MxMIndia

Tag: MarketGate

  • Soon after making the acquisitions of MarketGate and Istrat public, Publicis Groupe's Jean-Yves Naouri and Bertrand Siguier spoke with MxMIndia

    Acquisitions will continue: Publicis

     

    By A Correspondent

     

    This is Jean-Yves Naouri’s third officially announced visit to India. As Chief Operating Officer of Publicis Groupe and Executive Chairman of Publicis Worldwide, he has been the group with 19 years and knows perfectly well that India is a very critical market for the network over the next five years. Soon after announcing the acquisition of well-known consulting firm MarketGate and digital shop iStrat, Mr Naori addressed the media in Mumbai. He spoke to MxMIndia and a dozen other business and trade publications before flying back to Paris soon after midnight.

     

    Jean-Yves Naouri

    We had made a conscious decision a few years ago that Publicis will work with two strategic pillars – one is digital and the other is e-commerce. This is a long-term strategy that we have drawn out. So we are not considering tactical investments, we are moving forward using our previously devised strategy.

     

    When you talk about slowdown,  many countries dream to have the kind of growth that India has shown this year. We are very confident in the potential that India seems to offer and have taken some measures that seem to be promising. So we strongly believe in the potential of India going forward and by making investments we are not looking at the GDP numbers vis-a-vis the year 2012 but the longer implications that it would offer.

     

    Don’t you feel it would have been apt for you to have a one digital agency servicing all other agencies?

    This is not the approach that we have. For us digital is an intrinsic part of our vision and strategy and we want to make Publicis group the numero uno digital company. We want every single operation to become fully digital. This is a change of approach in order to better service our client. You cannot expect one digital agency to service all our clients not only because of cost reasons but also sometimes they do not have all the capabilities required to cover all areas. So we have made a choice to have a different approach where we want every single operation to become fully digital. We are consciously strengthening and adapting our every single operation and that’s how you see Indigo joining hands with Leo Burnett and participating in this transformation. Also, iStrat joining Publicis and Resultrix joining ZO… Saatchi has a very different organic approach where it is hiring digital talent to transform itself from the inside.

     

    So wouldn’t hiring hiring talent have been better?

    I do not think one strategy can be better; strategy is a result of the approach that we are taking or the conscious analysis of the best way by brands based on their contracts and situations and sometimes we feel it is better to do it organically and sometimes through acquisitions.

     

    How would you rate the performance of Publicis Groupe in India?

    Firstly, we have made India our true area of focus. As we’ve said, in the BRIC countries we have doubled the size of our operations in Brazil over two years, we are on the verge of doing the same in China and we continue to accelerate our efforts in India.

     

    And if you were to compare your network versus the others operating in India?

    I do not look at comparisons rather I look at our clients – that is what matters to us. This has been the driving force for us. When we announce our strategic plans the first element that we take into consideration is: what do our clients need and how can we take them to the next level? So the acquisition of MarketGate on the one hand that brings in some strong expertise in consulting to the CEOs and CMOs with undisputed talent is one such message. Also, the fact that we have announced our partnership with IBM in the area of e-commerce and have presence in China and in India is also a strong commitment to this domain.

     

    We also look at initiatives in the healthcare domain where India is very strongly placed.

     

    Is research something that you are looking at in a big way?

    No, we are not looking at research for some conscious reasons. We feel odd that a same company will be releasing a campaign and will also be judging its relevance through a market research company of its own. We see an ambiguity there and are not pleased with it. Secondly, there is a profound transformation of market research these days and it’s due to digital. It enables you to have access to the best sample of audience from around the world that can provide you immediate and more adequate reactions to your needs. So we do not feel comfortable investing in research.

     

    How active is Razorfish going to be in India?

    It is very likely that we will see some development of all our pure-play digital agencies.

     

    In 2010, you had mentioned that your revenue will double by 2015. Do you see that goal being achieved a bit earlier?

    If there is a surprise, I would announce it in due time.

     

    Any regrets on not bidding aggressively enough for Taproot India?

    We never look back; we look forward.

     

    Can we expect any more acquisitions in the near future?

    We will continue to explore possibilities and again, I use the word acquisitions in different ways. It’s a acquisition of talent, of companies etc.

     

    Are you looking at acquiring more creative agencies?

    We have no limitations in the areas that we are strong in. India is important for us and we will continue to strengthen our focus around it.

     

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    The advertising business is not like Bollywood: Bertrand Siguier

     

    You could mistake him for a pensioner sipping his cup of coffee and reading the papers at the India International Centre or the Indian Merchants Chamber. At the media interaction at Mumbai’s Four Seasons Hotel last Friday, he was quiet looking around occasionally to figure what was happening.

     

    Bertrand Siguier has a rather long title: Special Advisor to Maurice, Levy chairman of Publicis Groupe. He was Executive Vice-President of the group till 2009. Mr Siguier has been overseeing India operations for a while and is familiar with the market here. Soon after the announcements of the twin acquisitions of MarketGate and iStrat, and as the mediapersons made a beeline for Jean-Yves Naouri (interviewed above) and MarketGate CEO Shripad Nadkarni or IStrat CEO Navneet Singh Sahni, MxMIndia caught up with Mr Siguier for a quick, freewheeling chat.

     

    Bertrand Siguier

    Wouldn’t it have been better if you would have had one digital agency that services various creative agencies rather than three that the Publicis Groupe has acquired this year?

    It is one of the ways to go about doing business but we have chosen to do it the other way round and that’s because of our agencies. For example, given that Leo Burnett is quite big and that it prefers to operate in a certain way, we didn’t want to twist their arms and force Arvind Sharma to follow a certain model. That’s one of the reasons that we acquired Indigo, which is one of the biggest and best digital agencies in this country. If you ask me whether Indigo would work with other companies in our group I would say, yes.

     

    Do you think the issue of fiefdoms or egos is an international trend or is it just limited to India?

    It’s an international trend I would say except a few countries. Like say India, which is a priority and a large market and has potential, we can yes. But in other countries that is not the case. It may be okay for India, Turkey or Germany.

     

    What about Saatchi & Saatchi? It’s still not up there in India?

    Saatchi will be back; we’re not going to let Saatchi go down. Saatchi has a huge history and we need to have a strong Saatchi in India, which hasn’t been the case for some time. It will be the case starting next year. There has been a change in leadership already last year with the coming in of Matt Seddon who is not Indian but has done a terrific job in restoring order in the organisation. It is not an easy job to do….

     

    What about Publicis – are you content with the way the agency is doing in India?

    Oh, yes, we are very happy with Publicis; altogether it is doing very well. If you ask me, I am not pleased with anything but given the overall picture Leo Burnett is doing well, Publicis has made a lot of progress but I still want to see more in terms of creativity and visibility. For example, we were not present enough in Goafest so, that is one area that we need to work on.

     

    But Publicis is not considered a sexy agency in India…

    You may be right but you have a very Indian focus. I do not know why this market is obsessed with stars – the advertising business is not like Bollywood. I know that in India some creative people are considered as stars. You see them in newspapers, you see them with beautiful ladies, you see them trying to film things for Bollywood…we are not in that league. I think we could do a bit more.

     

    With low margins, is it profitable to stay in the Media agency business these days?

    Low margins on big business can produce some satisfactory results. If you play legally and in a straightforward way and if there are no funny things going around and under the table, it’s a low-margin business.

     

    Will the doubling of turnover for Publicis happen sooner than the prescribed timeline of 2015?

    I only have a guesstimate and I think we can achieve that before the set timeline. It would be good if that happened.

     

    Are you looking at hiring more talent across creative agencies here in India?

    Yes, there is a possibility. It is a question of opportunity; I do not want to make a big declaration. If we come across companies that we feel are exceptional and have exceptional talent then why not…

     

  • Bindass will present itself in a new and refined avatar to the world with a focus that’ll be even more skewed towards the youth of today. The new change would read: Bindass – Rest Less

    Bindass goes Rest Less, for good

    By A correspondent

     

    It’s perhaps a brand that’s far ahead of its time and is known for taking generational leaps to adapt to new market dynamics. It was thus natural on its part to undergo a makeover exercise once again what with the youth of today having undergone a radical transformation in their habits.

     

    Being the third such makeover for the company, youth brand Bindass has announced yet another repositioning exercise that’ll see them don a new garb in everything that they do. Effective April 16, Bindass will present itself in a new and refined avatar to the world with a focus that’ll be even more skewed towards the youth of today. The new change would read: Bindass – Rest Less.

     

    Elaborating on the proposed switchover, Keith Alphonso, Business Head, Bindass said: “April 16 is the switch-on date where you’ll see Bindass in a new packaging, new promos, new music, new logos & graphics, new shows and every other touchpoint as well.”

     

    Delving into the specifics of the makeover exercise, Mr Alphonso said that the entire exercise kicked off in October 2011 where a few important points were taken up for analysis. “The first was we took a long hard look at our business and committed to our stated business intent that we wanted to broadbase Bindass into a youth brand and not just exist as a television channel. The idea was to get Bindass to a position where it was relevant to young people and fulfil a very visible need-gap. We thus went back to the market and for three months did a fair amount of research with Ormax and MarketGate and we zeroed in on a position which we are going to craft Bindass as a brand to occupy.”

     

    Explaining the positioning that the brand sought to occupy, Mr Alphonso said: “The position is something that celebrates success and was based on two trends that we observed over a period of time. One trend was the super-confidence that the Indian youth of today boast about where they see opportunity in everything that they do. But if you scratch a little below the surface, you will notice a certain amount of fragility as well. That’s because of the kind of competition that has been created in the marketplace. As we put it, it’s called ‘fragile invincibility’ – as confident and invincible as they seem they are also plagued with problems and they look for a brand as a touchstone. So what we are doing now is to craft Bindass as the brand that gets you there. The brand that holds your hand on that journey and not to be confused with a career and competition brand, so to speak. That’s because for the young person, success has many connotations. This was the value proposition that we latched on to.”

     

    Having shortlisted on the value proposition, the next move was to get help on the communications front and search for options on how to sell the concept to the desirable TG. That’s where they approached Taproot co-founder Agnello Dias, who has been associated with the brand in its previous makeover exercise as well. Mr Alphonso affirmed: “We got Agnello Dias of Taproot onboard who suggested the tagline Bindass -Rest Less. The idea was that it celebrates constant perpetual energy of the youth of today. So the brand value is about celebrating the people who rest less and succeed. As for the communication, it will happen across multiple mediums, including mass media, print, and so on, but importantly, however we are perceived we will ensure that the spirit of Bindass – Rest less will be embedded there.”

     

    Mr Agnello Dias, Chairman and Co-founder, Taproot India, added: “A key trait that marks youth behaviour today is a sense of constant motion; everyone is either going somewhere or doing something all the time. This non-stop motion, well-channelized is the new objective ideal. Settling down is fast going down the priority list. The bubbling undercurrents of discovery, exploration, invention, challenge, action seem to top that list. The new brand campaign for Bindass captures precisely this, that the youth today are ‘Rest Less’ and actually rest even lesser. We had earlier worked on Bindass’ immensely successful ‘What I am’ campaign as well which really caught on with the youth and this time around with Rest Less we hope to continue connecting with them yet again.”

     

    On how these changes would be reflected on the channel and other properties,  Mr Alphonso stated: “We will be launching two new shows – Live out Loud and Fear Less – in April and July, which will reflect the new change that we are talking about. LOL will let individuals say the one thing they always wanted to say with 250 people from Bindass supporting them in their stance. Fear Less is a gang of friends coming together to help one of their own overcome a debilitating fear. With these shows and more we are moving to a stage where we want to aid in transformation.”

     

    In fact that’s not all, as part of its efforts to be seen as an integrated brand Bindass would be tapping the medium of YouTube in a big way. “We would be launching a new channel on YouTube where we will be releasing short-form programmes only for that space. That medium has its own unique consumption patterns and parameters. We will be creating exclusive content for users on YouTube and not rehash content from somewhere else. Even our Facebook page will go under a radical new layout where you’ll have newsletters giving you information on movie deals, contests, tickets for matches, and so on. The idea is everything that we do is going to be about helping young kids get to their goal faster,” assured Mr Alphonso.

     

    When asked on the need for undertaking continuous makeover exercises, Alphonso reverted: “It has been a deliberate move to undergo repositioning again. When we launched in 2007 we were about Bindass – TV, Web,Mobile- that was a time when other channels were yet to discover multiple content. From there to 2010, we came out with a very attitude-based positioning which was Bindass – What I Am. There was a prevalent thought among young people at that point in time that they just wanted to be themselves. We reflected this non-judgmental spirit of theirs by saying it is an attitude. That was successful for us because it pushed us into a branded play. As of today, because we wanted to broad base our brand, because we wanted to be seen as more than a television channel, to become a new touchstone so that new business opportunities can be explored – for that to happen, brand Bindass had to have a call to action. And, therefore, the new positioning of Rest Less.”

     

    While the first two repositioning exercises did wonders for Bindass in terms of acceptability and attracting GRPs, the idea going forward would be to move beyond being just a channel and move into a space where it could become a huge brand by itself. Affirmed Mr Alphonso: “Probably in a year or two, I could launch Bindass range of jeans and get into doing other such activities; that is what our focus would be going forward. At the end of 18-odd months, you will see the emergence of umbrella youth brand Bindass that will also have a television channel, an events division, branded services, digital, and so on.”