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  • PSU brands pave way for private brands

    PSU brands pave way for private brands

    MUMBAI: It was almost 25 years back when all of us were familiar with HMT watches. They really ruled the market and even I remember in their slogan they called them as Time Keeper To The Nation.  And their advertising message said if you have the inclination we have the time.  And when they launched the quartz brand they said if we you have the inclination we have the exact time. Here they were emphasising the exactness to the correct time a quartz watch is supposed to deliver.

    But in 1987 when the Tatas came to the market with Titan they came with lot of planning and a well thought out strategy to rewrite the watch industry which they ultimately did so. And within a matter of few years they dislodged HMT and just surged ahead by bringing in variety and innovation in all their marketing efforts. Be it distribution or product innovation they did it differently to only be the undisputed king in the watch business. From a watch brand they have moved into to a whole range of brand extensions and the latest being the launch of perfumes.

    By the time we entered the 90s with liberal policies we saw several categories where private brands entered and started giving a tough time to the PSU brands. Let me recollect a few categories where private brands have made deep inroads.

    Lubricants: This category was primarily dominated by the PSU brands due to their strong hold on distribution. As no private brands were allowed to sell their products through petrol stations. But that did not stop the private sector to push their products. Castrol was the first to aggressively market their product. Their strong communication strategy helped them gain good visibility to get into the consideration set. They used the bazaar trade for distributing their products and also cleverly opened outlets opposite petrol pumps to make easy availability of the product which gave the car owners one more choice apart from what the fuel station was stocking. They constantly kept innovating and improving their product offerings through strong R&D and became partners to many OEM automobile manufacturers. Today the private sector put together holds close to 40 per cent market share. We have several brands like Gulf, Elf and Tide water that also had their share in this market.

    Insurance:  Life insurance was synonymous with LIC. In fact the lingo that was used is LIC kar leya… Also since this PSU brand had backing from the government, the credibility scores were very high which helped them to gain loyalty  as against the private brand. But today desk research say’s that LIC has only 50 per cent share and the combined private insurance brands control the balance 50 per cent. There are at least 10 brands which are fighting to get their pie in this highly competitive market which has lot of government norms that one has to adhere to. Most of these private brands have pumped in huge marketing spends to create awareness but besides that they also bought in the use of the online tool for people to buy polices, which is still lagging behind with the PSU brands. With the rapid penetration of internet and a younger population that will rule the Indian market these private sectors will have an upper hand to woo this new generation?

    Airlines: The Indian skies were ruled by the Indian Airlines (Now Air-India). But over a period of time starting in the 90s we saw the downfall of the Indian Airlines as private operators flew in. There was a huge shift towards private airlines and the result being that Air-India only has 20 per cent market share according to published reports. In the airlines business service matters a lot and that’s where Air- India dipped very low to surrender their market; besides the constant staff and pilot issues have also eroded their equity over a period of time. And the continuous newness in the service and the competitive pricing by the private operators never allowed Air-India to regain their glory which they sat on for many years.

    Telecom: BSNL and MTNL were the household names in the wired connection when it came to telephone. One had to wait for a long period of time to get a permanent connection. At one point of time having a telephone was a luxury but since the 90s with the advent of mobile connections it very soon became a necessity. While both the PSU brands are also present in the mobile space but I am unaware of their exact market share. Nearly 85 per cent market share is held by the private brands. Here again technology and aggressive marketing helped these private sector brands to hold the market with lot of ease as there is no fight or competition from the PSU brands.

    While red- tapism and vested political interest has been by and large the deterrent for PSU brands to grow. We must also keep in mind that the mindset of Indian consumers have shifted and changed in the last few years. The new breed of Indian customers seeks value in whatever they buy and hence it is important for both the PSU brands and private brands to get their value proposition right. With internet within reach, the narrowing of buying decisions have become easier as with price comparison more product information is being provided by many aggregators. Unless there is huge overhauling done by PSU the story will not change and private brands will just keep on cashing them.

    By Ganapathy Viswanathan, an independent communication consultant, in communication, branding and public relations.

  • Anatomy of the top 100 brands 2013

    Anatomy of the top 100 brands 2013

    MUMBAI: This year, Apple has re-written history by replacing Coca-Cola, the number one brand for the past 13 years, as the new numero uno in the coveted top 100 global brands announced by brand consultancy, Interbrand.

    Interestingly, it’s not as if Coca-Cola got it wrong this time round. Rather, the FMCG brand has been on a successful spree; winning awards, launching brilliant campaigns, and engaging people in popular initiatives like Coke Studio. Just that technology and new media have emerged leaders this year.
    Ashish Mishra says the report tries to find an answer to who really leads the brand the marketer or the consumer, or both

    Says Interbrand India managing director Ashish Mishra: “If we look at the top five or ten, its technology and new media which is leading the pack and this is the trend all across.”

    The top 10 brands convey a message: A brand today has got to be all about the people. And how anticipation, co creation, conversation, innovation, investment in people & big data, strategic CSR and new leadership is the new way ahead. Mishra goes on to say that Apple has climbed the charts because of the Apple culture is has fashioned across the globe.

    East is East, West is West

    What emerges from the list is that most of the top 100 brands belong to the Western world. So is it to do with our white fixation or the fact that brands from the US, UK, Germany or France have made a name for themselves globally?

    “A brand needs to be where the top 10 GDPs are,” says Ashish, adding that apart from the brands’ financial performance, their role in influencing consumer choice, the strength they command as also recognition across the globe are important factors while determining their value.

    What is more unfortunate is that no Indian brand figures in the top 100. The consultancy reasons it’s all about diversification.

    Mishra explains that post Independence, India grew at a fast clip while business grew in various directions. For example, Tata today means different things i.e. Tata Steel, Tata Motors, TCS etc. to different people. Ditto for other Indian conglomerates, which diversified into different brands and sub-brands, which in turn grew bigger than the mother brand in some cases.

    “An organisational structure is important and somewhere down the line, custody of sub-brands was handed over to people (CEOs, CMOs, CFOs etc) who took charge but forgot to work towards the mother brand,” says Mishra of the irony of the Indian market.

    The agency is helping many companies in India to bridge the gap and be part of the global brands. And to achieve it, the agency feels the companies need to have an inside-outside perspective wherein they need to go to the right markets after creating a name for themselves here as well as compete with the global counterparts on the same parameters.

    Media not so savvy

    Of the top 100, the only media brands are Disney, Thomson Reuters, Discovery (new entrant this year) and MTV. Implying that while media may be the most influential opinion maker for readers and viewers, it somehow fails to impress brand creators.
    While the consultancy does evaluate media brands excluding publishing houses, very few made it to the list. Also, the consultancy made an exception for India and China by taking into consideration government-owned brands because of their sheer number in these countries.

    “The names in the list are the most influential brands globally. But if you look at the media in a broader context, then many other brands too would be included. For example, Facebook,” says Ashish. Incidentally, the top 30 brands evaluated by the consultancy in India did not have a single name from the media.
    Whatever may be the case, the names that figure on the list demonstrate that these brands have indeed managed to deliver meaningful and seamless experiences across all platforms and touch points.

  • Anatomy of the top 100 brands 2013

    Anatomy of the top 100 brands 2013

    MUMBAI: This year, Apple has re-written history by replacing Coca-Cola, the number one brand for the past 13 years, as the new numero uno in the coveted top 100 global brands announced by brand consultancy, Interbrand.

    Interestingly, it’s not as if Coca-Cola got it wrong this time round. Rather, the FMCG brand has been on a successful spree; winning awards, launching brilliant campaigns, and engaging people in popular initiatives like Coke Studio. Just that technology and new media have emerged leaders this year.

    Ashish Mishra says the report tries to find an answer to who really leads the brand the marketer or the consumer, or both

    Says Interbrand India managing director Ashish Mishra: “If we look at the top five or ten, its technology and new media which is leading the pack and this is the trend all across.”

    The top 10 brands convey a message: A brand today has got to be all about the people. And how anticipation, co creation, conversation, innovation, investment in people & big data, strategic CSR and new leadership is the new way ahead. Mishra goes on to say that Apple has climbed the charts because of the Apple culture is has fashioned across the globe.

    East is East, West is West

    What emerges from the list is that most of the top 100 brands belong to the Western world. So is it to do with our white fixation or the fact that brands from the US, UK, Germany or France have made a name for themselves globally?

    “A brand needs to be where the top 10 GDPs are,” says Ashish, adding that apart from the brands’ financial performance, their role in influencing consumer choice, the strength they command as also recognition across the globe are important factors while determining their value.

    What is more unfortunate is that no Indian brand figures in the top 100. The consultancy reasons it’s all about diversification.

    Mishra explains that post Independence, India grew at a fast clip while business grew in various directions. For example, Tata today means different things i.e. Tata Steel, Tata Motors, TCS etc. to different people. Ditto for other Indian conglomerates, which diversified into different brands and sub-brands, which in turn grew bigger than the mother brand in some cases.

    “An organisational structure is important and somewhere down the line, custody of sub-brands was handed over to people (CEOs, CMOs, CFOs etc) who took charge but forgot to work towards the mother brand,” says Mishra of the irony of the Indian market.

    The agency is helping many companies in India to bridge the gap and be part of the global brands. And to achieve it, the agency feels the companies need to have an inside-outside perspective wherein they need to go to the right markets after creating a name for themselves here as well as compete with the global counterparts on the same parameters.

    Media not so savvy

    Of the top 100, the only media brands are Disney, Thomson Reuters, Discovery (new entrant this year) and MTV. Implying that while media may be the most influential opinion maker for readers and viewers, it somehow fails to impress brand creators.
    While the consultancy does evaluate media brands excluding publishing houses, very few made it to the list. Also, the consultancy made an exception for India and China by taking into consideration government-owned brands because of their sheer number in these countries.

    “The names in the list are the most influential brands globally. But if you look at the media in a broader context, then many other brands too would be included. For example, Facebook,” says Ashish. Incidentally, the top 30 brands evaluated by the consultancy in India did not have a single name from the media.
    Whatever may be the case, the names that figure on the list demonstrate that these brands have indeed managed to deliver meaningful and seamless experiences across all platforms and touch points.

    Click here for Interbrand‘s Best 100 Global Brands

  • “Where Advertising Can’t, Content Can”

    Marketers for brands, consumer products, retail chains, media and entertainment are struggling to redefine and reinvent “advertising” for a new generation of empowered consumers.

    Media proliferation and fragmentation is making it harder to reach consumers with traditional formats of “interruption” advertising. New technologies, media platforms and consumer behaviors are affecting every aspect of traditional marketing and thereby dramatically impacting marketing effectiveness.

    There is a strong need to create “engagement” advertising models with digital at the core which will facilitate more sophisticated, powerful and profitable connections between brands, content creators and their target audiences….
    _____****_____

    There is a strong need to create “engagement” advertising models with digital at the core which will facilitate more sophisticated, powerful and profitable connections between brands, content creators and their target audiences.

    Internationally, the content-commerce partnership evolution is gathering momentum. Brand entertainment partnerships are changing the rules of developing creative campaigns, marketing and advertising planning and production.

    In response to these challenges, GroupM India launched GroupM ESP to help brands harness the power of content based solutions by activating the power of movies, music, sports, live, celebrities and characters.

    GroupM ESP specialises in evaluating, negotiating, developing, activating and measuring strategic content platforms and partnerships around movies, music, sports, celebrities and characters. Uniquely positioned at the intersection of the media and the sports and entertainment industries, the ESP teams focus on developing innovative content strategies and solutions with a digital core that embed advertiser‘s brands in consumer passion points using multimedia leverage and multifaceted partnerships.

    GroupM ESP also works closely as a high end consultant with clients and rights owners to help create and own multi-media content assets of long term value and their exploitation through media distribution, marketing, licensing and retailing to build deeper and more valuable connections with consumers.

    The Indian entertainment and sports market, the largest in the world by size, offers advertisers and their brands, unique and multiple passion points to reach and engage target audiences with profitable and proven content solutions, embracing all the learnings from traditional media and advertising. New technologies and new channels incorporating licensing need to be harnessed creatively using insights with marketing ROI rigorously quantified.

    The Indian entertainment and sports market, the largest in the world by size, offers advertisers and their brands, unique and multiple passion points to reach and engage target audiences…
    _____****_____

    The GroupM ESP content team comprises more than 50+ specialists (the largest for any advertising or media agency in India) has been providing end-to-end solutions for over a decade now. Known for its transparent dealings, easy and preferred access to content and talent (International, National and Regional), GroupM ESP is also able to seamlessly deliver the benefits of parent GroupM media volumes, relationships and specialist units backed by robust systems and processes. All this has been recognised through more than 50 awards at various industry and company platforms.

    Through its high profile alliances and partnerships with content creators, rights owners and talent across every domain and geography, the GroupM ESP team is able to offer expanded capacity and capability to handle complex projects smoothly.

    As we move from a decade of “Airing” to “Sharing”, digital needs to be at the core of any marketing program and the GroupM ESP team is adequately equipped to impart a strong digital dimension in all its projects. An in-house ESP digital team backed by the parent GroupM resources ensures that solutions are digitally centered and executed.

    More than 100 advertisers in India have benefited from their association with GroupM ESP.

     

  • What now for broadcasters and advertisers?

    What now for broadcasters and advertisers?

    The clock is ticking down for the seven broadcast networks, (actually eight, if you include Discovery too that joined the fray over the weekend) which coerced TAM to report on them on a monthly basis unilaterally without consulting either the Indian Society of Advertisers (ISA) or the Advertising Agencies Association of India (AAAI).

     

    Late Friday evening, advertisers such as Levers, P&G, Loreal, ITC, Britannia, Marico and Godrej put these broadcast networks on notice that if they did not revert to weekly ratings within 72 hours, all advertising on their channels would be pulled off and release orders would stand cancelled, 48 of those hours have already gone past. These broadcasters have only 24 hours left to take a decision.

     

    More advertisers have been sending in their notices over the weekend and this is likely to continue over today. And their 72 hour time bomb notice will also continue to tick.

     

    Advertisers sent the emails over the weekend to probably show they too mean business. Senior managements and sales heads in broadcast networks normally head of for their weekend holidays or timeoffs and hence are normally loathe to convene for any major decisions. With two days out of the three day notice period gone, now broadcasters will be hard-pressed to congregate and do some brainstorming and decide on their way forward today itself.

     

    Above their heads is the guillotine of losing revenues. An estimate is that these broadcaster will lose Rs 22 crore a day collectively should there be a pullout.

     

    There’s more to worry about for the broadcasters. If there are no TVCs, what will they do with the time that has been left vacant by the absence of ads? Fill it with promos of their own shows? Film trailers? But for how long?

     

    They may have to incur further costs should they rely on extra content from 22-24 minutes being churned out currently to 26-27 minutes. That is going to mean writing out larger cheque amounts to TV producers as they will have to work their crew and casts for longer hours.

     

    Continuing being rigid is an option broadcasters have. But it could lead to advertisers being equally rigid, leading to a standoff. Somebody will have to blink.

     

    Even though some of the broadcast CEOs have been haw-hawing, saying that it is the advertisers who will do so, because they need the TV channels and history shows that they are prone to buckling under earlier when they are threatened with no ads, it need not hold true on this occasion.

     

    Advertisers have options today: there are close to 300 channels which are continuing with weekly ratings, while around 105 channels are on a monthly engine. They could put their ads on the weekly-rating- channels. Unless of course the eight “rogue” (in the eyes of the advertisers) networks convince the remainder to join the monthly ratings gang.

     

    At this stage, media observers feel, both sides are doing some grandstanding, watching each others’ moves closely. The squeeze will come when ads stop on TV, and if there is a stalemate. And it will be felt by both.

     

    The year has already seen a slowdown on the economic front, thanks to a weak rupee and a general slowdown. Financial results for most companies are not expected to be something that shareholders will take too kindly by end this year.

     

    Hence, it is in the interest of both to come to the negotiating table, and hammer out a face-saving solution, sooner than later, and keep the advertising cash flows going between each other. A week’s loss of advertising equates an estimated Rs 150 crore in revenue. And a possible further slow down in consumer off take of products from shop shelves for the advertisers. That’s something both cannot afford.

  • Advertisers vs Broadcasters: The battle for weekly TV ratings

    Advertisers vs Broadcasters: The battle for weekly TV ratings

    Aegis Group plc chairman India & CEO South East Asia Ashish Bhasin does not mince his words when he says. "In the next 24 to 48 hours many broadcasters are going to be getting cancellation notices from advertisers for spots booked with them. I have been getting SMSes from some of my key advertisers to move ahead with pulling off ads from TV."

    Adds Group M South Asia CEO & Advertising Agencies Association of India (AAAI) executive committee member C.V.L Srinivas: "Starting yesterday, cancellation notices have been going to broadcasters from advertising clients across the board."

    "Earlier broadcasters took the decision and now advertisers are doing so," adds IPG Media Brands CEO Shashi Sinha.

    The CEO of a channel confirmed that his network had received emails concerning 10-11 clients. "They have given us 72 hours to resolve the issue. If we fail to revert to weekly ratings all release orders for TV spots will stand cancelled," he says.

    That is the state of Indian media today. A battle royale is brewing – some call it the mother of all battles. The two warring parties – on one side of the battle line are the advertisers, and on the other are the seven broadcast TV networks.

    Group M's CVL Srinivas says advertisers will stay away from TV until they get proper weekly viewership data

    The decision Sinha is referring to relates to these broadcasters unilaterally ordering TV ratings agency TAM Media to change the frequency of reporting on their viewership from a weekly routine to a monthly routine. And to also report those details in absolute numbers, not in percentages.

    The seven broadcast networks have more than 100 channels under their umbrella, accounting for almost 50 per cent of daily TV viewing in India.

    Advertisers on the other hand have a war chest of Rs 14,000 crore which they pump into TV channels annually to promote their products and services to TV viewers who are their consumers. And almost 60-70 per cent of that goes into those seven broadcast networks.

    "I don‘t know see why there should be a need for anyone to have a confrontation at this time," expresses Bhasin.

    Aegis Group‘s Ashish Bhasin says advertisers would prefer to put money in the bank then advertise in this situation

    In fact, the broadcast industry has been increasingly flexing its muscles in recent times. While they are competing for viewership with each other daily, they have over the past four or five years increasingly bonded together, finding common cause on issues which are plaguing them. Whether it was on the cable TV carriage fee burden or self-regulation or digitisation, the broadcasters have stood united and lobbied hard to get their views heard and get decisions taken in their favour.

    One of the issues with the ad industry was the gross billing issue. This had been a practice for decades followed by ad agencies, and broadcasters for TV spots carried on them. The broadcasters – led by their association the Indian Broadcasting Foundation (IBF)- wanted the practice to be changed to net bills when the income tax department got after them to pay tax for ad agency commission (which was not being paid by them actually but was only mentioned in the bill). Ad agencies – AAAI – resisted this change even though the IBF continually urged them to do so.

    IPG Media CEO Shashi Sinha says advertisers are now taking their decision

    The IBF then put its foot down and said its broadcaster members would pull out all TV spots from TV channels. Ad agency resistance continued for a couple of days before it melted and agencies, the Indian Society of Advertisers (ISA) and the IBF hammered out a solution, which saw net billings becoming the practice, albeit with a legend of 15 per cent commission attached. To media observers, it clearly showed who had the power – broadcasters.

    "Agreed that broadcasters had their way in the net billings case because it related to a routine mechanical exercise which did not impact advertisers. It only concerned agencies and broadcasters," explains Bhasin. "But this time it is the advertisers themselves who are being impacted."

    Adds Srinivas: "And advertisers are saying, we will not advertise on those channels for which we don‘t have data. We as their agencies cannot plan on a monthly basis without data and hence are complying with our clients."

    Madison Media COO Karthik Laxminarayan cautions that aggression is not a solution

    "The key thing is that these days advertising comes in bursts of four to six weeks," points out Bhasin. "And if reporting is going to come after the period is over, how will advertisers monitor how their communication is faring with TV viewers? The world is moving to real time reporting of viewing habits. The advertiser has a right to know how the money he is spending is faring and whether it is getting him results. With the monthly reporting, it will not be efficient."

    "India and Vietnam are the only two nations which don‘t have a daily ratings system," adds Srinivas. "And now we are talking about going monthly. It is a retrograde step and it has been pushed through without any logic."

    Bhasin points out this time the broadcasters are a divided lot too. "While these seven broadcast networks are demanding monthly reporting and monitoring, the others are still going with weekly reports," he says. "How can you have two sets of practices in the same sector?"

    Vivkai Exchange CEO Mona Jain: Advertisers will blink first

    But the fact that the broadcasting industry is divided is going to work in the advertisers favour. "I don‘t know why there is this misconception that we cannot do without these 100 channels," says Srinivas. "This is a myth. We can do good media plans and reach our customers even without these channels. There are another 200 channels we can use. And they have said they are more than willing to do deals with us. DD could be a good option."

    He also believes that advertisers are going to start putting their money into other media outlets like below the line, print, and digital. "The floodgates are going to open for digital advertising. We have seen so many clients talking about using digital media over the past month ever since the TAM issue has broken out. And over the past 24 hours two clients have totally shifted from TV – one to a print plan and the other to a digital one. Agreed one of them is a niche player, but the advertising mindset is changing."

    Agrees Sinha: " What are the alternatives left for advertisers? Some might go to print, some might stay away or some might even come back to TV, no one knows what will happen until and unless both parties talk it out."

    Havas Media MD Mohit Joshi says it is a lose-lose situation for all

    Bhasin believes advertisers might also choose to totally do without advertising and straightaway add the money saved to their bottom lines "And in this tough economic times, it is better to have cash in the bank then spend it," he says.

    "It‘s true," points out Srinivas. "Advertisers would rather not advertise than advertise without any data. One or two months without advertising is not going to break any brands. There are even more efficient ways to reach customers than TV."

    What has left most media professionals confused is the hard stance taken by broadcasters. "I agree there could be genuine problems with TAM. But how is 30 days for reporting ratings better than weekly ratings when the data is not trusted by them? There is no logic to the broadcasters‘ stance. This is not a banana republic where you turn things on and off as it suits you," says Srinivas.

    ISA media committe head Hemant Bakshi will be playing a key role

    The question on the top of everyone‘s minds is: who is going to blink first and how long will the difference of opinion continue between broadcasters and advertisers? According to Bhasin, the basics of any business is "the client is always right. I think, within a week, better sense should prevail and things should get sorted out."

    Srinivas is not willing to speculate on the time period but says advertisers will stay off the TV channels until they start getting the weekly data they seek.

    "Obviously advertisers will blink first. Where will they get such a mass reaching medium," says a TV channel CEO. "They came running back to us on the third day during the net billings crisis when we blocked them out for two days."

    Vivaki Exchange CEO Mona Jain believes that "there will be some kind of a push back wherein it will be the advertisers who will have to compromise."

    Lulla says it is a private matter between broadcasters and advertisers

    Others highlight that the combative attitude should give way to finding solutions. "We, as an industry, should not think aggressively but progressively; and try to resolve it by having a healthy discussion," expresses Madison Media COO Karthik Laxminarayan.

    Havas Media India MD Mohit Joshi says that on a personal level, "I am sad that all of us together are not able to find a solution. All such issues are in a lose-lose domain. Nobody is actually going to gain. Broadcasters could end up losing revenue."

    Indiantelevision.com got in touch with ISA media committee chairman Hemant Bakshi to get the advertiser perspective and he said he would prefer not to at this stage.

    Ditto with broadcasters. Indiantelevision.com got in touch with Star India CEO Uday Shankar, Viacom18‘s Sudanshu Vats, Times Television Network CEO Sunil Lulla for their views. All of them refused to get into any discussion. "This is not a matter for public scrutiny. It is a private matter which has to be resolved between broadcasters and advertisers," says Lulla.

    For their individual sakes, hopefully they will do so soon.

  • Sports emerging as preferred marketing tool for brands: SportzConsult

    MUMBAI: Sports emerged as the most preferred marketing tool over celebrities, events and product placements in movies, music or art, according to a survey conducted by SportzConsult, a Mumbai-based sports management company.

    The survey spoke to over a hundred senior marketing professionals across sectors such as FMCG, Automotive, Telecom and BFSI. Of this group, 83 per cent have already used sports in their marketing campaigns and 72 per cent have seen positive results.

    Of the brands that have not yet used sports as a marketing tool, 77 per cent have affirmed it as a course of action in the near future, as per the survey.

    The survey was designed to demonstrate the trends and perceptions in the use of sports as a marketing tool among brands in India, including the primary reasons to engage sports for brand marketing, the channels of engagement, key audiences and evaluation of sport based marketing campaigns.

    Commenting on the results of the survey, SportzConsult Co-Founder and CEO Jitendra Joshi said, “Sports has the power to mobilise and motivate. In the coming years, brand managers have the huge opportunity to leverage the positive attributes of sports and earn better ROI on marketing spends. The growing adoption of sports for marketing among corporate India will be a win-win for both brands and consumers.”

    Passion drives brands to sports

    Passion, youthfulness and the association with active lifestyle came up as the top attributes for choosing sport over other options. Nearly 75 per cent of the respondents favoured one of these attributes as the key driver for a sports engagement.

    Only one quarter of the respondents cited iconic nature of the sportsmen as the key reason for associating with sport. Given the fact that over 50 per cent of the population are under the age of 26 years, marketers believe that sports is the most attractive platform to engage their target audience.

    While popular sports like cricket and football are still the top choices for marketers, it emerged in the survey that these choices may not always provide the real bang for buck, especially if you want to concentrate on a niche audience.

    According to many brands ( more than 40 per cent of the respondents), an exclusive sport like golf or traditional sports like Kho-Kho & Kabaddi are a much better way to engage the relevant target group.

    Moreover, the heightened need for a healthy and active lifestyle among working professionals is making marathons increasingly popular among marketers, as 24 per cent of the respondents cite a marathon as an ideal marketing opportunity.

    Sports is a strategic and long term commitment among Indian marketers

    More than half the respondents looked at their association with sports for brand-building as strategic and long term, indicating the growing relevance of sports in the marketing mix. Of this group, 67 per cent of the respondents considered using sports as a strategic long term decision rather than a tactical approach.

    While over 70 per cent of respondents count TV advertising spots as the main component of their engagement with sports, almost 95 per cent cited professional event sponsorships as the best option for brands looking at stepping up their reach among the TA. While over 85 per cent of the brands used existing sports properties, 45 per cent of them had also created their own properties around sports as part of their marketing campaign. However, the survey also revealed the perception that creation of sports properties is risky, as against investments in popular properties.

    The number of participants and spectators emerged as the most important criteria that brands cite in evaluating a sports program. The next two important factors while evaluating a sports program were the opportunities to leverage brand with the event and media promotion and impressions.

    Spend on sports sponsorships to go up

    Over 65 per cent of the brands responding to the survey have spent over Rs 10 million on sports-led marketing campaigns, while 35 per cent of the group has spent over Rs 50 million. Not surprisingly, IPL attracts the big chunk of sports sponsorships spends. 60 per cent of the total respondents have confirmed an increase in their investments in sports in the coming years. However, despite this buoyant interest in sports as a marketing tool, around 30 per cent of the respondents still spend less than 10 per cent of their marketing budget on sports, citing the nebulous nature of sports sponsorships in India.

    Effectiveness of sports-led marketing campaigns tied to sales and customer perceptions

    As much as 82 per cent of the respondents measure perception changes owing to the sports-led campaigns, while 62 per cent of the group preferred tangible results such as direct impact on sales as the top criteria for evaluating the success of a sport-led marketing campaign. Yet, over 50 per cent of the group believe that the need of the hour is a more effective evaluation toolkit to measure the impact of sports-led campaigns.

    Leveraging sports sponsorships

    The survey revealed that while sports sponsorships are popular, Indian marketers, have not mastered the art of leveraging sponsorship programs for continued and long-term marketing success. While sponsorships help brands attain reach and visibility among TA, leveraging the sponsorship is generally more crucial to meeting one’s marketing and organisational goals. In India, only 7.2 per cent of the brands have invested 100 per cent equivalent of the sports sponsorship investments (a norm in markets such as the US and Europe) in leverage programmes, while nearly 38 per cent of the brands invested an equivalent of less than 25 per cent of the sponsorship spend on these programmes.

  • Old question, new perspective: celeb vs non-celeb ads

    Testimonials by celebrities “are below average in their ability to change brand preference. Viewers guess the celebrity has been bought, and they are right…. Viewers have a way of remembering the celebrity while forgetting the product,” quoth David Ogilvy in Ogilvy on Advertising (1983).

    Much ink has been spilt over the in/efficacy of using celebrities in ads. Even David Ogilvy, “the father of advertising,” did not spare the issue a good whipping. From Kapil Dev‘s Palmolive ka jawab nahin in the eighties down to Shah Rukh Khan‘s recent endorsement of Nokia – almost all the ads on TV, radio, print and the internet are accompanied by the physical presence or voice of some celeb. It is also true that we all liked the Palmolive ad and of course still remember it in spite of Palmolive no longer being the only lajawab shaving cream brand in the market. Indeed, advertising is just as competitive as the business of selling a product or service.

    But one thing is sure – that a memorable ad has the power to render a product memorable by making it a generic byword for all products in its category. As asianmarketresearch.com says, “The first recalled brand name (often called ‘top of mind‘) has a distinct competitive advantage in brand space, as it has the first chance of evaluation for purchase.” The “Got milk?” campaign in the US that put life back into milk sales nationwide after a 20-year slump, the Dhoondte rahe jayoge ad of HLL‘s Surf Excel that was meant to be an entertaining rejoinder to P&G‘s Ariel, the “Sunil Babu” ad of Asian Paints – are examples of memorable commercials that definitely aid in the brand recall. But how many of us can recall the ads (if there were any) of Ariel and Berger from that period? Too few, I am sure.

    Moreover, in view of Forrester Research‘s recent report that ad agencies of today are not well-structured to tackle tomorrow‘s marketing challenges and that consumers increasingly do not trust marketing messages, this old “effectiveness” debate between celeb ads and non-celeb ads ultimately boils down to the debate between ads and no-ads.

    The difference between a celebrity and a non-celebrity is obvious. A celebrity is a person who is publicly recognised and who uses that recognition to further the goals of marketers by appearing in advertisements directed at consumers. Similarly, a non-celebrity is a person who, prior to placement in the campaign, has no public recognition but appears in an advertisement for the product.

    Network 18 Group‘s network creative director Zubin Driver places importance on the script of an ad. He says, “The effectiveness of an ad depends on the script. I think it‘s a creative mistake to use a celebrity when the script is weak. There‘s also the question of execution – how the idea behind the whole project is being executed. A good idea, coupled with an original script and good execution, makes all the difference.” He adds, “There should always be an association between the image of the endorser and the product/service being endorsed. These days, celebs are being overexposed in ads. People are being confused and bored.”

    For an ad with a non-celebrity spokesperson, credibility is highly correlated to advertising authenticity, which is in turn correlated to purchase intentions. For example, we can take a recent Canara Bank TVC where a middle-aged South Indian lady learns Punjabi to welcome her son‘s Punjabi fiancé into the family. Capturing every detail and nuance of a Kannada household, the TVC lends believability to the locale and situation. In other words, the ad makes viewers feel “at home”.

    However, researchers also found that under high-involvement conditions, arguments but not celebrities influence attitudes, whereas under low-involvement conditions, celebrities but not arguments influence attitudes. This suggests that celebrity influence may be related to the nature of the product rather than the person.

    Since celeb ads are expensive, the question arises whether such ads pay in the long run. It is relevant to note here that according to media reports, Shah Rukh Khan‘s “income from endorsements fetches him Rs 1.5 billion ($38 million) a year, the highest for any Indian advertising ‘model‘.”

    Driver agrees and adds, “Like celebs, cricket is also being overexposed and overused. Everyone‘s trying to cash in on the popularity of cricket. As I said earlier, without an original idea, cricket as a background in ads doesn‘t work.”

    According to Ogilvy & Mather‘s executive creative director Abhijit Avasthi, it is wrong to say that celebrity advertising is a shortcut method but certainly not a creative way to reach out and better brand recall.

    “I‘ve worked with Abhishek Bachchan in the Motorola ad, which is a very successful ad. If a strong idea is executed well, celeb ads definitely work,” he says.

    It is also true that celebrity endorsements in India and abroad are different. In the west, celebs endorse brands that are associated with their image, fun, sports, etc. One remembers St John‘s ad with Angelina Jolie, Louis Vuitton ads with Catherine Deneuve and Scarlett Johansson, and the ads of VISA featuring Pierce “Bond” Brosnan.

    Avasthi says, “I don‘t think that there should necessarily be an association between the celeb‘s image and the product being endorsed.”

    But is Amitabh Bachchan in a Reid & Taylor ad just as effective as Amitabh Bachchan in a Navratna oil ad?

    Avasthi defends, “Celeb ads of lifestyle products are always effective because of the presence of the celebs. People tend to use such products. The celeb factor may not be a necessary component of the ad – his/her presence may be natural. Amitabh Bachchan is one of the greatest actors of our time. Since an ad is like a film, having Mr Bachchan act in an ad pays doubly.”

    Indeed, people can relate to the celebrities very easily. They talk about Amitabh Bachchan and Shah Rukh Khan in such a way as though they were members of their family. They know about the celebrities more than their own close relatives!

    There is also the matter of trust. If one sees an unknown face in a commercial for a new product he or she will not be buying it very easily unless the person concerned is an early adapter and is obsessed with that product. On the contrary, if a person sees some known face with whom he can easily relate, the trust will come automatically.

    For sure, in the successful “Got milk?” campaign, believability, knowledge, appearance and liking for the celebrity were highly correlated to each other and also with purchase intentions.

    Thus, an ad has to bring in the right person for the product. If Aishwarya Rai is made to advertise for some sport material that ad will not be as successful as those projecting her as a beauty icon.

    As McCann-Erickson‘s regional creative director (South & South-East Asia) Prasoon Joshi says elsewhere, “Celebs should be used as messengers, not the message.”

  • Television Advertising from January-November 2007

    Television Advertising from January-November 2007

    Count of Advertisers and Brands.
     

    Count of new programmes on different channel genres

    • General entertainment channels recorded the maximum launch of new programmes to hold on its viewers, followed by news channels.

    Categories with maximum new launches.
     
     
    • Interestingly, the evergreen sectors ‘educational institutions’ and ‘real estates’ registered the highest number of brand new launches on TV, to increase their visibility during January-November 2007.

    Exclusive advertisers on TV.
     
     
    • Exclusive advertisers on TV accounts for nearly 40 per cent of total advertisers’ pie.

    Consumer is the king.
     
     

    New launches on TV

    • Among all brands advertised on TV half of them were new brands.
    • Home Shop 18 took the top most slot of new brands advertised.
    • Five of the brands under ‘Personal Care’ made it to the top ten slots.

    The Biggies sponsor programmes.
     
     

    Top programme sponsors

    • Programme on telly do hold on the viewers and the big daddy seems to cash in on this.
      HUL, Coca Cola and L’Oreal India were the top three advertisers with maximum share of Promo Tag.
     

    (Analysis from AdEx India – A Division of TAM Media Research)