Blog

  • Email Marketing: Vast opportunities make it a favourite with brands

    By Robin Thomas

     

    Easily the most preferred medium for a brand or marketer to get close to his consumer, digital has never seen such a fervent chase being put up by its users. While it was mostly search and display advertisements that advertisers flocked to, much of digital advertising is still unexplored territory. The importance of engaging the youth through social media marketing has only just been realized, while video marketing and mobile advertising are also gaining traction among marketers.

     

    According to a recent IAMAI-IMRB report on Digital Advertising (as on 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 about Rs4,391 crore.

     

    The March 2012 report on digital advertising points out that search advertising constitutes about 20 per cent of the total online advertising spend or about Rs570 crore.  The report also states that advertisements on social media, email and video over the Internet constitutes about 3 per cent (Rs94 crore), 5 per cent (Rs144 crore) and 2 per cent (Rs59 crore) respectively. What is noteworthy is that a major proportion, around 53 per cent, of the overall digital advertising spends come from classifieds listing (Rs1,496 crore).

     

    With such infinite possibilities continuing to emerge on a frequent basis around the medium, one tool that has been a favourite with the marketers in the recent past is email advertising. With just a handful of players that operate in the realm of providing email services, it becomes all the more challenging for owners to come up ideas that catch the attention of the advertisers. The question is whether there is enough being done around the vertical or if companies are missing out on the edge that this medium can possibly offer.

     

    The IAMAI – IMRB Digital Advertising report already states that email advertising is worth 5 per cent of the overall digital advertising spends. According to industry estimates, email advertising is expected to grow from the current Rs144 crore to Rs250 crore in the next year or two. The role or purpose of email marketing is said to be about delivering the message and inviting consumers into brand engagement. Further, with mobile internet being touted to take internet inIndiato new heights, email marketing is expected to also thrive in the long run.

     

    Mr Prasanth Mohanachandran, Co founder, AgencyDigi stated: “email marketing is very relevant and important today, it is cost-effective and reaches to wide range of audience. While it is already witnessing growth, mobile will only further grow email marketing as nearly 27 per cent of mails received by consumers are on handheld devices. The challenge, however, is to find newer ways to reach out to the consumers’ inbox and not their spam. Segmentation in email marketing will also help brands reach their relevant consumers.”

     

    Mr Gaurav Nabh, Business Head, Quasar was of the view that since email is the most used platform for internet users in India, it is absolutely important and critical for any brand as a medium for reaching out to its consumer. “It is a communication medium, much like print, radio or TV. What you do with this platform and how you are able to maximize its effectiveness depends on the idea and approach,” he said.

     

    What is noteworthy about email marketing is that it acts as a reach building medium by allowing brands to segment the audience as per their demographics and profile, and thus directly targeting them. While email marketing may be a cost-effective medium enabling larger reach, the challenges that accompany it are also large. Most email advertisements tend to be unsolicited mails and thus enter the spam mail. Lack of creative email advertisements could be another challenge for this business and hence it must not only get more creative but, also innovative in terms of rich media and interactivity and so on.

     

    “A lot has been done with email marketing as a platform – from embedding previews of videos to lead generation, polls and voting. The limitations of the platform are based on poor bandwidth and technology limitation of most email clients and platforms. email marketing has been most successful for finance and real estate sector – helping them in generating leads. email marketing is here to stay as it has a role and purpose and the fact that it is cost effective. Email marketing will over time be seen not as a reach builder, but that of targeted awareness, and a medium to initiate and enable dialogue rather than just spread the message,” affirmed Mr Nabh of Quasar.

     

    Mr Saurav Patnaik, VP-Marketing, Kenscio Digital Marketing Pvt Ltd was of the view that email marketing or digital direct marketing does not lack innovation, but to a great extent, is lacking creativity. “The agency’s focus has been on producing beautiful communication, but not much attention has been given to this channel. The road ahead is bright for this channel of marketing. We are very positive about the future and India as a market is growing and more the penetration of the internet happens the bigger it will get in the next few years,” he said.

     

    Mr Gupta of DGM India noted: “Spam is a big issue, due to which it faces similar issues as SMS marketing. Like SMS, email marketing is also being done by loads of small/unorganized players. Due to this the larger players with opted-in databases are not getting their due pricing and share. Because of its nature, email marketing is being predominantly used for activation/ response oriented campaigns rather than branding campaigns. It is, in fact, very cost effective for these objectives. Also it is very effective in lead generation campaigns for BFSI, travel packages, auto, online listing businesses etc. It also works very well for highly niche products.”

     

    While industry players are of the opinion that email marketing is here to stay and will grow over the years there is a need to be innovative and creative in delivering the message to the audience. E-marketing must be used to send relevant information and brands must start a meaningful dialogue with their consumers through email marketing. In order to escape spam and reach their consumers directly, email marketing could be used as a perfect tool for permission marketing. As internet consumption through mobile or smart phones grow, and consumers are given unique experience on mobile, email marketing could possibly witness a whole new chapter in the way it gets consumed.

     

  • Ranjona Banerji: Media forgets more than it remembers

    Ranjona Banerji

    By Ranjona Banerji

     

    Most Indian newspapers stayed up late to bring readers the results of the Euro semi-final between Germany and Italy. The Times of India also managed to check up the Wimbledon scores and had a front page snippet on Rafael Nadal’s shocker of a second round exit. This is unusual because TOI usually does much less for tennis than other newspapers.

     

    (But CNN tennis reporter, I have a question for you: Is Rafael Nadal’s second round exit bigger than Pete Sampras’s fourth round exit in 2001, since you said that Nadal’s upset was the biggest in tennis history and no one could remember another? Nadal has two Wimbledon titles, Sampras at the time had seven Wimbledon titles – a record he holds with William Renshaw – and would never win another. The man Sampras lost to: Roger Federer. It was only 11 years ago, a little history is not a bad thing for a sports reporter. Or even, a good memory!)

     

    * * *

     

    The Houston Chronicle has fired a reporter for working as an exotic dancer (sometimes known as stripper) as a second job. The woman was exposed by a rival publication. Snitching on your competitors is a trend in Western journalism which is yet to reach India and one wonders whether that is not a good thing. The Guardian’s exposes of phone-hacking and other dubious practices by rival newspapers, especially those owned by Rupert Murdoch, perhaps fall in the realm of both public service and dogged investigative journalism. (The Hindu comes the closest in India, as it occasionally pulls up lesser media houses for journalistic and marketing transgressions.) But “investigating” fellow journalists of media houses and their personal lives to inform readers? Am not sure what category of journalism this falls into.

     

    * * *

     

    A minor storm in Indian journalism has been over the death of a photographer who worked with Tehelka, was sent into the hinterland to do a story on Naxals, got malaria there and died. The newspaper is at fault for apparently not factoring malaria into the threat element of this assignment.

     

    Newspapers in India are notorious for not being bothered about the dangers of newsgathering – mainly because most newspapers have dispensed with most kinds of dangerous reporting. (I could I suppose say the same thing about TV, in that they hardly started.) Gone are the days when even gossip columnists – like Devyani Chaubal being slapped by Dharmendra – faced physical dangers while working. I am being facetious I know but bullet-proof vests are hardly part of a reporter’s must-haves in India. There should be no room for callousness. But I am still unconvinced what Tehelka could have done about a mosquito. If they did not help the photographer or his family later, then there is cause for criticism.

     

    Still, it would not hurt media houses to take a closer look at employee welfare (this does not mean a box of mithai at Diwali) and on-the-job dangers.

     

    * * *

    Interesting that the anniversary of the Emergency came and went with little media attention. Are we moving on or did we just, like, forget?

     

    * * *

     

    The case of Abu Jundal or Jindal or Zaby or whatever his name is – the Lashkar handler of the 26/11 attacks sent to India by Saudi Arabia – is exciting but it is still in its early stages. Rather than focus their hysterics only on Pakistan, the Indian television media might like to look at it as a story first and probe all angles rather than jump into jingoistic propaganda.

     

    * * *

     

    The Indian media – particularly TV – got itself into a bit of a bind over Pakistan’s flip-flop over the release of Sarabjit Singh. Sarabjit is a celebrity prisoner whose family has ceaselessly campaigned for his release. Pakistan announced Sarabjit’s name and then changed it the next day to Surjeet Singh. Now the dilemma: should the media show happiness for Surjeet, rage against the machine for Sarabjit, damn Pakistan or blame Pakistan? Is one Indian equal to another or are famous Indians more equal? It is not known how hard Surjeet Singh’s family worked the media to get him released, so perhaps there’s an answer. Also Surjeet Singh walked across the Wagah border and claimed he was a RAW agent, a tag Sarabjit and his family have consistently denied!

     

    * * *

     

    Congratulations to Mid-Day on its 33rd anniversary and a whopping anniversary issue of 200 pages which I haven’t had the time to read yet. Might take me all week!.

     

  • Hindi channels say ‘Vanakkam’ & ‘Namaskaaram’ to Southern hits

     

    By Meghna Sharma

     

    What is common between Ghajini, Wanted and Bhool Bhulaiya, apart from the fact that they were all blockbusters and starred A-listed actors? The fact that they were all remakes of popular South Indian films.

     

    Lately, Bollywood has been experimenting with a lot of films made down south. And since, the small screen is a reflection of what happens on the big screen, even the channels – movie as well as GECs – are cashing in.

     

    There has been a spate of south Indian dubbed films being shown on the television. According to the recent data, there isn’t much difference between the ratings for Hindi and dubbed films on TV. On an average, both get a 0.3TVR (HSM CS15+ on channels like Colors, Star Plus, Sony Max, UTV Movies, Star Gold in Jan -June) as compared to prime time where Hindi movies score better.

     

    So, it is logical to wonder, why the sudden acceptance of South Indian dubbed films on national channels? Is it a Rajnikanth effect or there is more than what meets the eye…

     

    Formula or freshness?

    Manisha Sharma, weekend programming head, Colors feels that the acceptance started gradually over four-five years ago with experimentation by all three stakeholders – Bollywood, broadcaster and viewer.

     

    Anilkumar Sathiraju

    “The viewer was getting hungry for content and the increased frequency with which Hindi blockbuster movies were being repeated ensured that he was willing to experiment with dubbed movies. The other thing that worked for the dubbed movies was the fact that the production quality of south Indian movies has gone up tremendously in the last decade. Also, the movies which were initial successes were the ones which had stars who, at some point, had crossed over into Hindi like Rajnikanth and Nagarjuna,” she added.

     

    According to media planner Anilkumar Sathiraju, associate VP and head South, Mudra Max, the fresh content and faces are working in favour of the dubbed movies on channels. “Movies down south, especially Telugu films, have a certain mantra – say six over-the-top fight scenes, two behind-the bushes romantic songs – which isn’t very common in Bollywood movies of late. So, people don’t mind watching something ‘different’.”

     

    Mohan Gopinath

    However, there are movie channels like Zee Cinema, which have been showing South Indian dubbed films for a long time, which feel that the trend has caught on other channels recently. “To be frank, these movies have always rated on Zee Cinema, so the appetite has always been there. Other channels have picked the trend up in the past few years and now the viewer gets South films, dubbed in Hindi, all across. Now with South Indian films being remade into Hindi films, the appetite for dubbed films has increased,” says Mohan Gopinath, business head, Zee Cinema.

     

    Manasi Sapre

    Also with broadcasters taking precautions to maintain the real essence of the film while dubbing, not much is lost in translation. So, viewers find it easy to relate to the films.

     

    Manasi Sapre, director programming and acquisitions, Movie channels UTV, said: “Though, dubbing is a challenging job, we make sure that the essence of the film isn’t lost in the process. Therefore, it varies – sometimes they are sourced dubbed and sometimes we do it.”

     

    Vijay Subramaniam

    “Till a decade or so ago, most regional movies were shown with subtitles which didn’t attract the viewer as much it does today, since they are dubbed. So, not only masala movies but also artistic films are able to find their way into one’s living room,” said Vijay Subramaniam, deputy GM, Madison Media.

     

    Apart from the content and viewer’s acceptance, Anamika Mehta, COO, LodestarUM feels that it’s the explosion of media which is behind this: “What happened with the song Kolaveri di is the finest example one can give today. Boundaries are shrinking and more and more people are coming to know about the film culture down South.”

     

    Cost cutting

    Vajir Singh

    Vajir Singh, editor, Box Office India accepts that freshness in content and crossover of actors – famous like Rajnikanth or lesser-known ones like Siddharth – does play a role, but feels that it is the cost of acquisition that plays a bigger part here: “If a channel can purchase entertainment at cheaper rates, then why shouldn’t it? South Indian films in comedy and action genre have always done well as they provide pure entertainment to viewers and eyeballs to the channel.”

     

    He’s not the only one to voice such a sentiment. Even media planners feel that cheaper acquisition rates are a main reason why suddenly these movies are being shown on television so frequently. “It is far cheaper to acquire little older or newer South Indian movies than latest Hindi movies which are showcased as premieres on the weekends by channels. So, it helps them to build a bigger library,” said Ms Mehta.

     

    “Broadcasters, over years, have been struggling with increased cost of acquisition, limited hits and increased competition. As compared to about a decade ago when a Bollywood star would have 2-3 releases a year, today stars prefer to do one movie at a time. Also, in a good business year the number of blockbuster movies will not cross 10. This, coupled with the fact that there are new channels getting launched in both Hindi GE and Hindi movie space, ensured that broadcasters was struggling for content and more willing to experiment with south Indian dubs,” explained Ms Sharma.

     

    The new experimentation seems to be working for Bollywood and it is working for the channels and viewers too. No one seems to mind it!

     

    Pictures courtesy: maxtelevision.com, Imaging: Rafiq

     

     

  • The Dark Knight Rises in India with Bournville

    By A Correspondent

     

    As the countdown to Christopher Nolan’s epic conclusion of the Batman trilogy, The Dark Knight Rises, kicks off around the world, Cadbury Bournville has partnered with Warner Bros to celebrate the release of the most anticipated Hollywood blockbuster of 2012.

     

    Cadbury Bournville will pull out all stops for the cinema release of The Dark Knight Rises (TDKR) in India with one of their biggest and innovative integrated marketing campaign yet.

     

    The Cadbury Bournville-TDKR integration comes to life with special brand packaging, in-store branding, on-ground activities and television and cinema campaigns. The campaign has been designed and created, going through great lengths to ensure engagement across all touch points to reach out to dedicated fans of the movie franchise as well as Bournville loyalists.

     

    However, the biggest component will be Bournville’s digital campaign, especially created for the TDKR association. The digital campaign has been brought to life with a large format online contest that will add to the wave of anticipation and excitement with the legion of movie buffs and dark chocolate aficionados.

     

    The Dark Knight has already taken centrestage on Cadbury Bournville’s Facebook page, which has over 1.5 million fans, with contests and gave 100 lucky fans prizes through an innovative pixel contest.

     

    The digital campaign also features a specially created 30-second ‘digital commercial’ viewed exclusively on Cadbury Bournville’s official YouTube channel. The video is interactive in nature as daily trivia around the Batman franchise will be posted on it with exciting prizes for lucky winners. Those with the right answers will win passes to the pre-screenings of TDKR which will be organized in Delhi, Mumbai, Bangalore, Kolkata and Chennai.

     

    Mr. Chandramouli Venkatesan – Director, Snacking & Strategy, Cadbury India said: “As the fans await the movie of the year to be released in India, we plan to take the ‘The Dark Knight Rises’ release to greater heights and even greater excitement among Bournville consumers. The movie characterizes strong feeling of emotions among youth, something that Bournville lovers are known for. The Bournville brand fit with the Dark Knight franchise cannot be any better than this. It’s like the Dark Knight really has a Dark companion in India.”

     

    A specially created 30 second TVC on the Cadbury Bournville-TDKR promotion will be starting in the second week of July. The TVC will be aired on television channels and cinema theatres.

     

    The special TDKR packs of Bournville will run an online contest for customers where one lucky winner will stand a chance to win a free trip for two to Warner Bros Movie World in Australia. The contest will be available on all packs of Bournville.

     

    The association will be promoted in-stores through heavy trade activations in traditional and modern trade throughout the month of July. The campaign will continue to be driven through direct marketing and promotional activity.

     

  • Vizeum propels Aegis Media’s expansion in Chennai

    By A Correspondent

     

    The Vizeum operation, which began in August 2009 in Chennai, has not only managed to create an interesting niche for itself, but has paved the way for Aegis Media India to make larger investments in the market. Consequently, Aegis Media India is moving to a  bigger, state-of-the-art-office, which will house Vizeum, Isobar (Digital), Iprospect (Search), Iprospect (OOH), Hyperspace (Retail), Carat  and Carat Fresh Integrated (Activation). The new office will function from the Raheja Towers, Chennai, from July 2.

     

    Commenting on the development Ashish Bhasin, Chairman India & CEO South East Asia, Aegis Media said: “We believe Chennai will be an extremely important market in the years to come and the spectacular success of Vizeum has proven that.  Vizeum has won several businesses and expanded rapidly in Chennai. As a part of the Aegis Media’s geographical expansion plan, we are very happy to launch Carat Media in Chennai and further strengthen the Posterscope Group and Carat Fresh in Chennai. We are investing in a world class, state-of-the- art office, with the latest systems, technologies and connectivity. Shortly our clients in Chennai will have available to them all specializations under one roof. We will soon announce the launch of a few more of our services later this year. Our One Aegis promise will, from July 2nd, be available to our clients in Chennai, too. ”

     

    S Yesudas, Managing Director, Indian sub continent, Vizeum added: “I have to place on record my appreciation for Team Vizeum Chennai who saw the merit in our story and chucked their other established jobs to put their hands on ours when we were just beginning.  We will stay focused on this market in terms of our investment in our product as well as talent. My gratitude also goes out to each of our clients who have stood by us, with a special thanks to Amrutanjan  and Sambhu for being the inspiration for our launch in Chennai.”

     

  • News Corp announces intent to split news & ent biz

    By A Correspondent

     

    News Corporation announced that it intends to pursue the separation of its publishing and media and entertainment businesses into two distinct publicly traded companies.

     

    Upon closing such a transaction, shareholders would hold interests in a publishing company, consisting of the largest collection of best-in-class publishing assets and a new digital education group, and a global media and entertainment company, each of which would benefit from enhanced strategic alignment and increased operational flexibility with respect to an unparalleled portfolio of assets, brands and franchises.

     

    News Corporation’s board authorized management to explore this separation after a board meeting.

     

    The proposed transaction would create global category leaders in both publishing and entertainment: a publishing company, which would be comprised of News Corporation’s newspapers and information businesses in the US, UK and Australia, the Company’s leading book publishing brands, its integrated marketing services company, its digital education group, as well as its other assets in Australia; and a global media and entertainment company, which would encompass News Corporation’s broadcast and worldwide cable networks, leading film and television production studios, television stations and highly successful pay-TV businesses in Europe and India.

     

    “There is much work to be done, but our Board and I believe that this new corporate structure we are pursuing would accelerate News Corporation’s businesses to grow to new heights, and enable each company and its divisions to recognize their full potential – and unlock even greater long-term shareholder value,” said Rupert Murdoch, Chairman and CEO of News Corporation.

     

    “News Corporation’s 60-year heritage of developing world-class media brands has resulted in a large and unparalleled portfolio of diversified assets. We recognize that over the years, News Corporation’s broad collection of assets have become increasingly complex. We determined that creating this new structure would simplify operations and greater align strategic priorities, enabling each company to better deliver on our commitments to consumers across the globe. I am 100 per cent committed to the future of both the publishing and media and entertainment businesses and, if the Board ultimately approves a separation, I would serve as Chairman of both companies,” he added.

     

    News Corporation believes that a separation of the businesses into distinct public corporations with their own identities and strategies would enhance overall shareholder value and allow each company to:

    • Focus on and pursue distinct strategic priorities and industry-specific opportunities that would maximize their long-term potential.
    • Benefit from greater financial and operational flexibility and better position each company to compete.
    • Respond and react more quickly to rapidly-evolving technology and global market opportunities.
    • Tailor its capital structure, and allocate and deploy resources in a manner consistent with its strategic objectives that best enhances value for its respective shareholder group.

     

    With more focus devoted to each business’ financial and operational structure, investors would be able to more clearly evaluate the inherent value of both portfolios of assets and invest in each company accordingly.

     

    The new global media and entertainment company that would be created through the proposed transaction would consist of News Corporation’s highly-profitable cable and television assets, filmed entertainment, and direct satellite broadcasting businesses, including Fox Broadcasting, Twentieth Century Fox Film, Twentieth Century Fox Television, Fox Sports, Fox International Channels, Fox News Channel, Fox Business Network, FX, Star, the National Geographic Channels, Shine Group, Fox Television Stations, BSkyB, Sky Italia and Sky Deutschland, among others.

     

    As a pure-play content producer and distributor, the company would build on its deep heritage in developing incredibly strong, premium content for distribution on screens of all sizes by leveraging its leading content across its entertainment and cable news verticals, as well as its unparalleled collection of regional sports networks, and the industry’s leading movie and TV production and distribution company.

     

    In addition, the entertainment company would benefit from its rapidly growing, high-margin cable network and pay-TV assets, and the distribution capabilities and opportunities associated with its unrivaled global footprint with significant scale across North and South America, Europe and Asia.

     

    The new global publishing company that would be created through the proposed transaction would consist of News Corporation’s current publishing businesses, as well as its book publishing, education and integrated marketing services divisions. The new publishing company would create a scaled publishing platform that would be one of the best capitalized in the industry. The publishing company would have the opportunity to leverage its trusted brands for innovation and value creation across all traditional and digital platforms.

     

    The publishing company would incorporate some of the world’s most successful print, digital and information services brands including Dow Jones, The Wall Street Journal, Dow Jones Newswires, HarperCollins, The New York Post, and The Daily, as well as offer the rich diversity of assets in Australia, including leading brands such as The Australian, The Herald Sun, The Daily Telegraph and The Courier Mail.

     

    In addition, the Company would include The Times, The Sun, The Sunday Times, as well as News Corporation’s integrated marketing services group and its ground-breaking digital education group, including Wireless Generation. With a balanced portfolio of stable and growing news publishing brands and other assets, shareholders would benefit from strong and consistent free cash flow generated by these businesses, over multiple platforms.

     

    Upon closing of the proposed transaction, News Corporation’s shareholders would receive one share of common stock in the new company for each same class News Corporation share currently held. Following the separation, each company would maintain two classes of common stock: Class A Common and Class B Common Voting Shares.

     

    Upon closing of the proposed transaction, Rupert Murdoch would serve as Chairman of both companies and CEO of the media & entertainment company. Chase Carey would serve as President and COO of the media & entertainment company.  Over the next several months, the Company will assemble management teams and Boards of Directors for both businesses.

     

    The separation is expected to be completed in approximately 12 months. Management is developing detailed plans for the Board’s further consideration and final approval. To execute the transaction requires further work on structure, management, governance, and other significant matters.

     

    After receiving final approval of the Board of Directors, News Corporation will convene a special shareholder meeting to consider the transaction.  This meeting is not expected to take place until the first half of calendar 2013.  During the closing process, News Corporation will remain focused on delivering the best possible results for the benefit of its consumers, customers and shareholders.

     

    In addition to shareholder approval, the completion of the separation will also be subject to receipt of regulatory approvals, opinions from tax counsel and favorable rulings from certain tax jurisdictions regarding the tax-free nature of the transaction to the Company and to its shareholders, further due diligence as appropriate, and the filing and effectiveness of appropriate filings with the U.S. Securities and Exchange Commission.

     

    The Company will provide interim updates as appropriate.  There can be no assurances given that the separation of the Company’s businesses as described in this announcement will occur.

     

  • Hathway launches music channel in Bengaluru

    By A Correspondent

     

    Hathway Cable & Datacom Limited has launched a 24-hour Hindi music channel, Hathway Music, on its Digital Cable Network in Bangalore. The channel will showcase the best of Bollywood songs from the classic era of the 50’s-60’s to the melodious hits of 80′-90’s to the latest Bollywood hits.

     

    A non-stop music channel playing back-to-back superhit Hindi film songs packaged with appealing graphics depicting the theme of Bollywood music with various other aspects of Hindi film music. Hathway Music shall have different categories/themes such asDown Memory Lane, Music Stars, Smash Hits, Bollywood Beats, Jumping Jacks, Dancing Queens, and Romantic Melodies and so on.

     

    Haresh Gehaney, Head-Channel Business said that there will be no anchors hosting any shows or distracting viewers with their never ending talks but the channel shall give the audience nonstop super-hit film songs without any interruptions, thus giving a complete dose of entertainment. He added that very soon English content will be added to the channel’s list.

     

    This channel will be initially available in Mumbai, Pune, Nasik, Indore, Jaipur, Hyderabad and Bangalore.

     

  • Anil Thakraney: Channel V: A wasted opportunity

    By Anil Thakraney

     

    Channel V has announced they are giving up music for good, and it will be all about youth entertainment from hereon. My first reaction: ‘So what’s new, guys?’ Because whenever I have made the mistake of dropping by at Channel V, I have never spotted a music video, only some mindless trash involving screaming and yelping kids.

     

    Channel V has been around for nearly two decades, and I must say they have struggled badly in terms of the content mix, from the start. From music to comic promos (remember Quick Gun Murugan?) to juvenile reality shows… they’ve been trying to pull all sorts of stunts, with the hope that something will get the Indian youth hooked. This hasn’t worked. Channel V has remained a very small player in the STAR bouquet, and every other year there are murmurs of a shut down.

     

    The core problem, in my books, has been lack of focus. As programming heads and CEOs changed over the years, each one added new confusion to the proceedings. With the result that today, all these years later, Channel V stands for nothing really to the youth segment. It’s become like that proverbial dhobi ka kutta… na ghar ka na ghat ka. This is bad news for any brand, leave alone a television channel operating in a very saturated market.

     

    Anyways, they seem to have finally decided it’s going to be all about entertainment content, whatever that means. But it appears to be good bye to music for sure. Let’s see how this pans out in terms of actual programming, though going by past records, this is likely to be 24X7 nonsense stuff.

     

    When I look back, there appears to be one very important trick that Channel V missed. And it’s cost them heavily. They should have positioned the brand as THE Bollywood music channel from the very start. Hindi film songs are always popular in this nation (the local pop and rock bands are sidey shows anyway). And the channel, being an early starter, could have owned this genre, leaving no place for those who came in later, such as Sony Mix, Mastii, and others. Channel V could have become Bollywood’s official music station. This would have translated into loyal viewership and a lot of ad revenue.

     

    But instead of that, they opted for retarded reality shows, and today they are neither here nor there. Channel V should consider itself lucky its parent has very, very deep pockets.

     

    * * *

     

    PS: Harvey Nichols recently ran this outdoor campaign inLondon. The idea is totally sensational and many locals found it to be deeply offensive. But the damage was done before it could get pulled. Wonder when we’ll see such stuff in India. And wonder how the hockey loving ACP Vasant Dhoble would react. 🙂

     

    Anil Thakraney is a senior journalist and commentator. He is Editor-at-Large, MxMIndia. The views expressed here are his own.

     

     

     

  • The Anchor: Prasana Krishnan on 5 things to watch out for in the 2012 Olympics

    By Prasana Krishnan

     

    1. Indian contingent: The Indian sportspersons have only improved since Beijing 2008. Apart from gold medals, I think our chances of winning a larger number of medals are higher than ever – meaning more silver and bronze medals too – leading to a larger overall tally of medals.

     

    2. Individual performances: Since the last Olympics, a lot of Indian sportspersons have come to the fore. Our boxers and shooters will do us proud this time as well. And, so will the badminton players.

     

    3. Team spirit: Controversies might have outshone them. But I do feel that Indian tennis team’s performance will be worth watching. The players are in great form.

     

    4. Hockey: It’s our national sport and hopefully they will make us proud. The hockey team’s performance is definitely something to look forward to.

     

    5. Usain Bolt: Don’t be surprised if he smashes his own record. After all, he is ‘Lightning Bolt’!

     

    Prasana Krishnan is COO, Neo Sports Broadcasting Pvt Ltd

     

  • Not PR, strategic communications advistory!

     

    Michael J Berland

    The communications space in India has been witnessing some high-decibel action in the recent past with players reporting above-average growth story and also with a host of players trying to break ground into India . At such times, it becomes challenging for a new entrant in the space to come up with innovative and unique ideas, while at the same time continue to charm clients with high-value solutions.

     

    Making a mark since its planned entry a year ago; Penn Schoen Berland, which defines itself as a global research-based communication advisory, has been having an unstoppable and impressive run in India . Credit for its super showing goes to its MD & Chief Executive -South Asia, Ashwani Singla, a familiar name in the PR and Communications space. He is joined in his quest by an unflappable team from diverse fields – including its first employee Shefali Khanna, who is the Director-Marketing for PSB in India.

     

    Ashwani Singla

    On the sidelines of an internal meet to assess PSB’s preparedness to launch in Mumbai next month and also to chart out the road ahead, Michael J Berland, President of Penn Schoen Berland took some time off his busy schedule to converse with MxMIndia’s Johnson Napier.

     

    He was joined by Ashwani Singla who was elated on the agency completing a gratifying year one of operations in India . Together they spelt out the reasons for the impressive growth story of PSB in India , on the USP that makes PSB a force to reckon with and what to expect from the agency in the next five years. Excerpts:

     

    While you have a number of agencies today that operate as full-service PR offerings, what was the positioning that you intended for PSB while you were formulating a strategy for its launch in India ?

    Ashwani: I would define PSB as a research-focussed strategic communications advisory that specialises in the area of politics, corporate and M&E. Under politics, we run campaigns for candidates – voter segmentation, messaging, and so on while for corporates, we do corporate imaging, corporate affairs and issues/crisis management, reputation monitoring etc. As for M&E, the focus is on movie marketing, movie positioning, and so on. So we are not a PR agency but a very niche communications advisory.

     

    We are different in the sense that we look at research or what we call the science of persuasion to be the cornerstone for all advice that we give to companies or to political candidates or media and entertainment clients.

     

    Did you use the global lineage of PSB to your advantage when you launched in India last year?

    Ashwani: This is probably the first PSB international office that I would call a cold start office. It means that we didn’t start because there was a client that was migrating to a country and wanted support or because we had global alignments and needed to have presence in India… it was a very conscious decision taken by Michael Berland and the management team to launch in India. We started because we felt India was an important market and that there was an opportunity to be sought here, and to the credit of the company when I made a case here for the fact that this should be a full-service infrastructure, they readily agreed to my demand. It’s now a fully indigenous operation with global expertise and talent that has migrated from diverse fields.

     

    Michael Berland: Coming from a core heritage where we have worked for clients like Bill Clinton, Michael Bloomberg and others, we take the lessons from the campaign trail and apply it to corporate situations. When you look at a campaign, it’s about one candidate versus the other – it’s all head to head and in real time where decisions and actions have to be taken or you lose. That’s the same situation you get to see in marketing where you have to go head to head and it’s important to gain to that level of immediacy.

     

    You have been in existence globally for over three decades, what took you so long to arrive in one of the most promising markets that the world is in awe of?

    Michael: There are four countries in the world that are setting the global standard – BRIC countries. So it’s important to have a presence in these countries. The office in India opened about a year ago under the leadership of Ashwani Singla, and in that span they have had the fastest growth in any of the PSB markets across the world. So there’s not only an opportunity from the client perspective, but there is also an amazing group of talent that is here in India. Our goal was to build an India n office with India n talent in India and take the tools and techniques and help the companies (clients) that need them. Very often talent is brought in from outside and we knew that that model wouldn’t work here in India.

     

    So many companies make a mistake of getting people from other countries to run an office in some other country. That’s not how we operate; we wanted to come in by buying a company and then trying to teach them. It has to be done through an organic route. We had our board meeting in Washington recently and it suffices to say that they were happy with the progress put up by India . The client roster includes the who’s who of the MNCs and other clients and we are operating at the highest level to help companies achieve their rightful place at the global stage.

     

    Ashwani: Frankly, there is nobody we compete with, so the space that we operate in is completely blue. In my view, the level of sophistication that clients are demanding, which I call the new communication normal, where clients want work that is rich in insight, has to be of the highest quality. In fact, we had done a poll last year where we asked clients as to what has changed in your world and that is what they gave us as an answer – high level of sophistication. I am actually delighted that we are shaping up exactly as what our poll had showed us last year. We got a very good roster of clients in Mumbai and so we thought it was about time that we launch here.

     

    Will Mumbai be the new hub for PSB as you seek to expand presence in India?

    Ashwani: We would be launching our Mumbai office in July and also would be launching a Capital Market Communications vertical. The new vertical would be about hardcore investor relations, but there would be only an element of engagement with investing community. The goal will be to help companies find and discover their true value.

     

    What is the growth that you managed to throw up in year one of your operations?

    Ashwani: We have grown fantastically in the last one year. Since there was no benchmark, I would say we have grown by over 2,000 per cent. For us it’s not the numbers game; it’s the value game. What we do is at the boardroom level.

     

    Michael: Also, the thing is that on a global level, we tend to focus on the Fortune 100 clients. Our goal is to not work for everyone, but it is to help provide high-value solutions to top clients.

     

    How do you plan to do that?

    Ashwani: There are three kinds of high-value problems that you tend to see from the clients’ end. One is negative reputation that is predominantly characterised by a lot of negative press. So we help understand the force of public opinion, we help understand how messaging must be done and what actions the companies need to take and communicate with their TG. The second problem is that of regulatory. If you look at the whole telecom scenario, natural resources etc, they are facing hurdles because of regulatory issues. We help manage and engage information-based advocacy. The third high-value problem that boardrooms have is lack of understanding of valuation or lack of understanding of the company’s inherent strengths and, therefore, an attack on the stock front, so how do we help CEOs and CFOs engage with those markets and manage the sentiment through rationale dialogue is what we specialise in. So that in a nutshell is the model that we work on.

     

    We spent the whole of last year refining ourselves and our corporate offering and have completed that portfolio of services. That by itself is an achievement as we have been able to establish a full-fleet capability. It’s very easy to say that we offer every service but if you do not have the talent and the process excellence behind it, then you cannot deliver it. So we have started work on a few political clients right now. Due to certain constraints I wouldn’t be able to name them. As for M&E, it has been parked for now. We will take it up in 2014-15. This year we will do the Mumbai office and it will take us a while to get the office together. We will be building up our business step by step. I am committed with my team to see that in the next ten years PSB becomes one of the most renowned brands in strategic boardroom consulting.

     

    With digital being highly sought after by clients for the purpose of communication, what is the plan that PSB has drawn up for this medium?

    Ashwani: We implement at a strategic level so if there is a digital need because that’s the relevant touch point then we have digital partners for the same. We would be able to offer solutions ranging from Search Marketing to Search to everything…

     

    Michael: In our line of business, you have to be communication agnostic so that you can use the best solution in the right circumstances. Having the flexibility to choose what is best for the client gives us the freedom to work with different mediums and agencies. Our business is not to advocate a certain solution; we look at each situation and decide what would be the best way to address the issue.

     

    The communications space is grappling with its share of challenges as well. What are the some of the challenges that you have encountered in the past one year since you started?

    Ashwani: The biggest challenge is the fact that we do not have a category; we are creating a category by ourselves. A lot of our work is about concept selling and the good news about that is that people get the concept, which I am pretty much surprised about. There are two or three things why we have been able to succeed despite the numerous challenges. The first is that we have a team that is very experienced and the best that you will find. The second thing is that working in a company like WPP they gave us complete freedom to do what we wanted to do. The third thing is that just the level of sophistication that we have been able to embed in our service – people have seen the difference in each and every proposal that we have sent. So that is what has been critical for us where we have been able to innovate something in the market and were able to move with speed. The challenge of creating a new category continues to remain but I think we are making a very good progress.

     

    If you say you are the first in the category that you operate in, how would you be able to judge your performance when you have no competition around?

    Ashwani: At the end of the day the respect the client gives you and the fact that he says you made a difference is the best assessment. I do not judge myself by competition, I judge myself by my stakeholders. If a client comes and tells you that you have done a fantastic job and are delivering the goods then that is the best thing to happen. I think we make a mistake by trying to drive our car by looking in the rearview mirror. We have to look through the front screen and drive and not worry what’s happening behind.

     

    Is the slowing economy a concern for PSB – both in India and globally?

    Ashwani: I am not worried about the slowing economy. I think the value proposition will have to be different. If we keep selling adverts or press articles then there is no value proposition but if you are able to help clients compete in a difficult economic environment and still win in the marketplace then there is no shortage of budgets for that.

     

    Michael: Historically our business has weathered economic downturns quite well because high-value problems happen no matter what state the economy is in. Often, the CEOs are looking for creative solutions and innovation that will help drive growth and business in tough times.

     

    What are the next emerging markets for PSB as you continue to expand your base across continents?

    Michael: We are analysing China and a few other markets, but I think India is the model that we look forward to. As you go to other markets there is a much more heterogeneous divergent environment but when you talk about Asia there is not just one Asia, there are many Asias and each one has a unique culture and business environment. So I think for now our focus would be majorly around India.

     

    What is the way forward for PSB in India?

    Ashwani: We have a clear five-year agenda. This business is not built on a quarter to quarter or yearly basis. I think in five years we would have created a niche for ourselves and so far we have done well in whatever we have handled.

     

  • Scarecrow bags creative for Justbooks

    By A Correspondent

     

    Community library chain Justbooks Clc. has appointed Scarecrow Communications as its creative agency. The account will be handled out of Scarecrow’s Mumbai office. R Sundar Rajan, Founder & CEO, JustBooks, said, “We are excited to partner with Scarecrow in our attempt to redefine libraries as a new generation platform connecting books and readers. Building a brand around a traditional neighborhood service, can present lot of interesting challenges and we look forward to work with the creative team at Scarecrow in getting people back to reading.”

     

    Raghu Bhat, Founder Director, Scarecrow Communications, added, “Justbooks is our first ever client from Bengaluru. This is a huge moment for Scarecrow. Being a book lover myself, it will be doubly satisfying if our campaigns succeed in making more people visit Justbooks, which has the most charming libraries I have ever seen.”

     

    On the new win, Arunava (Joy) Sengupta, Founder Director, Scarecrow Communications, added, “Justbooks is a great concept and if handled well has the potential to become a real cult brand. And that’s what excites me the most.”

     

    Owned by Strata Retail & Technology Services Pvt. Ltd and incubated and nurtured at IIM Bangalore, Justbooks is already present in 10 cities including Mumbai, Bengaluru, Pune and Hyderabad

     

  • It’s wrong for us to say that India is slowing down: Muhtar Kent, Coca-Cola

    Muhtar Kent

    By A Correspondent

     

    Unfazed by the economic slowdown and talks of policy paralysis, Muhtar Kent, global chairman and CEO of beverage maker Coca-Cola, on Tuesday announced a fresh investment of $3 billion (approx Rs17,000 crore) over an  eight-year period for expanding its bottling, cooling, and distribution operations as well as accelerating its pace of growth in India.

     

    “Whether or not the government makes policy changes, we continue to announce investments in India,” Mr Kent said, adding that the company’s focus would be on ‘continuing to be flexible, and work with more speed than ever before’.

     

    “Yes, there are some issues in the world economy. But it’s wrong for us to say that India, or China, or Brazil or any emerging market is slowing down. As you go up, the oxygen gets thinner. What’s being created today at 6-7 per cent GDP is incrementally much higher than it was some years back… what’s more important is sustainable growth and not growth that can’t be controlled, ” he added.

     

    The $3-billion investment is over and above the $2 billion, the maker of Thums Up cola and Kinley water had announced last November. The company has invested $2billion in India since 1993, when it-entered the country.

     

    Mr Kent said he expects India to be among its top 5 markets soon’, up from its current No 7 ranking. “This is a realistic goal. India’s demographic, economic and social trends are all huge drivers of growth. Six years ago, we were not strong here, not at all… but India has been a remarkable turnaround story,” he said.

     

    The CEO, who got a pay package of $21.2 million last year, up 10 per cent from the previous year, flew down in his private jet with close family and friends on what is his first India visit as Chairman on Monday night. During his three-day India stay, he is visiting the Taj Mahal in Agra, making a flying visit to Amritsar to meet a handful of key bottlers and attending a Coke Studio concert in Delhi. Thrown in between is a town hall meeting with Coca-Cola employees, a few market visits and a visit to the beverage giant’s headquarters in Gurgaon. Unlike rival PepsiCo’s Chennai-born global CEO and Chairman Indra Nooyi who’s a frequent visitor to India – a key growth bastion for both cola majors – Turkish American Kent had not visited India since he took over the corner office at Coca-Cola’s headquarters in Atlanta in 2008.

     

    Coca-Cola’s portfolio in India includes aerated drinks Coke, Thums Up, Fanta, Sprite and Limca, Kinley water and Minute Maid juices. Even after two decades of being here, the beverage maker’s top-selling drink here remains Thums Up, which it acquired from Ramesh Chauhan-owned Parle Bisleri.

     

    But Mr Kent said the choice depended on ‘the consumer’. “We remain “constructively discontent and we believe we are just getting started. We need to make sure we provide choices to consumers… responsible choices. And help create solutions for over-nutrition and under-nutrition,” he said.

     

    Like most food and beverage firms worldwide, Coca-Cola too is trying to transform itself as a ‘health and nutrition-focused company’. But over three-fourths of Coca-Cola’s revenues continue to come from sugary aerated drinks . “We let the consumer decide what he wants…. and we label our products responsibly.” said Mr Kent.

     

    Like its American rival PepsiCo, Coca-Cola too, has been depending on India for driving double digit growth. For fiscal 2011, for example, Coca-Cola said its global volume grew 5 per cent, aided by key emerging markets such as Latin America, India and China. A consistent growth performer, Coke’s India business has been growing for the last 23 quarters, of which 17 were in double digits.

     

    Source: The Economic Times

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