MxMIndia

Category: NEWS

  • With customers staying away, retailers are entering into business arrangements with brands to draw them back to showrooms, bypassing the banks

    Brands and retailers team up to offer 0% EMI schemes

    By Writankar Mukherjee

     

    Zero percent EMI schemes are back. Not that they’d gone away altogether, but offers had dwindled as banks got cold feet after the Reserve Bank of India frowned upon the practice because it seemed to be a way of concealing charges. However, with customers staying away, retailers are entering into business arrangements with brands to draw them back to showrooms, bypassing the banks.

     

    Under the new arrangement, retailers and manufacturers will share the interest cost on such offers that were earlier taken on by banks and brands. All such offers will be on the (lower) market operating price and not the maximum retail price (MRP) as it often used to be earlier, another grey area that the central bank had pointed out in September last year.

     

    The country’s largest cellphone retail chain, Essar Group-owned The Mobile Store, launched a zero percent scheme 10 days ago in partnership with Samsung, Sony and Nokia on smartphones bought through credit cards.

     

    Other chains such as Next Retail, PlanetM Retail and Future Group said they are in the process of launching such schemes, while Tata-owned Croma and Reliance Digital said they would be evaluating such programmes. Sony has re-launched a scheme for its televisions, but it’s taking on all of the interest cost.

     

    The Mobile Store CEO Himanshu Chakrawarti said there has been a sudden pickup in sales, up 30-35% in the last seven days, through the plan. “Sales are at par with Diwali. A bridge such as interest-free EMI (equated monthly installment) was required and hence we re-launched the zero EMI offer across all brands and banks,” he said.

     

    Before the RBI notification, zero percent EMI plans accounted for 20-30% of sales of electronic products such as mobile phones, laptops, tablets, LED televisions and home appliances.

     

    Banks withdrew the credit card schemes in October and started to focus on consumer goods loans, but this failed to pick up the slack as the formalities were cumbersome and interest rates were high. Also, consumer demand has been slack since Diwali with just an occasional bump on special sale days.

     

    Videocon-group owned cellphone chain PlanetM Retail CEO Sanjay Karwa said the retailer will launch its zero percent scheme by April. “We have got a positive sign from the brands who would share the interest burden and are talking to NBFCs (non-banking finance companies) so that the EMI scheme can also be availed of by those who don’t have credit cards,” he said.

     

    A senior Sony India official said the company’s scheme has been launched with NBFCs without any processing fees. “Post the RBI diktat when we re-launched the scheme, we strictly informed our trade partners that they won’t charge anything extra and offer it on the market price to comply with the advisory,” he said, requesting anonymity.

     

    RBI said last year that the schemes “only serve the purpose of (luring) and exploiting vulnerable customers.”

     

    The central bank had said the interest component was being camouflaged and passed on to consumers in the form of a processing fee. Besides this, such loans were mostly on MRP, which was always higher than the actual market price.

     

    RBI mandated banks to offer loans on the market price of the product and be open about interest costs and the final price mechanism. The new zero interest schemes will ensure transparency with the credit card statement of the consumer showing how brands and retailers have subsidised the interest cost.

     

    Ajit Joshi, chief executive officer and MD at Infiniti Retail, which owns the Croma chain of stores, said the company would seek legal opinion before re-launching zero percent EMI schemes.

     

    “Of course, such a scheme would help to boost demand of premium products but we would evaluate it thoroughly before re-launching it,” Joshi said.

     

    A senior Reliance Retail official said that the company would be interested in re-launching such schemes now that the brands were picking up the interest cost.

     

    Source:The Economic Times

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

    Licensed to republish

     

  • Core to his new responsibilities, Kamat will provide strategic guidance to the group's existing portfolio investments in the region

    Rajesh Kamat elevated at CA Media

    By a correspondent

     

    Rajesh Kamat

    After successfully launching CA Media India, Rajesh Kamat has been elevated to Chief Operating Officer (COO) of CA Media, the Asian investment arm of The Chernin Group, LLC (TCG). In his new role, Kamat will relocate to Singapore and report into Paul Aiello, CA Media Group’s Hong Kong-based CEO. Core to his new responsibilities, Kamat will provide strategic guidance to the group’s existing portfolio investments in the region. He will also support Aiello in identifying and managing growth opportunities for CA Media in Asia.

     

    Both directly and through CA Media, TCG has made significant investments in the U.S., Europe and Asia. CA Media will continue to focus on supporting the growth of its existing portfolio of investments, while seeking to expand its position in India and other important emerging markets in Asia.

     

    Kamat will continue to oversee CA Media operations in India while the senior management team – Vivek Raicha and Rishi Negi – will continue to lead their respective domains, as Head of India Investments and Head of India Investee Operations.

     

    “Given what Rajesh has accomplished with CA Media in India, I am confident in his abilities to take on this expanded regional role for CA Media throughout Asia, we look forward to the contributions he will make.” said Paul Aiello, CEO CA Media Group

     

    “Moving from a country role to a region profile is both exciting as well as challenging given the diversity of the key Asian markets and our unique portfolio of assets. I look forward to the challenge ahead,” Kamat said.

     

    Over the last three years, CA Media India has built a strong portfolio of growth investments in the Indian media and entertainment space, including television and film production, live music events, youth media, digital content, intellectual property and graphic novels. In each investment, CA Media has worked with strong on-the-ground partners and local management teams.

     

    CA Media India’s current investments include strategic stakes in Endemol India, Only Much Louder (OML), Graphic India, and a wholly owned online influencer network, FLUENCE.

     

    Kamat will assume his new role and responsibilities in Singapore starting April 2014.

     

  • CNN International's Delhi-based correspondent Sumnima Udas has been awarded 'Journalist of the Year' at the inaugural Women's Empowerment (WE) Journalism Awards

    CNN’s Sumnima bags inaugural Women’s Empowerment Journalism Award

    By a correspondent

     

    CNN International’s Delhi-based correspondent Sumnima Udas has been awarded ‘Journalist of the Year’ at the inaugural Women’s Empowerment (WE) Journalism Awards for her sensitive and incisive reporting on gender issues including the December 2012 New Delhi gang-rape, the plight of acid attack victims in India and the courageous stance taken by young Indian women, fighting back to ensure the safety of women in their neighbourhoods.

     

    The Awards held in Singapore, honour outstanding achievements in reporting on women’s issues. Udas’ work was recognised amongst entries by distinguished journalists across Asia Pacific including Australia, Cambodia, China, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Thailand, and Vietnam.

     

    Udas reported extensively on the aftermath of the December 2012 Delhi gang rape, explaining how the crime shook the nation and prompted a landmark change in how society handles violence against women. Her almost year-long reporting culminated in the documentary film ‘Nirbhaya: The Fearless One’ which featured in-depth interviews with the victim’s parents, who movingly reveal how their daughter was the pillar of strength for the family. Her reporting on related gender issues also featured first-hand interviews with Indian women on the streets, shedding insights onto the vulnerability of sexually abused women, victims of acid attacks and the horrific practice of female feticide in parts of India. She has also chronicled the courageous story of a group of brave adolescent women who have banded together to form ‘Red Brigades’, acting as foot patrols to increase the safety of females in their neighbourhood.

     

  • A study undertaken by Prof. Kiran Thakur and Sagar Atre at the Pune-based FLAME School of Communication has revealed some interesting findings regarding the use of the digital medium by political parties

    Modi, AAP exploiting digital in run-up to the General Elections 2014

    By a correspondent

     

    Ask anybody what’s different about the General Elections 2014 and the topmost reply would be the way political parties have migrated to the medium of digital to deliver them a miracle of sorts. A study undertaken by Prof. Kiran Thakur and Sagar Atre at the Pune-based FLAME School of Communication has revealed some interesting findings regarding the use of the digital medium by political parties.

     

    The study notes that while the Bharatiya Janata Party (www.bjp.org) and the Congress (www.inc.in), the principal rivals in the Indian political arena, are neck-to-neck in the cyber race, the BJP’s prime ministerial candidate Narendra Modi is ahead in terms of exploiting social media when compared to Congress’ vice presidential candidate Rahul Gandhi.

     

    In fact, Modi is the most aggressive user of the website and social media registering about 10 million Facebook likes, 3.47 million Twitter followers and 126969 YouTube subscribers. In comparison, Rahul Gandhi does not even have a Twitter, Facebook or YouTube account.

     

    The new entrant, Aam Aadmi Party (http://www.aamaadmiparty.org/), however, has stolen a march over all the six national parties in effectively exploiting websites and social media in the Lok Sabha election campaign.

     

    Political Party Website URL Facebook likes Twitter followers YouTube subscribers
    Bharatiya Janata Party www.bjp.org 2,544,235 375000 44500
    Indian National Congress www.inc.in 2,021,253 135000 5117
    Nationalist Congress Party http://www.ncp.org.in/ 208,808 12700 142
    Aam Aadmi Party www.aamaadmiparty.org/ 1,670,036 538000 40845
    CPI(M) http://www.cpim.org/ No official page 1574 55
    CPI http://www.communistparty.in/) No official page No official page No official page
    BSP http://www.bspindia.org/ 4909 364 10

     

    The study further notes that the websites of the BJP, Congress, Nationalist Congress Party, CPI, CPI (M) and Bahujan Samaj Party do not mention anything about the sources of their funding. The data of their websites and social media was recorded as part of a study on March 6, 2014, when the Election Commission of India announced the schedule for Lok Sabha poll.

     

    Though the BJP has a provision for online donation, the Congress expects its well wishers to write a cheque and send it to party headquarters in Delhi via a courier or through snail mail. The NCP, CPI (M), CPI, and BSP do not even appeal to the people for donations.  Only the AAP has an elaborate system to receive online donations, deliver online receipts and compute the data with names and addresses of donors.

     

    Of these parties only the CPI (M) informed the people how they spent its funds last year. It has put up an audited statement of the party accounts for the year 2013.

     

    The study further notes that the websites of BJP, Congress, NCP, and AAP are updated every day, sometimes several times in a day. These four parties have used these websites as platforms to inform, and educate the people on the topical issues, and stands of the respective organization on these issues.

     

    However, no party has ever mentioned anything about their electoral alliances and has explained why they had to enter into alliance in the past or for coming election. They do not have even a formal appeal to voters to vote for their allies.

     

    No party was able to upload its manifesto until the day the election dates were announced, because this important document was not ready for any of the six national parties. However, AAP has a unique feature. Its website mentions important issues of 70 constituencies in which its candidates will contest and how they will take these up.

     

    The FLAME School of Communication has planned to monitor these websites until the election results of all the constituencies are announced.

     

  • BBH India is Viber's first creative agency and they will be in-charge of developing the brand architecture and positioning for the brand

    Viber India hands BBH its creative biz

    By a correspondent

     

    Following a multi agency pitch, Viber has awarded BBH India its creative mandate for the India business. Viber is one of the largest global free mobile calling and messaging apps. It has other features like sharing videos, photos, messaging using stickers, doodle a message and more. Viber is growing steadily and has a subscriber base of 300 million registered users globally, of which 16 million are from India.

     

    BBH India is Viber’s first creative agency and they will be in-charge of developing the brand architecture and positioning for the brand. And will be rolling out engagement modules across traditional and new age platforms that are consumer focused.

     

    On choosing BBH India as their creative partner Anubhav Nayyar, Country Head, Viber India said, “Viber as a brand has been growing rapidly, especially over the last six months in India. We were looking at a creative partner that understands this category and is disruptive in their thinking. After evaluating a number of agencies, we believed BBH India had the best understanding of our requirements and was therefore the preferred choice.”

     

    On the win Sanjay Sharma, Head Planning, BBH India said, “IM apps are increasingly becoming the most important aspect of a mobile phone and this is creating a lot of energy in this category. We are very happy to partner Viber and look forward to create some exciting work.”

     

    On the pitch, Russell Barrett, CCO and Managing Partner BBH said, “When you have fun, it reflects in the work. And we had a blast on the Viber pitch. The trick is to keep having fun as we go on to create the work that a global, dynamic, exciting brand like Viber needs.”

     

  • Effective 4.30 pm IST, 10th March 2014, the global network will be called FCB

    Drafting its way to FCB

    By a correspondent

     

    The wheels were set in motion about six months ago when after becoming Global CEO of Draftfcb, Carter Murray announced a change in name to FCB (Foote, Cone & Belding). Now effective 4.30 pm IST, 10th March 2014, the global network will be called FCB.

     

    The India operation will be called FCBUlka Advertising Pvt. Ltd. and will incorporate new changes in its identity including a new logo. The colors in the logo have been drawn from the colors of the flags of the world, symbolizing the heritage, equity and flavor of the local advertising company and the wide network reach. The diagonal line through the letter B and the letter U of Ulka signifies the importance of the local brand name alongside the global name.

     

    Commenting on the new brand name and identity, Nagesh Alai, Group Chairman, FCBUlka said “FCB has a tremendous 140 years equity globally and in India Ulka has a 50 years plus great heritage. FCBUlka will continue to deliver on the integrated offering to its clients and stay focused on what it has been doing over the years – Making Brands Famous and Making Clients Rich.”

     

    Commenting on the new change in the identity, Murray said, “I believe it’s a really great time for FCB. We have terrific talent and some early momentum. There’s a lot of potential here and I’m excited for our future.”

     

  • From Rs 10k to $1bn, how the cart didn't flip & flop for Sachin & Binny Bansal + how the Bansals lord over e-commece-land

    Billon Dollar Bansals

     

    By Radhika P Nair

     

    It was a 10,000-a-month allowance from their parents for almost 18 months that helped Sachin Bansal and Binny Bansal launch an e-commerce website retailing books in October 2007. Today, the near-20% stake they hold, along with the top management, in Flipkart is valued at almost Rs 2,000 crore.

     

    Sachin Bansal

    Sachin Bansal, the chief executive of Bengaluru-based Flipkart, says he has a knack for underestimation. That is exactly what happened in March 2011 when he and Binny Bansal, who are not related to each other, announced they would reach the $1-billion (Rs 6,100-crore) sales mark in 2015. Last week, the site, which now sells everything from books to electronics, apparel and jewellery, reached the milestone, a full year ahead of the target.

     

     

    Flipkart, Lenskart, Myntra & Snapdeal: All have Bansals at the helm

     

    By Biswarup Gooptu & Harsimran Julka

     

    Even a decade ago, the name “Bansal” would have brought in images of coaching classes in Rajasthan’s Kota, but today it is the common factor binding the who’s who of India’s fledgling e-commerce sector.

     

    Five young men who answer to that name have emerged as trailblazers of Indian e-commerce, taking on global biggies like Amazon and eBay for top honours in the country’s exploding market for online retail.

     

    Online marketplaces Flipkart and Snapdeal, apparel retailer Myntra and eyewear retailer LensKart all have Bansals at the helm. Such is their clout that they account for nearly Rs 10,000 crore of the total online retail pie of about $2 billion.

     

    But their adeptness at trade and commerce is not a state secret. As a sub-sect of the Aggarwal community, the Bansals are known for running a tight ship when it comes to business and entrepreneurship.

     

    “We (Bansals) have the math, finance and data skills that are extremely important for e-commerce,” said Rohit Bansal who teamed up with schoolmate and Wharton alumnus Kunal Bahl to set up online marketplace Snapdeal in 2010.

     

    The Bansals of the new economy also sport degrees from IIT and IIMs. The five Bansals with their four companies – Flipkart, Myntra, Snapdeal and LensKart – set up shop within the last seven years and control about 85% of India’s entire e-tailing industry.

     

    But they have to contend with the might of $75-billion (Rs 4.5 lakh crore) Amazon, which entered India last year and is investing heavily.

     

    Heading the fightback are Sachin Bansal, 32, and Binny Bansal, 31- founders of Bengaluru-based Flipkart – who met each other while studying at IIT-Delhi. Their company today generates about Rs 6,100 crore in sales, half the industry total.Flipkart is also the biggest challenge for Amazon, a company where both the Bansals honed their skills before setting up on their own in 2007. Coming second is Snapdeal, whose Rohit Bansal, 31, graduated ahead of Sachin and Binny from IIT Delhi.

     

    “My ancestors from my paternal and maternal sides have all been businessmen,” said Rohit Bansal, who is from Malout, a small town in Punjab, just four hours from Chandigarh where the Bansals from Flipkart grew up.

     

    Snapdeal’s turnover is now half of Flipkart, and it is expected to cross the $1 billion mark next year. The Bansals are making a mark not just in horizontal marketplaces, but also single-category retail. Bengaluru-based Myntra Designs, founded by another IITian Mukesh Bansal, is giving stiff competition to Flipkart in apparel, one of the highest-margin categories, where profits range from 30 to 50 percent.

     

    “It has come full circle with me getting in fashion retail online,” said Mukesh Bansal, CEO at Myntra, who hails from Haridwar. His father had opted for a public sector job over joining the family business — ironically, clothes trading. “No family influence made me think of entrepreneurship. But the startup bug bit me in Silicon Valley,” said Myntra’s Bansal, 38, who moved to India to start Myntra in 2007. His venture is targeting sales of Rs 1,500 crore next fiscal from apparel sales, the largest in its category.

     

    LensKart, founded by another Peyush Bansal, 30, is considering selling his other portals such as WatchKart, BagsKart and JewelKart to a horizontal player at the ‘right price’ to focus on the eyewear market. “My parents didn’t understand while I was starting up. But they came around later. You have to understand that they are products of their generation,” said Bansal, who is targeting revenue of Rs 100 crore from LensKart next fiscal.

     

    RBI Chair Professor for Economics & Social Sciences at IIM Bengaluru Charan Singh says that a community’s dominance over a certain trade is a factor of its social interactions. “It can be likened to the Jewish community in the US which continues to hold top posts in US banking and technology industry.” Ashish Jhalani, head of retail advisory firm eTailing India, agrees. “Certain communities in India do encourage entrepreneurship. The Bansals and Aggarwals have definitely dominated businesses in India, particularly retail trading, for centuries.”

     

    (With inputs from Radhika P Nair)

     

    Source:The Economic Times

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

    Licensed to republish

     

    “To say billion-dollar in 2011 was crazy when we were doing a $10 million (Rs 61 crore) run rate,” says Sachin, 32, in his first interview after the firm achieved the sales target. “It was just a belief.”

     

    Sachin, like his co-founder, grew up in Chandigarh. That is not the only coincidence. Both went to IIT-Delhi and worked at different companies for about a year before ending up in the same team at Amazon. It was during this stint that the two decided to start up.

     

    The duo pooled in Rs 2 lakh each and with two computers launched the site from their two-bedroom apartment in Koramangala, a primarily residential locality in Bengaluru where the company now has multiple offices. For 10 days, the site did not see a single sale and then a customer from Andhra Pradesh placed the first order for the book ‘Leaving Microsoft to Change the World’ by John Wood.

     

    “We were not thinking about numbers then, but we knew something big can be built out of ecommerce,” says Binny. The two co-founders, who have a tendency to finish each other’s sentences in conversations, are close friends. What has helped maintain the bond through the ups-and-downs of entrepreneurship? “By fighting every day,” says Binny, 31, as the two burst out laughing. “But seriously, it is important to know what the other guy is thinking. That becomes very important as the message and the thinking become consistent. Communication is key.”

     

    The two are demanding bosses, say their employees. “Both have high expectations, but that raises our bar. That makes working with them rewarding as well,” says Amod Malviya, head of engineering at Flipkart. He says the Bansals have complementary personalities. While Binny is analytical and driven by logic, Sachin is more instinctive and is driven by emotion and passion, says Malviya, who joined the company in 2010 as a senior manager.

     

    Employees are also impressed by the simplicity the duo has managed to retain. As they live close to work, both walk to office. They also fly and stay budget while travelling and eat with other employees whenever possible. “They are very much in the Azim Premji mould and shy away from ostentation,” says an employee, who did not want to be identified.

     

    Experts say the success of Flipkart can be chalked down to the founders’ attitude. “The two have the right attitude. They are cocky and confident, and along with that they have the ability to execute,” says Arvind Singhal, chairman of retail consultancy Technopak. This attitude has helped them deal with the ever-shifting baselines in Indian ecommerce.

     

    After raising about $190 million (over Rs 1,150 crore) until 2012 from Tiger Global and Accel Partners, industry insiders had begun questioning the viability of the business, which was burning about 50 crore of cash each month. In 2012, the company took action, by tightening its employee base, using more technology to cut costs and shutting down its music downloads category, which was not scaling up. More importantly Flipkart, which started out as a direct seller of goods, changed to an asset-light marketplace model where multiple merchants, along with the company’s own WS Retail, sell to customers on the site.

     

    In 2013, the company raised $360 million (about Rs 2,200 crore) in two tranches, primarily from South African Internet major Naspers at a whopping valuation of $1.6 billion (Rs 9,772 crore). At the time, Sachin termed the cash infusion as a “great validation” and one which refuted the scepticism about his company in particular and Indian ecommerce in general.

     

    Supam Maheshwari, founder of online babycare site Firstcry, says Sachin and Binny Bansal managed to find early investors who kept backing them. “They executed well, especially in logistics and warehouse, and did not lose focus,” says Supam. “But they have had to spend a lot to reach the billion-dollar mark.”

     

    Flipkart’s sales milestone could also send out a signal to international players that the Indian ecommerce market is mature enough for them to enter, says Maheshwari. One such player could be Alibaba, which only has its business-to-business portal at present in the country.

     

    Comparisons with Alibaba’s Jack Ma are inevitable. Jack too started out from a small apartment in China’s Hangzhou in 1999.

     

    Jack diversified into payments, cloud computing and multiple ecommerce models. Bansals have made their intentions to diversify clear and have already done so by opening up their online payments solution and logistics for use by other Internet companies.

     

    Jack has, however, already beaten Amazon in China. Alibaba expects to triple the volume of transactions to $490 billion (almost Rs 30 lakh crore) in 2016. For Flipkart, the battle has just begun. Peyush Bansal, founder of Delhi-based eyewear e-tailer Lenskart, says competition will intensify between the large multi-category portals. Amazon, which entered the Indian market a little over six months ago, has rapidly expanded into 18 categories of products and has been busy setting up its logistics and warehouse network. Snapdeal, which is targeting $1 billion in sales next year, recently raised a further 830 crore from investors led by eBay. “The site that would come out on top could be the one with the deepest pockets or the one with the best economic efficiencies,” said Peyush Bansal.

     

    Technopak’s Arvind says Flipkart, which employs about 10,000 people, will have to continue to maintain its lead in technology, customer experience, supply chain management and consumer logistics to hold onto leadership.

     

    “It is like a three-hour movie where just the first 30 minutes are over; the plot is still unfolding,” says Arvind.

     

    Flipkart, which has over 1,000 sellers on its platform, is now shifting focus towards scale with intelligence, which will lead its mobile commerce drive. Sachin believes mobile will revolutionise ecommerce and Internet businesses. “My four-year-old son does not even understand keyboard. He expects the television to also be a touchscreen device,” says Sachin, who expects Flipkart to become a mobile commerce platform in the near future with features customised to individual users. “The next six-and-a-half years are going to be even more exciting.”

     

    (With inputs from Biswarup Gooptu and Harsimran Julka)

     

    Source:The Economic Times

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

    Licensed to republish

     

  • NewsX has unveiled a new look with youthful colors (blue and red) and new fonts adorning the channel as it gets set for the general elections

    Vir Sanghvi stars in NewsX’s new line-up and channel packaging

    By A Correspondent

     

    After having made a quantum leap after being acquired by Kartikeya Sharma’s iTV Network, NewsX has unveiled a new look. Youthful colors (blue and red) and new fonts adorn the channel as it gears up for the general elections.

     

    “The new look is in line with the channel’s profile, which caters to the young, affluent and urban viewers within the SEC AB category in the 25-44 age group,” notes a communiqué.

     

    Speaking on the occasion, Mr Sharma, Managing Director of the iTV Network, said: “Over the last few months, NewsX has become the home of breaking news, in-depth coverage, analysis and hardcore news reporting from the ground and this is a significant new phase to build our growth story.”

     

    Along with the look-and-feel, joining the line-up of well-known presenters is Vir Sanghvi who will present a show called ‘Ideas that shaped Indian Democracy’. This is in addition to ‘Decode India with MJ Akbar’ which is already on air.

     

    Added R K Arora, CEO, iTV Network: “Our success in the recent times only reinforces our belief in ‘News not Noise’. We are glad that our strategies have resulted in unparalleled success for the channel. Our constant endeavour is to produce and present news in the most engaging manner”.

     

  • Procter & Gamble and Coca-Cola are considering launching video channels over mobile phones to deliver branded content and advertisements directly to consumers in India

    Watch out, TVwallahs. P&G, Coke eyeing mobile video streaming for effective & cheaper advertising

    By Deepali Gupta

     

    Procter & Gamble and Coca-Cola are considering launching video channels over mobile phones to deliver branded content and advertisements directly to consumers in India, because it is cheaper than running ads on television and easier to measure the impact. The launch of third- and fourth generation mobile technology is making this possible and more affordable for advertisers, allowing them to sidestep, at least partially, the traditional mass media.

     

    Airing ads over telecommunication networks will also allow the companies to know who is watching their ads, something that is difficult to measure in TV advertisements.

     

    P&G and Coca-Cola, two of the biggest advertisers globally, are in preliminary discussions with India’s top telecom operators to start their own streaming video channels which consumers could access free of charge, three people familiar with the talks said. Another executive at one of the two consumer-goods companies said it was too early to say if his company would launch such a channel. “We have just had a meeting with the telecom operators, that’s it. There is no way to say whether this will happen or if it does when,” this person said.

     

    Initially, the brands may make their programmes available to customers of the nation’s top two mobile operators, Bharti Airtel and Vodafone India, that roughly account for 60 per cent of the subscribers across India, said one of the three people cited above. Bharti Airtel and Vodafone did not respond to emails seeking comment. P&G and Coca-Cola declined to comment.

     

    The talks come close on the heels of Hindustan Unilever launching a dedicated radio station on mobile phone in Bihar which has already acquired more than five million subscribers. P&G and Coca-Cola are also encouraged by the response to their existing online video content.

     

    Beverages-maker Coca-Cola has branded content such as the Coke Studio musical performance which receives lot of hits on You Tube, one of the people said. “We can push that content to users on their mobile phones,” this person said, adding that the channels would also carry company or brand logo through all shows which will be interspersed with advertisements. “It is cheaper than running campaigns on national television.”

     

    There is huge demand for mobile video content. Bharti Airtel’s Re 1 per video offer had 22 million hits within the first two months of its launch in May 2013, with nearly a quarter of them by first-time data users, according to data released by the company. Much of the content was Bollywood or fashion. As much as 80 per cent of that was accessed on feature phones – phones that can access Internet but are cheaper than smartphones – and nearly half in rural, content-starved markets. “Now imagine this is free to access,” said one of them, referring to the video channels these companies are considering. “I think there would be much more viewership.”

     

    However, the concept is still in its inception, added another. It involves a content aggregator creating the channel, the brand buying bulk data and an operator pushing the site to data-enabled phones. Offering this service requires the operator to enable data connections also on phones that don’t subscribe to data service and allow free connectivity as long as the device accesses merely the streaming channel.

     

    For telecom operators, offering free programmes will likely help attract voice consumers to data, and once they get hooked, the companies can sell services outside the free channel. According to analyst estimates, India has around 400 million phones that can use Internet or data services, such as viewing streaming video. However, only around 140 million actively connect to the Internet.

     

    Smartphone maker BlackBerry too has spoken of monetising its dedicated channels that brands like Café Coffee Day, Mercedes-Benz and even some political parties such as the Bharatiya Janata Party and Aam Aadmi Party use to connect with Blackberry Messenger customers. The channels started by the brands involve posting text and pictures that are shared by followers accumulated through invites.

     

    Source:The Economic Times

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

    Licensed to republish

     

  • The campaign features a 360-degree multimedia integration of TV commercial, radio, cinema, print, innovative outdoor, events, promotions and digital platforms

    Bata goes ‘waist down’ with its new TVC

    By a correspondent

     

    Leading footwear retailer and manufacturer Bata announced the launch of its new Spring Summer’14 marketing campaign for its entire range of footwear, accessories, bags and glasses. The campaign features a 360-degree multimedia integration of TV commercial, radio, cinema, print, innovative outdoor, events, promotions and digital platforms.

     

    The TV commercial has been innovatively shot to capture slice-of-life situations in the lives of people through a literal focus on the footwear. The film uses a unique technique of following those real life moments by showing the action only from knee down. The situations captured include from the nervous to the dramatic to the adventurous, including a group of students eagerly looking at their exam results, colleagues watching a cricket match in office and a group of young girls enjoying their ‘day out.’ The film also showcases all the leading brands in their latest styles from Bata in an aspirational way. Shot in a contemporary manner and stitched together using fast-paced music, the film reiterates the brand’s presence in the lives of individuals, cutting across the barriers of age, a necessity considering the eclectic portfolio of Bata.

     

    The campaign is yet another remarkable milestone in Bata’s journey of symbolizing that shoes can be lifestyle led, young, vibrant and yet comfortable. The campaign’s “waist down” TVC treatment captures how the shoe line’s range covers the gamut of shoes from business indoors to comfortable outdoors.

     

    Sumit Kumar, Vice President and Head of Marketing and Customer Service, Bata India said, “Drawing on our vast experience and understanding of the Indian consumer, we have designed our latest 360-degree marketing campaign to appeal to the sensibilities of the Indian consumer across age groups and demographic profiles. We have a fantastic range of stylish, on-trend and contemporary products that will appeal not only to our loyal customers but also to a wider audience. We intend to communicate the brand as aspirational and yet comfortable. We are continuing our external marketing journey with fabulous in-store environment featuring our new global concept stores to make shopping a pleasurable experience for our customers.”

     

    Sonal Dabral
    Sonal Dabral

    Sonal Dabral, Chairman & CCO, DDB Mudra Group said, “A whole generation of Indians have grown up with Bata and it’s an inseparable part of everyone’s growing up memories. The strategy and the idea behind the new campaign is to build on this equity and to also help the brand make a fresh connect with the youth. I am really excited for the TVC we have worked on. A story told by the stylish Bata shoes themselves which I’m sure will do its bit in helping make this iconic brand a vibrant and colourful brand of today transforming it from just a shoe to a destination where life meets style.”

     

  • The portal is positioned as a one-stop destination and resource for the digital-savvy Indian traveller, whether they are looking for travel within India or abroad

    Conde Nast unveils travel-friendly digital offering

    By a correspondent

     

    Condé Nast Traveller India has unveiled its digital version via cntraveller.in. The portal is positioned as a one-stop destination and resource for the digital-savvy Indian traveller, whether they are looking for travel within India or abroad.

     

    The revamped website comes with a slew of brand new features, including being ‘device-responsive’, that is optimized for browsing on PC, laptop, tablet or mobile; updated city guides boasting a new Insider’s section for the ultimate tips from locals in-the-know; daily news and deals; interactive toolbars where travellers can share stories, photographs, guides and advice on Facebook, Twitter, Pinterest and more.

     

    Commenting on the new website, Divia Thani Daswani, Editor, Condé Nast Traveller India, said, “Travel and technology are inseparable. Until now, the tech-savvy Indian audience has visited travel websites only to book tickets or research trips. Now, for the first time, they can experience and engage with high-quality content, specifically created for the Indian traveller. Whether you’re planning your vacation or looking to make the most of a business trip-or simply looking for some armchair travel, www.cntraveller.in is the new destination for anyone with a love of travel. Theme-based content that is updated regularly, expert tips and timely news will ensure that Condé Nast Traveller India continues to be the Last Word in Travel, even in its digital avatar. Remember; go here before you go anywhere.”

     

    The new cntraveller.in launches with ‘The Travel Bucket List’ that captures the bucket lists of 20 varied and well-travelled personalities with an aim to inspire one and all. From artist Bose Krishnamachari’s suggestions for an arty holiday, to Fatima Bhutto’s list of the most beautiful cities your embassy may warn you against visiting, the Bucket Lists are showcased in exciting ways-be it in the form of features, stunning visuals or slideshows. Other contributors include Masterchef’s Matt Preston, Suhel Seth, CNN’s Richard Quest, actress Parineeti Chopra, photographer Steve McCurry, and singer Monica Dogra among others.

     

  • This will be the firm's first ever film association as an online digital channel partner

    Trendspotters.tv appointed online channel partner for ‘Kaanchi’

    By a correspondent

     

    Online digital channel Trendspotters.tv has entered into an alliance with Mukta Arts as their online channel partner for their forthcoming production ‘Kaanchi- The Unbreakable’. This will be the channel’s first ever film association as an online digital channel partner.

     

    In accordance with the treaty, Trendspotters.tv shall be associated with the film for special promotional activities of the film for the month of March and April. The film is scheduled to hit the cinemas on 25th April 2014.

     

    Kunal Kishore Sinha, Founder, www.trendspotters.tv elaborated, “At Trendspotters.tv, we are keen on engaging our audience with fresh developments in the world of entertainment. Bollywood being a much loved genre of films among our target audience, collaboration with the production house that has given some of the biggest hits of the industry is indeed a significant one. It is a matter of pride for us to have bagged the opportunity to endorse an upcoming film from the Mukta Arts banner. Film buffs can enjoy the first look, trailer and music of the film on Trendspotters.tv.”