MxMIndia

Tag: Publicis Groupe

  • Last week's acquisition of BBH by Publicis has led many to question whether agencies should stay independent or scale up with a network

    Stay solo or scale up with a biggie?

     

    By Tuhina Anand with inputs from Shruti Pushkarna

     

    Creative hotshops have always co-existed with the bigger networks and every now and then one hears of a celebrated hotshop being taken over by a network. Publicis Groupe, which already had a stake in BBH, has now taken 100 per cent stake in the agency. Considering that BBH is among the most celebrated creative boutiques, the development makes one think that the lifespan of an independent has become short and for them to scale, being part of a network has become a necessity.

     

    Bharat Dabholkar, who collaborated his agency Zen Advertising with Publicis Groupe in 1999, is very clear that the only way to scale up is to merge with a network. He said: “When we started, we were servicing homegrown brands; but we realized that with global brands coming in, we had a handicap in getting them on board. By being part of the network, we immediately got access to big, international brands. I think it’s a personal choice, if you are happy servicing a handful of clients, then you can remain independent; but if you have ambitions of growing your outfit, then the way ahead is to merge with a network.”

     

    Also read:

    Anil Thakraney: BBH must remain the black sheep

    “I have also felt that when a client is small in size or have just started with their marketing activities, they will come to a small agency but after having tasted success with grown ambitions, they ditch the small agency and would want a bigger agency on board. They still might continue to work with small agency, but that usually is on few projects,” he added.

     

    Giving an understanding of the situation, a well-known financial advisor to media groups said: “First of all, it depends on how well the creative hotshop is doing. My view is that if it’s doing well and wants to scale up, the only way to do that is to align with some network. And the network will align only if you are doing well. If you are just a creative whiz who’s not doing well, nobody will go after you. They will go after you only if you can bring something to the table. I think one has to also look at the age profile of the creative guys. If you are young, then you can afford to be in the saddle of a creative hotshop for a long time without considering the possible money that you can make because you can afford to wait. If you are in the mid 40s, then it’s time to sell it whenever you are at your peak. So that’s an important consideration, what stage are you in.”

     

    The scale a network offers is one way that helps the creative hotshops. The second is the access to full-time retainers with most of the bigger clients. The advisor echoes what Mr Dabholkar said: “Whatever you see or hear of bigger clients working with smaller agencies, it’s not a permanent relationship and it goes from campaign to campaign. So when you have that scale, you might end up being the only agency on the roster. So that’s an advantage. Also you need to look at networks which don’t have a great reputation in India, they would like to go after these agencies. For instance, Ogilvy would not like to go after anybody because they have a good reputation here. Whereas for a Omnicom, which is internationally well-known for its creative body of work, there’s nobody here in India. So the networks also look at it from that perspective, because it will be an image booster for that group in India.”

     

    But then what about losing one’s independence? After all in most cases the reason the creative people to start their own outfit is the independence that comes with it as opposed to being with bigger agencies. Mr Dabholkar clarified: “As for losing our independent streak being a part of network, my experience was different. Publicis was a delightful network to work with, as it was understood that we had an entrepreneurial streak so they didn’t interfere in our day to day functioning. However, the big help came in terms of sharing knowledge and supporting us with key inputs on businesses.”

     

    Sajan Raj Kurup

    Mr Dabholkar set up a small agency in Tanzania which has seen positive growth. He is not averse to collaborating this agency to a Network; however he feels that latter would not be interested at this point of time as they wouldn’t see much value in that part of the world in terms of advertising. However, he says that such collaboration helps the people who have worked, as it widens their horizon and opens new windows of opportunity.

     

    So it is clear that to scale up sooner or later, either selling of stake or some kind of collaboration is required. However, Raj Kurup who started CreativeLand Asia is very clear that he wouldn’t want to sell because he clearly believes in the India growth story, though he is open to partnering on his own terms. He is looking at expanding footprint and opening office in London. CLA already has a regional office in Singapore.

     

    Even Scarecrow Communications that was set up two years back is clear that they have enough going on their own and wouldn’t want to sell stake but are open to collaborating with partners that will help them in maximizing their potential.

     

    Naresh Gupta

    Naresh Gupta, Managing Partner, Bang in the Middle, who along with partners has got on this entrepreneurial venture recently, said: “There is a future for independents, and a big one at that. Yes BBH got acquired, and some more may get over a period of time, but that for me is the process of evolution. BBH did path breaking work, made a name for itself, and as brand will still stand for the same black sheep thinking even if it’s a part of a network. I see the same thing to happen here.

     

    Independents will be the new force. They are nimble, they don’t have previous baggage, they will take greater risk, be more lateral in terms of business model, and be a challenge to the large networks.

     

    The larger networks at some stage will always be interested in the independents precisely for the values of thinking different and taking risks. Till the large networks protect those values, it may not even be a bad thing.”

     

    Prasanth Mohanachandran

    Clearly there are both merits and demerits of aligning with bigger players. Prasanth Mohanachandran, Founder Director, AgencyDigi, said: “A network always has one advantage – of scale. The other advantage they have is, when it comes to multinational brands, most of the brand decisions are not taken in India but in other parts of the globe. When independents come into play, learning is going to be tough because it’s actually two companies talking. The good part about independents is that it is easier for them to think beyond conventional framework. Network agencies think through a set framework, there is a standard process for creative ideation. Also, in independents, egos are smaller.”

     

    Mr Mohanachandran feels that while scale is important, when it comes to talking to different markets, it might be difficult to take an idea across to different international markets. “If you play cleverly there are ways around it. If you have like-minded partners, it is easy to work with independents. They have the power to take an idea across the globe, someday it will happen, but it’s still few years away.  In a network of course, there is a larger pool of experience behind running an organization. There are more people, in a network you don’t have to worry about too many things so that’s always a benefit,” he added.

     

    So ultimately, it’s a personal choice. You can remain small and thrive or you can have ambitions to scale up where merging with a network seems a better option. Naved Akhtar and Freddy Birdy have been among the most celebrated duo in advertising who quit and started their own agency in 2003, are very clear that they want to remain independent.

     

    Naved Akhtar

    Naved Akhtar, who quit after spending close to 25 years in mainline advertising, said: “For us it was a question of what we want to do with our life. You can grow and keep running endlessly but we wanted to do our own thing, remain independent and enjoy a quality life. We deliberately don’t want to expand but remain small. We have some big clients like ITC and we are comfortable working with them and never felt that our size was an impediment in delivering.”

     

    Clearly, there is no clear answer to advertising agencies aligning with large networks. To each it’s own, we guess.

     

  • The Publicis Groupe’s 100 percent acquisition of BBH will not impact India operations, we are told

    It’s business as usual at BBH India

    By A Correspondent

    It is business as usual at BBH India post the agency’s acquisition by Publicis Groupe. The Publicis Groupe which previously held 49 per cent stake in BBH has upped its stake to 100 per cent. In another related development, Publicis Groupe has also acquired 100 percent stake in NEOGAMA/BBH.

     

    Partha Sinha, Managing Partner, BBH India, told MxMIndia: “Nothing changes as far as BBH India is concerned. The shareholding pattern remains the same and we continue to report to BBH global leadership based out of London.”

     

    In an official communique on the BBH site, Nigel Bogle, Founder of BBH, said: “The decision was very clear. We were looking for an opportunity that would ensure that our agency maintained a high degree of autonomy and could continue to abide by the values characterized by the black sheep. The key point for us was the preservation of our operational independence in managing the BBH brand, which has produced almost uninterrupted growth for thirty years. The new ownership not only ensures our autonomy, but brings us considerable advantages through Publicis Groupe’s resources and global infrastructure.”

     

    BBH was launched officially in India in the year 2008 with much fanfare with Priti Nair, Partha Sinha and Subhash Kamath taking the role as managing partners. However, Nair has since moved on to her own venture. Mr Sinha and Mr Kamath continue to steer the India ops.

     

    Bartle Bogle Hegarty (BBH) is known for its creative work. Founded in 1982 by John Bartle, Nigel Bogle and John Hegarty, the agency has been steadily expanding its footprint and now has offices in London, New York, Sao Paolo, Singapore, Shanghai, Los Angeles and Mumbai.

     

    Read Advertising Age interview with Mr Nigel Bogle where he says: “Publicis Groupe can never merge us with another agency. They can’t make us take business we don’t want to. We’re not obliged to pitch for anything. They can’t move us into one of their buildings.”

     

    Link: http://adage.com/article/global-news/questions-bbh-s-nigel-bogle-publicis-deal/235781/

     

  • The report details how the industry's growth on the back of a fast-multiplying internet population is changing the way many Indians are shopping and impacting how businesses function

    MSLGroup India releases e-com report

    By A Correspondent

     

    On June 8, MSLGroup India, Publicis Groupe’s flagship strategic communications and engagement company announced its latest executive report on ‘E-commerce inIndia: Evolution, Growth and Challenges.’

     

    The Internet and Mobile Association of India (IMAI) estimated that India’s e-commerce market is growing 70per cent every year. The report unravels and shares insights on this e-commerce story in India, detailing how the industry’s growth on the back of a fast-multiplying internet population is changing the way many Indians are shopping and impacting how businesses function.

     

    ‘E-commerce in India: Evolution, Growth and Challenges’ highlights the opportunities for companies operating or looking to operate withinIndia’s e-commerce market including:

    • Global trade: How e-commerce has changed the way businesses approach globalisation
    • Lower search costs: How the internet has changed pricing strategies
    • The rise of facilitators: How internet banking has created new opportunities

     

    It also flags potential hurdles for businesses. The challenges explored by the report cover:

    • Payments: Cash remains king, forcing inefficient options such as payment on delivery
    • Logistics: Courier costs and shipping
    • Cyber crime and online security

     

    Commenting on the report, Jaideep Shergill, CEO, Hanmer MSL, said: “Today, in India, the e-commerce landscape provides opportunities for companies, but also potential hot spots.  E-commerce in India: Evolution, Growth and Challenges shines a light on this growth market, provides insights on how to negotiate the challenges that arise within this category so that brands can effectively use e-commerce to make a difference to their business.”

     

  • A day after Publicis announced the acquisition of leading digital agency, Indigo Solutions, MxMIndiaspoke to Indigo’s Managing Director, Vikas Tandon on the reasons for the sell out

    Digital independents & traditional ad agencies need each other: Vikas Tandon

    By Shruti Pushkarna

     

    It appears to be business as usual for Vikas Tandon, founder and managing director of Mumbai-based digital marketing and web development agency Indigo Consulting. On Monday, its acquisition by the Publicis Groupe was formally announced. Indigo will retain its name and operate as a separate unit within the Leo Burnett Group in India. Mr  Tandon will continue as the unit’s Managing Director and report into Mr Arvind Sharma, Chairman of Indian Subcontinent for Leo Burnett. Mr  Tandon is a postgraduate in Business Management from IIM Ahmedabad and has over 18 years’ experience in interactive media, sales and marketing. Prior to starting Indigo Consulting, he had set up and led Mudra Interactive.

     

    At Mudra Interactive, he founded the agency’s digital marketing practice. Indigo Consulting employs a team of over 150 people and provides digital and mobile marketing services to clients like HUL, Asian Paints, HDFC Bank, Kolkata Knight Riders, Abu Dhabi Commercial Bank, Thomas Cook, South Australia Tourism Commission and Cathay Pacific.

     

    A music buff, Mr Tandon counts playing guitar, distance running, travelling, and gadgets among his passions… he has even performed at industry gigs!

    Soon after the acquisition was announced, Vikas Tandon shared with MxMIndia his reasons for selling out to Publicis and his plans for the future… music included.

     

    Indigo was cruising… why then did you sell out?

    I prefer to think of it as shifting gears in our journey towards offering future-ready marketing communication services to our clients, and creating a larger platform for our team to operate on. If selling stake is what it took to ensure Indigo Consulting, which includes the team and myself, goes from strength to strength as an agency of the future, so be it.

     

    Will you still have a stake in the company?

    I’m afraid I am not at liberty to discuss details of the transaction, but suffice to say, I will continue to be the MD of Indigo Consulting and remain committed to the continued growth and prosperity of the company I have nurtured over the last 12 years.

     

    Is it impossible for independents like you to survive in a world of biggies?

    Actually it was not about survival at all. In fact, to my best knowledge we are among the best performing independent agencies in the country with a track record of year on year growth and profitability consistently over every one of the 12 years. And all our client relationships have been direct, without involvement of any agencies. I have every reason to believe that survival would not have been an issue even going forward. However, we also recognize that the consumer and the marketing industry is changing very rapidly. So when the opportunity came to put two complimentary powerhouses together which could potentially result in something neither of us could achieve on our own within a reasonably short span of time, we took it.

     

    At the Creative Abby recently, it was an Ogilvy that won a Grand Prix in digital… Smaller, specialised agencies didn’t fare as well. Right?

    Yes, and I would say it only strengthens my conviction that together with Leo Burnett we will be able to do much better than we have been doing on our own.

     

    Do you see others like you also getting gobbled up?

    I do believe that there is tremendous complementarity of skills in independent digital agencies and traditional advertising agencies, and in many ways they both need each other. However, transactions of this kind depend on a lot of other factors, not the least of which is the chemistry between the people, and the promoters’ own aspirations and appetite for such a transition.

     

    In future: tech driving creativity or the converse?

    Creativity is, without a second thought, the fountainhead of everything, right from existence itself. It just takes different forms and shapes. Tech is increasingly driving our lives, and creativity certainly draws inspiration from various facets of our lives, including tech, but if you ask me what is the force that pushes mankind forward, it has to be creativity.

     

    More time to music…since there’s lesser stress now?

    Given that we took this decision to become part of Leo Burnett to further our growth, work is only going to become exciting and perhaps harder. However, I always have and will continue to try and make more and more time for music.

     

  • MSLGROUP is Publicis Groupe's flagship strategic communications and engagement company and the largest public relations and social media network in Greater China and India.

    MSL Asia ranks 3rd in M&A leage

    By A Correspondent

     

    Publicis Groupe’s financial communications consultancies in Asia – operating as part of the MSLGROUP network – have been ranked third by volume for Mergers & Acquisitions (M&A) deals, according to mergermarket, a leading M&A intelligence service in the ‘mergermarket League Tables of PR Advisers’ for Q1 2012.

     

    MSLGROUP is Publicis Groupe’s flagship strategic communications and engagement company and the largest public relations and social media network in Greater China and India.

     

    The mergermarket study analyzed the Q1 performance (January to March 2012) of PR advisors in Mergers & Acquisitions (M&A) deals and placed Publicis Groupe’s financial communications consultancies third in terms of number of deals and eighth in terms of collective deal value ($978 million) within Asia Pacific. This represents a jump in ranking from 49th to eighth by value and from the 19th to third by volume.

     

    In Asia Pacific, the mergermarket report has considered four deals advised by Publicis Groupe’s financial communications consultancies – three by Hanmer MSL and one by MSL China.

     

    mergermarket based its ratings on deal values – considering only those over $5million – and number of deals struck. The ‘mergermarket League Tables of PR Advisers’ Q1 2012 is part of the ‘mergermarket’ report that not only evaluates and analyses M&A transactions all over the world on a quarterly and annual basis; but also the performance of PR advisors who act as strategic counsel.

     

    Commenting on the achievement, Jaideep Shergill, Chief Executive Officer of Hanmer MSL, India said: “The global economy has been witnessing consolidation across industries, much of it in the form of mergers and acquisitions. We sense immense opportunities in the M&A space for our finance practices inAsia, especially at a time when many European, American and even Asian firms are looking for quality acquisitions in the region.”

     

    Hanmer MSL India managed M&A communications for leading Indian business groups including Piramal Healthcare (acquisition of 5.5 per cent stake in Vodafone India by Piramal Healthcare), Network 18 Group (acquisition of 100 per cent stake in Eenadu Group by Network 18) and Binani Industries (acquisition of 100 per cent stake in 3B – The Fibreglass Company by Binani Industries).

     

    MSL China advised and managed communications for the Neiman Marcus Group on the US based company’s merger with Glamour Sales Holding, an online retail company, inChina.

     

  • There have been a record number of registrations as the annual fest kicks off today with the Advertising Conclave

    All roads to a bigger, beerier Goafest!

     

    By A Correspondent

     

    It’s the time of the year when the adfrat congregates in Goa for the sun, sand and loads of learning. And may we add: gallons of beer. As Goafest 2012 begins at The Zuri White Sands in South Goa today with the industry conclave, one will see more than 3,000 people get together to celebrate creativity.

     

    Says an ecstatic Arvind Sharma, Chairman, Goafest 2012: “We were ourselves surprised with such an encouraging response. This year will see the biggest crowd gather in the history of Goafest.” If the number of registrations has skyrocketed, guess will so be the consumption of beer and assorted liquids. Remember, the excise levies are perhaps the lowest in the country in Goa!

     

    “Goafest 2012 is a brand owned by the advertising and marketing fraternity. The high numbers that will attend the festival goes to show that fraternity looks at it as an extremely responsible event that is representative of the industry. We have an outstanding line-up of speakers this year, the process of judging has been rule-based and transparent and the jury has been extremely happy with the quality of entries that have come in. I just hope that people will enjoy the Goafest, Mr Sharma adds”

     

    Goafest will start, as has been the norm, with the Advertising Conclave with the theme Ideas That Impact the Full Circle. The session will begin with the welcome address by Nagesh Alai, President, AAAI. Srinivasan K Swamy, Chairman, Goafest Advertising Conclave will give his address on the theme of the Conclave. This will be followed by introduction of speakers by Arvind Sharma, Chairman, Goafest 2012.

     

    Jean-Yves Naouri, COO, Publicis Groupe and Tim Love, CEO, APIMA, Vice Chairman, Omnicom Group will give a global insight to the theme of the conclave. Jayant Murty, Director of Strategy, Media and Integrated Marketing, Asia Pacific Region, Intel Corp will speak on building brands in the era of multiple degrees of freedom. The last session will be a panel discussion on the theme which will be moderated by Anuradha Sengupta of CNBC TV18.

     

    Post the Conclave, April 20-21would have seminars during the day and awards night. On Day 1, the sessions will start from 2.30pm and the speakers would include Lucas Watson of Youtube, Jonathan Mildenhall of Coca-Cola, Tim Love of Omnicom, Charles Wright of Wolff Olins. On Day 2, one would get to hear author and brand guru Prof John Philip Jones, Rishad Tobaccowaala of Vivaki, Erik Vervroegen, Publicis Worldwide and Simon Wardle. These sessions will begin from 11.30 am.

     

    This year, Goafest has included segments that would appeal and include the marketers to their fold. During the seminars, a leading marketer would pose questions to the speaker and also bring an Indian context to the entire session even giving his or her interpretation.

     

    Some of the marketers who would be part of the sessions include: N Rajaram of Airtel, Sanjay Behl of Reliance, Kainaz Guzdar of P&G, Rajesh Jejurikar of Zee, Viral Oza of Nokia, Gayatri Yadav of Star and Hemant Bakshi of HUL. Goafest has also introduced the Marketing Wizards encouraging marketers under 30 years of age to participate in the fest.

     

    In the case of the awards, the number of jury members in each category has been increased to give a better representation. The number of Grand Prix too has been extended to all 9 categories (10 if film and film craft is considered separately).

     

    The focus has been to make the awards bias-free (as they ought to be!) and the Goafest Committee has brought in many filters to ensure that awards are held in high esteem by the fraternity. Also there are entries and delegates from Sri Lanka, Pakistan and Bangladesh this year.

     

    On April 20, the Media Abbys Night will be held where Digital, Design and Direct Abbys will also be presented and on April 21, the rest of the awards will be given including the coveted Creative Abbys.

     

    On the downside, while Lowe continues to skip the awards, among the bigger agencies, McCann too did not send any entries though it is learnt that folk from the agency will attend the fest.

    Click here to view all Goafest 2012 stories

     

  • Secures top prize at prestigious Campaign Asia-Pacific PR Awards

    MSLGROUP Asia Awarded PR Network of the Year

    By A Correspondent

     

    MSLGROUP Asia, Publicis Groupe’s flagship strategic communications and engagement company and the largest PR and social media network in Greater China and India, was awarded ‘Asia-Pacific Network of the Year’ at the prestigious Campaign Asia-Pacific 2011 PR Awards on March 30.

     

    A first-time nominee for the ceremony’s top prize, MSLGROUP fended off stiff competition from a number of well-established global PR agency brands to be crowned ‘Asia-Pacific Network of the Year.’

     

    The Campaign Asia-Pacific PR Awards is renowned as a benchmark in the communications industry and rewards clients and agencies for the strategies, people and achievements that have transformed businesses and brands. The ‘Asia-Pacific Network of the Year’ award specifically recognises business and client growth, talent retention and development, and PR innovation.

     

    Commenting on the award win, Glenn Osaki, President, MSLGROUP Asia, said: “I am extremely proud of our colleagues and clients for partnering together to achieve the best performance in the industry and win this recognition as ‘Asia-Pacific Network of the Year.’ 2011 was a year that transformed MSLGROUP into Asia’s leader in PR, social media and engagement. Our client-centric approach, PR and social media innovation, and focus on learning and people development have helped us achieve outstanding growth and reputation in the last year. This award belongs to every one of our 1,700 colleagues across the region who are committed to being our clients’ most trusted advisor, and source of unbound creativity, engagement and value in today’s always-on conversation.”

     

    Hanmer MSL, part of MSLGROUP India, also notched an Honourable Mention on the night, for its integrated communications campaign for STAR India Pvt Ltd.

     

    For 23 years, MSLGROUP’s Asia team has counselled global, regional and local clients, helping them establish, protect and expand their businesses and brands across this fast-growing region. Today, MSLGROUP has the largest PR, social media and events teams in Greater China (16 offices and 1,000 colleagues) andIndia(15 offices and 575 colleagues) and is actively working to lead the development of the industry with the regular publication of whitepapers/reports and innovative Learning & People Development programs to nurture talent.

     

    MSLGROUP is Publicis Groupe’s strategic communications and engagement group, advisors in all aspects of communication strategy: from consumer PR to financial communications, from public affairs to reputation management, and from crisis communications to experiential marketing and events. With more than 3,500 people across close to 100 offices worldwide, MSLGROUP is also the largest PR network in fast-growingChinaandIndia.

     

    Publicis Groupe [Euronext Paris FR0000130577, part of the CAC 40 index] is the third largest communications group in the world, offering a full range of services and skills: digital and traditional advertising, public affairs and events, media buying and specialized communication. Its major networks are Leo Burnett, MSLGROUP, PHCG (Publicis Healthcare Communications Group), Publicis Worldwide, Rosetta and Saatchi & Saatchi.

     

  • 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.

     

  • 20:20 MSL will work with Hay Group to build brand awareness and manage its reputation as a global management consulting firm

    Hay Group appoints 20:20 MSL as its strategic communications partner in India

    By A Correspondent

     

    20:20 MSL India, part of MSLGROUP, Publicis Groupe’s flagship specialty communications, PR and events network and the largest PR and social media network in India, has been selected by Hay Group as their strategic communications partner in India.

     

    Hay Group, which entered the Indian market seven years ago, is one of the leading premium management consulting companies and is the largest people consulting organization by revenue and clients inIndia. 20:20 MSL will work with Hay Group to build brand awareness and manage its reputation as a global management consulting firm that works with business leaders to develop talent, organize people to be more effective and motivate them to perform at their best.

     

    20:20 MSL’s seven offices acrossIndiawill work with Hay Group on a nationwide mandate, spearheaded by 20:20 MSL’s National Capital Region (NCR) Office inNew Delhi. The agency has been tasked with drawing on its integrated communications expertise to creatively engage audiences that includes CEOs and CXOs of Indian industry, across traditional as well as social media platforms.

     

    As a newcomer in the consulting space in a niche sector of human resources, leadership & talent, Hay Group will draw on 20:20 MSL to build brand familiarity and also sensitize Indian businesses, including family-owned businesses to the value that leadership development and talent management can add to their enterprises.

     

    Commenting on the appointment, Amrit Ahuja, Vice President, 20:20 MSL said: “As the Indian economy grows and Indian companies expand overseas, the focus on managerial talent and leadership has grown manifold. Indian businesses, including many family-owned businesses are on the lookout for experts and specialists who can help them achieve business objectives through development of competencies in the areas of leadership development and talent management. I am thrilled that Hay Group has chosen 20:20 MSL as its communications partner to reinforce its mindshare as the leading people consulting organization inIndia. We look forward to building the Hay Group brand inIndiaand aid the dissemination of global best practices and knowledge that it brings to Indian industry.”

     

    Prashanti Mikayla, Senior Manager, Brand & Talent, Hanmer MSL added: “Acquiring the right talent has become the third most important driver for organizational growth and CEOs worldwide have begun to factor this into their strategies. In the present turbulent market conditions with a dearth of the ‘right fit’, the need is to focus on attracting, engaging and retaining talent that reinforces the purpose of the company and promises a direct impact on the bottom line. With this appointment, we believe that the Hay Group can benefit from MSLGROUP’s Brand & Talent practice to fortify their Employer Brand in the Indian industry.”

     

    Gaurav Lahiri, Managing Director, Hay Group India of Hay Group commented: “We were interested on partnering with an agency that understands our philosophy of transforming people and organizations, realize their potential. With 20:20 MSL’s deep social media expertise, deep sector knowledge and experience, and its capability to seamlessly implement national campaigns, we hope to reach out to Indian business leaders, differentiate ourselves as a strong knowledge driven firm with proprietary insights and become the preferred partner of industry inIndia.”

  • Gaurav Mishra-led team develops proprietary tools to scale the SM space and help businesses embrace innovations

    MSL Group on overdrive with social media

     

    By Rishi Vora

     

    MSL Group, the Publicis Groupe’s flagship speciality communications and engagement network, is upbeat about its foray into the growing world of social media. Afer it acquired communications major Hanmer & Partners and later PR and social media firms 20:20 Media and 20:20 Social respecitively, it has now clubbed the social media practices of Hanmer and 20:20 Social under the umbrella of MSL Group India Social.

     

    The group has adopted a unique approach towards tapping the social space for clients in India and abroad – it has created three key capabilities: Plan, Build and Engage. Of the two, Plan and Build are the revenue-drivers, wherein a lot of work goes into providing insights, strategy planning and developing web, mobile and social applications; creating content, communities and conversations.

     

    The company recently launched its proprietary tool – The People’s Lab, a global crowdsourcing platform and approach designed to help businesses embrace innovations. It is a platform which works across multiple application areas; provides end-to-end support, including custom design and content creation.

     

    In 2010, Dell India used an early version of People’s Lab platform to create the Dell Go Green challenge for design students and others to share ideas on how to redesign, reuse and recycle gadgets to make them go green. The idea to create Dell Go Green challenge came from the fact that the client owned a recycling programme, besides having conducted several other CSR programmes.

     

    A mini site was created using the People’s Lab and the result was quite pleasing: About 650 ideas got shared, 25,000 members on Facebook and 8,000 votes.

     

    As is known, Gaurav Mishra launched 20:20 Social and now heads the group’s social media business in India. He is Asia Director – Social Media, MSL Group. Mr Mishra told MxMIndia that the company now plans to launch many more tools that will offer clients comprehensive social media solutions. “Our core differentiation in the social media space is in offering tools; we are in the business to create platforms which bring people together and programmes which energise people. We want to create more tools, more frameworks, so that we can go to clients and offer them solutions that’ll contribute in solving much bigger problems.”

     

    Parveez Modak

    People’s Lab was created in India, led by Parveez Modak and is now sold to clients in Singapore and Italy. “We’re discussing with clients in US, Poland, Taiwan, and in India,” informed Mr Mishra.

     

    He added: “Once we have developed enough tools and capabilities in India, we will look to educate whole of our network and make efforts to spread awareness to our group companies in different parts of the world.”

     

    MSL Group India Social is now working towards creating a corporate citizenship offering globally. As Mr Mishra explained, it is a network of 150 senior members of the group spread across regions – board members, global board members, regional presidents and others. The idea is to bring forward a thought leadership team that can provide insights, views and opinions on various topics ranging from “How clients are looking at Change Management Differently” to Employee Engagement, Corporate Citizenship, Innovation, business opportunities and so on.

     

    How will the Social space evolve in India? Where is it headed? What kind of solutions are clients seeking from specialists? According to Mr Mishra, the market for social media services will pick up dramatically now, and clients will be on the lookout for companies that possess the talent to develop in-house capabilities, and solve greater and much complex marketing solutions within the social space.

     

    Globally, MSL Group has about 200 professionals dedicated to social media; about 60 of them in Asia and, for now, 30 in India. Mr Modak, who other than social media also leads the integration function at Hanmer and Mr Narendra Nag at 20-20 Social constitute Mr Mishra’s core team for MSL Group India Social.

    “Revenue-wise, India is still fairly small, China is becoming increasingly big in terms of size of the market, but there is ample opportunity in India,” concluded Mr Mishra.

  • MSLGroup's white paper on the Indian PR industry underlines potentially growth-limiting challenges the trade faces

    Why the PR industry needs some PR

     

     

    By A Correspondent

     

    The PR industry in India today is facing potential growth-limiting challenges such as a dearth of home-grown talent, the fallout from recent PR scandals and a move away from traditional PR towards strategic communications.

     

    This is the thrust of the most recent executive report on the public relations industry in India from MSLGroup India’s Hanmer MSL and 20:20 MSL, both part of MSLGroup, Publicis Groupe’s flagship public relations, speciality communications and engagement group. The report, Understanding the Public Relations Industry in India: Challenges, Opportunities and 2012 Outlook, takes an in-depth view of the PR industry in India, drawing on quantitative and qualitative research to bring together a hard-hitting and frank appraisal.

     

    The report touches on these issues, as well as the widely reported misconceptions about size of the Indian PR industry, and the ramifications of this over-inflated figure on the market. A recent Associated Chambers of Commerce and Industry of India study pegged the size of the industry at a “wildly inflated” $6 billion whilst MSLGroup’s research points to $140 million being a more true representation.

     

    Jaideep Shergill, CEO for Hanmer MSL and Member of MSLGroup India Management Board commented, “The challenges before the Indian PR industry are not that different from what other service industries have had to face in the past – a serious talent shortage, disconnections between fees and value, and measuring performance accurately. Furthermore, we must look ahead and ask ourselves how the industry should react to a worsening global economic situation. These are questions this report tackles and by bringing these tough issues to the fore, we hope that it puts the industry into perspective and kicks off a discussion on the roadmap that PR in India so desperately requires.”

     

    “The industry is at an important crossroads, and we have taken the first step in not only asking difficult questions of ourselves and the industry, but also providing potential solutions to foster a stronger and sustainable India PR market,” added Sunil Agarwal, founder of 20:20 MSL and Member of MSLGroup India Management Board.

     

    In addition to highlighting a variety of trouble spots, Understanding the Public Relations Industry in India: Challenges, Opportunities and 2012 Outlook report also identifies opportunities for PR agencies such as offering integrated strategic and speciality communications, bridging the compensation gap, ensuring performance measurement and understanding client expectations.

     

    Throughout the report, critical questions are posed to agencies and their staff, clients and their organizations, media and the industry at large which are aimed to spark debate, ideas and potential solutions that can strengthen the industry’s future. Some of these include:

     

    • A misunderstanding of the size of India’s PR industry, hiding the on the ground realities and core issues.
    • A serious Indian talent crunch, stunted by a more lucrative in-house corporate communications sector, increasing the demand-supply.
    • A lack of understanding of how PR can play a strategic role, resulting in low PR retainers – in the Rs 20-lakh ($40,000) range compared to the average advertising retainer of Rs 2 crore ($400,000).
    • A vital need for PR firms to offer integrated communications as the line between PR, advertising and digital begins to blur.
    • Speciality communications such as niche PR, engagement through social media and employer branding to be recognized as growth focus areas for PR agencies.
    • Despite the global economic turmoil, India continues to grown at 7%, presenting a unique opportunity for PR firms in terms of global and Indian MNCs.

     

    MSLGroup India has developed this report to further its and the industry’s goals for sustainable and professional development. PR professionals, clients, organisations and the industry recognise that PR in India is at a critical juncture and Public Relations Industry in India: Challenges, Opportunities and 2012 Outlook offers a transparent and robust précis to move the industry forward.

     

    (To learn more about the Public Relations Industry in India: Challenges, Opportunities and 2012 Outlook, or to read the report by MSLGroup India in full, visit asia.mslgroup.com.)

     

  • Hanmer MSL chosen by History, NEO Sports, Biocon, CREDAI Bengaluru, BOC India Limited, HTC Corporation and SBI General Insurance for strategic communications briefs

    Eight new wins for Hanmer MSL India

    By A Correspondent

     

    Hanmer MSL, part of MSLGROUP, Publicis Groupe’s flagship speciality communications, Public Relations and events network and one ofIndia’s leading communications agencies on Thursday announced seven new clients.

     

    The new client wins include HISTORY (A+E Networks & TV18 JV), NEO Sports, Biocon, CREDAI Bengaluru, BOC India Limited, HTC Corporation and SBI General Insurance for strategic communications assignments, reaffirming the agency’s reputation as one ofIndia’s leading speciality communications firms.

     

    Hanmer MSL will provide strategic communications consultancy programmes to help these clients in the areas of brand building, corporate reputation management, corporate responsibility and crisis and issues management.

     

    Hanmer MSL will also draw on expertise and capabilities within MSLGROUP to support these national and multi-national companies expansion withinIndiathrough its extensiveIndianetwork of eight offices in eight key cities and an additional 29 network offices which focus on tier 1, tier 2 and tier 3 cities.

     

    Commenting on the new business wins, Jaideep Shergill, CEO, Hanmer MSL said: “As an agency we have always focused on enhancing and improving our capabilities, providing our clients the best of our services. As part of this commitment, we are thrilled to be working together with brands that are considered to be some of the industry’s most respected professionals.”

     

    Hanmer MSL’s media and entertainment portfolio has expanded further with the History and NEO Sports wins. Hanmer MSL’s ability to execute holistic campaigns has positioned the agency at the forefront of media and entertainment speciality communications.

     

    History, in itsIndiaedition, is part of a joint venture between TV18 and A+E Networks. Hanmer MSL has the responsibility of handling the strategic communications assignment of History inIndia. Hanmer MSL will provide strategic counsel to create maximum exposure for the brand amongst target audiences and key stakeholders. Hanmer MSL will also work with the channel towards expanding the genre and ensuring that it is not perceived as a niche channel.

     

    Neo Sports Broadcasting has appointed Hanmer MSL to support the premier programmes on its two channels, Neo Sports and Neo Cricket, and highlight popular and potentially popular sporting events and series to help the company achieve its key business priorities of growing viewership and market share.

     

    Established in 1978, Biocon isIndia’s first bio technology company. From its inception, Biocon has worked towards developing cost-effective drug development capabilities and significant manufacturing capacity. Hanmer MSL will join hands with Biocon to leverage and add media worth and value to their diabetology campaign and help grow this campaign into a successful venture. Hanmer will also handle the corporate mandate of Biocon as well as help Biocon launch and build on its online presence.

     

    The Confederation of Real Estate Developers’ Associations of India (CREDAI) Bengaluru has safeguarded the interests of real estate developers and builders while protecting the rights of buyers and home owners around the state of Karnataka. Hanmer MSL will work towards developing CREDAI as a thought leader and help in ensuring quality media mileage for all their ventures, events and business developments. Hanmer MSL will be working with specific focus on creating the right image of the real estate sector.

     

    BOC India Limited (BOCI), a member of The Linde Group, provides a one-stop solution to all businesses for gas supply and related equipment and services. The company manufactures cryogenic and non-cryogenic vessels and also designs and commission projects. Hanmer MSL has been entrusted with the mandate to communicate the brand transition and change management process and establish and elevate the profile of Linde Group in Kolkata, Mumbai,Delhiand Chennai.

     

    HTC Corporation (HTC), one of the fastest growing companies in the mobile phone industry, creates innovative devices that better serve the lives and needs of individuals. Hanmer MSL will have the responsibility of executing corporate as well as product PR for HTC.

     

    Hanmer MSL will be in charge of SBI General Insurance Company Limited’s corporate PR and product PR, including product launches. The company is a joint venture between the State Bank ofIndiaand Insurance Australia Group (IAG),Australia’s leading general insurance provider.