advertising, the biggest gain happening in digital at present is the fact that it is changing quite rapidly. Since the late 90s when we first started using digital advertising until now, the role of the medium has changed quite drastically.

     

    Digital today not only offers more opportunities for engaging the consumers, but the vehicles used in digital have also been changing with time. For instance, in the early days television ads would continue for quite a lot of time, but today with more options, even the television channels have begun to announce that the programme will be back in say a minute or two. So as consumers have more choices, the way the medium gets utilized also changes. Digital, I believe, be it in any form – video, social, mobile – if it is not going to be interactive, it will not be very successful.

     

    For anybody targeting the youth, digital is an inescapable medium. I believe the biggest change in digital advertising will take place through mobile, particularly mobile VAS and the data cost. Growth spurt in digital advertising will also come through the increase in smart phone usage and the lowering of data cost will revolutionize digital advertising.

     

    This is because India has a very high tele-density and today mobile phones have reached the lower-most strata. I believe digital advertising in India will explode once mobile advertising comes of age but, right now it is still in its infancy.

     

    Eventually digital advertising will impact television and print ads as marketers will have to allocate their budgets for digital advertising, once it comes of age. It may probably hit print advertising first and then television but for that to happen there is still some time.

     

    Sanjay Tripathi

    Sanjay Tripathy, Executive Vice President – Head Marketing and Direct Channels at HDFC Life

    There is still limited spend on digital due to lack of knowledge about the medium and utilizing it effectively as a part of marketing plan; reach/penetration of the medium; and its ability to create impact in the short term. Digital still reaches about 10 per cent of the Indian population and there hasn’t been much of a development in building infrastructure to support the growth of internet. TV continues to be the mass medium which gets the maximum eyeballs and reach.

     

    While the ROI variables will drive spends to digital, marketing needs a serious mind shift to look at the additional advantages which digital brings along –  a medium which allows two-way dialogue  and measurability to the last mile.

     

    Thirty per cent of our budgets are dedicated to digital this year – a big move from the fact that we spent a negligible amount last year. As BFSI marketing and advertising becomes more ROI focused, digital media will play an important role. Digital budgets will have a healthy growth each year and will also account for a significant part of the marketing budget.

     

    While marketing spends may be shifting to the digital media globally, in India, television and print still rule. This is because reach plays an important role. Penetration of Internet in India is still low compared to international markets. The consumption of non-traditional online media is still low and 360 degree integrated communication planning in India has not evolved to have online as an integral part of marketing plans. Also, online medium do not works in sync with other media.

     

    While there has been a tremendous amount of growth in the usage of internet among SEC A, SEC B audience, internet is yet to gain as big an audience in tier 2 or tier 3 cities. TV continues to be the mass medium due to lack of digital infrastructure. It is the reach and channel affinity which mainly drives the spending and this is where a traditional channel like TV gets one up over digital. There is also a problem of lack of content on digital. Either the content has not been customized to cater to the audience or often the language becomes a hindrance in consuming the content.

     

    But digital media will make a huge impact. Level of engagement, interactivity and ROI afforded by the medium means it has big role to play. For brands which don’t engage their users online will tend to lose their relevance. As reach increases, the importance and level of competition will also increase –  YouTube already affords a higher reach compared to most of the TV channels and is increasingly becoming an important part of the traditional media mix.

     

    Digital offers tremendous potential for business – whether it’s about spreading awareness or generating business even in the face of a slowdown. In fact, as people tighten up their purse strings, they will want to do more research before they arrive at a purchase making decision and internet remains the primary medium of product research.

     

    I see the spends going up because the whole media pie has been asymmetric- if you look at the reach-frequency formula and compare it to TV, print, radio and then digital. There are more people spending time on digital in comparison to other traditional media touchpoints. I see the digital percentage increasing in the overall pie.

     

    Youtube and pre-roll videos have become a mainstay when it comes to hosting TVCs on digital and these unique ad formats are as effective in reaching out to audience as a TVC. For print QR codes help bridge the gap between offline and online world.

     

    Saugata Bagchi

    Saugata Bagchi, Senior VP, Tribal DDB India

    The primary challenge is the need of cracking an ROI metric, which is acceptable by advertisers across the board.  The media spends are happening, but is it delivering enough clickthrough rate goes unanswered. Digital media cannot ensure high reach like television, but with 12 per cent penetration among various categories it can definitely give high frequency. Currently, only 25-30 per cent of population is online; hence, the spending on this medium will remain lower than other mediums.

     

    The point of advantage is that there is a big influx of youth, and they are ready to spend. While the marketers would want to catch the youth online, they (marketers) get no justification in form of numbers to spend much on media. Hence, they prefer doing mall activation to spending on digital platform. The agency and publishing community need to be more forthcoming to speak to the marketers, and in their language.

     

    Digital media is currently registering 15-18 per cent year-on-year growth, but it is important to note the gap between digital and television media.

     

    Since the offices of MxMIndia are closed on Monday, August 20, there will be no MxM Mondays next week. We will announce the theme for the next edition on Tuesday, August 21.

     

     

  • Other than Mr Barua, Samir Datar and Amardeep Singh have joined as Senior VP Strategic Planning and Chief Creative Officer (North & East) respectively

    L&K strengthens top deck with Rana Barua as COO

    By A Correspondent

     

    Rana Barua
    Samir Datar
    Amardeep Singh

    Law & Kenneth has announced senior-level appointments. While Rana Barua has joined L&K as Chief Operating Officer, Samir Datar and Amardeep Singh have joined as Senior VP Strategic Planning and Chief Creative Officer (North & East) respectively.

     

    Mr Barua’s last assignment was that of COO of RED 93.5 FM for two years. Prior to that, he was the Head of Marketing & Programming of Radio City for four years. On joining Law & Kenneth as COO -West & South, he said, “Law and Kenneth is the one of the fastest growing agencies which is a true believer of building brands in the country and my mandate is to be a catalyst and a partner in this growth.”

     

    Other than Red FM and Radio City, Mr Barua has worked with Ogilvy, McCann and Y&R in nearly two decades in the business.

     

    With a career spanning 20 years and diverse product categories – from tractors to telecom infrastructure and everything in between – Mr Datar has worked at JWT, Cheil & LG Ad. He has built and managed successful brands like Maggi, Samsung, Hyundai & Nature Fresh. On joining L& K, he said, “I believe that Law & Kenneth is the most exciting & challenging place to be right now and I look forward to contributing my bit to the excitement.”

     

    For Mr Singh it’s a homecoming. While he has worked with agencies such as Mudra, Trikaya Grey, McCann Erickson, Contract, Dentsu Communications and M&C Saatchi, this is his second stint with Law & Kenneth. “It feels great to be back. I’m excited and honoured for the opportunity PK and Anil have given to me,” he said.

     

  • He will head planning for South and South East Asia

    Dheeraj Sinha to head planning @ Grey

    Dheeraj Sinha

    By A Correspondent

     

    Dheeraj Sinha has joined Grey India as consultant and will head planning for South and South East Asia. His last stint was with Bates India where he was Regional Planning Director, Asia.

     

    Commenting on Mr Sinha’s appointment, Jishnu Sen, President & CEO, Grey India said: “I have been looking for a planning partner – someone to lead the strategic thinking of our team for a few months now. I have been a huge fan of Dheeraj’s for a while, his reputation precedes him. His work and awards are a testimony to his prowess. So when Dheeraj started his consultancy, we became his client. I can confirm that Grey has taken him on as a consultant and we look forward to this exciting partnership.”

     

    Before joining Bates in 2005, Mr Sinha had worked with McCann Erickson and EURO RSCG in India. An alumnus of Delhi University and MICA, Sinha has worked on the brand strategy for several multinational and Indian brands, including Fiat, Virgin Mobile, MasterCard, LG, Reckitt Benckiser, TVS Motorcycles, Max Bupa, Marico, Dabur, and Cavin Kare.

     

    Talking about his appointment, Mr Sinha said: “I feel a great sense of energy and determination about the people at Grey. In all my interactions with Jishnu, Amit and Malvika, it looked that we can play as a team to create some magical work. The focus on creating sparkling work comes from the regional and global leadership which is critical for success. So when they proposed a longer term role, it felt like the right thing to do.”

     

    His specialties includes understanding Indian consumer, Youth marketing, Small town India, Technology adoption, Cultural change, Brand journey, Shopper marketing, Brand extensions, New brand launch as well as Business opportunity mapping.

     

    Last year, Mr Sinha launched his first book, ‘Consumer India: Inside the Indian Mind and Wallet’. He has also authored a chapter – ‘Bridging Gaps – Retail in the Emerging Indian Market’ – in the book, Shopper Marketing. He has spoken on topics related to the Indian consumer at the Esomar Asia Pacific Conference, the Global Youth Marketing Forum, and the Asian Marketing Effectiveness Festival.

     

  • Taproot to devise a unique communication strategy to strengthen the brand imagery of Karbonn Mobiles in the domestic and global telecom market

    Karbonn Mobiles mandates Taproot for its creatives

    By A Correspondent

     

    Karbonn Mobiles, the leading mobile brand in Indian telecommunication eco-sphere, has announced the appointment of Taproot as its creative partner. Going forward, Taproot will focus on Karbonn Mobiles’ 360 degree creative and marketing communication.

     

    On having Taproot on board, Shashin Devsare, Executive Director, Karbonn Mobiles said: “We are happy to have Taproot as our creative partner. They will be responsible for providing 360 degree creative inputs on TV, Print, Digital and retail merchandising. After successfully creating a wider brand awareness and deeper penetration in domestic and international markets, our next step is to focus on solidifying the brand imagery of Karbonn Mobiles across markets. Taproot came across as the best choice, considering the innovative approach and understanding of the brief. Taproot has a track record for building iconic brand communication strategies for the best domestic and global brands. We are confident that our association with Taproot will help us engage better with our consumers. ”

     

    Karbonn Mobiles has now selected Taproot to build up strong brand imagery in Indian and global markets. The communication focus will be on smart product portfolio, and building up a distinctive niche for the smartphone and tablets segmentation in the Indian mobile market.

     

    Santosh Padhi, Co-founder & Chief Creative Officer, Taproot India said that the average age of Taproot India is about 24 years old and that perfectly fits the need of the solid, aggressive and youthful Indian brand called Karbonn Mobiles: “All the three parties – Karbonn, Taproot and our TG – are very young by nature and I feel that’s what will work in this relationship.”

     

    Karbonn Mobiles has also recently introduced its nuevo brand extension christened ‘Karbonn Smart’ under whose umbrella the new range of technologically advanced products from the stable will be marketed. Intended to become a one-stop-shop for all the technologically advanced needs of the highly enlightened Indian mobile consumer, the ‘Karbonn Smart’ eco-system will make them privy to all the technical and mechanized developments in the Indian mobile ecology.

     

    Manan Mehta, Managing Partner, TaprootIndia said: “There was no formal pitch involved in the whole process. We presented our credentials and shared our view on the brand’s way forward and decided to join hands. Karbonn Mobiles has demonstrated sturdy performance during the FY11-12 amidst intense competition. This is a proof of them being a true Indian brand and our inspiration to partner them.”

     

  • He will be handling the Airtel account nationally as the ECD and also partner Bobby Pawar on Special Projects

    Nitin Pradhan to join JWT Delhi as ECD

    By Tuhina Anand

     

    Nitin Pradhan is slated to join as the Executive Creative Director (ECD) at JWT in Delhi. He will be handling the Airtel account nationally as the ECD and also partner Bobby Pawar on Special Projects. Mr Pradhan moves from McCann Erickson where he was an ECD. He will be assuming his new position on August 27.

     

    The development was confirmed by Bobby Pawar, Chief Creative Officer and Managing Partner, JWT India: “Nitin coming on board is part of our beefing up our creative team. He is known for his creative prowess and will work with me closely on many special projects besides handling the Airtel business.”

     

    Mr Pradhan has earlier worked with Leo Burnett, Ogilvy Mumbai and Mudra.

     

  • The portal aims to address the need gap that the Bollywood-news websites have yet not been able to cater

    Mid-Day launches Fully Filmi

    By A Correspondent

     

    It is the 33rd anniversary of Mid-Day, and the publication is celebrating it in style. As the brand extension, the group has launched a Bollywood portal – Fully Filmi. The portal aims to address the need gap that the Bollywood-news websites have yet not been able to cater.

     

    Manajit Ghoshal,MDand CEO, Mid-Day, said: “When we thought of launching the website on Bollywood, we saw that there were hardly any websites that were doing breaking news. It was surprising, given that it is one of the biggest film industries in the world. The current crop of Bollywood websites does not dish out anything fresh; they do not have a dedicated team of journalists. They are more of news aggregators. We are going to focus more on coverage of authentic industry news.”

     

    The website has been getting positive reviews from the film fraternity, according to Mr Ghoshal. However, the website is due to get the responses from advertisers. Mr Ghoshal said: “We wanted to approach the advertisers only after the launch. Now that the web property has been launched, we will approach them in due time.”

     

    Among the target group of the website is the NRI community, and the audiences in interior India. The property will be promoted through Dainik Jagran’s Hindi dailies, and cross-referenced with Mid-Day to drive traffic. Other than this, the property is looking at film theatres and tie-ups for promotion.

     

    The group is trying also hard to regain its past numbers in Mumbai. Mr Ghoshal said: “We have been adding numbers to readership since last three years. However, we will be focusing more aggressively on that front. We wish to keep the trend up for the next couple of years. The group would experiment with newer formats, new innovations in our 33rd year.”

     

     

  • 11 prime time matches from Aug 22-Sep 2; Defending Champions India aim for hat-trick

    Neo Prime bags Nehru Cup Football

    By A Correspondent

     

    Neo Sports has been announced as the exclusive broadcast partner for the Nehru Cup football tournament. The biennial international invitational tournament, which has been organized by the AIFF since 1982, will kick off on August 22 and run till September 2.

     

    Defending champions and two-time winners India will be gunning for a hat-trick of titles and will be up against Maldives, Syria, Nepal and African power houses Cameroon in a 10-match round robin league followed by the final between the top 2 teams.

     

    Prasana Krishnan, COO-Neo Sports Broadcast Pvt Ltd said: “Neo Sports has added yet another key event to our extensive football line up with Nehru Cup. TV ratings for football in India are growing exponentially, evident with the success of UEFA EURO 2012 on Neo Prime. With Nehru Cup being India’s only international football tournament, it is sure to garner high viewership. We look forward to serving Indian football fans with top class coverage of this celebrated event.”

     

    Ashu Jindal, COO-IMG Reliance said: “With 2012 being the Platinum Jubilee of the AIFF (All India Football Federation) and India returning as defending champions, we are extremely pleased to partner with Neo Sports for the broadcast of this historic edition of the Nehru Cup. This is a key tournament in our vision to radically restructure and popularize football in India. With double the prize money and an extensive production plan, the event will be bigger and grander.”

     

  • The move, aimed at enabling RMW to get business from Hollywood in Los Angeles as well as broadcast companies in New York, comes in the backdrop of fresh funding by RMW

    Reliance M’Works to shift part of its ops, top execs to US

    By Nandini Raghavendra

     

    Reliance MediaWorks, a film and entertainment firm owned by Anil Ambani, is shifting part of its operations to the US, where it will move half a dozen top executives including its chief executive officer for film and media services, Venkatesh Roddam, and chief operating officer of media and creative services, Naresh Malik.

     

    The move, aimed at enabling RMW to get business from Hollywood in Los Angeles as well as broadcast companies in New York, comes in the backdrop of fresh funding by RMW in its JV with Steven Spielberg’s Dreamworks Studios and an impending PE investment in the Indian company by L Capital, a fund created by the world’s biggest luxury group LVMH.

     

    Mr Roddam said that Bollywood production houses are emulating business models of Indian IT firms of the 1990s. A presence in the US will provide RMW the keys to big markets like China and Canada.

     

    Currently 25-30 per cent of the company’s top line for the services business is generated overseas, and with the strengthening of the front-end operations in the US, “we expect a significant upswing over the next years,” said Mr Roddam, who is relocating to New York. “The film and media services business is treading the part that technology companies took a decade ago, where India will get recognition as a market that can provide the right mix of scale, quality and creative abilities in a cost optimized model,” he added.

     

    RMW has a multi-locational grid of facilities, front offices and strategic alliances across the globe, which it hopes will position itself to both offer high quality services within its own facility in Burbank and London, as well as tapping into the quality and scale of services available through its operations in India.

     

    A presence in the US would also help RMW leverage the group’s deal with Steven Spielberg’s Dream-Works Studios where it had infused a much-needed funding of $825 million in 2009, followed by another round this year. RMW’s tUS presence will also help it grab a bigger piece of the global film studios and broadcasters pie in the US.

     

    Similar facilities in Canada could help it reduce costs. Canada offers tax rebate on payroll, which can lead to almost 40 per cent savings.

     

    It also has the language and time zone affinity with the US, where RMW has facilities and so exploring further opportunities for its VFX, stereoscopic 3D conversion and digital restoration services in Vancouver and Montreal would make business sense for the company, Mr Roddam said.

     

    Last week, CEO Anil Arjun, resigned from the company, though he will continue as a strategic advisor.

     

    A few weeks ago, ET reported that L Capital, the private equity arm of the world’s biggest luxury company LVMH, will invest Rs605 crore in RMW, for which L Capital will acquire a substantial minority stake in the company according to a person close to the deal who did not want to be named.

     

    Meanwhile, Reliance MediaWorks has reported that its consolidated loss for the quarter ended June 30, 2012 has increased to Rs131.3 crore, compared to Rs120.14 crore a year ago.

     

    Source: The Economic Times

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

     

  • Elevates Mithun Mirji to Singapore for a newly created role

    Saatchi & Saatchi adds creative muscle with new hires

    By Amit Bapna

     

    The ‘Lovemarks’ agency Saatchi & Saatchi is buttressing its creative fortress. It has announced two new creative recruits – Anant Medepalli and Vihar Patkar as Creative Director and Associate Creative Director respectively. Alongside the agency has also moved the Creative Director on the P&G brand Mithun Mirji to Singapore for a newly created role of Regional Creative Director.

     

    Mr Mirji has been at Saatchi & Saatchi for a few years now and having worked at the agency has helped in forging a partnership with P&G and this has helped the agency get more responsibilities for work across the region. He said: “The experience helped when Saatchi & Saatchi decided to set up a Regional Hub in Singapore to partner with our P&G clients.”

     

    Mr Medepalli and Mr Patkar have both spent over 10 years in the business and have been associated with Saatchi & Saatchi in the past. Mr Medepalli returns to India after a stint at Leo Burnett, Nairobi while Mr Patkar worked at Saatchi from 2005 to 2008, followed by stints at Rediffusion Y&R and Salt Brand Solutions. The creative team at the agency is front-led by Ashutosh Karkhanis, Executive Creative Director and Ramanuj Shastry, Chief Creative Officer.

     

    Source: The Economic Times

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

     

  • The agency will manage social media for both the brands, media buying as well applications

    Hungama to manage digital mandate for Timex & Helix

    By A Correspondent

     

    Hungama Digital Services Pvt Ltd has bagged the digital media AoR duties for Timex India and its youth brand, Helix. Timex Group, one of the world’s largest watch makers that designs, manufactures and markets innovative timepieces and jewelry globally, named Hungama Digital Services as the exclusive agency working on their digital platforms, both web and mobile. The agency will manage social media for both the brands, media buying as well applications.

     

    Talking about this, VD Wadhwa, Managing Director & CEO, Timex India, said: “The digital medium is fast evolving and presents tremendous opportunity for brands to mark their presence. Given that the measurability of this domain is quantifiable, we at Timex are extremely focused on strengthening our brand presence on this very dynamic platform. We have strategic plans to increase our presence through the launch of brand Webstores, social media pages and impactful search and display campaigns. We chose to partner with Hungama as it is the leader in providing effective digital campaigns to brands across markets and categories. I am very confident of this partnership, as it will act as a catalyst in our journey to become the most influential brand in the digital space.”

     

    Speaking on the winning the account, Neeraj Roy, Managing Director & CEO, Hungama Digital Services said: “We are excited with the win and look forward to a relationship with the Timex Group. With an experienced and award winning team here, we aim to leverage this opportunity for Timex, towards a widespread exposure and an increased engagement in the digital space. Today, India is at the cusp of digital revolution with the advent of 500+ million consumers getting online in the next 3-4 years. We hope to offer integrated digital and experiential services to clients and prepare brands to connect, interact and transact with their customers.”

     

    JWT Singapore recently acquired a 51 per cent stake in Hungama Digital Services Pvt.

     

     

  • MxMIndia spoke to Amrit Sagar, who along with Moti Sagar and Meenakshi Sagar, is set to recreate the classic…

    Want to recreate Ramayan’s magic, but difficult to fit into grandfather’s shoes: Amrit Sagar

    By A Correspondent

     

    Amrit Sagar

    Twenty years ago, Gods and mythology, not Aamir Khan, ruled the Indian television sets. In the late 1980s, streets would empty out on Sunday mornings as people sat glued to their TV sets to watch Ramayan and Mahabharat.

     

    Now Zee TV, which is re-entering the slot with a mythological show – Ramayan, hopes to create the same magic. “Ramayan is more than mythology; it is the ultimate story about our culture and family values and relationships. We all grew up on it, and we want the current generation to know about it. We wanted to tell the story, which left an impact on us, all over again…” said Sukesh Motwani, head – fiction programming, Zee TV.

     

    The channel has chosen the 11am slot because it feels that the story needs to be watched together as a family, and what could be more perfect that a Sunday morning.  It is happy that the slot is being relived again as various networks are launching shows on the same slot. “For the last few years, no one paid attention to the Sunday morning slot, but now things are changing. However, we do believe that the content is the main criteria which will make the show on that slot a hit or not,” said Mr Motwani.

     

    The channel also believes that times have changed and TV penetration and numbers have increased over decades but the whole Sunday morning experience can be brought back with a story as simple and universal as Ramayan.

     

    Sukesh Motwani

    Apart from the story, one more thing common between the original and the new Ramayana is the Sagars. Zee TV has taken on-board Sagar Pictures. MxMIndia spoke to Amrit Sagar, who along with Moti Sagar and Meenakshi Sagar, is set to recreate the classic…

     

    Many networks have showcased new avatars of Ramayan and Mahabharat, but failed to get the same response as the originals. So, how is this going to be any different?

    We must keep in mind that the stories for such epics cannot be changed. One has to tell the same story; however, the way it is told can vary from person to person and how lavishly the show is made. From that aspect, we have tried to make it bigger and better than anything seen before. Having said that, we have made sure that the story isn’t compromises with, so, have followed my grandfather’s and Tulsidas’ original.

     

    Audiences and mindsets have changed, so how will you make the show relevant for today’s generation?

    We are very much aware of this fact. Therefore, we plan to charm the audiences with the visual effects and sets.

     

    Will we see any new faces on the show? How did you choose the actors to play the characters, especially that of Ram and Sita?

    There will be new faces on the show and the ones which people have seen on television earlier are the ones who have never played such characters before. So, it is going to be a different experience for everyone. Also, an image of the god is very individualistic. The actors we have chosen to play Ram and Sita are the ones we thought suited the bill from our view point. We are keeping our fingers crossed… rest depends on audiences and how they welcome and perceive the characters.

     

    There are rumors of clashes because of current failure during the time of the telecast. Do you see that happening today?

    It’s difficult to predict that, but I hope we are also able to create the same passion and effect.

     

    Do you think Sunday morning slot will interest youngsters?

    Apart from the metros, I think Sunday is like any other day for the rest of the country wherein the day starts early. Also, it is about the family spending some quality time together. Therefore, I don’t think we will face any problem in attracting the audiences – old or young. I’m sure the show will be enjoyed by a whole family together.

     

    What kind of response are you expecting since the show will be aired simultaneously on Zee and DD?

    Of course, we are hoping to see a great response from the audiences as the reach will massive. We want to create the same magic again. However, I also know that it will be very difficult to fit into my grandfather’s shoes.