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Category: MAM

  • Indian marketing pundits dwell over changed paradigm

    NEW DELHI: Business modules and branding experts need some serious stock taking if business has to be conducted in the changed environment of today, when consumer democracy via the Internet and blogs, along with a huge range of choices, has radically changed the paradigm within which business is still being conducted.

    This was one of the key points at the first ever Indian Marketing Summit that opened here today. Along with that, Indian media needs to take stock also of how much knowledge is being created in this field in India.

    The session started with Dr S Neelamegham saying that Indian media is already getting into its own model and not aping the west. He pointed out that in the products market, out of all the brands available, the top 20 belong to Indian companies and along with some brands that belong to the Indian MNCs, the major share of the brands market in India is of local origin.

    But he pointed out that India and China are both “growing younger” compared to the US or Europe, and their attitudes are changing and marketers need to understand that. “Studying the young purchasers’ attitudes, and also regional and regional variations is a must,” Dr Neelamegham said.

    He gave the example of Coca Cola being able to make a real dent into the Indian market, especially rural market, from the moment it went desi: “Thanda matlab Coca Cola”. He said rural markets are not a problem, so long as the companies understand the needs of the intelligent rural buyer, just as Pepsi went to villages the moment they reduced the price by decreasing the size and changing the shape of the bottle, he argued.

    Dr Neelamegham, however, pointed to one bane of the media here: the companies have done a lot of heir own research and changed and adapted their strategies, but do not share their experiences to be made into research papers that can become case studies.

    Dr Sharad Sarin from XLRI, didn’t quite agree with Dr Neelamegham, pointing out that while Indian media is rich in context, it is poor in concept, and that there was nothing unique being offered by the country in terms of original research that could be quoted globally.

    Dr Sarin said that US influence is ubiquitous and that it is and will remain the foremost global knowledge powerhouse, and the rest of the world will be a borrower.

    On a more positive note, Dr Sarin said: “Indian companies have a tremendous capacity of managing their own affairs successfully, something that a 100 Bill Gates perhaps would not be able to do, given the mind-boggling diversity in the country and the corruption. But then, lets bring out what they have done and how they have done this.” Sarin concluded by calling for developing an inventory bank of all of Indian intellectual property.

    In the post-lunch session, on “Brand contact points multiplying geometrically: are brands keeping pace, Santosh Desai, till recently McCann Erickson India’s president and now slated to join as marketing head of Pantaloons, talked about whether with the tremendous proliferation of contact points, should we try and address all of them?

    Desai basically held that the proliferation of contact points of touch points (newspaper ads of yore, TV, Internet, mobile phones, and so forth) has not changed the basics. “They have merely increased the bandwidth of possibilities. But that has not changed anything fundamental.

    He criticised the approach of brand managers for treating customers as an entity distinct from the brand, and treating the brand as real estate that belonged to the companies.

    “Brand and life have got separated. Brand managers hate conversation, in fact, they hate people. They are scared to talk, which is why they use surveyors as an intermediary between themselves and the people.”

    But those practices would have to change, he averred, especially in the age of Internet and blogs, which have given tremendous democracy, real democracy, not the notional political democracy of voting once in five years, Desai said.

    There has been the paradigm shift because of two developments: the emergence of the trained customer and the plethora of new public platforms of conversation. “With that, the difference of the two worlds, brands and people, have been eradicated. This is the age of democracy of desire, the world of transient pleasures. There is the new democratic relationship, with a community of shared interests aligned around axis of interests of individuals.”

    In this changed environ, Desai said brands have to promote conversation, even with the rabidly critical segments, and stop fearing criticism. Brands have become organic parts of society, and “They have to listen visibly,” he suggested.

    Dr Amitabha Chattopaddhyay L’Oreal Chaired Professor of Marketing Innovation and Creativity, from INSEAD, France, talked about the problem of minimising costs and yet, finding out indexes for expenditure-benefit ratio.

    What marketers are doing is counting the CPM, or cost (of a particular promotional activity) per million persons. “But this assumes that all contacts are equal,” He critiqued and said talked of the ‘fragmented manner of functioning of brands’.

    Not only has the contact landscape changed, but the people have also changed. This is the new customer, with whom the old rule-of-thumb does not works as a strategy.

    Those marketing exercises survive that are informative, attractive and credible, Chattopaddhyay stated.

    “What drives the market is the consumer’s brand perception driven by marketing activities. Certain brands own certain contacts,” he held, adding that today, the customer has t be asked how he would like to be reached.

    Chattopaddhyay spoke of the formula of Brand Experience Point, which gives the ‘share of voice’. Stating that there is a high correlation between this Brand Experience Share, BES and market share.

  • Contract’s creative team wins AAAI – AdFest Young Lotus Workshop

    MUMBAI: Contract Advertising (India) Pvt Ltd (icontract), Mumbai, young creatives team consisting of Fritz Gonsalves and Santosh Gupta won the Advertising Agencies Association of India (AAAI) national creative initiative, AdFest Young Lotus Workshop Contest.

    The winning team will be the official Indian representatives at the Asia Pacific Young Creatives Workshop 2007 which will be held on 12-14 March in Pattaya. They will also be guests of the AdFest, (Asia Pacific Advertising Festival) Asia’s creative awards function scheduled for 14-17 March, states an official release.

    The AAAI organized this national contest among AAAI Member Agencies and invited entries with ‘Adoption’ as the theme. The 111 entries received from 21 agencies were judged by, McCann-Erickson India Ltd executive chairman Prasoon Joshi and Lintas India Pvt Ltd National creative director R Balakrishnan.

    Announcing the results, Convener of the Jury Vinod Nair said that he was delighted with the unanimous choice of the judges. He thanked the judges for so readily coming forward to spare their time to aid and abet this initiative of the AAAI to foster and nurture young creative talent from among the members of the Advertising Agencies Association of India.

  • Toonz invites entries for MAC Animation Competition ’03

    MUMBAI: Toonz Animation India’s world event Week With The Masters Animation Celebration’s (MAC) to be held at Trivandrum (Kerala) from 4-8 November 2003, has invited entries for its IN.SEA Animation Competition 2003.

    The fourth edition of the competition provides a stage to showcase talent within Asia and give it international exposure. Entries are open to independent animation artists, including students from India and other Southeast Asian countries. The Animation Contest forms the cornerstone of the Week With The Masters celebrations.

    Only work completed after 15 August 2001, can be entered. While the short films can run up to 30 minutes, commercials can only be two minutes long. The Week With The Masters will offer a pass and hospitality to filmmakers whose works are selected for the final competition. The last date for sending entries is 15 August 2003.

    The best entry will receive the Master’s Trophy and the Grand Prize of $2,000 and the category prize of $1,000 will be awarded to the best entry in each category. The jury may also award additional prizes as they see fit.

  • It’s a ‘Mag’ world!

    Fresh off reading the novel The Devil wears Prada and this writer is fascinated by the world of hi- fashion, hi- gloss magazines. But special interest or niche magazines are not limited to fashion, lifestyle or women’s titles alone. In fact one look at the Indian space and you will find a title for every issue that you might conjure.

    While general news, sports, women and fashion and lifestyle magazines are more popular and catch the reader’s eye, dig a little deeper and you’ll find magazines on interiors, housekeeping, carpentry, auto, health, travel, art and design. And given the average Indian’s penchant for weddings – well even an array of wedding magazines dealing with the latest in bridal fashion and bridal jewellery.

    With so many titles in the market and the niche segment only poised to grow further,Indiantelevision.comdecides to delve further into this largely unexplored market. Such an analysis becomes even more pertinent in the light of declining readership numbers and constant ‘death of the magazine’ refrain.

     

    The special interest magazine serves two masters and there are plenty of titles in both B2B and B2C segments to choose from. The top four categories in magazine publishing measured and reported (IRS, NRS, TAM) include: general interest, women’s magazines, fashion and lifestyle and business magazines.

    Talking about the B2B sector, Infomedia special magazines general manager publishing Krishna Tewari says, “B2B segment until now has been subscription based and controlled. It is only in recent times that the segment has grown into a more professional, organized sector. The B2C magazines on the other hand have been more visible right from the start but the entry of international publishing houses has ensured better competition amongst the existing players as well.”

    The entry of international titles has only reawakened interest in this segment, despite research studies stating a decline in readership figures. In fact, throughout 2004 and for the most part of 2005, seminars and conferences held on print and publishing sounded a death knell for this industry.

    The move was largely facilitated by the government permit to allow FDI upto 26 per cent in general interest publications and 74 per cent in special interest magazines.

    Magazines have declined in reach from 9 per cent (2005) to 8 per cent (2006) over the last one year. Magazines overall show a decline in the reader base, both in urban and rural India. The reach of magazines has declined from 75 million in 2005 to 68 million in 2006. Magazines have lost 12 per cent of their reach since 2005. It must be remembered of course that this refers only to mainstream magazines. A host of niche titles that continue to be launched regularly are not fielded and their collective readership estimate is outside the purview of the study. (NRS 2006 findings)

    Despite the NRS findings there is still significant scope for growth, as ‘359 million people who can read and understand any language do not read any publication’. (NRS 2006 findings)

    So it is not just affordability that is a constraint, since 20 million of these literate non-readers belong to the upscale SEC A and B
    segments.

    This is the market that international publishers are looking to woo. Here’s a look at some on the already existing players in the field. With the first major titles already in the market many of them are now looking to expand.

    – Worldwide Media Inc, a 50:50 JV between Times Group and BBC formed Worldwide Media Inc. The first launch from its stableTopGear is an auto magazine while the company is also actively looking at women and entertainment segments to further increase their titles roster.

    – Infomedia India Limited has been a major player specializing in this category. The company set up a 51:49 joint venture with Reed Business Information called Reed Infomedia India Pvt Ltd. Reed Business Information is part of the $ 9 billion Reed Elsevier group. Their publishing activities are focused at two broad categories – special interest consumer publishing, B2B and trade publishing. Presently, it publishes 20 titles, out of which eight are consumer magazines and 12 are trade magazines. Chip, Overdrive, AV Maxare some of their flagship brands, amongst others. The publisher also tied up Disney Publishing Worldwide India in December 2006 to launch Disney Adventures, an international tweens and kids’ magazine.

    – Haymarket Publishing of UK entered India in a 50:50 joint venture with Sorabjee Automotive Communications (SAC), publishers of Autocar India and launched its second title Autocar Professional in November 2004.

    – The much awaited titles Conde Nast International’s Indian edition of Vogue and Playboy magazine from the Hefner stables are also set to hit the Indian shores this year.

    Global brands are making a splash and how. But it is also important to see what it is that these brands mean to an Indian readership. Says Starcom managing director, India – West & South Manish Porwal, “Both realistically and perceptually, India is a booming market. Although, if you had to compare the Indian special interest segment with those in the west or even some countries in Asia, you will realize that there are at least seven to 10 magazines in each genre while in India the numbers barely cross three to four. But it is the sign of a maturing audience that brings international publishers to this market.”

    The question of greater choice is also answered by the entry of these niche magazines given increasing interest in specific topics and markets. He says, “What these magazines bring to Indian audiences is a more genuine choice. So if you had to look at the technology segment, you would have magazines for the professional and magazines for the so called dummies.”

    Advertising plays a very important role in the niche market segment. If the fallout of increasing awareness of lifestyle brands led to a boom in the fashion and lifestyle magazine segment or the traveling Indian exerted himself through travel magazines, it is now the turn of markets like the auto sector or fitness and health segment that is leading the charge.

    As an example Porwal states, “One of the reasons international editions of women’s magazines and fashion and lifestyle magazines were launched was due to a burgeoning lifestyle market. “Colour cosmetics, luxury goods and most top end products are now available in India. Designer labels in apparel, beauty products, accessories and home furnishings are the obvious advertisers for many of these magazines.”

    Industry experts, however, say that niche magazines in the US and the UK have a larger circulation base through subscriptions. In comparison, in India, niche magazines have a far smaller circulation base. Given that why aren’t magazines alarmed just yet? Au contraire there are more special interest magazines set to roll out.

    Conde Nast India managing director Alex Kuruvilla rubbishes the pessimism surrounding readership and niche magazines. “There are two approaches to magazine publishing anywhere in the world – you are either a market shaper or you become a market follower. As far as Conde Nast India and Vogue are concerned, we clearly want to be market shapers. Our experience and response in China has only strengthened our belief that there is a huge market for fashion and beauty in India as well and Vogue is certainly the bible on anything to do with fashion.”

    Conde Nast India is a 100 per cent owned company of Conde Nast International a $ 2 billion publishing house. They will publish the first global title Vogue this year. “Some of the other titles in the offering and certainly relevant to India include Glamour, GQ, Conde Nast Traveller, Vanity Fair, Wired and Brides,” says Kuruvilla.

    While excitement is rife over the number of unexplored markets niche magaziens can tap into, one genre that has made quiet inroads into the reader space is Auto Magazines.

    Auto Magazines

    Men’s magazine were the flavor of the month last season. Maxim, M and Men’s Healthlaunched last year nailing this belief. While the auto segment has traditionally been a strong player with magazines like Auto Monitor, Overdrive, Car and Bike and Autocar, the entrance of TopGear and Autocar Professionalhas given a huge fillip to this segment. India has become Asia’s auto hub and the trend is not going unnoticed. Many auto magazine heads agree that the automotive industry is not just about flashy cars. India has an equally vibrant two wheeler- bike and scooter and heavy vehicles industry.

    Porwal explains, “International magazines tend to cultivate particular brands or a special clientele even within advertisers. Some of these advertisers have entered India at the same time as the international magazines themselves and have a long standing, loyal base with them even in the European countries.”

    A look at the Tam Adex data for Sept 05 – August 06 compared to Sept 04 – August 05 shows that the auto genre has seen the highest growth in ad volumes at 48 per cent followed by men’s magazines at 31 per cent. (See table)

    The auto magazine ranks 6th according to the genres evaluated by Tam Adex just behind the other more popular categories.(See table)

    Rank Magazine Genre Ad spends (in mn)
    1 General Interest 3497
    2 Women’s 2002
    3 Fashion, Ent &Lifestyle 1389
    4 Biz & Fin 1102
    5 Infotech 336
    6 Auto 171
    7 Career & Education 124
    8 Travel 104
    9 Men’s 69
    10 Media, Ad, Mktg 54
    11 Sports 39
    12 Scientific,Engg &Sci 36
    13 Healthcare 29
    14 Telecom 8
      Total 8960

    Courtesy:Tam AdEx-Period:Sept ’05-August ’06 Ad spends based on industry estimates

    The launch of luxury vehicles like the Rolls Royce would only be an added impetus. 

    ‘Figuring’ It Out

    Take a look at the TAM AdEX figures for Sept 2005-Aug 2006 which show a 48 per cent growth in ad sales volume in the auto genre. Auto advertisers apart there are many lifestyle and luxury products who want to target the upmarket clientelle A definite thumbs up for the auto magazines who would be the top choice for many of these advertisers to reach across to their target group. (See table)

    Genres Growth in %
    Auto 48
    Men’s 31
    Fashion, Ent, Lifestyle 29
    Women’s 29
    General Interest 26
    Business/Finance 21
    Sports 11
    Scientific, Engg, Science 10

    Source: Tam Adex- Growth in Sep’05 – Aug’06 compared to Sep’04 – Aug’06

    We spoke to two auto magazines – TopGear the newest player in the B2C segment and Auto Car Professional a B2B magazine.

    Talking about the content of TopGear, editor Gautam Sen says, “The profile of the TG reader is almost 99 per cent male, upper class with an average age of around 31 years old and is usually from a multiple vehicles home. This is our core readership and our aim is to better understand and service this readership.”

    TG has been launched with an initial print run of 50,000 to 60,000 in subscription and newsstands, although Sen points out that “as for all magazines in India, the number of magazines occupying news stands is larger.”

    Comparing TG and TG UK he adds that TG UK “doesn’t cover motorsport as much since there are further niche magazines in UK and Europe covering auto sports or even auto components. However, in India we haven’t reached that level of segmentation so TGIndia focuses on this aspect due to reader interest.”

    He is, however, quick to point out that while the ratio of the local content is about 70:30, in terms of “brand, ethos and style” TGstays loyal to its international edition.

    Auto Car Professional on the other hand acts as a “bridge between the suppliers and the customers”, says editor Murali Gopalan. Haymarket publishers operate over 40 titles including Auto Car andAuto Car Professional.

    Speaking about Haymarket’s interest in India, Gopalan says, “The international publisher has certainly looked at a few key areas before entering this segment. The levels of spoken or written English, the media driven market, the free press, the buoyant economy and the synergy with publications have all led to a number of international publishers taking more than an interested look at this market.”

    While the target group for Auto Car Pro remains similar, the magazine is well aware of changing trends. “Since we are a B2B magazine, it does not mean that we are dull or unglamorous. In fact, we realized that the women today are just as interested in vehicles and are working on a ‘Women’s Day Special’ issue come May.”

    So far so good. But many of the international titles available in the market range between Rs 70 to 100. So one of the factors that international titles will have to consider is the very sensitive price factor.

    Says Tewari, “International titles like T3, which is a technology magazine is priced at Rs 100. So is Chip. But you have to take into account that a Chip magazine comes with a dual DVD pack and free licensed software that may not even be available in the country. So the price is justified by the value we provide. You cant compare a niche magazine with the free supplements you receive along with the papers. If something is free, the value is obviously lower.”

    Kuruvilla concurs when he says, “The brand awareness and brand salience of a product like Vogue is very high. So yes we are competitively priced. But then again we are not looking at mass numbers.”

    Vogue is priced at Rs 100 and is targeting the high spending community who, he maintains, spend as much on lifestyle as any other developed country.

    Says Gopalan, “While I may be talking about the B2B model based on revenue, advertising and a very discerning clientele who is ready to pay for his piece of information, the pricing for all niche magazines follows a similar principle – the reader is paying for a high value international brand and not just any magazine.”

    In fact, this is the very change in perception that international publishers have brought to the magazine market. It is no longer about copies but brands.

    Says Madison Media Group CEO Punita Arumugam, “The niche titles are not here in the game to sell in numbers. So don’t expect the niche title to set targets like 5 million copies.”

    Many also argue that apart from high pricing, easy availability of information on the net may deter magazine readers. The question is indeed relevant in European markets where internet penetration and bandwidth is huge.

    Says Sen, “The net provides one with relevant news. A magazine like Top Gear may not provide breaking stories regularly but we do provide topical stories. For instance, with the launch of Chevrolet Aveo U-VA we did provide opinion pieces on how it fared vis-a vis a Hyundai Getz. We also do interesting features like ‘Cars of Tintin’- not exactly the kind of fare newspapers or the net can provide backed with research, analysis and some great looking visuals as well.”

    He adds “Besides the shelf life of a magazine is much higher and with niche magazines very often it becomes a habit and the aim is to get a reader to be loyal to the magazine. Many of our readers have been known to purchase and collect special issues of magazines as a collectors item.”

    Apart from web properties, many of the magazines align themselves to events. TopGear associates itself with the Design awards and also uses the Times Drive supplement to woo the newspaper reader and influence him to subscribe to the magazine. In fact, the Times has increased the number of supplement pages from 4 to 6.

    Adds Arumugam, “Many of the titles coming into India are already established brands in most markets. I would imagine tha a magazine like Vogue doesn’t really have to look at marketing itself. To the consumers they are targeting, they are already a known brand.”

    Trendspotting

    So what does the future scenario look like?

    First up, its important to understand that readership and circulation figures are wrong yardsticks to measure niche magazines because in the first place, niche magazines are not really looking at mass circulation. While readership is more fluctuating for a B2C magazine, the loyal base for a B2B magazine is more pronounced. Given this contradiction, the niche segment itself is divided between these two categories.

    On the other hand, for most international publishers, the costing factor in India is very attractive. Given the low cost of production and nominally high pricing on these niche magazines, publishers are looking at attractive margins.

    Although Porwal cautions that while the advertising share of special interest magazines is likely to be around 5 to 7 per cent, readership figures for this niche segment are even lower. Yet, the market is just about warming up to this genre.

    The Indian Magazine Congress held in November 2006 pointed out that the reach of magazines in UK stood at 83 per cent. By that yard stick, Indian magazines have a lot of growing to do from the present 30 per cent.

    Another revealing figure stated that the UK market has more than 600 publishers for magazines, and in the US, the corresponding figure is more than 2,000. In India, even after so many years, 80 per cent of the advertising revenue in the entire magazine sector goes to only 17 magazines. And those 17 magazines belong to the top four or five categories. So, to that extent, all the other categories are underexploited.

    While a better picture would emerge given correct evaluation for niche magazines, the magazines themselves need to continue giving deeper, credible information irrespective of the genre, and that would help continue writing their success story.

    With increasing saturation of mainstream media, the niche segments will come into their own in the country. So far, the emphasis has been on achieving numbers which has resulted in a one-size-fits-all approach.

    Says Tewari, “In the US there are over 3,000 to 4,000 niche magazines while in India there are barely about 100. The international trend is to satisfy the readers even within the highly fragmented niche genre. So within the auto sector, there will be more niche magazines like car modeling, vintage car magazines, car components… The talk is no longer about niche magazines but super niche magazine. This is the next step that publishers both domestic and international will have to take to generate more readership.

    (Photo Courtesy: Landmark Bookstore, Infiniti Mall, Andheri (West)
    Pictures by Nidhi Jain     )

  • Global Image Re-Positioning 2007

    Suddenly, there is a new global tidal wave of change all over the Asian region, the obvious signs are people on the move, new developments and properties popping up all over the region and a nouvo-consumerism is appearing at every corner, customers are buying shiny and wonderful things with beautiful packaging and companies are addressing their hunger with massive blitzes. Unseen by the masses but clearly visible to global circumnavigators, a new storm is building, wiser and well seasoned, like homing pigeons, immigrants are returning to their homelands…soon it will cut a clear path.

    Global Re-Immigration

    Currently, there are far more opportunities mushrooming for Asians, plus the quality of life can be far greater and more economical than what’s being offered in most foreign lands. During and following WWII, in search of paradise, these immigrants originally came to the West seeking freedom, opportunities and a higher quality of life. These western societies certainly did offer all that and more. Not any longer.

     

    The West is tangled up in problems. In the US alone, tension between Republicans and Democrats demonstrate that they are not simply opposing parties, rather they are arch enemies whose ideological divide has created a deadlocked and stagnant society which would be hard to imagine a decade ago. The war issues are almost like an internal US civil war of ideologies. There is also this new issue of constant daily harassment and unjustified racial profiling all over the West, targeting each and every individual with a slight difference in skin tone, accent or culture. This has fueled the mega-movement further.

    The so-called ‘clash of civilization’ as some would like to see happen, has contributed largely to this now unstoppable movement. Almost every Muslim and most Asians are being targeted. Today in America, children are worried about their old parents being embarrassed and humiliated for being Muslim, non-white or slightly different, while the same parents worried about the future of their young children and wonder how they will ever find a promising future in such a suspicious environment. West is no longer tolerant or accommodating anything that is Muslim in origin or tradition, period.

    The trillion dollar Iraq war and the outcome of 9-11 have created a mega shift in attitudes. All this is adding nothing but fire to the re-location movements. The grassroots level ethnicity, which provided innovative colors, different languages and foreign accents, are leaving the backroom engines slowly and steadily. There is already a shortage of a highly qualified force at very economical rate all over the western economies. Immigrants knew then very well when to move in and they know now when to get out.

    Currently there are all kinds of research and studies showing steady decline in population in the west and for the first time, there are clear indicators that American youth will be looking towards Asia for greater opportunities and potentials, unlike their parents who were on the path of glory from the start.

    Global Image Re-positioning

    In order to shift perceptions en masse, it requires mega shifts of options at the ground level. The world’s latest and most advanced grand and luxurious shopping malls are erupting by the thousands in the East. India alone has a middle class larger than the entire population of USA. The land of the ‘fakirs and the snake charmers’ have an uncontrollable nouvo-consumerism, ready to devour anything that shines.

    The powerhouse image maker of the past, Hollywood is simply now old and exhausted, while Bollywood is in a $4 billion dollar-per-year frenzy. Paris the heart and soul of fashion is for the passé, as there are some 100 new fashion centers that have arisen mostly in Asia. The East is not only replacing formerly western dominated industries, they are adjusting for the latest innovation and technology resulting in far superior and dazzling ideas.

    The sunshine days for Eastern iconization are here, corporate image and brand name identities that were only using Western standards are now shifting in a big way to the East. Studies have clearly shown Asia to be the driving force behind branded goods; way over Europe and USA, obviously the wealthy population is far bigger than the west.

    The movement for creating local Asian brands is picking up heat, using latest tools of the trade and the software that is capable of spinning colors and dazzling graphics that would dwarf any top agency in New York or London . The issues of cyber-branding and corporate images are becoming very real – demanding cutting edge knowledge and very superior sets of skills.

    Amidst all this activity – is the Dubai phenomena. A fine example of what a single city can do in less than 10 years. Inspired by this great experiment there are now some 100 cities in the Middle East, India and China all poised to embrace the Dubai model of rapid growth and re-deployment of government services to attract business and opportunities. There are clear indicators that such attempts will be equally successful in most such anxious cities. Just like the earlier rapid urbanization of the US following World War II, where hundreds of cities simultaneously sprouted throughout the landscape.

    A few years ago, India adopted and proved the outsourcing model, making the biggest IThole in the US and becoming the global centre of software to the world. China became the world’s largest factory, and the Middle East is on its way to becoming the region full of luxury buyers via hundreds of world-class luxury centers of providing new standards and new benchmarks in modern living. All this combined creates a new, Eastern-oriented, mental shift to image and branding.

    Global Hyper-Acceleration

    While it took a century to brand the Eiffel tower, Coke, Disney or Benz, recreating similar icons in Asia would now take a fraction of that time. One of the main reasons being, the speed at which all interaction and information now flows in this hyper-technologically driven society.

    Here, it’s micro-miniaturization yielding premium prices. A corporate society with compulsive innovations that continuously creates smallest things for large and deep pockets. This acceleration will further mount to frenzy and will become its own revolution when a billion plus cyber-entrepreneurial-warriors hit the e-commerce highways.

     

    Mega Re-Housing Shifts

    There is an extraordinary real estate boom, all over Asia, from major cities to unheard of villages. Prices have been continuously doubling and continue to double, with no conceivable end. The re-immigration of highly experienced and qualified people returning home with liquid cash and business ideas led to explosive development in real estate.

    The approximately one million apartments being developed in Dubai and UAE alone, is a solid indication of the global desire to explore these regions as long term promises of a newer, modern and higher standard of living. The wheels have started to grind and the machine is on. This region already has billions of their own to manage plus millions coming in with cash and ideas to relocate to the East. With over 100 monumental structures under way, it is only a matter of time before Westerners become well versed with the names and locations of these massive new developments.

    Winner and Losers

    The business communities in the west will have to adjust to the HR gaps, lack of knowledge base and cost effective work force with international reach, while the business in Asia is already marching to a very dynamic tune. When the dust finally settles on this anti-Muslim and anti-ethnic chase in the west, a decade would have passed, and the global adjustment would have taken a stronghold.

    The West is very comfortable with this current outbound movement as it supposedly makes them safer. Depending on one’s location and destination, the final winners are the youth of Asia for possessing and controlling such extraordinary growth options in an endless variety, that is unmatched by any other region in the world.

  • Kinetic Blaze unveils Supermodels’ calendar

    Kinetic Blaze unveils Supermodels’ calendar

    MUMBAI: Kinetic Motor Company’s Italiano Blaze picked up some top automotive awards for design and performance. And now to entrench the brand further, Kinetic has unveiled what it claims is the automotive industry’s first glamourous calendar- the Italiano Supermodel’s Calender.

    Admittedly the theme is bold, but Kinetic’s managing director Sulajja Firodia Motwani reasons that the calendar clearly spells out the brand aspiration of her target consumer-Stylish, sexy and glamorous.

    “Around the world, calendars that blend the sex appeal of an automobile and a supermodel are a regular feature, but this is a first for the Indian automotive industry.

    Until now the scooter was considered either too old fashioned, family vehicle or effeminate. Our focus was to make the two wheeler a must-have for the young, urban male who is brand conscious and wants to look cool.”

    The calendar designed and executed by Grey Worldwide was unveiled by Firodia- Motwani and Raj Guru.

    The two wheeler claims to be India’s first powerful automatic with a 165cc, 4-valve engine. Kinetic Blaze is the first in a line of seven Italjet scooters launched under the Italiano series. The moto-scooter is prized at approximately Rs 50,000 ex-showroom. Last year, Kinetic had acquired the rights from Italjet to launch its two-wheeler range in India.

    Commenting on whether the price positioning at Rs.55, 000 for a scooter was on the high side, Firodia Motwani says, “We are competing in this market with a Pulsar or a Bullet. The brand aspiration dictates the price and the two wheeler is positioned for a city rider. It has done well mainly in the metros. For a college going guy, the price point is just right when he knows that he can own a ‘cool’ bike.”

    Kinetic Blaze may just be the beleagured company’s ‘shortcut to fame’.

  • RADIOACTIVE

    Radio Mirchi has it, Red FM has it, so too Big FM, and now Radio City has gone and got itself one too.

    We are talking about radio activation units- the latest buzz word in radio. Although new to Indian airwaves, activation units in media have been a global trend.

    Indiantelevision.com does a quick check to see how ‘active’ is radio?

    According to radio studies conducted internationally, in most markets, radio manages to garner around 4-5 per cent of the mass media spend. Compare that to the latest TAM AdEx study (total media ad market 2006) where radio clocked in at 3 per cent. It‘s important to note that, private radio in India came into being with Radio City in July 2001. That‘s only about six years into its existence and private FM players are already looking at a 58 per cent ad revenue growth across media. (Figures: 2006 versus 2005)

    So what makes radio an attractive option for advertisers?

    Given that Radio is perceived as a personal medium, radio can bring brands closer and speak to the consumer at their level. Radio has a culture of response where listeners frequently interact with their station which they see as accessible. Couple that with the fact that a below the line event would promote both the client‘s brand and the radio station connect with its audience and you have a win-win situation. No wonder then that radio stations are adapting to the expanding market by providing add on services to their advertisers in the form of ‘activations‘ or non traditional revenue (NTR).

    ‘Experiencing a product via radio‘

    While print and television still attract the advertiser, the emphasis is shifting towards activation and non-traditional media, since the clutter level in the television space is very high. Also ad avoidance by listeners in radio is almost nil in comparison with 68 per cent in newspaper and 44 per cent in TV, and local reach makes radio a very effective medium of advertisement.

    Besides, radio offers far tighter targeting which means reducing wastage or spill over. Radio brings brands closer, as listeners identify with their radio station and see it as aimed at people like them; radio is better able to communicate the tone or character of a brand.

    Radio also offers tighter timing – within a particular time band, day of week or even week of month. This time specific character of radio is helpful since listening is highest when shops are open. So one can target a Pizza Hut ad in the afternoon and follow it up with a below the line creative activity around the product and have the consumer reaching over for a pizza takeaway immediately.

    Talking about the trend of setting up activation units by radio stations, Mirchi Activations, head Gautam Shahane says, “Activation units offer a synergy between below the line and above the line advertising. It allows access to multiple touch points through multiple creatives in a focused area. It allows immediacy, and so promoting an event can be in real time. More importantly radio can monitor responses to a particular activity almost instantly and fix it whether it‘s the lack of footfalls at an event or a change in the pitch, creative or running a contest.”

    Mirchi Activations set up as a separate unit in 2005 although the FM station had been providing BTL (below the line) services even prior to this.
    Perhaps the greatest strength of a below the line activity created by radio is its understanding and relationship with a geographical area, its people and its culture.

    He says, “We see that Pune is a booming real estate sector, so we approach clients like real estate developers or builders. We would do that in Kolkatta as well as we see a demand there. But in a Bangalore we would target the BPO or IT sector since that‘s where our client and audience both connect. Similarly, we have properties that showcase different cities in a month long cultural extravaganza.”

    ATL advertsising is more strategic and planned while BTL can be more tactical and with the kind of reach we have within the A and B category towns, our activation can be converted to a pan India initiative.”
    Most radio advertisers include FMCG, durables, auto, telecom, retail, BFI‘s (insurance, tax planning etc.)

    “This quarter will see a lot of BFI‘s clamoring for BTL activities as fiscal year end approaches,” explains Shahane.

    Red FM activation unit is an in house team called Red Active. Red FM COO Abraham Thomas explains, “We approach activations in two ways. There is activation solutions for multiple brands through a single event as long as they are non competing brands. The other approach is the single- client driven ground activation. So we will have the RED FM drive where we partner with several brands. At the same time we have a auto client like Ford who approaches us and we put a spin on that campaign through car displays at a shopping mall and integrated programming around it.”

    Why would an advertiser approach a radio station and not an event management firm for activation?

    The answer is unanimous within radio circles. Most agencies or event management companies only form part of the implementation or execution part of the campaign. An activation programme by a radio station would mean being involved in every stage of the campaign right down to monitoring the footfalls and response for the client.

    Shahane insists that radio stations claim “ownership” for the entire campaign and that is why they are attractive to advertisers.

    Also radio stations own certain unique properties that can be aligned to a brand and maximize opportunities for the client. “We partner with them on each event. It is also an opportunity to showcase our brand, and we are very sensitive to this fact. We know best how to use radio to promote events, and supplement it with other media on a case to case basis. But the strengths of radio are utilized to the optimum to promote events.”

    Mirchi Activations works with a tagline that reads ‘Not Just Radio‘. With the mammoth Times Group network behind it, it isn‘t just a tall claim. But do established networks necessarily convert to more successful activities?
    Not so says Thomas. “Although we do offer 360 degree solutions to a client and will use multimedia campaigns to promote his product, we are an independent station. Besides, every media utilized by the client would cost him a separate amount. So it would depend on how cost effective we decide to make the event.”

     

    ‘Big Reach‘ for Big FM

    Big FM marketing head Anand Chakravarthy adds, “With television the reach is usually national. Our clients often complain about a spillover on television advertising. So if Surf excel is looking at targeting women in Rajkot – on television they may not find their right target audience mix. But radio can easily manage that.”

    Radio City became the latest FM channel to add ‘activation‘ to its range of brand value services after Red FM‘s Red Activ and Radio Mirchi‘s Mirchi Activation. While Red and Mirchi ‘activations‘ are in house, Radio City has announced its strategic alliance with Vibgyor Brand Services.

    Radio City marketing head Rana Barua says, “Vibgyor has a senior representative on our team and the client meetings and briefs are discussed together. So we offer a one stop solution to the client. Since we act as a one stop window to our client we offer both productivity and speed.”

    Interestingly, ad spends by print houses and television networks are also seeing an increase on radio.

    As stations become more targeted they would also evolve into strong and distinctive brands, and they would deliberately cultivate their brand values in all their on-air and off-air activities – events, contests, helplines, etc. Once the brand values are established, advertisers could leverage them to give a positive effect to their own messages.

    Big FM has lined up an advertising and marketing budget of Rs 450 million across the country until March 2007. The money will be distributed across the various Big FM stations according to their revenue generations. The FM station also plans to use all traditional media, below-the-line activities as well as have used cable and cinema spots.

    Thomas says, “Red Active is a single point contact for the advertiser. Earlier, you‘d have an event taking place in Calcutta and the sales and marketing guys in Mumbai trying to figure out the response or check if the creative was being executed according to the brief. With a Red Active in place we take over the entire process from discussing brief, to providing creative solutions to implementation to measuring response. The aim is to provide an extra bang for the client‘s buck.”

    Chakravarthy says “In Mumbai, we had taken over the entire Inorbit Mall for a month for our client Coke and had a New Year‘s carnival. Our advantage is that we have a very large network of 11 stations.” He also informs us that it is the smaller markets that now look at activations.

    Not all activations are related to advertising alone or so say radio heads. Big FM organized a New Year‘s party for the Indian army and Red FM also ties up with the Tata Cancer Research institute for spreading awareness of breast cancer.

    Then you have a few exceptions to the rule as well.

    Fever FM operating in Delhi and Mumbai used artiste management company ‘Only Much Louder‘ for activations during its own launch but has no plans to set up a separate unit so far.

    Only Much Louder, co founder, Vijay Nair details the kind of campaign they mounted for Fever FM. “Since the idea was ‘less talk, more music‘ we had people donning chef costumes or dressed up as clowns lining the streets in various parts of the city with their mouths sealed shut and placards that read ‘No recipes, only music‘ or ‘No silly jokes, only music‘.”

    Fever FM station director Mumbai Sajjad Chunawala says, “We are a very small team in marketing right now and have no plans to set up a separate activations unit. But as our clients approach us, we may take on the job or outsource it depending on the client needs.

    Judging by latest trends a lot of traditional advertisers are also ready to take the risk and try the medium.

    HLL was a predominant print and television advertiser but has now included radio in its media mix. Chakravarthy tells us that HLL‘s ad spend is now divided at a 50/ 50 mix with radio playing a huge role.

    HLL advertises almost 60 percent of its brands on radio with about 2 to 3 percent dedicated to radio advertising. Mindshare Fulcrum‘s national activations head Himanshu Shekhar opines, “We use media for kinds of effects – Incremental or Impact. Radio is still seen as a ‘impact medium‘.

    Activations help radio stations connect their brands with the audience as well.

    So Radio Mirchi benefits not only in terms of revenues but also in terms of on ground presence, visibility and an opportunity to be at a consumer touch point. Activations have truly demonstrated the power of radio in driving response or footfalls.

    Last word

    Radio offers tremendous opportunities for advertisers and media planners need to explore various options by which they can effectively use radio in their media mix. Conversely, broadcasters need to develop the market by being more responsive to the advertiser‘s needs. This will provide an opportunity for the market to arrive at the final verdict on the effectiveness of the medium.

    Chakravarthy says, “In a country size like India, it is not necessary to touch every market but everybody in a certain market. What radio activation manages to do is amplify the effect of advertising. The advantage of radio is that any ground level activity or below the line marketing becomes amplified.”
    Thomas says, “Red Active is a single point contact for the advertiser. Earlier, you‘d have an event taking place in Calcutta and the sales and marketing guys in Mumbai trying to figure out the response or check if the creative was being executed according to the brief. With a Red Active in place we take over the entire process from discussing brief, to providing creative solutions to implementation to measuring response. The aim is to provide an extra bang for the client‘s buck.”

    Barua concurs, “Advertisers no longer want just plain vanilla advertising. It‘s important that the consumer is able to feel and touch the product. Activation allows for that experiential marketing.” Although declining to discuss specific clients Barua says that briefs have been discussed and the newest player in the activation field will soon launch events and properties associated with its station.

    Shekhar brings in the planning perspective when he says, “If we had to divide the HLL radio advertising spend according to ATL and BTL advertising it would have to be 3/7. The trend is to allow for more integrated programming and content led advertising rather than just plain vanilla advertising. The Surf excel campaign which we conducted across all stations was one of the single biggest campaigns where each radio station adapted it with a different creative. In that sense, it was unique. The power of the medium to cut across all target groups and appeal to both emotions and humour is immense and this is where its strength lies.”

  • Ofcom launches PSP consultation

    Ofcom launches PSP consultation

    MUMBAI: UK media watchdog Ofcom has launched its planned consultation to consider the option of an online public service publisher (PSP).

    If given the go ahead, the service would compete with the online operations of Channel 4 and the BBC. The idea was muted by the regulator back in 2004.

    Ofcom notes that although public service content will be provided by the market, it may well not be enough either in terms of quantity or diversity – a market shortfall is likely to arise. This may have adverse implications for the level of UK-originated production, and for plurality in the public service system – the BBC is likely to play a material role in the digital media world of the future, but for a public service culture to flourish, effective competition for quality is needed.

    Ofcom states, ” We are open-minded about the best solution for the future of public service content – we will not report again on the how to maintain and strengthen the quality of Public Sservice Broadcasting (PSB) until the next PSB Review, which must be completed no later than 2009/10.

    “The primary purpose of this paper is to take the debate forward within the UK’s creative industries and policy environment. We continue to believe that there is a real opportunity for a new PSP to make a significant contribution to the public service system, and to create a lasting legacy for the future.

    ” We welcome the Culture, Media and Sport Select Committee’s interest in the PSP concept in its inquiry into public service media content.”

    Ofcom has given 23 March 2007 as the last date for obtaining feedback. It is actively seeking responses on:

    – The appropriate nature of intervention in the digital media age, and the balance between TV and non-TV forms of public service content distribution

    – The potential role of the PSP and its creative remit

    – The operating model – in particular, the approach to rights management

    – The scale of funding required. Ofcom notes that the future of PSB in UK television is central to its remit. Its first statutory review of PSB was completed in 2005 and set out recommendations for maintaining and strengthening the quality of PSB against a backdrop of rapid change in broadcasting. The television market has continued to evolve at speed since the review, as a result of which it published Digital PSB in July 2006.

    Digital PSB highlighted a number of market developments affecting the future of public service broadcasting. One of these is that the rapid take-up of digital television is reducing the viewing share of the traditional public service broadcasters, and hence the value of the analogue spectrum

    Viewers – especially younger audiences – are increasingly watching content on internet and mobile platforms, and are starting to move away from traditional TV. Changes in spectrum policy will affect the way in which public service aims need to be financed in the future.

    In Ofcom’s view, these changes mean that the delivery of PSB in a fully digital television world needs to be rethought. While the core public purposes endure, the means of delivery and institutional framework may have to change. As a result, the challenge is to define the appropriate model for PSB for the future, not for the world as it is today – or as it has been in the past. The challenge is as much an opportunity for public service broadcasting as it is a threat to it.