MxMIndia

Tag: Diwan Arun Nanda

  • A proprietorial strategic tool for brand equity analysis

    Rediffusion launches The Equity Analyzer

    By Our Staff

     

    Rediffusion has announced the launch of its proprietorial strategic tool for brand equity analysis. The tool has been designed in-house, led by the agency’s Chief Strategic Officer, Navonil Chatterjee.

     

    Said Dr Sandeep Goyal, Managing Director of Rediffusion: “Marketers often talk about a brand’s equity, but equity at times becomes a nebulous topic where everyone has a view, but beyond that subjective opinion, there is hardly anything substantive to back it. And even that equity is with respect to a certain time frame and in the context of a particular target group. Change the TG or the time-period, and the results, in all likelihood, should change. Given the fact that it is a bit of a black hole, Rediffusion is proud to launch TEA or The Equity Analyzer – our framework for evaluating a brand’s equity at a certain point of time, in the context of a certain TG. In fact, the model allows for comparisons of different brands’ equity within the same category and even across categories.”

     

    Added Navonil Chatterjee: “The fundamental premise of TEA is that a brand’s equity is a function of the following key parameters of a brand’s Popularity, Uniqueness, Respect and Personal Appropriateness. Basically, how popular, or well known or salient the brand is, how unique or different it is, how well respected it is and what personal meaning, connection, usefulness or appropriateness it has for the consumer or TG.”

     

    Speaking on TEA, Diwan Arun Nanda, Chairman, Rediffusion said: “The world is moving to performance marketing, metrics and measurement. And why should brands be left behind in that journey towards an objective understanding of them vis-à-vis facts, figures and primary data? Rediffusion’s TEA is a great tool which will give the agency a far more robust strategic understanding of brands and their competitors. Marketers too will be able to consult it for their own understanding and fine-tuning of their marketing efforts.”

     

  • Diwan Arun Nanda will stay on as Chairman. Goyal will be MD

    Finally done. Sandeep Goyal buys Rediffusion

     

    By Our Staff

     

    Two years back, on May 27, 2019, to be precise, MxMIndia carried a speculative story titled ‘Is Sandeep Goyal buying into Rediffusion?’.

     

    When the media publishes speculative stuff, in all likelihood the deal is done. It’s only not official. So when a veteran adperson alerted us of the news on Saturday evening, our instant response was: Okay, we’ve heard that before.

     

    The morning after, given the mad rush to arrange an oxygen cylinder for a friend and the election results thereafter, we just parked the news to be tackled in the evening. And then we read the news on a couple of other websites.

     

    And in the evening, we had this official press release coming in.

     

    Let’s read what we’ve received, and then interpret it.

     

    Diwan Arun Nanda and Ajit Balakrishnan, the founders of Rediffusion have decided to step back from the day-to-day management of the 48-years-old ad agency. However, Diwan Arun Nanda shall continue to mentor the agency and will stay on as Chairman. Ajit also will step back from all day-to-day operations here but focus his attention on Rediff.com, the technology world and public service and will be always available to Rediffusion for any guidance it may need going forward.

    Sandeep Goyal, a past President of Rediffusion (1997-2001) will come back as Managing Director.

    Rediffusion is even today, India’s largest independent full service ad agency and was set up in July, 1973. Over the years the agency has created some of India’s most iconic and memorable advertising for brands like Jenson & Nicholson, Eveready, Parle, Garden Vareli, Godfrey Phillips, Tata Tea, Lakmé, Telco (Tata Motors), Colgate Palmolive, Citibank, Maruti Suzuki and many others. Rediffusion also launched brand Airtel in 1995. The agency currently works with Tata Sons, Parle, Tata Trusts, Tata Motors, State Bank of India, Liebherr, Larsen & Toubro, Brookfield, PGIM, Orra, Eveready, Deys Medical, Sulekha, Danone, Sun Pharma, Dr. Reddys, Audi India and many more.

    Said Diwan Arun Nanda, Chairman, Rediffusion: “Rediffusion has been known over the years for advertising that became famous and part of the language and the culture of the people, and helped brands build long term, and lasting equity with consumers. Whenever you see colour, think of us for Jenson & Nicholson was a path breaking campaign. So was Hum Red & White peene walon ki baat hi kuchh aur hai for Red & White cigarettes, Annu taazgi de de for Tata Tea, Gimme Red! for Eveready and the recent Isko laga dala, toh life jhingalala for Tata Sky. Rediffusion was also responsible for creating the cult ad film featuring AR Rahman, with the very memorable Airtel brand tune that has had the highest number of downloads in history.”

     

    Is Goyal Generation Next? Well, he is in his late 50s and Nanda and Balakrishnan in their late to mid-70s. Not exactly the next generation, in the way it’s made out to be. But what industrywatchers (and more importantly, Goyal-watchers) tell us is that Goyal will usher in huge energies to Rediffusion as well as the creative agency business. There is no word on Goyal’s daughter Carol assuming a role in agency, but then these are early days.

     

    While the press release received doesn’t indicate how much of stake has been sold, as per the grapevine, Goyal will be 100% owner of Rediffusion. People in the investment circuit, indicate that the valuation which Nanda and Balakrishnan would’ve got for the twin agencies of Rediff and Everest would be in the region of Rs 20-30 crore, a dramatic fall from the Rs 100 crore that was rumoured to be offered by WPP, and twice that by Havas a few years back.

     

    The agency’s books are in good shape, as of now, with costs haven’t shaved off in a big way. There are a few clients who are loyal, and given Goyal’s deep connects in the industry (if the turnout at his book releases are any indicator), we could see some fireworks all over.

  • According to sources, advanced levels discussions are on for the buyback of the 40% Y&R and Dentsu stakes in the 45-year-old agency

    Is Arun Nanda buying WPP stake in Rediffusion?

     

    By A Correspondent

     

    Is Diwan Arun Nanda buying WPP’s 26.7 per cent stake in Rediffusion Y&R? According to (reasonably reliable) sources, advanced levels discussions are on for the buyback of the Y&R and Dentsu stakes in Rediffusion Y&R. Together, the two global majors own 40 per cent of the 45-year-old Rediffusion Y&R. Or what’s officially called Rediffusion Dentsu Young & Rubicam Private Limited.

     

    It may be remembered that until recently it was WPP that was keen on buying out the 60% owned by Nanda and Ajit Balakrishnan. But that was the WPP run by Sir Martin Sorrell. Now Nanda is reportedly keen on buying the WPP stake. And not just that, the Dentsu stake too.

     

    Not many think it’s a wise move as this will allow Y&R to enter the country on its own and pose fresh competition in what is clearly a tough market for creative advertising agencies.

     

    While Rediffusion recently bagged the prestigious State Bank of India mandate, the creative advertising business overall has been under a cloud over the last year-and-a-half. Even some of the bigger named agencies, including those from the WPP group, have been facing a squeeze on earnings.

     

    According to our sources, post the buyback of the shares, a merger of Rediffusion, the agency, and Rediff.com, the general interest internet-based portal, is also being mulled.

     

    While our sources do not reveal the deal size, and whether it’s in line with the estimates of a Rs 100 cr valuation for the 60 per cent stake owned by Arun Nanda and Ajit Balakrishnan of a few years back, given the changed business scenario, the 40 per cent equity could well be valued at a low Rs 20 crore.

     

    Part of the current Rediffusion Y&R fold is the Made-in-1946 agency Everest Brand Solutions, Rediffusion-Wunderman, Sudler& Hennessey and the PR wing.

     

    As per the Rediffusion Y&R website, the story goes that “one evening in 1973, three leading stalwarts of advertising came together to discuss the state of creativity in advertising. They wanted to do something about the mediocrity, the contentment with the status quo, the inertia that seemed to pervade agencies and people. The three people, Diwan Arun Nanda, Ajit Balakrishnan and Mohammed Khan, came up with a gameplan – to start their own advertising agency, Rediffusion. An agency that would be passionate and bold; an agency that would take ownership of clients and their work to new heights; an agency that would create fearless, category-busting work.

     

    That was a different era. Forty-five years ago. The rules of the game have changed dramatically. The dramatis personae of the advertising business have changed. Will it be achche din yet again for the two Big As of the Media business – Arun and Ajit. Time will tell.

     

     

  • The Tata Group has mandate its PR and comms mandate to Adfactors PR wef Feb 1. The account size is estimated to be around Rs 30 crore

    Tata says welcome to Adfactors

     

    There are PR agencies and PR agencies and PR agencies. And then there’s Adfactors. Started in 1987 as a boutique agency by Rajesh Chaturvedi and Madan Bahal, it’s today the country’s largest public relations agency. With an employee strength of over 500 people, its turnover is in the region of Rs 180-200 crore. And that number will leapfrog by another Rs 30 crore-odd as the Tata group has signed the agency for as its India PR partner starting February 1.

     

    It’s been discussed ever since Tata Sons got them onboard to handle the all-important job of putting things in order post the Cyrus Mistry episode.The contract lasted a year, and that’s when the industry was abuzz with rumours of the emergence of a deeper relationship.

     

    Soon after the Radia tapes controversy, the Tatas assigned the job of its PR to Diwan Arun Nanda of Rediffusion who in turn assigned the job to Edelman, regarded as the world’s largest independent PR agency.

     

    While the going was good for Rediff-Edelman, there were frequent rumours that the relationship may snap, or that some constituents of the group were free to contract other agencies. A significant indicator of this was when Starbucks moved to Golinopinion and has stayed on with the IPG agency.

     

    The mandate covers strategic counsel and planning, media relations, issues and crisis management, investor relations, advocacy, and integrated campaign development for some of the Tata group’s largest companies including Tata Consultancy Services, Tata Steel, Tata Chemicals, Indian Hotels, Tata Power, Tata Global Beverages and Titan, as well as Tata Sons and Tata Trusts, across India. Note there are some group companies which are currently not part of the roster, in particular Tata Motors. Adfactors has an existing, longstanding relationship with Mahindra & Mahindra and Ashok Leyland and taking on Tata Motors would’ve been a conflict say observers.

     

    In fact it’s this clearminded focus on saying a ‘No’ when there is need to that possibly gets Adfactors to stand out amongst many others. For instance, it’s a clear no-no to handle clients in the business of alcohol, tobacco and non-vegetarian foods. So, for instance, the group doesn’t handle Godrej Tyson Foods.

     

    Said Pradipta Bagchi, former journalist and Group Communications Officer, Tata Group in a statement: “We are pleased to partner with Adfactors PR, India’s largest PR agency, to drive the Tata communications strategy and make the brand engaging and relevant to all our stakeholders,”.

     

    Added Madan Bahal, Co-Founder and Managing Director of Adfactors PR: “The opportunity to work for an iconic institution like the Tata Group that is India’s best known and most trusted brand represents an exciting opportunity for the Adfactors family. The Tata Group is at an inflection point in terms of reinforcing its leadership and growth. We look forward to adding value to its efforts in engaging with a rapidly transforming nation.”

     

    Adfactors will service the Tata mandate out of its 16 offices across the country, supported by a network of 24 support offices covering all state capitals and principal markets. A team of top-level managers with over 20 to 25 years experience headed by former journalist and banking professional Dr Pradeep Raje. Raje had also led the Tata mandate.

     

    In order that Adfactors hops on to the account running, it is learnt that a former senior hand at Vaishnavi Communications, Niira Radia’s PR firm, may be brought on board so that there is greater familiarity with the account.

     

     

  • Moorthy joins Rediffusion/Edelman from H+K Strategies where he was the North India SVP and APAC Corporate practice lead

    Vinod Moorthy appointed Director of Rediffusion/Edelman

    By A Correspondent

     

    Vinod Moorthy

    Edelman India announced the appointment of Vinod Moorthy as Director of Rediffusion/Edelman, effective immediately. Moorthy takes over from Jimmy Mogal who moves into a senior advisory role at Edelman India. Based in Mumbai, Moorthy will take charge of the Tata business reporting to Rakesh Thukral, managing director of Edelman India.

     

    “With Vinod’s appointment, we are further strengthening our leadership team at Rediffusion/Edelman,” said Thukral. “Vinod brings years of knowledge and experience in driving corporate reputation campaigns for major companies which will further elevate our offerings. Jimmy has played a key role over the last year in spearheading the team and will continue to play a strategic role at Edelman India.”

     

    Diwan Arun Nanda, CMD of Rediffusion Y&R, said, “We welcome Vinod’s addition to the team handling our Tata mandate. I am confident that with his multifaceted experience he will add substantial value to our offering to the client.”

     

    Moorthy joins Rediffusion/Edelman from H+K Strategies where he was the North India SVP and APAC Corporate practice lead. Prior to this, he served at Ketchum Sampark, Good Relations India Limited (GRI) and a stint heading GCI, the PR Division of Grey Worldwide as its general manager.

     

    With over 20 years of communications experience, Moorthy has counseled clients across a broad spectrum of industries including financial services, aviation, telecom and technology, biotechnology and manufacturing. Some of his former clients include Tata SIA Airlines, Goldman Sachs, HSBC, The Blackstone Group, Citibank, Vodafone, Hindustan Unilever, Sony Entertainment Television, Hyundai, LG and Hyatt.

     

  • Rediffusion Y&R has announced that Dhunji Wadia will be President of the agency. He will continue in his role as President of Everest Brand Solutions

    Dhunji Wadia to take charge of Rediff, will continue to be on top of Everest too

    Rediffusion Y&R has announced that Dhunji Wadia will be President of the agency. He will continue in his role as President of Everest Brand Solutions.

     

    Diwan Arun Nanda, chairman, Rediffusion Y&R, said, “Dhunji has strong business acumen, great entrepreneurial instincts and affinity for our clients’ businesses. What makes it all work is his ability to motivate and inspire people on all sides of the business. He’s an ideas guy who gets that great creative work and strategic insights are inextricably connected.”

     

    Added Mr Wadia: “The group has given me the opportunity to use my experience and skills towards making a positive difference to our clients.  I am looking forward to writing an exciting new chapter in the history of Rediffusion Y&R,”

     

    An MBA from the Jamnalal Bajaj Institute of Management Studies, Mumbai, Mr Wadia joined the Rediffusion Y&R Group in 2010. Prior to that he was working with JWT.

     

    With over 25 years of experience in the business Dhunji has been associated with major national and international brands (Parle, TATA, Unilever, Nike, Levi Strauss, Diamond Trading Co, Kellogg, Aditya Birla Group, Sony Entertainment Television – Max and SAB, Kotak to name just a few.