Category: Marketing

  • RK Swamy BBDO ropes in Rohini Gauthaman as GM, New Delhi

    MUMBAI: R K Swamy BBDO has roped in Rohini Gauthaman as Media Direction general manager for its New Delhi office. She will report to Media Direction president Les Margulis.
     
    Prior to this, Gauthaman was with Lintas Media Group as VP planning.


    Margulis said, “Gauthaman is smart, savvy and driven, and I believe will take Media Direction, Delhi to new levels in 2010 and beyond.” 
     
    This is Gauthaman‘s second stint with the agency. Her first stint with RK Swamy BBDO was in 1994. She has also been associated with Allied Media and Hakuhodo (both part of the Percept Group) and Mindshare.


    She has worked on accounts including Maruti Suzuki, Luxor, BILT PVR Cinema, JVC, Panasonic, Yamaha Pianos, Canon, Toshiba, Konica, Sony and Dupont.
     

  • Bipasha Basu is Dabur Real Activ’s brand ambassador

    MUMBAI: Dabur India has roped in Bipasha Basu as the new brand ambassador for Real Activ.


    The company will partner with the actress in its brand communications endorsing Real Activ‘s new Snack Healthy campaign.
     
    Said Bipasha, “This association has been a natural choice for me as I myself have experienced the goodness of the brand. In today‘s modern world, we women are no less than superwomen, because we end up juggling between home and work.”


    The new brand communication featuring Bipasha will be aimed at educating the consumers on how the unhealthy food intake in between meals takes a toll on one‘s health and fitness. The brand has come up with the proposition ‘snack healthy‘ where it will talk about how one can replace the existing habit of unhealthy snacking with healthy snacking using Réal Activ juices. 
     
    Averred Dabur India marketing head foods KK Chutani, “There is a perfect match between the brand and Bipasha Basu, with both epitomizing health and fitness. Bipasha is unarguably the fittest of the Bollywood stars and her experience with Réal Activ juices makes it an ideal brand proposition for us to share with consumers.”


    “With this, we aim to create awareness amongst consumers on the need to Snack Healthy and how Réal Activ juices make an ideal snack option as they are made from the nature fresh, handpicked fruits and vegetables and are nutritious, filling and lip-smackingly delicious,” Chutani adds.

  • ‘One individual is not capable of running IPL’s complex business ecosystem’ : Brand Finance India managing director Unni Krishnan

    ‘One individual is not capable of running IPL’s complex business ecosystem’ : Brand Finance India managing director Unni Krishnan

     

    The Indian Premier League (IPL) is caught in the midst of a storm with dark clouds hovering over team ownership issues, sources of funding, corruption and match-fixing charges.

     

    Lalit Modi, the architect of the IPL, is being accused of holding hidden stakes in some of the franchises. Income-Tax sleuths have broadened their probe into the financial details of the IPL by conducting nationwide raids cut across Multi Screen Media (MSM), World Sport Group and the franchise owners.

     

    So how will these chain of events affect the brand value of the IPL pegged at $4.13 billion?

     

    In an interview with Indiantelevision.com‘s Sibabrata Das, Brand Finance India managing director Unni Krishnan says the risks for brand value erosion are significant if the IPL does not quickly put in place proper management systems and processes.

     

    Excerpts:
     

     
    With controversy swirling around the IPL, is there a need now to downgrade the brand?

    It is too early to take a call on this. The probe has started and we will have to wait for the government to come out with a final report on the investigations before we can comment on whether the IPL brand is fractured.

     

    But in our February report, we had cautioned that the IPL branded ecosystem is rapidly approaching an inflexion point. We had predicted this to happen in the next 6-10 months. This has come sooner than that.

     

    Surely, there are definite weaknesses regarding brand value governance and transparency, management systems and processes. But have we got a revised value of the IPL brand? Not yet.
     
     

    Does this mean that there is no brand erosion at this stage?

    The risks for brand value erosion are significant if things are not managed swiftly and the stakeholder relationships start weakening. But the truth is that the IPL is a very valuable brand created in a very short period of time. The wealth that can be created by the brand is going to be substantially significant for many stakeholders. A conducive ecosystem has to be created to move the brand to the next level.

     
     
    But will it be safe to say that the IPL brand has got tainted?

    The fault is not with the IPL brand. Some people are commenting that the property be nationalised. That is not how you run a global commercial property like the IPL. Iconic brands such as the IPL are national assets and a source of wealth creation. The question is whether we have the capability and determination to put systems and processes in place to manage one of the best brands we have produced. If we fail to do so, and all the allegations also turn out to be true, the brand will take a big knock.

     
     
    Enough dirt is thrown on Lalit Modi, the architect of the IPL. Now it looks like the man who created and built the IPL property would be thrown out. Will that not damage the IPL brand?

    Let us not confuse the individual called Modi with the business and the brand. One individual is not capable of running such a complex business ecosystem like the IPL. The need is to fix the weaknesses.
     

     
    Are you suggesting a proper balance of power system?

    As the architect of IPL, Modi has done a great job. But for such a large-scale property, we need 10-12 key members. We are not sure if the IPL governing council acts as a rubber stamp. We need to go through these questions urgently if are to create a sustainable brand property.

     

    The IPL brand is a set of complex relationships with fans, franchises, sponsors, business houses and players. This can create huge value in future if properly managed – not by one individual but by a system.

      
    ‘The IPL is a global commercial property produced from India. The unfortunate part is that if we don‘t do a clean-up action, we would be destroying it not due to any competition but because of our own action‘

     
     
    A fundamental problem being raised is that the revenues do not match the sudden flood of investments that have gone into the IPL. Are you worried about a possible nexus between the IPL organisers, the politicians, the big corporates and the Bollywood celebrities?

    There is an entry price to every business. Substantial investments are required and the revenue potential is huge. If there are misconducts like match-fixing and betting, then obviously the guy watching the game will turn off. So will sponsors. Years ago, when the first match-fixing charges were made, there was a brief period of lull. But that does not mean that cricket has died in India. The key question is governance and transparency.

     
     
    Is there inherent strength at the IPL franchise level?

    There has to be transparency at the ownership level too. Media reports are suggesting murkier deals. We don‘t know at this stage what is the truth. But sporting properties have to be run like proper businesses. Look at how the English Premiere League (EPL) has hurt itself. The club owners chased iconic players and made unrealistic purchases through a huge load of debt. Sports businesses can be lucrative but proper regulations have to be in place.
     

     Is the IPL an overheated economy?

    Is there value to be created? Yes. There are strong revenue and marketing opportunities.

     

    Most of the clubs, however, have not yet put the systems and processes in place to manage these opportunities. Take the licensing and merchandising (L&M) business which is pegged globally at $108 billion. This is not a Mickey Mouse number. Manchester United has 25-30 per cent of its revenues coming from L&M. But in India, this revenue stream is not visible in many of the clubs. We have to build the requisite bandwidth to monetise these opportunities.

     
    Is this a struggle between the old and the new India?

    As a country, we need to move away from intrigues and corrupt systems to a phase where we develop international properties. We can‘t run these properties with the same baggage as we move from a developing to a developed country. The tussle between the old and the new India will lead to pain and tribulations. But the fact is that we have created a positive property in the IPL which can provide sustainability in the long run for various stakeholders.

     

    People are seeing a new India through the IPL. This goes much more than cricketing business; it is about brand India. On a much broader level, IPL has demonstrated the coming of age of India‘s commercial prowess on a global stage.

     
    Does this remain as a dream at this stage?

    The developed world is looking at the IPL as a global property produced from India. The IPL has changed the very perception of India in the global stage. The unfortunate part is that if we don‘t do a clean-up action, we would be destroying IPL not due to any competition but because of our own action. The moment of truth has arrived for us. We have to face it with independence and courage. Can we live up to the expectations that we have created? It will be a sad essay if we don‘t deliver.

     
    How do we move the IPL up from one-third its value ($4.13 billion) to a level that it can sit along with the EPL ($12 billion)?

     

    That is only an indicative figure we have given to compare a property developed in one part of the world with another that has achieved maturity status. The IPL has hardly scratched the surface. It has a long way to go and a considerable value to realise before it lives up to its full revenue and brand potential.

     
    Brand Finance has more than doubled the brand value of the IPL from its first evaluation. What are the reasons for this?

    We are seeing a remarkable increase in revenues from broadcasting (as deal was renegotiated) and sponsorship. We have also considered the IPL‘s capability to draw in fans and viewership.

     
    Why have you upgraded Chennai Super Kings (CSK) to the top as the most valued IPL franchise (Rs 2.24 billion, up 35.5%)?

    There are 3-4 breakaway clubs. We have looked at teams who have managed cricket as a product and blended this with marketing and commercial excellence. The two performances have to be done simultaneously.

     

    CSK is beginning to put the various pieces together, synergising between their enterprise (India Cements) and their IPL business. We are also seeing Mumbai Indians show a remarkable revival this year, both in performance on the field and in their commercial activities.

     
     Why has Kolkata Knight Riders (KKR) slipped in your latest brand value estimate (Rs 2.13 billion, up 20.6%)?

    KKR topped in our first round as it has an iconic brand like Shah Rukh Khan. This gives it an undue advantage. But they are not able to exploit this to the maximum. Their performance as a cricket team has also been bad. If this trend continues over the next few seasons, then it will seriously erode the brand value of KKR.

  • The IPL brand caught in a storm

    MUMBAI: The IPL brand is under threat of standing eroded if the Board of Control for Cricket in India (BCCI) does not introduce sweeping changes that include transparency and proper governance mechanisms.


    With controversy swirling around the Indian Premier League, the need has come to take corrective steps and preserve the brand which is currently valued by a UK firm at $4.13 billion.
     
    There is no immediate pressure, however, to downgrade the brand. “Given the scale of these allegations, there can be some damage to the brand. A lot, however, will depend on how the BCCI manages these issues and puts systems and processes in place. If they don’t behave, the IPL brand will get severely damaged in the long run,” said Intangible Businesses valuation director Richard Yoxon.


    The IPL brand is being exposed to serious risks. Said Brand Finance India MD Unni Krishnan, “While the IPL brand had added significant value in a relatively short period of time, there are significant risks in terms of brand value governance & transparency, management systems & processes, and stakeholder alignment to future proof the exponential value generation capabilities of the brand.” 
     
    Brand Finance had valued the IPL’s branded business at $4.13 billion, up from $2.01 billion a year ago.


    Percept Joint MD Shailendra Singh expects the IPL‘s Governing Council meeting next month to result in transparency. “The issue is whether the IPL business is clean. If the Income-Tax (IT) authorities give it a clean chit, then the IPL brand will not be affected. Otherwise there will be repercussions. A brand‘s success rests on several things including its architecture, character and look. I feel that the BCCI should welcome the IT move which I call a scrutiny. It gives them the opportunity to do proper housekeeping,” he said.


    A positive step could be to make Shashank Manohar the IPL co-chairman, Singh suggested. However, if Modi is asked to go as reports have been suggesting, then it would be a body blow to the IPL brand. 
     
    “Modi has been brand IPL. He had the vision to build the league and for him to go at this point of time would be a most unfortunate development,” Singh added.


    Some experts feel the IPL as a credible brand will largely hinge on the content that comes out of the IT investigations. “So far there have been rumours and speculations. The IT report hints at several things like match-fixing and betting, but there need to be facts,” the head of a sports marketing firm said on request of anonymity.


    The IPL is becoming a political battle with all the parties trying to benefit from the mud-slinging game. “The Congress made Tharoor a soft target. Now they can afford to go after Lalit Modi as he is said to have BJP links. What is interesting, though, is that Sharad Pawar is backing Modi. The NCP is a Congress ally. Pawar might have a big role to play in terms of how things turn out for Modi and the BCCI”, said a political observer.


    How do advertisers view the playout of events? According to GroupM media buying head Prashant Kumar, advertisers should focus more on what the product delivery would look like next year as opposed to worrying too much about the skirmishes at the moment. “Of course there is concern about what is going on. At the same time an advertiser looks at the viewer’s engagement with the product. They will focus on the fact that there will be more matches and more venues next year. That means more visibility. If people tune into the product, there is no issue”, he said.


    A spokesperson at VRock Mobile, which has done a long term service deal with the IPL for mobile Vas, believes that the IPL will weather the storm and get bigger and stronger. “The key is that it is run in a professional manner”, he said.


    The next steps by the BCCI, however, will decide whether the IPL brand will continue to grow or stay as a property whose true value couldn’t be realised.

  • Festival Of Media 2010 names MPG Mexico as agency of the year

    MUMBAI: The Festival Of Media Awards 2010, which was held in Valencia on 20 April, has named MPG Mexico as agency of the year for its work on Snickers Urbania and Nike.
     
    Havas received the jury president‘s special prize – the service award. The award was given to recognize Havas‘ consistent quality of work submitted for the Festival of Media Awards and its agencies‘ commitment to providing innovation and service across a wide range of countries and marketing challenges.
     
    Meanwhile, MediaCom won the media agency network of the year title for the work done by its agencies in India, China, Turkey, the UK and the US.
     
    Additionally, The Financial Times won the media owner of the year title and Yahoo! won the media innovation of the year.


    The People‘s Award, sponsored by the Wall Street Journal Europe and hosted by Cream Global, went to “It Doesn‘t Have To Happen”, a campaign against knife crime entered by Manning Gottlieb OMD, UK.

  • IPL: Take the ‘Royal Challenge’ to win a gold bat

    BANGALORE: Celebrating the chutzpah and razzmatazz around the frenetic DLF IPL frenzy, Royal Challenge from the house of United Spirits Limited has unveiled a Gold Bat which is up for grabs for that one fan who is game for the DLF IPL challenge.
     
    Royal Challenge has launched a limited edition DLF IPL pack with a contest that allows every individual to create their own virtual DLF IPL team comprising members from Royal Challengers, Delhi Daredevils and Kings XI Punjab.


    Now you can have Jacques Kallis, Yuvraj Singh and Virender Sehwag in your own team. All you have to do is sign up for the contest and start building your own team and every time a player of your virtual team scores runs or takes wickets in the DLF IPL matches, you get to score points that brings you closer to winning the coveted winning prize: a commemorative memoir in the shape of a bat that of 24 carat plated gold, studded with 90 real diamonds and 188 rubies sponsored and manufactured by Gitanjali Lifestyle Ltd. The bat will be autographed by the players themselves.
     
    Debashish Shyam, Business Head, United Spirits Limited, said, “In sports everyone enjoys a true royal challenge to create that differentiating mark. Royal Challenge has seized this opportunity to make this year‘s DLF IPL a more memorable one. In conjunction with Royal Challengers, Delhi Daredevils and Kings XI Punjab, the brand has truly upped the ante to mark this DLF IPL season in gold. This initiative is to provide a platform for DLF IPL fans to choose their favourite cricketers and experience their own victory that will stand in gold. This Limited edition pack from Royal Challenge is an effort from our side to add more cheer and festivity around this year‘s DLF IPL celebrations.”
     
    Anil Prabhakar, Vice President – Business Development, Gitanjali Lifestyle Ltd said, “We at Gitanjali are pleased to support the consumer scheme being implemented by United Spirits Limited. This will reinforce our association with Cricket in general and USL in particular. By sponsoring the cricket bat and gold coins we also hope to generate goodwill among the consumers.”
     

  • RK Swamy BBDO bags CMS Computer creative biz

    MUMBAI: In the wake of a multi-agency pitch, RK Swamy BBDO Mumbai has bagged the creative duties of CMS Computers, an IT solutions provider.
     
    RK Swamy BBDO chairman and MD Srinivasan Swamy confirmed the account win. This is the first time CMS Computers have got on board an ad agency. 
     
    Initially, the RK Swamy BBDO will focus on the media mix that will involve print and out of home (OOH) initiatives. 
     
    CMS Computers provides services including networking, training, outsourcing, customising & implementing solutions and onsite service & support.

  • Quadrant Communications bags two creative businesses

    MUMBAI: Quadrant Communications has bagged the creative duties for Alliance Tire Group and TBZ Nirmal Zaveri.


    The account size of both the businesses together is valued at Rs 100 million.


    While Quadrant Communications pitched against four other agencies for the Alliance Tire Group account, there was no formal pitch for the TBZ Nirmal Zaveri account. 
     
    “We had worked with TBZ Nirmal Zaveri from 2005 to 2008. Last year, the company didn‘t focus much on media and hence we parted ways. With media again becoming their focus, they approached us,” says Quadrant Communications CEO and president Rajan Narayan.


    For the Alliance Tire Group account, the company would be handling the communications for the brand in India. The agency would mainly be using print, outdoor and events as part of its media mix for the accounts.
     
    For the TBZ Nirmal Zaveri account, the target is to reach the premium clients. “TBZ Nirmal Zaveri caters to a niche segment. We will be targeting the premium customers. Also, we will be promoting the company‘s premium silver brand ‘Shaze‘. We will focus on one to one marketing for this business,” adds Narayan.
     

  • Rohan Deshpande is Ogilvy India chief information officer

    MUMBAI: Ogilvy India has appointed Rohan Deshpande as chief information officer (CIF), a newly created position in the organisation. Deshpande will be based out of Mumbai.
     
    Prior to this, Deshpande was Hungama Digital Media Entertainment associate director, wireless technology.
     
    Deshpande has around eight years of experience in the telecom sector and has worked with Tata Infotech and Bharti Cellular in the past.

  • Videocon to make and sell Philips’ TV sets in India

    MUMBAI: Dutch consumer electronics major Philips has entered into a five-year brand licensing pact with Videocon for managing its television sets business in India.


    As per the deal, Videocon will manufacture and sell Philips television sets. It will also provide the after-sales service, making use of its vast task force spread across the country.
     
    “We have entered into a brand licensing agreement with Videocon under which it will assume the responsibility of selling and after sale services of Philips consumer television sets in India,” Philips India CEO Murali Sivaraman said.


    The TV sets, manufactured by Videocon Industries under the Philips brand, will, however, have to match the specifications and standards maintained by Philips globally.


    Videocon has a large integrated presence in the country and with the help of its sales and distribution network Philips will increase the presence of television sets in the country significantly.
     
    Philips is eying a bigger pie of the TV segment in India, where it has so far failed to make much impact. The Indian market is flooded with international players like Sony, LG, Samsung Electronics and Panasonic.


    Earlier, in 2008, Philips had entered into a similar agreement with Japanese electronics firm Funai to manufacture, distribute, market and sell Philips TV sets in the US and Canada. With the model being successful there, the company has decided to replicate the same in India.