Tag: FMCG

“The adoption of multiple frequencies will mark the next inflation point in radio” : Naveen Chandra- Radio Mirchi SVP & National sales head Naveen Chandra

The media industry has recently been eyeing the advantages that radio is promising to offer, but when it comes to the monies, advertisers are still apprehensive to bet big on the medium. As the radio industry in India evolves progressively from mass to niche, the industry is setting its targets to rake in the moolah. However, obstacles are inevitable and the biggest threat is of under valuation in proportion to its reach and accessibility.

In a free flowing conversation, Radio Mirchi SVP and National sales head Naveen Chandra shares his views on the scope of the medium in India, which he believes will be fuelled following the Government’s sanction of a multiple frequency approach adopted by a single radio operator. He tells Indiantelevision.com’s Renelle Snelleksz that this will mark “the next inflection point in radio.” Geared to take on the big guns of print and television, this radio player has set high standards for itself and demands a premium as it moves into the radio era.

Excerpts:

Could you shed some light on Radio Mirchi’s sales and media strategy?
As a market leader we have been pioneering efforts to look at things very differently. As a medium, radio is very unique because it can be both National and local at the same time. There is no parallel to this, for instance television is national by nature, and although regional television does come close, it is still very fragmented and exits in certain pockets. In terms of a National network, even print does not have editions across the country and is more regionalized. Thus we are a medium that’s does not have limitations of geography, which places us very uniquely to conduct a national or local campaign.

The second thing about radio is that if you look at Tam data radio lures advertisers from across different product categories. While there are some categories that will use print or niche channels like FMCG, the auto, telecom and banking sectors will not advertise on GEC’s. Radio in this respect is an all encompassing medium as it offers a solution to a wide spectrum of categories that advertise on different genres of print and TV.

Which are the biggest categories as revenue drivers on Radio Mirchi? How do they stack up percentage wise?
Banking and finance contribute to 11 -12 per cent, media and entertainment 10 – 11 per cent, telecom 9 per cent, retail and real estate 8 – 10 per cent, automobiles 7 – 8 per cent and durables (which on an annual basis is cyclical).

Which are the new entrants that are flocking to radio?
We recently conducted an IPO marketing seminar with merchant bankers to get them to look at the medium positively as it can provide returns due its large reach, which exceeds a Star Plus or Times Of India. Besides radio can also provide a lot of on-ground and BTL brand building activities that attract audiences to consumer the product.

How do you justify the fact that radio exceeds the reach of Star Plus or TOI?
If you look at five minutes of continuous viewing on any television channel, you will notice that it is lower than the reach of radio. Using one simple metric – to consume television you need cable connectivity, to consume print you need literacy but to consume radio you nothing but to enjoy good music. Therefore radio by definition, reaches 99 per cent of the population and the reach will always be larger than any other medium.

What is the current reach for the station nationally?
Currently, 1.7 crore people tune into Radio Mirchi daily across 10 stations that include the four key metros Mumbai, Delhi, Kolkata, Chennai, as well as Bangalore, Hyderabad, Ahmedabad, Indore, Jaipur. Stations in Patna, Jalandhar and Goa have recently been added.

What are your plans to increase your network across the country?
We are looking to launch another 20 stations across the country within the next six months.

What’s the revenue growth that Radio Mirchi has seen over this fiscal?
We have seen good growth over this year, however I will not be able to share exact numbers until our annual report is out.

But we have marked about 50 – 60 per cent revenue growth on radio.

What is the current revenue generating model that radio operates on and how does it compare with television and print advertising rates?
For radio we follow ILT research that helps us to operate on a cost per reach (in thousands) model, so while our rates are high, our cost per thousand is very low. Typically print and TV operate on the on cost per thousand (CPT) approach but at about Rs 1300 – 1400 depending on the channel.

Our rate is Rs 70 per thousand people, which is very low in comparison to television and print. But as a means of comparison, one ad in print is equivalent to about 30 ads on radio, so in that sense it is much lower.

‘The reach of radio exceeds a Star Plus or Times Of India‘

What’s the ad growth curve that the station has seen over this year?
With our focus towards a lot more on corporate driven advertising, if you look at the ad growth we have seen good growth over the last four to five years. Additionally, the ad durations have come down significantly from about 45 seconds to about 15 seconds on an average because the advertising environment has become more promotional led than as branding activities.

In terms of spot rates, what is the margin between Radio Mirchi rates and your closest competitor?
In Mumbai, our rate would be Rs 1,800 for 10 seconds, while other stations would range between Rs 400 – 1000 for the same.

What is the current market size for radio in India?
It presently stands at about Rs 500 – 600 crores.

Could you highlight key benefits of radio as a medium?
Radio is very linear medium, for instance in New York there are 89 radio stations but the average number of stations a person listens to is 1.7, which is under two. Essentially, this indicates a high loyalty towards radio stations as programs are seamless and it’s not like every hour there is different show. The characteristic of radio is such that it is very personal and intense and therefore is consumed as a medium of ‘one,’ it’s a mass as well as a personal medium. While for television, every half hour there is differentiated content which forces the viewer to keep shifting in and out of channels. Similarly, a Friends fan will watch the show on which ever channel it beams, so even if cricket had to shift to something like B4U, then everyone would flock there even if they have never seen the channel before.

Therefore, for radio the research we conduct points to many unduplicated audiences that are loyal to one station alone. Thus, many unduplicated audiences will continue to be present but will not be reached even if one operator were to buy out a set five to seven stations.

However, acquisitions will increase your presence across the country, so are you looking to buy out other stations?
Well, we don’t know that yet. But in a sense the next inflection point in radio will be multiple frequencies.

With India experiencing a boom in radio, what are the key differentiators for Radio Mirchi in this cluttered environment?
Our key differentiator would be our programming and jocks which are very contemporary. Through a lot of analysis and research we cater to the needs of listeners. We often tie up with Bollywood to premiere music on our station.

Radio has a lot of elements that a listener can identify with like for instance a radio jock. Also, every radio station has a particular ‘stationality.’

In more mature markets, often clients only advertise on stations that are a natural extension of their brand and its values? How far away is India on that evolutionary scale?
Let me give an example – There was a time when Warner Brothers would advertise on Go 92.5FM because it was English and niche, but today advertisers such as these are seeing the benefits of a mass radio stations as well.

With television further fragmenting into ‘niche’ specific channel offerings, how long before radio also branches out into the realm of niche stations? Given that Go 92.5 FM grew quickly extinct and resorted to mass appeal, what barriers would radio encounter before it adopts a niche approach?
Once the Government approves of a multiple frequency model, where a single radio operator will have different frequencies, it is then that radio will experiment and take the route of niche stations. But this will not take shape unless all the radio stations that are scheduled to launch this year roll out there plans.

What do you see as the way forward for the radio industry in India?
Currently, radio only occupies two per cent of an advertiser’s ad pie expenditure and that is dispensable. As a medium I feel our rate structure is under priced, the average cost for a radio campaign is about Rs 60, 00,000 across eight to nine markets. The challenge is to increase this by three times.

May 14, 2007

‘TV will continue to be important, but its importance will decline’ : Rahul Welde – HLL general manager – media services

For over 50 years FMCG major Hindustan Lever has dominated the Indian market with brands that have become a household name for many. Now it is about to turn over a new leaf to welcome its mother company Unilever. After having hogged the media space, especially television and now opening its doors to new media like internet and radio, the time seems right to question its experts on their outlook to the fast developing media landscape.

In conversation with Sujatha Shreedharan and Renelle Snelleksz, HLL general manager – media services Rahul Welde, who is most uncomfortable in front of a camera, puts aside all his inhibitions once he begins speaking on his area of proficiency – media and advertising.

Excerpts:

With the HLL name change announced, the next question is how would this pan out in terms of a branding and marketing strategy?

Since it’s just been announced, we haven’t really planned that out as yet. It will be put to vote in the AGM in May, after which it will get adopted and implemented.

One of the biggest advertisers on television, HLL is now looking beyond the medium. What kind of media mix does HLL now look at? You have also maintained that TV is bound to decline?

Television will continue to be important. However it will also continue to decline in importance. The reason for this primarily has to do with the way consumers are reacting to television messages. Studies indicate that there is a greater degree of ad avoidance, greater degree of clutter on television and that has resulted in lesser interest in television by consumers.

Simultaneously people are spending more time outdoors, doing other things than just watching television. As a result television is facing a lot of competition from the other media.

There was a time when there was no television and print had all the advertising – but that lasted only until television made an appearance. It ate big time into print advertising. Something similar will happen to television with the advent of radio, internet, mobile communication and other types of new media. Eventually they will fight for the same share of the rupee.

I don’t think anything as drastic as the death of television is bound to happen anytime soon but it is staring into the face of a huge challenge even while other media grow at an exceptionally fast pace. The same applies to our understanding of media buying as well. Our focus has shifted to alternate media and is much higher than what it used to be two years ago.

Also, I must say that there is also nothing like an HLL mix, as it depends on our brands. Some will focus on TV and spend nothing on print and vice versa, so the strategic thinking as to what to use comes from the brand and consumer lens. We are thus excited about the internet when it comes to youth brands, while outdoor and DD are key for brands like Wheel. From an industry perspective, I think radio will experience growth.

With HLL always known to be television heavy, what happens in the case of mass channels and niche channels, what strategy would you follow in that case?

Well, we do spend on niche and mass channels, but with the whole area of fragmentation of audiences with multiple channels emerging, where stickiness is a challenge and competition is high. Now what it really means for us is that segmentation and multiplication of channels provides the opportunity to peg note and talk to the consumer.

Unfortunately, the costs have increased and given that the overall advertising pie is fixed. The ad pie doesn’t grow because there are more channels, but what is happening is money is shifting from the big to the small or from the leaders to the challengers.

The growth of channels, we will see an increase in the number seconds, but what is often interpreted is that spends are also increasing in the same proportion. It is of course a big challenge as fragmentation makes the task of planning even more difficult, where agencies will produce software and optimizers making the process more sophisticated. This scenario is good for segmentation, bad for costs. Thus I don’t know whether to call it a ‘happy situation’ because after a point of time your returns become sub-optimal when costs are high. Then that becomes a worry.

Given that you are the biggest advertiser on kid’s channels, what is the potential that you see in this space and how do you (as an advertiser) think it will shape up in the coming years?

For us it is important, but the degree of importance it would be very low because you have to look at it from the brand and consumer fitment perspective. There are a few of our brands that actually talk directly to kids while a larger percentage of our brands look at the older demographic.

Even then we are the largest advertisers. So you can imagine if kid’s were to become important then we would really have to up our spends. But the interesting part is that kid’s involvement in influencing the purchase decision is growing. Now does that mean that they participate in the decision to buy a laundry powder? My guess is that they don’t.

Thus, it’s not really a major part of our media thinking but it’s interesting because there is a lot of stuff happening in the kid’s space.

You’ve shown a lot of enthusiasm about radio. But it seems HLL mostly uses AIR and not private station. How do you view private FM?

I see private FM as a very exciting space for us because suddenly with the addition of newer towns, viewers will have more choice in media. This viewer engagement will attract more advertising, so from our perspective which brand will resort to using radio will depend on the brand and consumer fit. Right now we are in the process of taking stock of radio advertising and as we see it increasing to about 300 stations, but more importantly the excitement is about the increase in towns.

Now whom we are in partnership with has to be strategically thought out, but we are in talks with several partners. The good part is that there are new and established players coming into the fray. Even now we are the largest advertisers on AIR and FM, this will only mean that our footprint will become broader within the radio space.

Media planners are hesitant about radio due to the lack of key differentiators, what are your views on that?

Somewhere a woman/man is being wooed and while people begin to analyze this space I think we will get on to the bus much faster. We have in the past invested in the medium and will continue to do so. We will not wait to see who emerges as different, as differentiators are what you create. You don’t view TV the way you used to therefore, radio will also be consumed differently. I don’t know what media agencies generally view this space, for us what is important is what we can do to it. Currently, we are holding our excitement.

Following Wheel Smart Shreemati and Rin Mera Star Super Star will AFP’s be given greater importance going forward?

All our AFP’s played out very well for us, Wheel was the top rated show on Doordarshan. Although, it may appear like something we mounted and happened to do well for us, but the truth is we were working on it for three years. In 2004, the germ of the idea began, 2005 we tested it on a smaller channel and 2006 we took it to DD. Our planning and research helped us get to where it is as the top rated show.

The challenge is that you have to combine the arithmetic of the brand, communication and commercial and get the trio to work. However, the effort required for AFP’s is disproportionate. It calls for a genuine collaborated effort with the channel, the clients and the production house. It gives a new lens to the planning effort and it’s the next practice.

We have been cautious with in-films as we don’t really know how it pays back. It is one step higher than AFP in terms of collaborative effort, in fact it ends up being more of a ‘punt’ than TV.

Talking about the online space could you highlight what is currently being done with online marketing after Sunsilk Gang of Girls and Axe land?

We have got stuff in progress but not in the development stage yet. The Gang of Girls gave us better results that what we expected both from the returns and consumer engagement we got. The sheer numbers were amazing, we tracked all the measures and it appears the time spent by these girls was almost 11 to 14 minutes. We did it to get engagement rather than exposure and it was a collaborated effort with partners like Monster.com, Elle and Cosmopolitan. It went beyond just talking about hair to discussing everyday issues among friends, to have an extended conversation with the consumer. So both thematically and in terms of engagement it played out very well.

Also with Axe we did Axe Unlimited Academy and will roll out something along the lines shortly. So will we have all brands participate aggressively on the net? Probably no. But definitely our youth brands will, because it’s really about redefining the role of engagement. Therefore for us the whole space of internet is going to grow very fast and it will grow through a combination of such websites and simultaneously through traditional web based advertising. The net allows a huge amount of interaction but it depends on how you exploit it.

How does this translate into sales?

This was a brand building effort, but of course everything that goes towards building a brand must translate into sales. But it is about driving brand preference and an alternate way of communication.

A big change is likely to be seen which is currently under the surface, but the in the coming years the numbers in terms of advertising will show that.

The only thing that we consider is the brand and the consumer, the media needs to fit into that, so if online would largely be urban, but this is also applied to the rural I-Shakti programme, however, net penetration is still restricted to urban India, but progressively it will spread.

Even the outdoor space is very interesting, however it’s not being exploited sufficiently. Every time people travel, it’s an opportunity for advertisers. In fact, among different forms of media there are definitely some that are really likely to rock!

Could you name three different media that you think will rock in 2007?

I think for the next two-three years radio will rock, maybe not in 2007 because lets not forget that print is some 1,000 crores (Rs 10 billion) and radio only some 100 crores. If I were to have a prognosis I believe that radio will really double, because it’s just the sheer scale that cannot be ignored. But within this space there are also so many players, coupled with the lack of measurement at the moment will make it even more difficult, so who do you back, how do you know it works? Thus a half baked science gets applied. But the minute you put measurement, predictability and science behind it that will cause inflection, otherwise people will be cautious.

What will also make a big shift, whether it will rock financially I cannot say, but the whole business of in-store on-screen advertising, suddenly you will find them all over the place and therefore it will peel off mainstream advertising and then get evaluated analytically by agencies.

Even in the TV space, the whole area of Cas and DTH will keep the excitement alive. DTH is getting into rural space so that will be interesting. There is great action happening there as well, KBC 3 and others.

Another thing is that regional media is also getting more and more important across all genres, whether it has been Marathi, Bengali, Oriya and traditionally Telugu, Tamil and Kannada have been strong anyways.

We’ve talked conventional media and new media but HLL has always been a strong advocate of rural marketing? But the focus keeps shifting and after some time all talks of rural marketing die out. Can you give us an update on what has been happening on this front?

The biggest challenge for us is that a large part of India is still media dark. What that means is that television or print does not really reach there. Then there is the problem of infrastructure and literacy. Therefore from our perspective we’ve really tried to concentrate on on ground activation- demonstration, sampling and events.

While the problem of infrastructure, non motorable roads, etc. remains there is also a challenge of scalability. We’ve been active in the rural areas for a long time and progressively have increased our thrust in this area. The big change is of course in the scale. We have upped the scale in these initiatives.

We’ve got two-three programmes which we have been looking at for the last few years. One of them is Lifebuoy Swasthya Chetana- a rural communication programme around Lifebuoy that has touched over 130 million consumers across Bihar, UP and Rajasthan. Similarly, there is Project Shakti. The Shakti Vani is a programme that we started keeping in mind communication with rural consumers.

While Lifebuoy Swasthya Chetana is a brand specific programme, Shakti Vani cuts across all the brands to speak to the consumer. The action in rural India is all about being ‘their type.’

Is there also a challenge of making these initiatives profitable? You have talked to us about scaling it up? Since you do talk about the challenges, how do you go about building your capabilities and expanding it?

The issue is not so much about profit although there is a worry of cost effectiveness. So when you know that there is a cost involved in physically being there which cannot always be done. When I say scalability, the challenge is to do with two things – one is to do with researches on ground.

If you want Western class communication to reach rural India, you need a full stream of resources which works down the line, is well trained and which understands what is being spoken about. The fact remains that the scope of the country is so vast and immense that no matter how much you do, it’s never going to be enough. Despite this, I don’t know any other company which does as much in rural marketing as we do.

We work with one agency on our rural initiatives – Ogilvy Outreach and have built a strong network through our vendors. I think over time we have built our capabilities in this segment. As for expanding this further, yes we would look into that as well. We are expanding in almost every sphere and rural marketing will come under that focus too.

‘Big monies are being pumped into cricket on TV, but I don’t see the same quantum of returns‘

If we could just talk about HLL brand and brand categories. You have largely spoken about brands in the health and personal care segment, in this respect has the push in the food division been milder?

We do have firm positions in beverages. In fact, we just re-launched Taj across a multimedia campaign. There is excitement in foods but the scale and salience is very different. It is largely to do with the category and not so much to with the brand itself. Our tea brands are the largest in the category but if you look at these brands in advertising terms they are not as active as the personal care. Inevitably you would see Lux, Lifebouy, Sunsilk, Surf, Rin as large media and advertising brands.

As opposed to the parent company, which has a strong presence in the food category, therefore would the recent global alignment following the inclusion of Unilever into the companies name, mean that there expertise in foods would be brought to India?

It’s outside my remit to comment on that because that’s a matter of corporate strategy and how the food units would grow and I can only comment on advertising. But in totality the investments in this space are as hot as personal care and it’s growing as much. It is smaller in scale but as active.

Finally, with the World Cup Cricket right around the corner, any new initiatives or plans for the season?

(Laughs) You know every year there is great excitement over World Cup Cricket among advertisers and also channels. We share that excitement too, but we don’t want to be carried away by it. We will have certain things in place for cricket, some of our brands will have World Cup Cricket branding. But the fact of the matter is that a lot of money is pumped into cricket on television. The question to ask is where does this extra resource come from? It is but obvious that it is either pulled out from some other kitty or companies start following a cost cutting plan. So while I may be excited about it, I don’t see the same quantum of returns in World Cup, so I am cautious.

So it is great that the advertisers are looking at World Cup. For us the larger worry is the movement of eyeballs from the general entertainment channels to the sports and news channels. Finally it’s a question of checks and balances. Is this rupee spent worth it? Any advertiser would ask himself that before putting up his money. Otherwise it becomes like a punter’s game.

March 5, 2007

Hinduja TMT acquires US based BPO firm

MUMBAI: Hinduja TMT Ltd (HTMT) has signed an agreement for the acquisition of a US based BPO company, AFFINA, for an undisclosed amount.

According to an official statement, this acquisition will enable the HTMT to access a large and high quality client base, comprising many Fortune 500 companies, while enhancing the company’s onshore delivery capabilities in the US in specialized domains like consumer electronics, FMCG, retail, government and telecom.

AFFINA, a BPO brand in the US, has annual revenues of USD 60 million, and operations in seven centers in the US and Canada. The company has a three – decade track record of serving globally recognized clients.

This deal strengthens the company’s marketing presence in the US. The company will now be operating from 14 cities, seven of which are in North America, one each in Philippines and Mauritius and five in India.

The integrated entity would have a customer base of over 65 customers and a total headcount of over 9,000 employees. This acquisition will nearly double the company’s combined revenues to over USD 130 million and catapult the company into the top five pure-play BPO companies in India, informs the release.

Commenting on the acquisition, HTMT CEO Partha Sarkar said, “AFFINA is a strategic fit in the Company’s global vision, Through its experienced management team, diverse skills and wide-spread network of delivery centers, HTMT is now poised to ramp up its operations in the growing American market. This will be a happy marriage of domain expertise, CRM capabilities and management skills.”

October 28, 2006
Network 18 announces film foray; sets up Studio 18

MUMBAI: Network 18, the holding company of TV18 Group, has officially announced its foray into the big money game — movie business.

The company launches Studio 18, a full spectrum division that will mark the group’s entry in the motion picture business. With this the company is also planning to launch a home video label for Studio 18.

The announcement confirms news first put out (in June) by Indiantelevision.com that TV18 promoter Raghav Bahl was floating a company that would be involved in producing and distributing movies.

Studio 18 will look into the aspects of acquisition, production, syndication and distribution of full-length feature films. Based in Mumbai, the company will have its distribution offices in London and New York, according to an official statement.
Studio 18 will be headed by former Sahara-One Motion Pictures COO Sandeep Bhargava while Priti Shahani will lead the marketing division. Additionally, she will also be heading the syndication and distribution business for the company.

The company has also roped in former UTV Motion Pictures VP international & acquisition Ashoka Holla to head the international distribution and acquisitions business. He will also be responsible for launching and driving the Home Video label for Studio 18.

While, former Percept Picture Company production business head Chitra Subramanian, who was instrumental in developing and producing several movies like Hanuman, Malamaal Weekly, and Corporate, will head the production division. She has in the past worked closely with filmmakers like Sanjay Leela Bhansali, Priyadarshan, Nagesh Kukunoor and Madhur Bhandarkar.
Deepti Chawla will head the creative function. She comes with a background in advertising and film-making and can be credited for effective packaging of films like Hanuman, Malamaal Weekly and Corporate.

Sibashish Sarkar has been appointed as CFO. Sarkar has spent 13 years across various FMCG and other industries, working with organizations like Godrej Sara Lee, Shaw Wallace & Hindustan Cables. The last three years have seen him in Entertainment companies like UTV and Percept Picture Company where he has played a strategic role in financial restructuring and been instrumental in setting systems and processes for the business.

Vandana Malik and Sanjay Ray Chadhuri, both founding shareholder-directors of the TV18 Group, will act as creative advisors for Studio 18.

Speaking at the launch, Raghav Bahl, TV 18 Group managing director, said: “We are excited about our entry into India’s dynamic entertainment industry. Studio 18 is a key component in our strategy to transform Network 18 into a full-play media conglomerate, with a leadership position in motion pictures, news broadcasting and internet portals.”

October 5, 2006
ACNielsen unveils ‘Utsav Express’ to analyse FMCG market during festive rush

MUMBAI: ACNielsen, the market information provider has announced the introduction of ACNielsen Utsav Express 2006 – a weekly service for monitoring the distribution and sales build up of key gifting products during the three month long festive period.

According to the ACNielsen audit the FMCG market usually witnesses an upsurge in sales during the festive period of October to December. The festive season of 2005 exhibited a similar trend with Rs. 8.44 billion of additional revenue coming in, compared to previous quarter.

To assist marketers the ACNielsen Utsav Express can help brands:
– Ascertain whether their product is placed in stores that attract the right consumer.
– Track popular gifting price point across regions.
– Monitor the retail sales build up for their gifting item.
– Explore the presence of point of purchase displays for the gift items.

ACNielsen director client service Sukanya Pal said, “As the time comes for consumers to celebrate, opportunities abound for marketers to capture consumers’ attention and share of wallet with their promotional initiatives. For this time of the year in particular, it is essentially one big festival time leading up to the end of the year. ”

ACNielsen data reveals that the spending habits of urban consumers on foods and non foods were about the same while in rural areas people purchased more of non food items like home and personal care products. People indulged more on cooking and personal grooming products in this season, which accounted for 29 per cent and 31 per cent of total incremental sales compared to the previous quarter.

“As the findings reveal, the spirit of celebration is not limited to urban dwellers but in rural India we have witnessed the same enthusiasm which has contributed to the upward sales trend for FMCG sector,” added Pal. “The challenge now for marketers to keep ahead of competition is not only to catch the attention of people in urban India but also penetrate deep into the rural zones.”

Traditionally the FMCG categories that drive the last quarter sales have been edible oil, chocolates, skin creams and lipsticks. Chocolates, the all time favourite gifting product, have seen a 16 percent increase in sales at an all India level in the festive months of October to December 2005 as compared to the previous quarter (Refer Table 1). Also it is interesting to note that in the top five gifting markets chocolates worth approximately Rs 190 million were sold every month during this season with as much as Rs 120 million coming from festive packs alone.

Salty snacks, biscuits are the other popular food categories where sales peak up during festive season, predominantly during Diwali period as revealed by Utsav Express 2005.

“Every city in India is very diverse with different consumer preferences but the willingness to spend is there all over. To marketers, it is a matter of placing the right products at the right store, at the right time and at the right price points. With Utsav Express marketers will be equipped with reliable retail market information to address these challenges,” commented Pal.

Currently North India is perceived to be the biggest gifting market with other markets moving rapidly in that direction. Consumers in Delhi have a preference to premium gifting products while “Low to Mid” price points catch the attention of the consumers in Mumbai.

Based on the findings from Utsav Express 2005, ACNielsen has derived valuable learning related to consumer dynamics especially during the festive season. Some of the interesting leanings are;

– Availability of stock in the relevant stores results in a high correlation to a better market share.
– Preferred price points for gifting vary across geographies.
– Point of purchase displays encourage consumers to buy gift items.
– Gifting preferences differ for various festivals.

September 23, 2006
Nimbus appoints Shashi Kalathil as CEO of Neo Sports

MUMBAI: Nimbus has appointed Shashi Kalathil as Chief Executive Officer of its sports broadcasting business Neo Sports. This will be effective from October this year.

Kalathil comes to Nimbus from the Tata Group and brings with him experience from the FMCG and telecom sectors. Prior to this he has served at Pepsi as executive director-marketing and has also had a stint with VSNL.

In addition to Shashi, Scott Ferguson has been appointed as Chief Operating Officer and will be based in Singapore. Within the next few days, Nimbus expects to make more appointments in its sports broadcasting business.

Commenting on his induction, chairman Harish Thawani said, “I have known Shashi over the years as a client (when he was at Pepsi) and apart from his obvious pedigree as a cutting-edge professional, above all he brings with him a level of integrity and values that are universally admired.”

Shashi added, “My mandate will be to lead a world class and passionate management team that has amazing depth of sports expertise, to greater consumer focus and to deliver outstanding value to Neo Sports’ advertisers and viewers through innovative use of technology.”

As previously disclosed, Nimbus shall be launching the first of its Neo Sports channels in the last quarter of 2006. Nimbus is constructing a state-of-the-art production and broadcasting facility in Mumbai’s western suburbs and expects to use several technological innovations to enhance the quality of sports broadcasting in India and be ready with interactive services by early 2007.

September 5, 2006

‘In some areas, we have done better than One Alliance, while in some areas we have done as well as Star. But no denying that at a national level Star bouquet is way ahead of others’ : Arun Poddar – Zee-Turner CEO

Arun Poddar is an industry veteran with an enriched experience and excellent track record of over 23 years in sales and distribution. He brings with him vast experience in media and broadcasting industry and proven ability in the FMCG sector. A business management graduate, Poddar started his career with Maxwell Industry. During his tenure of seven years with Maxwell, he successfully established a robust distribution network in the eastern region of the country.
One of the many important tasks that Poddar undertook during a stint at ESPN was seamless transition of ESPN from Modi Entertainment Network, which used to be responsible for ESPN’s distribution. After working with ESPN Star Sports for seven years, Poddar joined Ten Sports as vice-president, distribution and marketing. Utilizing his expertise in sales and distribution, garnered over 21 years, he successfully structured and developed an in-house distribution team. At Ten Sports, he also established a working and monitoring format to create a direct relation between company and trade.
After spending two years at Ten Sports, Poddar joined Zee Turner as its chief executive. A person who loves to read, paint and listen to music, Poddar in this interview with Indiantelevision.com Anjan Mitra holds forth on various aspects of the broadcast industry.

Excerpts:

What is your overview of the present scenario of the broadcast industry?
If you really see the broadcast industry in the last 10 years, then it has evolved a lot from being totally fragmented to a situation where big corporate bodies have come in and are trying to evolve a corporate structure. The distribution segment too has seen this happening with big MSOs coming in and trying to bring a semblance of order in the business.

At one point when big corporate entities started coming into the industry’s various segments it was felt that the industry as a whole would shape up faster having well defined corporate identities and professionally managed businesses as in other sectors. Unfortunately, that did not happen.

From a broadcaster’s point of view under-declaration of the subscriber base had always been an issue, which slowly became an accepted norm. The whole flip-flop on CAS since 2003 has added to the confusion in the market. However, CAS in its second inning now seems to be more of a reality than just talking about bringing in new technologies.

With the arrival of DTH and CAS, the choice of a consumer gets widened. It gives broadcasters a competitive edge as good content and a strong channel would be a winner. From cable operators’ point of view, new technologies not only bring in transparency in the whole system, but also some orderliness.

Don’t you think that intra-industry differences and constant appealing to the umpire (the government or the regulator) has impeded industry’s growth?
Fundamentally, everybody had their own agenda. There has always this issue of declaration or under-declaration between the cable fraternity and broadcasters. Most industry disputes emerged from this basic issue of want of more declaration of the subscriber base or a resistance to it.

Now this basic issue gave rise to subsidiary areas of dispute. I’d say that want of more subscriber base, price hike and introduction of new channels on limited bandwidth are at the core of ills afflicting the industry. These always created an environment that was not very conducive for business on either side.

The regulator’s efforts to address industry issues cannot be negated. At the end of the day, any industry difference would affect the subscriber. It’s always beneficial to have a neutral agency to oversee an industry as it helps the industry too to go to such a body and bounce off ideas.
Over the last 18 months or so every issue, major or otherwise, seems to be going to disputes tribunal, which results in loss of time and inconvenience to subscribers. What do you have to say about this trend?
This was bound to happen. When (industry) grievances are kept captive for long one glimmer of hope in a tribunal makes stakeholders run to it. Had there been a regulator or a disputes tribunal from the start or even earlier, the rush of cases in TDSAT would not have been there. It’s like giving vent to accumulated fury.

As part of the broadcast industry, are you, unlike some others, in favour of a regulator?
I am definitely in favour of a regulatory body.

Even if the regulatory body may end up over-regulating the industry?
A regulation is a regulation. At least in India you have the freedom to stand up and ask the reasons for a particular regulation and what led to its formulation. Ideally, a regulatory body should take care of the interest of all stakeholders, including consumers. It’s foolish to think that broadcasters should grow and the MSOs shouldn’t. If a particular segment is not growing, then the whole industry suffers.

It’s easy to put the blame for all industry ills on one particular segment, but that’s not the case and a regulator should see it turns out to be a win-win situation for all.

What do you think of the revenue share formula that the Telecom Regulatory Authority of India (Trai) has mandated?
At this point of time, I feel there is scope to better it (from a broadcaster’s point of view). Also, at this juncture we could put across our views to the regulatory body, which would be done in all probability.

If you ask me, what should have been the broadcasters’ share of revenue accruing from pay channels, I’d say 50 per cent, instead of 45 per cent. The remaining could have been divided in the ratio of 20:30 between the MSOs and local cable operators.

I am giving the LCOs more share as they are the retailers, while MSOs are whole sellers. In marketing practices, retailers always have the bigger margin.

Why do you think broadcasters’ share of the revenue gravy should be more?
Simply because broadcasters are making investments in programming. If cable TV subscribers and viewers in general want high quality programming, then broadcasters need to invest in such shows. Quality production can only come through higher investments and costs cannot be limited or capped.

How would broadcasters bring quality stuff if their margins are clipped? Every business runs on the formula that the return on investment is balanced. Low investments could also mean low quality production values. Would Indian viewers settle for shoddy programmes and production values?

What’s your opinion on Trai’s move to legitimize carriage fee charged by MSOs, a reality that was never discussed openly or accepted?
I don’t think carriage or a fee paid for carriage on cable networks’ prime band would be an issue in a digital era towards which everybody is working. A digital system will take care of not only quality of broadcasting, but also the shortage of space that’s plaguing cable networks.

Do you feel that ratings of various TV channels will get affected during initial phase of CAS, scheduled to be rolled out from 1 January 2007?
Any change will have its rub-off effect on all stakeholders, including customers. A transition phase always throws up some doubts, which would get ironed out over a period of time.

'Ideally, a regulator should take care of the interest of all stakeholders.
It’s foolish to think that b'casters should grow & MSOs shouldn’t'

Is there a chance of some pay TV channels going free in CAS areas to safeguard their reach, which is important vis-?-vis advertising revenue?
I really don’t think so. If the content is powerful, consumers will pay for a channel. It can happen that broadcasters introduce new free to air channels. I don’t foresee a scenario where existing pay channels turn free to air.

Do you foresee a scenario where a consumer picks and chooses channels in a CAS regime depending on events for a short period of time?
It is a possibility and will revolve around marketing initiatives. For example, a pay channel can be made available to a consumer for a year at X price. Now if that consumer wants the channel for just six months, then the cost would X plus a certain percentage. Shorter the period, higher would be the premium.

This trend could be a big concern for sports broadcasters as actual pay-per-view comes into vogue. These are advanced technologies, which will follow when digitalization, DTH and CAS set in properly.

Will CAS turn out to be beneficial from a distribution point of view?
Certainly. Apart from bringing about some transparency in the whole system, CAS would make the environment competitive, while giving more choice to a consumer. Distribution will have a bigger role to play in such a scenario.

With the introduction of CAS and expansion of DTH services, the focus of distribution will be more on consumer rather than just a broadcaster’s client, which is the MSO. As a distribution person, I’ll also have to keep in mind the interest of my client’s clients (consumers). Therefore, there would be a lot of play while servicing clients.

To facilitate a loyal customer base for a cable operator, it will be very important for me to also go and directly talk to the consumer about a broadcasting product.

What will Zee Turner do to dial the customer directly?
The primary objective should be the content and then creating awareness about it. As a company we would try to create a communication channel with the consumer/viewer to keep him in the loop about my product in its entirety.

The approach would have to be 360 degree in the sense that we get feedback from consumers, hitherto not permitted by cable operators to approach directly, and then create products or upgrade existing channels depending on the feedback.

In a small way, Zee Turner has started hooking up with the consumer. But it’ll take more time for this exercise to bloom fully as some doubts still persist. Those uncertainties have to be removed before a full-fledged consumer relationship exercise can be rolled out.

What are the future plans for Zee Turner?
With consumer becoming the king as options for him open up, thanks to new technologies, I need to be more close to him. Most company activities will be revolving around this theme of getting up close to the consumer, apart from satisfying my direct customers, the MSOs.

For this to happen, activities like events have to be organized either via TV channels or on the ground. As a bouquet, Zee Turner has the largest number of channels (32) across most possible genres of programming. The task before us is to pick up our positives and pass it on to the consumer in a way that is understood by him.

'In some areas, we have done better than One Alliance, while in some areas we have done as well as Star. But no denying that at a national level Star bouquet is way ahead of others'

Do you think the regulator is doing a fair job on the pricing front? (The question was asked before Trai mandated all pay channels will be priced at Rs 5.)
I think the regulator is trying to do a fair job.

Has a deal with Tata Sky been concluded?
We are talking to each other. We had suggested a price for Zee Turner bouquet of channels based on the formula mandated by a disputes tribunal in case of Dish TV and Star India. Tata Sky is not comfortable with the suggested price.

What are the issues bogging down an agreement to be concluded?
Tata Sky wants to be selective in terms of channels (from the Zee Turner bouquet), which we are not agreeable to; especially when such a criteria has not been adopted for other bouquets.

Has Tata Sky given any reason for being selective with Zee Turner channels?
The reason is quite obvious: lack of transponder space to accommodate all channels. But we also feel this reason is not true. We are keen on giving our channels to Tata Sky, but one cannot have different set of conditions for different broadcasters. Moreover, we are guided by an order from TDSAT.

What are the revenue targets for Zee Turner this financial year?
Zee Turner with a subscriber base of 4 million for bouquet 1 and 3.7 million for bouquet 2 is targeting a turnover of Rs 4000 million by the end of this financial year in March 2007. This should translate into 30-35 per cent growth in revenue compared to last year. I am not taking into account bouquet 3 as the subscriber base and revenue is negligible at this point of time.

I can say with pride that we have been improving our performance. In some areas, we have done better than One Alliance (Discovery-Sony distribution joint venture), while in some areas we have done as well as Star. But there is no denying that at a national level, the Star bouquet is way ahead of others.

September 5, 2006

Indian television advertising is very much underpriced’ : Joy Chakraborthy – Zee Network executive VP Network Sales

Joy Chakraborthy took charge of Zee Network as ad sales head in early 2005, at a time when Zee TV was going through a crucial phase. Chairman Subhash Chandra was strategising a turnaround for the flagship channel and a number of big ticket shows were being readied, with the expectations of re-writing Zee TV's fortunes in the Hindi GEC arena.

As Network sales head, Chakraborthy's first challenge was to project Zee in a new light. "Zee had a perception problem in the market and a section of the trade had written it off. We wanted to create a new impression and build on that," Chakraborthy says."There couldn't have been a better time for me to head the network's sales team," he gushes.

Speaking to indiantelevision.com's Bijoy A K, Chakraborthy elaborates on the strategies that worked for Zee, future plans and on the industry scenario.
Excerpts:

You have completed a year as the sales head of Zee network. Please elaborate on the key industry learnings you could gather during this period?
A crucial lesson we have learnt is on the significance of soaps in the GEC prime time game. We have learnt that GEC is all about soaps, but different from Saas-Bahu sagas. People buy a channel for consistency and not for spikes only. In the industry, on an average, 70 per cent revenue is tied up on a long-term basis and only soaps can fulfill that promise. Innovative programming is fine, but they should be scheduled and timed very effectively. When you innovate, it should not be just a programming decision but a collective decision including sales, marketing and programming.

Everybody had written Zee off. But we could pull off a turnaround — what seemed impossible until some time back – through team work, discipline, passion, accurate timing and by keeping the faith intact. As expected, the trade has responded to this change very positively, and now we enjoy the backing of the entire market. This is because of the strong relationships we had built during this period. What I am driving at is the fact that, relationships play a key role in this industry. This period also showed us who are our real friends and who are opportunists. Also, it has been a learning for me that both, people and organizations are important, and one cannot exist without the other.

How is the industry evolving? Give us a low down in the recent developments and the trends?
Indian television advertising is very much underpriced and we have decided to bring this issue into focus, under the banner of the Indian Broadcast Foundation (IBF). In a couple of months, we are planning to come out with certain guidelines on pricing, which would hold a lot of significance for the industry. Our main concern is the underpricing of television. It is a powerful medium and it should get its due, especially at a time when the costs of programming and marketing have skyrocketed. All network sales heads are now represented in IBF and we are united on this cause.

The present scenario is very confusing. Television is booming, but clients are very tentative to take a call on TV as compared to the print as television research is more confusing and dynamic and changes everyday. I think an increase of 15 per cent to 20 per cent in rate is due immediately. It should also be noted that cricket of late has not affected GEC/Hindi movies viewership, which are the primary revenue drivers in C&S. The Hindi movie genre is still very much underpriced and same is the case with regional channels.

I keep hearing that the English entertainment space is shrinking, but I don't agree with this as this is the genre with least wastage and where even an advertiser is a viewer.

Does GEC still hold an edge over other genres when it comes to delivery and demand? Or has there been a change in the pattern?
GEC will always hold the edge as maximum revenue comes to this genre. For any client, the reach build up and in some cases, frequency by smart scheduling comes from GEC. According to me, the genre pecking order would remain as: GEC, Hindi Movies, Regional, News, Sports – in that order.

In the last two years, unique content channels have seen so much of a price cut that the FCT has increased drastically and revenue in the genre has hardly moved. I sometimes wonder how they are still surviving in business.

Regional television space holds a lot of potential though it faces tough competition from print. The key segments driving growth in regional are: Retail, education and real estate, in addition to general categories like FMCG, telecom services, consumer durables etc.

Zee has already started working on all these segments. We have started roping in retail clients and our next focus is on the real estate and education. Though there is a slow transition of main print category advertisers to television, the good news is that these clients have realised the power of television.

Did the recent stock exchange fluctuations impact sales?
The fluctuations haven't affected us at all. Actually, Zee recorded better sales during this period of May-June. June-July usually has a lean period tag attached to it, but this year, it was different. This is one change in the normal pattern. These days, there is nothing called lean or peak period. This is due to the boom in categories such as telecom, services, finance and the perennial FMCG.

Today, advertisers are not limiting themselves to a particular genre due to media fragmentation. Most clients are there in almost all the channels/genres. Earlier, there used to be a particular set of advertisers for particular genres, such as premium products for English entertainment channels. These days, even FMCG brands are keen on English channels. It is a trend of aspirational marketing.

'With the good performance, our viewer base has also expanded and this, in turn, helps us to better our performance on a consistent basis'

The last one year saw Zee TV pulling off a turnaround in Hindi GEC, by reaching the second position. Could you briefly outline what happened during this eventful phase?
During this period, the sales team was able to initiate a lot of changes successfully. To start with, we decided to remove the paid bonus system and agreed to reduction of ad sales inventory. This helped to change the general perception that, Zee has unlimited inventory. Then, we made it a point to keep away from attempting any innovation in terms of sales. This is because, the delivery of innovations take too much of time for the value we generate. Also, I have observed that in spite of doing innovations, the clients/agencies are always unhappy with the implementations, however good you might do. So why do innovations?

We also focused on doing more client/agency meetings and met people at all levels. The Zee Network had a perception problem in the market, and the sales team has positively addressed this. I felt a lot of our positives were not known to the market. We had been very firm in our decisions and we always made it a point to abide by our well-defined sales policy. I have ensured all commitments/deliverables are in writing and not verbal, as this avoids conflict when people change at channel/agency side. When it comes to deals, the attempt has been to create win-win situations. We reduced our FCT to an effective level to create demand and initiated a very transparent sales policy.

We also introduced the Matrix system, which played a key role in bettering the network performance. We appointed individual sales heads, responsible for strategy, revenues and targets of their channels. We have senior people as branch heads in the business deployed in key markets such as Delhi, Kolkata and the South whose roles are more tactical and they ensure revenue spread across all channels and have their branch targets. Both sales heads and branch heads work very closely with themselves and with me.

For me, Zee has turned out to be a great place to work. It is a place with total freedom and great empowerment. I would say internal stability in Zee is very high. All decisions are discussed and not pushed down your throat. We have the best bunch of professionals, both at senior and junior level.

Please comment on your face-off with Star. Star recently initiated its counter strategy to block your surge in the 9-10 pm time band. What impact has it made on your game plan?
You feel happy when the leader reacts. Zee has pioneered the strategy of launching soaps with innovative media breaks. Seeing Star also doing the same for their show has been an ego booster for us. Coming to the second part of your question, it felt even better when the leader's tactics didn't affect our numbers and the market demand.

With the good performance, our viewer base has also expanded and this, in turn, now helps us to better our performance on a consistent basis. Earlier, when we launched a show, rating in the range of 1 TVR to 2 TVR was considered as satisfactory or good. Now, our new launches pick up very fast and the shows even record an opening rating of 2+ TVR on an average basis. This has inspired us to fight Star in its own bastion – the 10 – 11 pm band – with non-soaps such as Johny Aala Re and Sabash India.

So what is the next big idea? What will be Zee's next focus?
We have now settled ourself comfortably in the 6 pm – 8 pm and the 9 – 10 time bands. You will be seeing some more launches in the months to come which will strengthen our FPC even further. The programming, marketing and sales wings are now working on the strategies to strengthen the 8-9 pm band.

What is the strategy you follow to sell Day Parts?
We have made lot of efforts to increase the demand for the Non Prime Time (NPT) band. Each sales package has got a mix of PT and NPT. We ideally would love to sell at 30:70 for PT/NPT. We have also been selling early NPT and late night slots for religious/tele shopping properties. As a result of focusing on NPT, our inventory FCT consumption has doubled in NPT.

Which are the client segments that top your delivery list these days?
Still FMCG is number one, though there has been a major upswing in Telecom/Services/Auto/ to name a few. The concern has been the consumer durable category with a few big players not clear about their plans. Additionally, SMS has emerged as a key revenue driver for us for our interactive shows.

Speaking about the network performance, what is the scorecard?
Zee TV is on top followed by Zee Cinema. Zee TV was underpriced when I took over, and now we are steadily moving in the right direction of rate. We activated rate corrections twice for the network during the six months and now, as the festival season is coming, you can expect another correction soon. For some channels, it will be across all day parts and for some it will be programme based.

Revenue wise, maximum share comes from Zee TV followed by Zee Cinema, Zee Marathi, Zee Bangla, Zee English cluster, Zee Music and Zee Smile. The beginning of the year has been very good and I am sure we will touch a new high this fiscal.

Now let us take it one at a time. To start with, please comment on the performance of Zee Cinema. What is the plan for this year?
As a sales person, I can't ask for a better channel than Zee cinema which has been consistently delivering for years in the face of stiff competition. My colleagues in programming and marketing have given us a product which is a must have in all media plans, specially if it is targeting the "cow" belt (Hindi heartland). Since the last two years, the Amitabh movie band Shaniwaar ki Raat Amitabh Ke Saath has been our key driver. This year, we have introduced a youth block – Klub. We have our own share of blockbusters for the year also.

Zee Smile has been keeping a low profile these days. Is the channel in an orphaned state, or is there a plan on the anvil?
You will soon know our plan for Smile. But for sales, Smile has been a great help to get incremental revenues. The channel is very well distributed in non traditional markets and hence, you will find lots of brands advertising on Smile.

Speaking about regional channels, you are in charge of sales of two key players Zee Bangla and Zee Marathi. How did these two channels fare in the last one year period?
This year, we have practically re-launched Zee Bangla with a slew of new programmes and this will boost its sales potential. We are again going to do sales initiated programmes like Durga Pooja and Jatra.

Zee Marathi has now become the clear number one. We are there in almost all plans. We have also set up a separate sales team to develop retail and non traditional advertisers like educational institutes, real estate, local jewelers, classified etc and the results are showing.

Comment on the delivery of your event properties.
During the last one year, there has been an extra thrust on good events, and the efforts have paid off very well, I would say. We have converted the Saregama finals as an on-ground event and the attempt has met with great success. This had inspired us to take the Saregama Ek Mein Aur Ek Tum finals to Dubai. Apart from winning a global appeal, going to international venues helps sales also. Zee Cine Awards, Mauritius and even the Zee F- Awards, have done very well for us.

We have Zee Astitva Award, Zee Marathi Awards, Zee Gaurav Puraskaar, Zee Amader Gaurav, Zee Songeet Puroshkaar to name a few, lined up in the next few months across various channels.

Have you retained Amap's service as an alternative rating agency to Tam?
Yes. We need to have two meters because the industry needs competition in this realm also. It is always good for the trade. It brings out the best of everyone. According to me, each of them can coexist, triggering healthy competition. I am not making a judgment here, but for the betterment of industry, we need two parallel rating systems. The earlier we acknowledge this, the better it would be for all of us.

July 11, 2006

‘Clients want better research insights, high quality data and speed’ : Tim Balbirnie – Synovate Asia Pacific CEO

The world of market research in India is growing. Both channels and advertisers are seeking more clearer understanding of the consumer and his/her evolving media behaviour.

One firm that helps in this regard in market research firm Synovate. Indiantelevision.com’s Ashwin Pinto caught up with Synovate Asia Pacific CEO Tim Balbirnie for a lowdown on the company’s activities and how it adds value for clients.

What are the ways in which Synovate is helping add value to your offerings?

We are finding an increasing number of clients are looking towards our online capabilities. We are expanding our global panel, ViewsNet, to facilitate the increasing demand for online research. More and more, we find clients appreciate our assistance with brainstorming workshops as a complement to the report.

How much does the media and entertainment sector contribute to your revenue stream?

Our media division makes a significant contribution to our revenue. However, we do not break up our revenues by division or indeed, area of specialisation.

The media sector is important because it is very high profile within the overall research industry. It is also challenging work to conduct from a sampling and analysis perspective.

Could you give me an idea about the time and effort involved in conducting major studies like Synovate Pax?

It is significant. It is an ongoing effort to continue enhancing a media currency survey like Synovate Pax. Synovate has invested 10 years; a lot of time and energy; and intellectual rigour in ensuring the survey delivers accuracy, representativeness and meets the needs of major media owners, specialists and agencies across the Asia Pacific.

We are using sophisticated data collection techniques to collect information from the most affluent segments of the population in Asia. In less developed markets this has its own challenges.

How is Synovate able to work within tight deadlines without compromising on quality?

As with all service industries, clients are – quite rightly – demanding more. They want better insights, high quality data and speed. Synovate is putting a great deal of emphasis on technology to help us deliver high quality work with faster and faster turnaround times.

We now have a global chief information officer who is seizing this opportunity to drive the group forward from a technical perspective. Synovate is focussing on support services which had previously been regarded as back office functions and utilising those services as a way to deliver all the benefits of our global scope, reach and scale to clients.

One of the things we will not do, regardless of deadlines, is compromise on quality. All Synovate offices have implemented quality control standards of the highest degree. Nothing we do will negate the need for maintaining these standards.

‘Moving customer loyalty to the centre of your business strategy requires a well thought-out plan. Our customer relationship architecture provides that guidance’

What recent additions have been made to your product portfolio as far as the media and entertainment sector is concerned?

Over the past 12 months we have added the ‘Media Atlas’ survey in Hong Kong, Malaysia and Bangkok. This study shines the spotlight on local media consumption and is being welcomed as a valuable alternative to information that has been in the marketplace for decades.

This is also being introduced in the Philippines. Over the coming months further markets will be added. We have also introduced ‘Media Brand Values. This measures the relationship between C level executives and their media of choice.

In addition, our ‘Young Asians’ survey looks at the media consumption as well as attitudes, brands of choice etc for eight to 24 year olds across the region, including India, and kicks off its second year later this month. This survey, given the importance of youth across Asia, is attracting much interest among clients.

Have you acquired any research firms in Asia recently to add to your repertoire?

Less than six months ago, we acquired Market Equity in Australia, a large independent firm. That acquisition, coupled with Aztec Information Services which was acquired in March 2005, has made Synovate a top five player in the Australian market. Australia is an important market to many of our regional clients. So it is a real benefit to now have a seamless Synovate regional operation throughout the major markets.

Market Equity re-branded to become Synovate in December 2005. We also completed the purchase of the Filter Group, a youth marketing research company late last year.

Could you talk about the kind of out of the box solutions that Synovate’s customer Loyalty practice division offers clients?

Moving customer loyalty to the centre of your business strategy requires a well thought-out plan. Our customer relationship architecture provides that guidance. This blueprint is customised for each client, and built from a solid, proven framework.

We work with every business in a different way. How we work with a company depends on its goals and where it is in building its own customer relationship architecture. We have some solutions that are starting points addressing aspects of loyalty such as customer, organisation, event, brand, market, employee and reputation.

Could you give me an idea of what advertising development research entails? How does Synovate work with media planners and FMCGs in this regard?

At Synovate our philosophy is to integrate media measurement into brand and advertising tracking. This allows our media expertise to be of direct value to major advertisers.

In what way have clients’ needs and expectations from Synovate grown in the past couple of years?

Not too long ago, research companies were just producing data. Now we are doing so much more for clients – analysing, consulting and so on. I believe that we are an increasingly vital part of marketing.

The research industry needs to move towards this model across the world. The way we are approaching this at Synovate is to work harder and better at understanding our clients’ needs and the analytics before we start a project. This understanding then carries all the way through the project and beyond.

We are building our consultancy skills – investing in people that have both marketing and research backgrounds to drive this throughout the organisation.

‘We understand that everything revolves around business. Pretty graphs are not worth it unless they can be translated into actions – actions that improve business’

How does Synovate move beyond just providing reports that contain lots of data?

To move beyond just the data, Synovate is working more and more on client workshops, brainstorming and consulting. We are working to make our service more than a report. We want to help clients make their reports meaningful and help improve their marketing and business strategies. The bottom line is – well – the bottom line!

We understand that everything revolves around business. Pretty graphs are not worth it unless they can be translated into actions – actions that improve business. We are all about applying the theory of research to real life in the business world.

Often marketers tend to not define precisely what they require when they buy research. Also they have unrealistic expectations at times. How does Synovate cope with this difficulty?

Again, we are working harder and better at understanding our clients’ needs and the analytics before we start a project. This is a two-way process.

We understand clients better and they understand us. This understanding then carries all the way through the project and beyond. Our clients in general tend to have a clear understanding of what it is they need to know or find out.

As per Synovate findings what role will new media play in the media consumption landscape?

New media is without doubt influencing the decisions of advertisers who are seeking additional methods of communicating with their target audiences in an era where the consumer is increasingly in charge of media choices.

Speaking of which, one issue that is coming up more and more is that of media clutter. With the multiplying of media options, the efficacy of research activity in tracking ever-more complex variables are being put under the scanner. Your comment?

We have several tools which allow us to track consumer media pathways in real time. Mobile phones provide an excellent method because they are the one device which people carry with them day and night, and which allow us to interact with respondents to find out their media and advertising exposure across the day.

‘Market research industry across all of Asia Pac is still growing quickly. Growth in some markets is running at 15-20 % & most markets are above market predictions. A lot of this growth is linked to China, but more & more India is gaining sway’

What kind of growth can we expect in the market research business in India and Asia?

Historically, we have always achieved double-digit growth in the Asia Pacific region. I am confident we will maintain these levels of growth for the foreseeable future.

Indeed, the market research industry across all of Asia Pacific is still growing quickly. Growth in some markets is running at 15-20 per cent and most markets are above market predictions.

A lot of this growth is linked to China, but more and more India is gaining sway. I was at a seminar on regional forecasts the other day and the talk was of ‘China plus One’. Companies and investors don’t want to put all their eggs in the one basket.

So they are investing in China and somewhere else in the region. Increasingly that ‘somewhere else’ is India. So as foreign investment increases in India, marketers will invest more and more there too. I see the country as a growth engine for Synovate – not our only one, but a significant one.

What are the plans as far as India is concerned? How important a market is it as far as Asia is concerned?

India is very important to us. We will continue to develop and grow our business there. As I mentioned India is becoming a significant market and a major consideration for most MNCs.

Have you signed any recent deals with any Indian television channels to do research on their behalf?

We work with several large media players in India. Synovate has a fully-fledged team in India to service media clients covering the entire genre of print, television, magazines and of course internet.

Since its inception, the media research division has done a lot of work in the areas of image and brand tracking studies, positioning studies, and of course on Synovate Pax. This study is the barometer to measure the media consumption habits of the affluent in India.

There have been reports that WPP is looking to acquire Synovate. Has anything progressed in this area? Is consolidation in the market research arena something that you expect to see this year?

It is certainly flattering to be the object of our competitors’ attentions.

But, despite some discussion last autumn, the fact is that no one has made a serious offer to buy us and that continues to be the case.

Finally what does the future hold for Synovate?

It’s a very bright future. Certainly, there are challenges from other industries which see research as a good thing to be in, but the demand is increasing significantly year on year. The nature of research is also changing.

So while the core people skills will always be in demand, the focus will shift to more technologically based solutions such as online surveys, which are already with us.

Our belief has always been to stay one step ahead of the competition – we believe this has helped drive our success in the past and will continue to do so in the future.

March 13, 2006