MxMIndia

Category: NEWS

  • Aegon Religare 'hijacked' the letter 'i' from yesterday's national daily, The Times of India. The innovation was done to introduce the new and improved iTerm Insurance plan for Aegon Religare

    Aegon Religare hijacks ‘i’ from TOI

    By A Correspondent

     

    Aegon Religare ‘hijacked’ the letter ‘i’ from yesterday’s national daily, The Times of India. The innovation was done to introduce the new and improved iTerm Insurance plan for Aegon Religare. The front page of the TOI in 8 metros carried the letter ”I’ in the masthead and headlines in the colour blue and in small font similar to the ‘i’ used in the word icon in the main copy advertising for Religare.

     

    Talking about the objective behind this campaign, Mukesh Waje, AVP, Branding, Aegon Religare said, “It is very clearly to announce the launch of a product that has been a pioneer in the market. This campaign is to announce the comeback of an icon. The campaign will unfold further on the web and will heavily rely on this medium. Besides we will have radio and print to support for the duration of the next three weeks.”

     

    The campaign is designed by Ogilvy and BCCL has partnered on media. Though Mr Waje refused to put the amount spent on the campaign, he added, “We have already started getting calls post the ad and we are positive that the campaign will do well for us.”

     

    Aegon had earlier created a stir with its KILB campaign during its launch which talks about being underinsured. Last year, during the same time, the company had done another print campaign on the jacket of TOI where the print of the first page was hardly legible, thus asking if one’s insurance was as faint as the words on the paper, again pointing to being underinsured.

     

  • John Zeigler, Chairman & CEO of DDB Group Asia Pacific, talks about India's role in APAC and how rival agencies are taking a cue or two from them

    Being the best is our trademark: John Ziegler

     

    After a three-month long restructuring and realigning exercise in India, DDB Mudra Group presented itself in a new and refined avatar to the world on Tuesday. Having found its saviour in Mudra to expand its foot print in to India, DDB Worldwide is ready with a formula and a team that it promises would shake up the Indian advertising and media market and make it a force to reckon with in the coming months.

     

    Representing the group to make this historic makeover, John Zeigler, Chairman and CEO of DDB Group, Asia Pacific, Japan & India was a picture of hope and accomplishment as he presented to the gathering his views and expectations from the alliance.

     

    As the leading voice, and overseeing markets that span 21 agencies in 16 countries, and more than 2,500 employees, Zeigler is a great believer in reinvention and what it implies for brands in this global, think local, market. In conversation with Johnson Napier of MxMIndia, Zeigler emphasises on India’s role in the APAC market for DDB Mudra Group, on how rival agencies like WPP are taking a cue or two from his agency and what the agencies of today need to know to stay ahead of the curve. Excerpts:

     

    Q: How would you assess DDB Worldwide’s growth story across the globe, especially in the Asia Pacific market led by India?

    Across our businesses worldwide, we are looking to achieve a growth rate of 15 per cent. With the kind of businesses we have in India, we should be able to achieve a growth rate of 25 per cent plus. As for our other agencies across Asia Pacific, we had a compounded growth rate in excess of 30 per cent year on year.

     

    Q: Having upped your stake in Mudra recently and post the overall restructuring exercise in India, it seems to be an affair that was heavy on the investment front. Your comments.

    I would say the investments have really been in terms of people, training, exposing them to the rest of the business operations that we have and we are doing that dynamically every day. From another investment point of view, we see the opportunity to jointly grow our businesses which doesn’t require any investment other than time, talent and people.

     

    Q: Do you see Omnicom further raising its stake in Mudra anytime soon?

    That is something that will be really dictated by the equity partners comprising of Reliance Group and Omnicom. It is something that will echo with the passing of time. From our point of view, it should happen as quickly as possible.

     

    Q: You have all along emphasised the importance of emerging markets for the DDB Group. Have you identified any new markets that you plan to tap in the near future?

    We are going to scale up our growth soon in the market of Vietnam. We have just wrapped up an acquisition deal there and will be starting a new business soon. And the other key country for us would be Indonesia. But we would be able to tell you more about these markets only later.

     

    Q: While the emphasis of the group is on providing 360-degree integrated solutions, it is creative that is stealing the thunder to a certain extent in India. What do you derive of this sentiment? Where does digital fit in this matrix for the group?

    In terms of social creativity, what we have learnt is that the connection of creativity across digital and traditional – there is no wall. We have to look at it as a complete communication opportunity to capture the consumers’ interest and intrigue, the ability to pass it on and for them to become the media. So we are going to be growing digital but not as an exclusive digital entity alone; we’ll be growing digital within the core business as well as specialty part of the business.

     

    Q: How would you assess Omnicom’s growth story against those of WPP and Publicis Groupe who have also heightened their interest around the Asia Pacific market? 

    Omnicom is very anxious to grow inAsia. We have demonstrated that already. If you look at the last five years, you will see Omnicom has had much greater organic growth than WPP. This organic growth has been complemented by some strategic acquisitions and you will see Omnicom continue to grow much faster than the other groups. Again, our goal is never to be the biggest, it is just to be the best. In fact, WPP has also now changed their slogan to say that being best is better than being the biggest. But that’s only because they have talked about being the biggest, that they are understanding the importance of being the best – like we always have; so they are trying to take an element of that positioning from us.

     

    Q: Though a sister agency, how has BBDO been growing in India and in Asia Pacific?

    We work differently and therefore I cannot comment as such, but I would say that they have been doing well in India. Obviously we would like to support them and help them sell their services to their clients through the existing base from the DDB Mudra Group. We do share some clients, like for instance we both service Johnson & Johnson, Mars, and others. So we compete and collaborate with BBDO where it is relevant for our client.

     

    Q: Though not as grave as its predecessor, the slowdown has impacted the growth of the industry to an extent, including in India. What are your views on the global media growth story going forward?

    Most of the agencies are trying to fix the economic crisis situation by leveraging money – making money spread thinner than it should. That’s one of the reasons why banks got in trouble because of bad business practices. I think a lot of people are struggling with the economic crisis because they have tried to cut their cost structures down so far that they have actually started to cut into the value of their corporations. I don’t believe that cost-cutting, mergers and acquisitions, and the availability of finance will help the rest of the world reinvent itself. But I do believe that creativity applied to a business will give any business that uses that well, a competitive advantage. I believe that those firms which access and leverage competitive advantage best will win. I think the countries that are leveraging competitive advantages are winning today. Shanghai, Hong Kong, Singapore are leveraging their strategic expertise, their positioning, their competitiveness and they are benefitting from other areas that aren’t doing so well. But all this has to be seen from a country and a geo-political level, and would, therefore, differ across markets.

     

    Q: Has this sentiment aroused the apprehensive levels of clients?

    They are very apprehensive as they often ask how we increase our share of returns to our shareholders. There comes a point where the only way to do that is to gain a point from the competitors. And you can only gain more points from your competitors if you are more creative.

     

    Q: Worldwide, there is a trend of companies opting for CMOs to drive the growth for the organisation. Should ad and media agencies look at this trend as a means to beating the recession blues?

    We don’t have a CMO as such at the top as we work in an executive committee collaborative fashion and we do not believe that one person can manage that through the complexities of all brands and offerings.

     

    One of the things that agencies have more trouble is that clients have more focus in cutting the cost of an agency then they have put in to understanding how to get best value out of the agency. Until that changes, we cannot reinvent ourselves because we are running on very thin margins, we are trying to be creative and inventive, but we are being constrained by financial controls.

     

    The first thing that many clients do when they come to an agency is, they say: we do not pay for senior management involvement; that is agency overheads… some clients even come and say: I want to know how much time of your senior management I’m going to get and then we’ll negotiate the rest… those clients are smart because they are buying the best expertise and not just buying heads to do functions and processes.

     

  • Despite all the negativity, like 'paid news' or advertising interfering in editorial content, there is a lot of good stuff too and in fact the vast majority today are proper journalists, says Mohan Sivanand, India Editor, Reader's Digest

    [MJR] Quality of journalism has gone up: Mohan Sivanand

    Mohan Sivanand, India Editor, Reader’s Digest talks with MxMIndia’s Archita Wagle about his journey so far, touching on the changes in the field which he has seen in the past 36 years. Excerpts:

     

    Q: Tell us a little about your background and your life as a journalist.

    I have been in this field since I finished college in 1976. After my Senior Cambridge exams, I did a BSc in physics, then studied for an MA in English and a post-graduate diploma in journalism. Everything I studied has helped me in some way or other. I think and use, both, science and arts every day at work. I joined The Times of India as a trainee in 1977. I worked there for Science Today magazine (the magazine is not published any more). I worked with the TOI group for over six years, till 1983, when I joined Reader’s Digest. I joined RD as an assistant editor, when I was about 30.

     

    Q: Having been with RD for nearly 30 years, did you never feel that you needed a change or wanted to move to a different publication?

    No, I have not wanted to change jobs. I’ve liked it here.

     

    Q: How has the journey in these two companies been so far? What have been your learnings from them?

    Both the companies, TOI and Reader’s Digest, have been extremely good as learning experiences and dedication to journalism go.  I had very good editors to look up to, Surinder Jha of Science Today and Ashok Mahadevan at Reader’s Digest. Both these gentlemen gave a lot of importance to error-free content and laid emphasis on fact-checking. Ashok insisted that we learn to respect our readers and never underestimate them. That’s why our magazine is called Reader’s Digest.

    I follow those principles. One should never compromise on the quality of the content. I will hold an article back if I have some doubts about facts or if they have not been properly verified.

     

    Q: How does the process work?

    The process is the same for everybody, be it our US editor, myself, a staff writer or a freelancer. Even when I write an article, I have to give references and provide my sources to our researchers. The researchers have to double check every fact. They are, generally, the youngest employees who start out in RD with fact checking. Even I, sometimes, check and verify facts.

     

    Q: Over your 36 years in the industry, what are the changes that you have observed?

    In spite of everything, I feel that there has been a positive growth in the field. The quality of journalism has gone up in the past 30-odd years. I read a lot of articles and I feel that youngsters today are writing very well.  It is a pity that some of the better talent may be going towards the electronic media, but even the print media has people writing extremely well. I read a lot of good stories in many publications.

    Take the example of The Economic Times. It is much better today than it was 30 years ago. Maybe it is because business and markets have developed, and journalists today are well-connected via the Internet and they have access to a lot more information.

    In the past, most youngsters never thought of going for business journalism or working for technology magazines. In those days, we had just one Science Today, but today there are a lot of specialised magazines.

    Despite all the negativity, like ‘paid news’ or advertising interfering in editorial content, I feel that there is a lot of good stuff too. The vast majority today are proper journalists.

     

    Q: As a part of a magazine that places so much importance on content, what is your take on advertising interfering in editorial decisions?

    Actually, the ad people aren’t allowed to interfere in any editorial decision-making at Reader’s Digest. It is unethical. We have strict guidelines in place. Our ad colleagues can give us ideas just like anybody else, and that’s it. They can’t ask us to publish advertorial content and pass it off as editorial content.

    Most leading American magazines have the same policy. Indeed, some Indian publications bow to advertising pressure. By doing so, they are only killing themselves.

    If they continue to pass off advertising as editorial content, sooner or later the reader will realise what is happening and stop reading the publication. One can always tell the difference between an advertising plug and editorial content. The readership will drop and the publication is the loser in the long run.

    Often the ad executives are short-term employees who only look at short-term profits. They often don’t care about the damage to the publication’s reputation, so editors have to take a stand and refuse any such interference.

     

    Q: There have been rumours that Reader’s Digest editorial is being shifted to Noida…

    There is a corporate plan to shift to Delhi but nothing has been finalised yet. It has to be a very cautious move, since we can’t train new people overnight for our kind of journalism, our kind of writing and editorial practices.

    India Today Group, which is the Digest’s partner in India, wants to house all their publications under one roof.  We are the only India Today publication in Mumbai… but as of now nothing is finalised.

     

    Q: Will such a move, in any way, affect the editorial policy or content?

    There will be no change in terms of policy and the kind of content. Nowadays it doesn’t really matter where you are. One can work from anywhere. But as far as our content is concerned, we are the world’s, and India’s, highest-selling magazine, so why would anybody want to tamper with what has been working well so far?

     

    Q: We hear that RD is also going the digital way…

    Yes, from February 2012, RD can be accessed on tablets, including iPads for a subscription fee of about $1 a month, which is less than the cost of the monthly print edition. Our US parent edition launched its digital version last year. We were a little late, but I believe sooner or later, most of the print publications will have to go the digital way side by side. If you don’t do it, you are risking your future.

     

    Q: Has there been any drop in readership?

    We haven’t seen any significant drop in the readership. We print five lakh copies a month in India. But we had to move to a digital version before we witnessed any drop. Print magazines will never die out in India, but they may witness some decrease in circulation and that can hopefully be covered by increases in digital versions.

    As of now, the marketing of our digital version has not started with full force. But we will soon, and possibly have some more interactive content for our digital readers.

     

    Q: Apart from being the India editor of Reader’s Digest, you are also an artist.

    I was an artist before I became a journalist. When I was in college, I used to draw for Shankar’s Weekly, which was India’s equivalent of Punch magazine. I started oil painting in 1991. Between 1994 and1999, I held four solo exhibitions and some group exhibitions of my work.

    But after I became the editor, I stopped exhibiting as I don’t get enough time. My job takes a lot of my time. I still paint and draw, but as a means of relaxing. I will go back to painting full time after I retire.

     

  • With this buyout, Komli intends to expand its reach in South East Asia, which Komli's CEO, Prashant Mehta termed as a billion-dollar opportunity

    Komli Media acquires Singapore-based online advertising network Admax

    By Radhika P Nair

     

    Online media network platform Komli Media has acquired Singapore-based online advertising network, Admax, in a cash-and-equity deal, said Komli’s CEO, Prashant Mehta. Mehta declined to reveal the deal size.

     

    With this buyout, Komli intends to expand its reach in South East Asia, which Mehta termed as a billion-dollar opportunity. “We will be able to leverage Admax’s team, expertise and relationships in all the South East Asian markets,” said Mr Mehta.

     

    Admax, launched in 2006, claims to be the largest online advertising network in the region, with a presence in Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. Admax will give Komli access to a publisher network of over 4,000 local and international websites.

     

    Komli estimates the online advertising market in the region to be worth approximately $250 – 300 million, and growing at 30-40 per cent per year. “Our target is to become the leaders in the rapidly growing Asia-Pacific market as that will add tremendous value to our global operations,” Mr Mehta revealed.

     

    Komli, founded in 2006, has followed the acquisition path to speed up growth in different geographies. The Admax deal is its sixth acquisition in two years and the second in the region. In mid-2011, the company had bought out Singapore-based online media sales venture Aktiv Digital. Komli had earlier acquired Australian website representation firm, Post Click, and UK-based online ethnic marketing company Indoor Media

     

    The company has favoured the inorganic route for acquiring technology as well. In late-2011, the company took over the India business of video advertising venture, Jivox, and in July 2011 acquired mobile advertising and publishing network, Zestadz.

     

    Admax will be rebranded and the 100-strong team will join the existing Komli team in the region. Komli is targeting to reach $100 million in revenue in the next 12 to 24 months, said Mehta.

     

    Source: The Economic Times

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

     

  • Naval Toshniwal of Tomato FM on the success mantra of his talk-based radio station in Sangli, and radio consumption behaviours in Kolhapur and Sangli markets.

    [MxM Radio] I don’t see news as a game changer: Naval Toshniwal, Tomato FM

    By Robin Thomas

     

    He completed his MBA from Symbiosis Institute of Business Management, Pune in 2003. He joined the radio business of Pudhari Publications and is said to have played a key role in winning the bids for Kolhapur and Sangli FM radio. Naval Toshniwal is the CEO of Tomato FM and Vice President, Pudhari Publications. In conversation with MxMIndia, Mr Toshniwal spoke at length about the success mantra of his talk-based radio station in Sangli. He also shed some light on radio consumption behaviour among the people of Kolhapur and Sangli markets, besides talking about the overall growth and challenges facing the radio industry.

     

    Q: How would you rate the year 2011 for Tomato FM and the radio industry?

    As every year, 2011 too was good in terms of acceptance of radio as a medium by advertisers. We saw more and more advertisers coming on board and using radio more effectively as a result the maturity and the acceptance of the medium have gone up. In addition to this development the year 2011 also saw bleak in advertising revenues were bleak, although the revenue levels have grown at the corporate level. The same year also saw a lot of content and marketing innovations in radio, a lot of and on ground activities and other activations that have helped the advertisers achieve their final objectives.

     

    Q: What is the Kolhapur and Sangli market like from a radio consumption perspective?

    Unlike other markets what is more significant about Kolhapur and Sangli is the fact that the overall penetration of radio in these markets is very high. Radio as a medium is very successful here, and it has been so for many years. However, the popularity and penetration of the medium further increased only after the entry of private radio stations. The kind of involvement the people in these two markets have with the medium is very high. The overall acceptance of medium too is very high. The listeners look up to the medium not only for music, but also for regular updates about their cities, their State and the Country.

     

    Q: Initially Tomato FM was present in both Kolhapur and Sangli, it has now been renamed to Aaple FM in the Sangli district. What was the entire concept behind this move?

    When we conducted a survey in the Sangli district we found out that there was a huge demand for a talk-based radio station which not only allowed the people to listen to experts discuss and debate on various topics but, also allowed them to participate in the discussions. Today, I can say that we have been successful to a very large extend in this format. Earlier there have been various attempts to start a talk-based radio station which more or less did not work. If you are starting a talk-based radio station there must be a very strong local connect to make the channel a success.

     

    Q: Do you also play music on the talk-based radio station? What is the talk and music content ratio in Aaple FM and what is the station language?

    Aaple FM is a completely local Marathi talk format radio station that plays only Marathi songs. However the majority content in Aaple FM is talk whereas the music content is very low. The songs are played for only 16 minutes an hour.

     

    Q: The government has approved the MIB’s phase III proposals, e-auctions, news through AIR etc. How do you view these developments in terms of growth in radio?

    Honestly, despite all these developments I don’t see any buoyancy or excitement in the industry. I believe this is because with every development proposed by the government there is also a handicap to it. For instance despite the government allowing news, the source of news is restricted to Prasar Bharati. So what is the differentiating factor here, news will sound same in every station perhaps without any local connect.

     

  • The media buying for Jyothy Laboratories is handled by Lintas Media Group as well. Put together, the account is estimated to be around Rs150 crores

    LMG wins Henkel India media buying duties

    By A Correspondent

     

    In a multi-agency pitch for the newly acquired portfolio of Henkel, Jyothy Laboratories Ltd has awarded the media buying responsibility of Henkel brands to Lintas Media Group. Mudra Max will handle the Planning mandate.

     

    The media buying for Jyothy Laboratories is handled by Lintas Media Group and therefore, in a reiteration of their faith in LMG, they have awarded the Henkel business to them as well. Put together, the account is estimated to be around Rs150 crores. The other agencies invited for the pitch were OMD and Mudra.

     

    K. Raghavendra – General Manager Marketing, Jyothy Laboratories confirmed that the media buying AOR  for Jyothy Laboratories Limited and Henkel will be handled by Lintas Media Group and the Planning mandate has been given to Mudra Max.

     

    Suresh Balakrishna of LMG said: “We are extremely delighted to have won the Henkel business. We have constantly delivered on the Jyothy Laboratries brands and therefore, this new win not only encourages us, but also spurs us on to deliver better business solutions to our clients at optimal costs.”

     

    The business pitch was led by the newly-elevated COO, Mr Premjeet Sodhi. “The science that we bring to the process of buying, negotiation, optimization and evaluation, with the help of some of our unique proprietary tools, has made our product truly cutting-edge. We are happy that Jyothy Laboratories has recognized this and this win will ensure that we continuously strive to deliver a better media product to our clients, year after year,” he said.

     

  • Ditto TV is India's first Over-The-Top TV distribution platform offering live TV & on-demand content on mobile and traditional devices

    Zee aims to Ditto its DTH success story

     

    By Rishi Vora

     

    It is said that one who adapts as per the changing times is the one who succeeds in the long run. Recession or no recession – it doesn’t matter. If organisations continue to focus on what the market needs, success stories will continue to emerge and growth will eventually take precedence over many a hurdles.

     

    Adapting to the market and launching a relevant product in India’s broadcast sector is Zee Enterprises Ltd; the company that has been credited for making early inroads in the TV entertainment space in India and making it big internationally. It has now set an example in the New Media space with the launch of Ditto TV.

     

    Punit Goenka

    Ditto TV is India’s first Over-The-Top TV distribution platform offering live TV and on-demand content to end consumers on mobile phones, tablets, laptops, desktops, entertainment boxes and connected TVs.  The product has been brought out in the Indian market with the help of technology partner, Siemens.  “The offering fundamentally turns appointment viewing as a concept on its head,’ said Punit Goenka, Managing Director and Chief Executive Officer, ZEEL.

     

    On what it means to the group Mr Goenka said: “It adds a different dimension to business model. The idea was to bring cutting-edge wireless broadband digital services to customers across the world. Over the years, we have launched many industry firsts, but this is a launch that I’m excited about; I believe that Ditto TV will transform the way content is consumed and monetised.”

     

    Vishal Malhotra

    “For our channel partners- namely, for content owners, distributors, retail, OEMs and service providers, Ditto TV creates unique revenue generating opportunities,” explained Vishal Malhotra, Business Head – New Media, Zee Entertainment Enterprises, on what it means to its channel partners.

     

    Apart from India, the platform will be available in the UK, UAE, New Zealand and Australia. And United States will follow in the priority list, by end of this quarter.

    So yes, it’s an experiment by Zee, but as experts have pointed out, it’s a risk worth taking as consumption patterns of consumers are going through a sea change with the advent of digital technologies.

     

    Ditto TV will offer features such as adaptive streaming, elaborative programme guide, content recommendation engine and an interface which is integral to enhance the user experience. Moreover, it allows for complete customisation in terms of cost as well as content – where users are given an option to handpick a basket of channels as per their own personal preferences.  Price points start at Rs49, where the consumer gets access to three channels of his choice.

     

    Yogesh Radhakrishnan, a veteran in the field of TV distribution in India, said: “There are some issues like inadequate bandwidth; broadband connectivity is a pain, but having said that OTT is a technology for the future. For it to reach to the masses, it will take some time.”

     

    As for the broadcasters, Ditto TV comes in as an additional platform to showcase their channels on. And just as the thought crosses the mind, as to how many broadcasters will Zee be able to get on board, the news is that already 21 channels have agreed to use this platform.

     

    MSM Group, TV Today Network, BBC, and Zee are a few networks that will allow their channels to be available on the platform. A few important contracts yet to be signed which includes Reliance Broadcast, Star and Times Network. The company expects to offer a complete set of 50 channels shortly.

     

    The sense is that it is a matter of time before the rest of the industry embraces this new platform from Zee. As informed by Mr Goenka, monetisation via advertising can only happen once it reaches out to a critical mass – at least 5 per cent of the audience which consumes TV content on a daily basis. So there is still some time for advertisers to worry about this new delivery platform. But, that doesn’t make this venture of any less significance for Zee.

     

    Mr Goenka pointed out that a significant investment has gone into setting up Ditto TV and that he expects his new media division to contribute about 10 per cent to the group in terms of revenue in the next five years. Needless to say that Ditto TV is the first step in the bigger game to boost the company’s digital and new media play.

     

    On what this means to DTH and cable operators, Mr Radhakrishnan explained: “These are very, very early days. There is no doubt that OTT is the technology of future, but for now, it is just a beginning and not a threat to other distribution channels. Also, it is unlikely to replace the existing mode of distribution channels, as new media and technology comes as a welcome ‘value addition’ to the business.”

     

    So whether Ditto is able to script a ditto success story that of Dish TV – Zee’s DTH offering, is something to watch out for. For now it looks like a welcome initiative – both from the consumer and the trade point of view.

     

  • The online store has over 10 million titles across a wide range of book categories, including hard-to-find international titles.

    HomeShop18 unveils online bookstore

    By A Correspondent

     

    Homeshop18.com has added to books vertical an all new user-friendly online bookstore having a massive catalogue of over 10 million books in more than 100+ categories.

     

    The acquisition of CoinJoos.com has helped HomeShop18 strengthen its books business and tap the massive books market in the country. The company has spruced up its technology backbone to offer book lovers a world-class book shopping experience through a superior browse and search experience.

     

    Commenting on HomeShop18.com’s bookstore going online, Sundeep Malhotra, Founder and CEO, HomeShop18 said, “Books are a critical part of our e-commerce growth strategy and the launch of our bookstore plugs the gap which we felt we had in our product range. This is a category which touches all demographic groups and, therefore, a very critical one and we are very excited to add books to our range of offerings”.

     

    The initiative will make it easier for book lovers across the country to shop much more conveniently with HomeShop18 offering both online payment and cash on delivery options. The company is also expected to make further announcements in the books category in the coming weeks.

     

    HomeShop18 is Network18 group’s online and television retail marketing and distribution venture, and offers a wide product range across several categories.

     

  • Long after carving out its own niche, the Indian PR industry must now redefine its horizons, says Valerie Pinto.

    [PR Channel] Indian PR industry – gearing up to absorb new opportunities

    By Valerie Pinto

     

    The PR industry in India has seen steady growth ever since it carved out its own niche after coming out of the shadow of advertising or its later avatar – MarComm. In today’s knowledge economy, PR has evolved in all its elements and has effectively redefined its role in communications to touch upon newer areas of specialization. Apparently, the scope and dimension of PR today is restructured across a more comprehensive consulting sphere than a mere platform for specific, one-off media deliverables.

     

    Build durable partnerships that reflect a consulting approach

    Today, PR in India is ideally positioned to scale up to the next level and redefine its domain. In a high growth economy of the size of India with myriad issues and events, the opportunities for PR surely weigh more than the threats. PR needs a more comprehensive approach that looks beyond short, cyclic deliverables and include durable partnerships that reflect a consulting approach.

     

    PR will attract bigger budgets as advertising outlays shrink

    With advertising budgets hitting the ceiling and the emphasis more on ‘bang for the buck’ rather than creative hype, PR is set to attract bigger budgets based on longer term strategies and deliverables. The need to define the boundaries of hype-centred mega budget advertising in the knowledge economy grew in relation to the high precision deliverables of PR.

     

    Hiring practices in the PR industry must reflect present-day realities

    The PR industry faces real scarcity of appropriate talent as hiring policy and practices have remained rather antiquated. Industry thought leaders must step in to correct the imbalance and offer guidance in defining the parameters through interactive platforms like conferences, seminars and workshops.

     

    New minds must enter the consulting space within PR

    A consulting approach essentially points to a partnership with emphasis on strategic longer term deliverables. This requires fresh thinking and a broader perspective of what comprises the redefined domain for PR in a fast growing economy.

     

    Adopt a business consulting model to excel and expand current services

    The existing range of services, that the bulk of the PR industry offers, must increase manifold in order to adopt a business consulting approach which is based on the principles of a win-win partnership. Rather than one-off solutions, PR firms should offer a range of services covering not just “prevention” over “cure” for crisis situations but also image management and pre-emptive communication to achieve strategic goals.

     

    Focus on both industry experience and management excellence

    The PR industry’s expansion into a larger domain will be essentially driven by a talented pool of professionals with high levels of industry experience and management excellence. It is absolutely important that the larger horizon is more than sufficiently inculcated into the new crop of PR professionals for them to gauge the challenge ahead.

     

    Showing the way

    The PR industry in India needs to redefine its vision, and actively engage clients to forge win-win partnerships covering not just deliverables but also long-term strategy. Such partnerships require engagement at different levels with the client and their market apart from achieving operational equilibrium wherein they consult the PR agency in all matters regarding communication strategy.

     

    The Indian PR industry is on the cusp of exponential growth as the mood in the economy shifts toward more transparent growth and what has often been described as a “level playing field”. In a better regulated environment, it is PR that promises to balance the delivery of communication in the fast evolving environment. The Indian PR industry is fundamentally strong and should fulfil its potential by making the most of this opportunity.

     

    Valerie Pinto is CEO – Perfect Relations.

     

  • Is the Dainik Bhaskar group selling its stake to Zee? A BusinessWorld report says it is

    Is the Bhaskar group exiting DNA?

    By A Correspondent

     

    Since the day Zee supremo Subhash Chandra took charge of operations at Diligent Media Corporation (DMC), the company that publishes newspaper Daily News and Analysis (DNA), rumours are rife that co-owners Dainik Bhaskar are exiting the JV. This happened two years ago, and nearly every week since then we hear stories about the Bhaskars selling their stake. There have been times when we’ve heard the same about Mr Chandra too, but if a report on the BusinessWorld website is to be believed, the Dainik Bhaskar Group (DB Corp) is in the process of exiting DMC.

     

    “Following the exit of the Bhaskar Group, Subhash Chandra and his associates will have 100 per cent ownership of Diligent Media. The road map for decoupling the English language media project, launched in June 2005 as a 50:50 JV, was confirmed by a senior D B Corp executive; but the promoters of the Bhaskar Group, the Aggarwal family, said the deal was “yet to be consummated”, the report adds.

     

    (Link: http://www.businessworld.in/businessworld/businessworld/content/Dainik-Bhaskar-Exiting-DNA.html)

     

    The Agarwals are known to be hands-on and aggressive newspaper owners. So while the official reason being given was that Mr Girish Agarwal needed to concentrate on the power projects, it was evident that interest had waned. A Bhaskar spokesperson said he was unaware of any such development.

     

  • Coca-Cola surprised pundits when it dropped the price for the 200 ml returnable glass bottle by Rs2 to Rs8

    Will Coke’s 200ml pack price cut cannibalise Thums Up?

    By Preethi Chamikutty

     

    Summer is still a few weeks away, but cola brands have already started feeling the heat. While most brands are closely guarding their marketing secrets for the season, Coca-Cola surprised pundits when it dropped the price for the 200 ml returnable glass bottle (RGB) by Rs2 to Rs8.

     

    That may not seem unusual – after all in the past, Coke has cut price. However, most of those reductions were across all brands in the portfolio, from flagship Thums Up and Sprite to Limca and Fanta. This time, however, the exercise applies only to Coca-Cola.

     

    Independent marketers are not convinced about the strategy as they feel that in the urge to close in on arch-rival Pepsi, Coke runs the risk of cannibalising Thums Up, its top cola brand and the country’s largest selling carbonated drink.

     

    So why is one of the world’s most valuable brands discounting itself in India? The official response from Coca-Cola is that the “special promotional price” will “fuel growth of the cola category. As the 200 ml pack is the entry point into the category, it will recruit new consumers into the cola segment since it is a very attractive price point,” said a company spokesperson.

     

    The promotional offer is being rolled out in phases across select markets; 70 per cent of markets will have the Rs8 price. Those familiar with the promotion say that this is a pilot project for three months, with an option to extend it.

     

    Clearly, Coke has trained its sights on Pepsi – which has yet to react to the price cut – and hopes to inch closer to it. Still, market observers wonder whether the drop in price is aimed at Pepsi or at Coke’s own brand, Thums Up, which is the leader in the cola category as well as in carbonated drinks.

     

    Latest market share figures are unavailable – both cola majors will not part with them – but those familiar with recent numbers point out that Thums Up has a share of roughly 42 per cent of the Rs4,000 crore pure cola market. Pepsi follows with 36 per cent, and Coca follows with a share of just under a fifth (a few regional brands account for the rest).

     

    An official at a beverage marketer says that Thums Up also leads the approximately Rs10,000 crore carbonated soft drinks market with a 15 per cent share. If marketers do not approve of Coke’s move, it’s with good reason. “Unless this is a global diktat, this strategy is flawed from Thums Up’s point of view,” reckoned Nobby Gupta, founder & CEO, Nobby Brand Architects.

     

    “In countries wherever Coke is present, it always has to be the market leader and all other brands have to follow; if that is the aim for India as well then this strategy falls in place,” he added. But he also goes on to say that this strategy will have a negative impact on the combined share of both Coke and Thums Up.

     

    Me Gupta’s logic is simple: Lowering the price of Coke will not put pressure on just Pepsi, it will also cannibalise the market share of Thums Up. “And if Pepsi drops price too, which is likely, there is a chance of it eating into both Coke and Thums Up,” added Mr Gupta.

     

    Then there are those who feel that dropping prices for short-term gain is dangerous. “Because when you go back to old prices consumers may well say: ‘Thank you very much for the discount, now I will go back to Thums Up,” said Anand Halve, co-founder of Chlorophyll Brand & Communications Consultancy. “Momentary bribing does not ensure long-term consumer loyalty,” he added.

     

    For a generation of Indians, Thums Up, with its relatively stronger taste, is synonymous with cola. “The preference for a strong cola continued even as new cola brands entered and are now expanding the category. Over all these years, Thums Up’s communication has remained consistent,” said Devendra Chawla, president, food & FMCG, Future Group, who is a former Coke associate.

     

    To be sure Thums Up has assumed almost cult brand status over the past two decades with commercials like ‘Taste The Thunder’ and ‘Toofani Thanda’ that had an international look and feel to them. Ashok Kurien, advertising guru and former chairman Publicis India, who was involved in the launch of Thums Up said: “Thums Up managed to crack the soul of Indian consumers through advertising and reached out at a deeper level. It was about struggles in life, the anxiety and determination to survive and succeed. This was probably the strongest concept in Indian advertising that connected to the young Indian male. And it still connects today.” When Coca-Cola acquired Thums Up, Kurien advised the Atlanta-headquartered company to only pit Coke against Pepsi and not touch Thums Up – as it already had an 85 per cent market share. “But Coke introduced both Coca-Cola and Thums Up in 300 ml bottle and people lapped up Thums Up, with Pepsi taking the second spot.”

     

    The battle between Coke and Pepsi continues, although Coke officials deny the attempt to spark off a cola war; they just want to step up per capita consumption by Indians, they say. “Indians consume only 12 200 ml bottles of beverages per year compared to 675 bottles by Mexicans – the highest consumers of Coca-Cola globally,” pointed out a Coke official.

     

    Source: The Economic Times

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

     

  • These literary melas provide yet another celebrity event to fill the pages of our newspapers. They are also a tonic for our increasingly jaded elite.

    [MJR] Litfests: Boon or bane for Indian book market?

    By Yogi Aggarwal

     

    Literary events do not, as a rule, make news and are normally assigned just a paragraph or so in the inside pages of newspapers. Not the Jaipur literary festival (JLF), now in its sixth year.

     

    Its organisers have an eye for easy publicity, and the knack of drawing record crowds. It’s fast approaching the bustle and energy of a mela, with an attendance of over one lakh visitors during the five day jamboree last month.

     

    Either there has been a sudden spurt of interest in books, or the people just come to have some fun, as they do at the largely low-brow Kala Ghoda festival in Mumbai. Though literary events such as those recently started in Mumbai,KarachiandHyderabaddo help to sell some books, none has the drawing power or the induced magic of the JLF.

     

    Is the JLF in the envious position of attracting certain top writers, which then bring it to the attention of the media, or is it the media hype than brings in the writers? The latter is unlikely to be the case since the Indian market for books is still a small one. And despite the presence of several distinguished mix of writers, only one person has the reputation to generate a large crowd-pulling controversy – Salman Rushdie.

     

    It was his attendance at JLF in 2007 which led to vastly increased numbers at the fest in the following years, and it was the motivated opposition to his presence in Jaipur or even to a video conference that took the JLF to the top league in such events around the world.

     

    William Dalrymple, the impresario who runs the show, maintains that literary fests like the one in Jaipur have the effect of “putting literature back at the centre” and that such fests are part of the exponentially expanding book market inSouth Asia.

     

    Both are questionable statements. Literary fests do lead to some interaction between writers and readers, and this may even help the writers understand their audience, but at the signing that accompany the sales of books at the venue at most a few score copies are sold, hardly putting literature back at the centre.

     

    It is also debatable whether the book market is expanding exponentially in our region. There are certainly a larger number of fiction titles being published. But most of them sink without going into a second print.

     

    The reason for the proliferation of these literary melas is twofold. First, they provide yet another celebrity event to fill the pages of our newspapers, most of whom have abandoned their role of informing and educating their readers, to pandering to their prejudices and serving salacious stories. Second, they are a tonic for our increasingly jaded elite.

     

    For this reason the controversy surrounding Salman Rushdie was the perfect marketing gimmick. While Rushdie himself thrives on the opportunity to be in the public eye, this occasion was the more central since it highlighted the conflict between “diehard mullahs” and “freedom of expression”.

     

    The media helped fuel the dichotomy by only giving space to a fundamentalist fringe, ignoring the large number of Muslim liberals. The heat and the large public interest & debate this generated will surely make the next JLF even bigger than before.

    All this does not leave the author any better off. Nor does it generate a genuine interest in the ideas that books are meant to foment.

     

    Just before the JLF, there was a similar event in Mumbai. Organised by a large media conglomerate, it was a successful mela with all the attendant frills of book signings, meet the author events, food courts and milling crowds. Surely it is another JLF in the making, and a bigger one too at that, considering the influential and well-funded backing, and its location in Mumbai.

     

    It is ironic that the media conglomerate has no space or time for books. It stopped reviewing them years ago since “our readers aren’t interested”. Intelligent and fair reviews by a dedicated lot of critics, complete with author interviews on a weekly books page or even section are necessary for the growth of an informed readership.

    Melas can be useful but cannot replace this essential perquisite of a literate, book-reading culture.

     

    Yogi Aggarwal is a veteran journalist.