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  • ICICI, Airtel in world’s top 100 brands

    MUMBAI: Telecom major Airtel has become the new Indian brand to have made it to WPP company Millward Brown‘s annual BrandZ Top 100 Most Valuable Global Brands study.

    Valued at $11.53 billion, Airtel has joined ICICI Bank, the country’s largest private sector bank, to become the only brands from India to feature in the illustrious list which consists of world’s biggest brands.

    ICICI has been ranked 63 on the list, while Airtel is 71st most valuable brand in the world.

    Brand ICICI, which has seen its brand valuation decline by 15 per cent to $12,665 million, has made to the list for a record third time a row. The financial service major was ranked 45th most valuable brands in the world in the 2010 study, which has entered into its seventh edition.

    Apple No. 1 brand, IBM edges past Google

    The study notes that world‘s biggest brands have continued to grow in value even during the current economic uncertainty with Brand Apple, the number one brand for second year in a row, growing 19 per cent to $182.9 billion.

    American technology and consulting corporation IBM has eased past internet search giant Google to take number two spot. IBM grew 15 per cent in value to $115.9 billion and overtook Google, which dropped to third place in the ranking and is now worth $107.8 billion.

    In advance of its IPO, eight-year-old Facebook rose 74 per cent in value, making it the fastest brand value riser in the ranking. Worth $33.2 billion, the social network moved up to number 19 from 35.

    Apple sits at the top but faces competition in luxury brand segment to Samsung. Apple continues to innovate and maintain its ‘luxury‘ brand status, but faces future competition from Samsung. Now worth more than $14.1 billion, thanks in part to the success of its Galaxy handsets, Samsung is successfully outpacing Apple in a significant number of markets by positioning as a cool, well-priced alternative to the ubiquitous iPhone.

    The study, commissioned by WPP and conducted by Millward Brown Optimor and now in its seventh year, identifies and ranks the world‘s most valuable brands by their dollar value, an analysis based on financial data, market intelligence and consumer measures of brand equity.

    The 2012 BrandZ Top 100 Most Valuable Global Brands ranking demonstrates the power of strong brands as both a driver of new business growth and a critical support in hard times.

    In 6 years, Top 100 brands rise 66% to a value of $2.4 trillion

    Between 2006 and 2012, the total value of the BrandZ Top 100 rose 66 per cent and is now worth $2.4 trillion.

    “Brands are an insurance policy for businesses,” said Eileen Campbell, Global CEO of brand research company Millward Brown. “Despite a prolonged period of economic stress, political uncertainty and natural disasters that buffeted brands across many categories, the value of the world‘s leading brands keeps rising across many categories, sustaining and nurturing businesses.”

    David Roth for WPP said, “Brands help businesses create competitive differentiation, command a price premium and become more resilient to crises or economic turbulence. This year, those businesses that leveraged technology, focused on the customer experience or boosted control of their brands thrived.”

     

    ank 2011 Rank change Rank 2012 Category Brand

    Brand Value
    2012 ($M)
    1 0 1 Tech Apple 182,951
    3 1 2 Tech IBM 115,985
    2 -1 3 Tech Google 107,857
    4 0 4 Fast Food McDonald‘s 95,188
    5 0 5 Tech Microsoft 76,651
    6 0 6 Soft drinks Coca-Cola 74,286
    8 1 7 Tobacco Marlboro 73,612
    7 -1 8 Communication Provider AT&T 68,870
    13 4 9 Communication Provider Verizon 49,151
    9 -1 10 Communication Provider China Mobile 47,041

    Key findings highlighted in this year‘s research report include:

    Technology Prevails: Technology has become ubiquitous in all areas of our lives. Seven of the top 10 brands are technology or telecoms brands. However, the power of smart, simple-to-use technology can also be seen beyond these two sectors.

    In other categories – cars, financial services, luxury and retail for example – we can also see that brands are gaining significant advantages by using smart technology to enhance their customer experience. For example, Burberry – up 21 per cent to $4 billion – created a virtual world where younger brand followers can view fashion shows and more.

    The Rise of Africa: This year‘s ranking highlights the progress of Africa‘s economic development with the arrival of the first African brand in the Top 100 – South African mobile company MTN – No 88 at $9.2 billion. But it‘s not just African brands that are thriving south of the Sahara. Around 40 per cent of Guinness‘s sales come from Africa, Airtel‘s third quarter results showed a 16 per cent increase in revenue in Africa. Similarly, Orange enjoyed rapid growth in Africa in 2011, while Walmart invested there with the acquisition of Massmart.

    The Future is Mobile: The future of the internet will be predominantly mobile rather than computer based. Mobile, to some extent, has been shielded from the recession as one of the few items consumers don‘t want to give up or cut back on. The most valuable telecoms brand is AT&T worth $68.8 billion. USA‘s largest mobile service provider, Verizon, increased its brand value by 15 per cent in the last year and is now worth $49.1 billion.

    Retail is constructing an Omni-Channel Business: The customer experience is a new focus for many retailers as they recognise its importance in keeping customers loyal and the need to be present anywhere and everywhere on the path to purchase. Walmart knocked Amazon from the top position and its brand is now worth $34.4 billion whilst Amazon is now worth $34 billion.

    Brands with Women on the Board Outperform: As the number of women on corporate boards continues to rise, the BrandZ Top100 study this year reveals the success that women bring to brands. 77 per cent of the brands appearing in the BrandZ Top 100 Most Valuable Global Brands have women in the boardroom. The average value of brands with women on the boards is $27 billion, double that of those companies without female directors. Not only that, these brands also show an average five-year growth of 66 per cent compared to an average growth of only 6 per cent for those BrandZ Top100 brands that don‘t have a woman on the board.

    Strong Brands Provide Better Shareholder Value: An analysis of BrandZ Top 100 Most Valuable Global Brands as a ‘stock portfolio‘ over the last seven years shows a highly favourable performance compared to a current stock market index, the S&P500. While the total return on investment (ROI) for all companies in the S&P500 index was just 2.3 per cent, the BrandZ Portfolio provided a 36.3 per cent ROI, proving that companies with strong brands are able to deliver better value to their shareholders.

  • ICICI with $14.9 bn is lone Indian in Brandz top 100 list

    ICICI with $14.9 bn is lone Indian in Brandz top 100 list

    MUMBAI: India‘s largest private bank, ICICI, appeared for a second consecutive year in the BrandZ Top 100 ranking, at No. 53, with a brand value of $14.9 billion.

    Also, with a rise of 27 per cent in brand value to $8.2 billion, Infosys was one of the most valuable technology brands in the world and is expected to soon rank among the Top 100 Most Valuable Global Brands across all sectors.

    The sixth edition of BrandZ Top 100 Most Valuable Global Brands study had a special section dedicated to brand India. In this section, the study commissioned by WPP and conducted by Millward Brown Optimor described the factors fuelling the growth.
     
    Although, along with all the praises to brand India, the study warns that Indian inclination to look to the past or to the West for inspiration might restrain the growth of “Brand India”.

    The study claims, however, that the Indian brands will surge ahead, powered by a combination of positive fundamentals – economic vitality, a diverse and enterprising population and a cohesive, stable, muddled democracy.

    According to the study, the appearance of Indian banking and technology brands in the BrandZ ranking reflects both the prominence of these sectors in fast-growing markets and an expansion in brand literacy particular to India.

    Brands that many Indians until recently saw only in the suitcases of relatives returning from North America or Europe are now encountered every day in local shop windows.
     
    Indians appreciate the opportunity to own brands as living circumstances in India steadily improve. Perhaps drawn by the novelty of the brand explosion, Indian consumers even enjoy advertising, the study remarks.

    In a multiplier effect, the more Indian consumers are exposed to brands, the more they desire them. The expanding middle class of educated young people, often employed in technology, contribute to the purchasing power.

    The economic progress, particularly leadership in information technology, has altered India‘s image of itself as well as the world‘s postcard view of India as simply colorful and exotic.

    Elaborating this aspect the report said the international reach of ICICI, Infosys and large Indian conglomerates, such as Tata, which operates in more than 80 countries and gains annual revenue of almost $68 billion from businesses including steel, chemicals, hospitality and communications, has done their bit to change India‘s image.

    The acquisition of Jaguar Land Rover made Tata a player in the luxury end of the international car business.

    “Energy, confidence, creativity and purpose characterise “Brand India” today and point to its potential”, the study asserts.
     
     
    Choice brings challenges

    The study says that “sometimes, Indian brands are seen as too available and insufficiently inspirational”. This factor leads to stiff competition from international brands.

    The report claims Indian conglomerate brand Godrej exemplifies this trend. Despite being well respected across many product categories, the brand faces international competition from LG, Samsung and Whirlpool, in its appliance business.

    In cars, Maruti (the Indian brand of Suzuki) faces increased competition from international contenders including Honda, Toyota and BMW.

    Some of the Unilever and P&G brands, long established in India and seen as local, now are emphasising their global credentials, the WPP report claims.

    Advertising for Dove, for example, features not only Indians, but also women from across the globe. Consumers view brands like L‘Oréal or Garnier as international and delivering the quality that implies, the study asserts.

    Large Indian conglomerates, such as Bharti, Godrej, Reliance and Tata, occupy an influential and secure place in the minds of consumers. Trusted, even revered, these conglomerate brands regularly introduce consumers to new product categories.

    Although a conglomerate may itself be new to a category, its brand guarantees competence and compensates for any lack of experience, the report clarifies.

    Major brands evoke trust

    Indians rely on these conglomerate brands for relatively risk-free introductions to new products and experiences, the study states.

    Citing the example of Godrej Nature‘s Basket, it said that consumers immediately accepted the new retail format, because it came with a reassuring brand.

    Talking about Tata and ITC, the report says a conglomerate brand becomes especially important in high-risk, high-investment ventures.

    Tata moved into real estate – from high-rises in Bangalore to housing developments in Delhi, while ITC began diversifying its portfolio during the past decade because of the health issues and regulatory challenges faced in its core business, cigarettes.

    ITC now markets food, hotels, personal care and cosmetics and other fashion-focused products and services.

    In a country known for conventional mom-and-pop stores, the conglomerates are introducing modern retailing, the study quips.

    For example, Reliance, India‘s largest private-sector enterprise, operates in many retail channels, including food, apparel, footwear, home improvement and consumer electronics.

    Brand India: Colorful, confident and creative

    Discussing about India‘s international agreements, the study mentioned Tata‘s joint venture arrangement with Tesco, the global hypermarket chain based in the UK and Bharti‘s JV with Walmart.

    Culture and values

    The success of Indian brands stems from India‘s cultural peculiarities, the study asserts.

    Elaborating these particularities in an interesting way, the report says, in making some of life‘s major decisions – whom to marry or whom to vote for – Indians are especially aware of the “power behind the throne.”

    In marriages, that notion means knowing the background of the in-law family. In voting, it means understanding the influencers in the political parties. This understanding in part drives the growth of brands like ICICI and Infosys, the report says.

    ICICI (formerly Industrial Credit and Investment Corporation of India) projects trustworthiness and comfort in its banking business. In insurance, ICICI emphasises the joy of life in a category often associated with the possibility of death.

    The brand ICICI projects warmth. Its use of the color red in branding evokes the red band that an Indian bride wears in her hair to signify lifelong bonding, the study quips.

    The Infosys culture is egalitarian in its approach to the workforce. Infosys is known for its generous employee stock-sharing programme, and it is closely associated with government programmes to improve the national welfare, the report remarks.

    Wipro, a competitor, has a similar story, with a major presence in education and social welfare. Both Infosys and Wipro are values-driven, knowledge-based companies. Both companies are entrepreneurially led.

    Indian brands derive strength from these deep-rooted values as they build commercial success while at the same time attempting to transform a nation of 1.1 billion people, the study concludes.
     

  • It’s target LIC, ICICI after Fair & Lovely ad

    It’s target LIC, ICICI after Fair & Lovely ad

    MUMBAI: Hindustan Lever Limited’s Fair & Lovely is not the only product to have attracted criticism from the All India Women’s Democratic Association.

     

    The Delhi based organisation’s media monitoring cell, has in fact, zeroed in on at least three other advertisements, including an LIC ad, an ICICI ad and a Tata Yellow Pages ad, which allegedly display gender discrimination and ought, in AIDWA’s view, to be taken off air. Only the HLL ad has however, attracted media attention and resulted in channels opting to pull it off air.

    In a letter to the information and broadcasting minister, the association points out that the Tata Yellow Pages ad too, is extremely insulting to women. “The concerned advertisement now being shown on various television channels depicts a scene in which a man decides that the baby his wife has delivered is not his, because of its dark complexion. In view of his wife’s presumed infidelity, he needs a divorce lawyer – the information according to the ad is available in Tata Yellow Pages.”

     

    AIDWA says the ad is objectionable as –

     

    1. According to statistics, domestic violence against women as also male infidelity are among the main reasons for disruption of family life. The ad could have portrayed this reality but instead creates a make-believe “cheating” woman, which not only is a mockery of the reality but also creates a distorted image of women.

    2. The ad shows a complexion of the baby as being dark which then becomes reason enough for a divorce. This is not only racist but also sends a wrong message that if your baby happens to be dark and you are not, it would then automatically mean that your wife has been unfaithful.

    3. Clearly the ad is directed at a purely male audience only and is premised on the notion that male viewers will respond positively to the demeaning women. Its very basis is therefore patriarchal and also strengthens such retrograte views.

    In another letter to the National Human Rights Commission, the AIDWA has drawn attention to the plethora of advertisements being shown on TV channels that are demeaning to women and promote son-preference, which violate the constitutional guarantees for equality as well as representing active discrimination against the girl child.

    AIDWA says its media monitoring group had earlier this year written to several companies about their advertisements, but the corporates have chosen to ignore its letters and complaints. Among them figure the Fair and Lovely advertisement, a Life Insurance Corporation ad and that of ICICI, a reputed finance company.

    The LIC ad, says AIDWA, is for insurance for future of children: “It specifically mentions expenditure at the time of a daughter’s marriage and for a son’ education. It is objectionable on the following grounds: it projects a daughter as a liability and a son as an investment; it discriminates between a male and female child by denying the girl the right to the same educational facilities as her brother; it strengthens the stereotype, harmful to women that the only future for a young woman is marriage; by assuming expenses at the time of a daughter’s marriage it promotes the concept of dowry.”

    AIDWA general secretary Brinda Karat says the organization had demanded that the ad be withdrawn, but that its plaint was ignored.

    In the ICICI ad, a husband is shown applying putting ‘sindur’ on his bride’s forehead, and the word ‘suraksha’ (protection) appears. AIDWA says the ad is is objectionable on the ground that it clearly links protection only to the husband thus promoting the erroneous notion that a woman is incapable of looking after herself and requires a husband to do so; it is also discriminatory to single women.

    The Press Council, says the AIDWA, has expressed its inability to act, as its jurisdiction does not extend to advertisements.

    Karat now says that failing self regulation by broadcasters, it is incumbent on the government to take swift action against such ads. AIDWA has also demanded that the I&B ministry could also take the initiative for corrective measures against the companies that sell their products through such advertisements and that NGOs be given representation on inter ministerial committees that look into such issues.

  • ‘Indian promoters have build a scale where they can attract foreign media companies’ : Ravi Sardana – ICICI Securities Limited Vice President

    ‘Indian promoters have build a scale where they can attract foreign media companies’ : Ravi Sardana – ICICI Securities Limited Vice President

     Foreign media companies like Walt Disney and Turner have entered into equity deals with Indian firms to grow their business in India.

     

    The last two years has seen a spate of equity deals, changing the media landscape in India. Indian promoters have raised money to build scale and also brought in corporate structures.

     

    In an interview with Sibabrata Das, ICICI Securities vice president Ravi Sardana talks about the immense potential that the media sector offers to investors and the consolidation that is waiting to happen.

     

    Excerpts:

    Multinational media companies like Walt Disney and Turner had come to India on their own. Why are they now entering into JVs with local partners?
    When the foreign players entered the market, there was no Indian media company of size to attract a buyout. Besides, the market has become too crowded today. It is better for them to build on whatever is available. Managing the government and distribution on cable networks is also difficult.

    Why are the Indian media companies becoming attractive to financial and private equity investors as well?
    Indian promoters have taken their companies to a scale where even Walt Disney and Time Warner have gone ahead to do equity deals with them. The business has become scalable with the opening of multiple platforms. There are also lots of markets in India which are still under penetrated. Media companies can expand their business by entering into new geographies.

    Which are the segments in the media sector that are proving lucrative?
    In the broadcasting space, every big player wants to build a full boutique. Even smaller TV production companies like Miditech and BAG Films are getting into broadcasting. All of this will require funding.

     

    Distribution is also becoming a big value driver and a new segment that investors have started looking into as the revenue leakages are getting plugged with digitalisation. The regional space is another interesting segment and will see higher growth compared to Hindi and English media. Regional TV has not build scale like print has, but there is a serious interest. Growth is faster in tier-II and tier-III towns.

    But aren’t DTH companies saddled with losses?
    In the short run, they may not be attractive for investors. But DTH service providers are mopping up subscribers. That will add value and open up the space for investors.

    Aren’t investors shying away from cable companies as digitalisation is slow?
    Cas (conditional access system) has been introduced in pockets of Delhi, Mumbai and Kolkata. Consolidation is also happening at the multi-system operator (MSO) level in analogue cable. The process is underway to convert this to digital. We are already getting feelers from investors who are exploring options to put money behind cable networks.
    ‘Since the size and scale of the movie business has shot up, there is a need for capital. While good financing sources for debt are being made available, there is a requirement of providing risk capital for this business‘

    Only one media company raised money through an initial public offering in 2007. Why are IPOs drying up in the media sector?
    The first wave of IPOs happened when companies like Mukta Arts and Creative Eye tapped the market. It was a pre-matured phase. Now Indian media companies have set up corporate systems from being just promoter-led. But there are not many large media companies that are privately held.

    The economy is slowing down and interest rates are hardening. Do you see media organisations being cash strapped to fund their growth?
    Companies have chalked out aggressive growth plans. They believe the wider pull of channels they have, the easier it will be to sort out distribution issues. But to expand their presence in all genres of broadcasting, they need capital. Fund raising for some companies has definitely slowed down. But they can tap alternate sources of funding like debt, private equity and convertible instruments.

    Is the broadcasting space heading for consolidation?
    In every genre, the top 3-5 channels will make money. There will be a huge competition to reach those levels. We will see some consolidation and there will be pressure to differentiate content.

    Are news channels getting bogged down by a steep rise in operational costs?
    More than operational expense, it is distribution costs that are inflating and going to hurt.

    Is the news channel space getting too cluttered with companies from all sectors wanting to rush into it?
    Historically, the journalist-led channels have done well. Already there is a clutter and there are a large number of strongly entrenched players. New entrants will have a challenging task; they will have to create a new niche space.

    Will there be room for so many regional news channels?
    If they are able to get market share, then in 2-3 years they will break even. The big players can also amortise their costs with the main channels.

    Do you see the other revenue streams growing for news broadcasters?
    The other revenue streams in India are still very small. News channels should focus on kicking in subscription revenues.
    How are the movie companies shaping up in India and what are the challenges they face?
    In the movie business, there are already the four tigers – UTV, Adlabs, Eros and Studio18. Multiplex operator PVR is also into movie production. For a pure film exhibition company, profitability could be range bound. So there is need to enter into other streams like film production and distribution.
    What are the new financing options available for companies?
    For the film business, Indian companies have tapped the Alternative Investment Market (AIM) of the London Stock Exchange. Since the size and scale of the business has shot up, there is a need for capital. While good financing sources for debt are being made available, there is a requirement of providing risk capital for this business.
  • Radio industry in 2007 – an overview

    Radio industry in 2007 – an overview

    over the past two years the radio industry has moved beyond AIR with private FM stations lapping up the airwaves. The three policy initiatives from the Government — migration to a revenue-sharing regime, allowing foreign direct investment upto 20 per cent and opening up the sector to 91 more cities by issuing 338 licenses’ to private players — have aided this growth tremendously. FM Phase II saw as many as 245 more stations bagging licenses’, most of which went up this year. Phase II has provided a fresh lease of life to the radio industry and has really taken the medium to the next level. Things only look better from here, given the way this has helped new stations to come in, the existing and serious players to organise more and convert radio into a revenue making option.

    Year 2007 for the radio industry was the year of expansion. The radio industry is growing immensely and also doing very well, the number of people listening to radio each day has also increased, hence acknowledging this as the local medium of communication. The recent RAM results that were out recently proved how well the industry is doing. Spends on radio have definitely gone up and radio today, is the most cost-effective medium. Radio is becoming an important part of the advertisers advertising mix. The future will see more advertisers coming on board…

    RAM (radio audience measurement)
    Radio listenership measurement is a critical aspect to the industry, the emphasis being on ‘timely’ measurement and not just dated results that come in over three to six months. The radio category needs to grow to where it deserves and with the RAM coming in, it is a move in the right direction. What is measured is what is bought and RAM has worked extremely well for the radio industry.

    BIG 92.7 FM in 2007
    The year 2007 has been excellent for BIG 92.7 FM; the stations for phase II were rolled out, as we stand as a 42 station strong network today, spread across the length and the breadth of the country. The fastest rollout of stations among all players and making us the biggest radio network in the country. As per figures released BIG 92.7 FM is the No. 1 choice of listeners in Bangalore across all parameters – including reach, share and TARP. In Mumbai, it is the highest reached station, while in Delhi; it is the No. 2 station among 12-34 year old, SEC ABC listeners. BIG 92.7 FM will see expansion of our network in 2008; more stations will be added to our network as Govt. opens up more licenses.

    The numbers are looking very good especially given that BIG 92.7 FM is just about a year old. It reaffirms our positioning and content strategy which has helped the brand stand out in the cluttered environment. With competition heating up among brands, ‘differentiation’ is the key and we have managed to stand out with our ‘listener focused’ positioning of Life Banao as well as our distinct music.

    Next on BIG’s radar –
    ” The goal is to increase the size of radio’s share of the advertising pie from 3 per centto 7 per cent over the next three years.
    ” Consolidate post our launches and ensure sustained leadership in all our stations
    ” Digital integration with radio – more emphasis on our web portal, podcasting, internet driven interactivity etc

    Key landmarks / events:
    Year 2007 has been an eventful year for BIG 92.7 FM, and has certainly lived upto to its brand line of ‘Suno Sunao, Life Banao’.

    A combination of large national properties and hyperlocal content helped us grow rapidly in a sort span of time. BIG 92.7 FM has always believed in innovation in content and marketing. We launched a unique challenge & contest done for the first time ever on radio in association with Hyundai i10 called ‘Chipak Ke Jeeto’ which is the biggest endurance test to be held across key metros wherein the person who touches the car for the longest time walks away with a brand new Hyundai i10 car! The ‘Sabse BIG Diwali’ campaign with ICICI bank credit cards was launched with much fanfare- offered discounts from 9.27 per cent to 92.7 per cent on various products. Tied up various NGOs’ across the country and hosted the ‘Sabse BIG Diwali’ party with the senior citizens.

    The year 2007 also saw BIG 92.7 FM radio partnering for some of the biggest banner movies and TV shows like Ta Ra Rum Pum, Jhoom Baraabar Jhoom, Cash, Saawariya, Nach Baliye 3, Sa Re Ga Ma Pa, Jhoom India, while also entering into a strategic partnership with the Indian Television academy for the ‘ITA 7th Annual Indian Television Academy Awards’. BIG 92.7 FM also roped in the iconic Raju Shrivastav and escalated the humor quotient of the station – BIG RJ Raju Shrivastav provided listeners their daily dose of Raju Shrivastav jokes every morning on the breakfast show across the country.

    We pioneered the coverage of sporting events on radio with the award winning coverage of the PHL, ICC tournament and the T-20 World Cup. For the first time ever, BIG FM brought on radio, eminent personalities like Harsha Bhogle and Shekhar Suman, Kris Srikkanth and Mandira Bedi, which created a new and exciting experience for listeners across the country.

    Speculations for the year 2008
    The Indian radio sector is poised to become a Rs 1,200-crore industry by 2010, according to a study conducted by the Federation of Indian Chambers of Commerce & Industry and PricewaterhouseCoopers.

    With the majority of licenses in Phase II going operational by the end of this year, 2008 is going to be a very good year for Radio; the industry will experience dramatic expansion in its listener base leading to significant growth in business. 2008 will be the Tipping Point for the radio industry.

    We hope that news and current affairs will be opened for private radio broadcasters. In the event this does happen, this will lead to a new wave of growth for radio in 2008.

    For BIG 92.7 FM, listeners are going to be witnessing far more exciting and interesting radio activity. Our initiatives will focus on creating more relevant and innovative content for our listeners, tapping into new trends and insights we observe among the youth.

    So stay tuned and Suno Sunao, Life Banao!

  • ‘How do you wake up?’

    ‘How do you wake up?’

    We all sleep differently. Some sleep tight, like a baby. Some sleep light, like the mother of a newborn. No matter how we sleep, most of us wake up with a start – some so mild in fact that we don’t recognize them, while some hard enough to bring our whole body and mind to sudden consciousness in a milli second.

    Sometimes we are either too tired or too lazy to give up our sleep, and that’s when someone has to shake us up and give us a wake up call. It happened the night before the examination, during a rather chilly night, when the quilt seemed like a long lost friend, it happens many times now in hotel rooms in some distant city.

    The wake up call is rarely likeable, but it’s meaningful and important nevertheless, because something really significant often waits for us on the other side.

    As I look back at 2007, it appears to me to be a year of wake up calls. There were many major events than happened this year, that shook us out of our slumber, or they should have. There are other things that appeared to be minor sleep breakers, but meaningful nevertheless, perhaps because of their regularity of occurrence. Major or minor, these were not just events, for they will have an impact on our thought and action in 2008 and beyond.

    I recount seven of my favorites here, in random order.

    Wake Up Call 1: T20

    T20 was not about India getting World Cup glory back. It was not about defeating an arch rival. In a way, it wasn’t even about cricket. From a marketing viewpoint, it finally brought to life what we at Starcom have been forcefully claiming for a while – that today’s consumers are time starved, choice flattered and attention challenged. For the same reason the one day cricket got popular decades ago, T20 became an overnight rage in 2007. The message is clear: in marketing anything, do not try the consumer’s patience, do not assume she is sitting there waiting for your message. Respect her time, respect the complexity of her life, and talk to her not just talk at her. The spirit of T20, applied to marketing is this: don’t just count your consumers, connect with them.

    Wake Up Call 2: Input Cost Surcharge & the October stand off

    The memory of the passionate October is too fresh for all of us, for me to revive it, but as with many things, there were two sides to the backdrop to the impasse. The October debate was not really about who is right and who is not. It was about perspectives and a willingness to achieve common goals. I believe that for a month we all forgot that the fundamental relationship between media owners and marketers has always been collaborative, even if at the negotiation table, it often looked to be adversarial. I have said this before and I will say this again. If we do not find ways to collaborate, today’s hypercompetitive world will find ways of decimating us.

    Wake Up Call 3: Digital Signage

    Place based media, point of purchase media, in-store media – whatever name you call it by, this is a medium whose birth 2007 will be remembered by. I was fortunate to attend a conference in November in Mumbai, where a lot of stake holders spoke very passionately about digital signage networks, why and how they work and about highly advanced technology driving it. Unfortunately, there were not many creative or media agency folks attending that conference, to receive the wake up call, although I remember meeting some people from ICICI, Levers and ITC. I understand that there are close to five thousand LCD screens that have been installed in stores, at workplaces and in lift lobbies across the country and hundreds more are going live every month. Mark my words, very few media will generate as much curiosity and excitement in the next two to three years as this one.

    Wake Up Call 4: The Vanishing Line

    As many of us started putting the tag Experience Society on ourselves, the already thin line between above-the-line and below-the-line became even thinner in 2007. Call it IMC, 360 degree marketing, through-the-line marketing or holistic marketing, no marketing practitioner worth her Kotler and Levitt can today ignore the necessity to connect with the consumers using all the cards in our box. This was particularly heartwarming for us at Starcom MediaVest Group, as we have invested significant managerial energy and other resources building new competencies over the last four years and today quite proudly claim to be the media network with the biggest competency portfolio in India. Today, many of us are learning to activate one idea through multiple media and platforms, rather than plan one medium ate a time. It is my strong belief that anyone, marketer or communication practitioner, who does not upskill herself rapidly in how to think and activate in a holistic way, runs the risk of being left behind.

    Wake Up Call 5: Digitisation of Life

    After years of wondering and imagining, more marketers than ever embraced the digital way in 2007, recognising that you cannot forever hide behind meek arguments of ‘too few internet connections’ and other such. Unfortunately, many are still stuck in the early 2000’s model of generating leads by burning a billion banners. This will change, with or without another wake up call. In 2008, I believe, we will see many genuine attempts by marketers to use digital as a platform, rather than medium, to deliver an enriching experience to their consumers.

    Wake Up Call 6: Using a New Body Part

    To call the mobile phone a technological device would today be an error. It’s something we sleep with, take to the bathroom with and cannot truly imagine our life without. The irony is the contrast between consumers’ alacrity to adopt everything mobile and the marketers’ hesitation in using the platform as a communication and enablement platform. Companies like Affle, One-to-One Technologies, Sixty Nine mm are creating highly interesting mobile marketing platforms that can allow marketers to connect well with consumers, particularly young consumers. Many of our clients are more curious than ever and we have to move to the next level of converting the excitement into application.

    Wake Up Call 7: TV isn’t dying anytime soon

    In the last few years, particularly with the growth of non-classical media and experiential marketing disciplines, it became fashionable to talk about the reducing effectiveness of TV and many of us were challenged to divert budgets to other media. At Starcom, we have a contrarian’s view. We believe that if anything, TV will become even more important in future. We call that future an era of visual engagement. The way consumers watch TV will change, and the way we will use TV both in its traditional box format as well as through other screens, will change.

    The fight in the traditional TV front is getting interesting, with Zee TV slowly but certainly narrowing the gap with Star Plus, but the debate on TV is more than just a Star Plus versus Zee TV debate. It’s not even about dozens of new stations springing up. It’s about innovativeness of programming, about audience engagement and freshness of thought. The broadcast industry needs to stop for a breather and take a long hard look at what it has been doing and how it wants to do that in future. It won’t be easy. Waking up rarely is.

    Have an exciting 2008. I will!

  • Global Broadcast doubles on debut

    MUMBAI: Global Broadcast News, owners and operators of English news channel CNN-IBN and Hindi news channel IBN-7, opened big and closed even bigger – at more than double its issue price of Rs 250.

    The scrip opened on the Bombay Stock Exchange today at Rs 417.10, touched an intraday high of Rs 524, and closed at Rs 510.10 with over 13 million shares changing hands.

    On the National Stock Exchange the share closed at Rs 505.90, with volumes of over 18 million shares, after opening at Rs 425.

    GBN entered the capital market with an initial public offering (IPO) of equity shares aggregating upto Rs 1.05 billion. The issue was oversubscribed 48.74 times.

    GBN is part of the Television 18 Group, which owns and operates leading business channel CNBC TV18 as well as consumer business CNBC Awaaz.

    The company proposes to utilise the net proceeds of the IPO issue to finance acquisition of land, meet construction cost and repayment of loans.

    The book running lead managers to the issue were ICICI Securities and Kotak Mahindra Capital Company. The co-book running lead managers to the issue were JM Morgan Stanley and IL&FS Investsmart.

  • Global Broadcast News sets Rs 230-250 price band for public issue

    Global Broadcast News sets Rs 230-250 price band for public issue

    MUMBAI: Global Broadcast News Ltd, owners and operators of English news channel CNN-IBN, has set a price band of Rs 230 to Rs 250 for its Rs 1.05 billion initial public offering (IPO).

    The issue will open on 15 January and close on 18 January. The proceeds of the IPO will be used to meet the company’s growth plans and to complete the acquisition of Hindi channel IBN-7.

    “This is the second company we are taking to the markets. All future channel launches, which will be in the general news space will be through this company,” TV18 managing director Raghav Bahl said at an analysts meet in Mumbai today. TV18, which holds the business channels CNBC TV18 and CNBC Awaaz, was listed late last month after being restructured to meet regulatory guidelines.

    GBN will also hold 15 per cent in Web18, the company that holds all the internet properties of TV18.

    After the listing, foreign institutional investors will have a limit of investing upto 18 per cent. “GBN will have a foreign holding of eight per cent through Network18. This will mean that FIIs can hold 18 per cent in GBN,” Bahl clarified. Regulation permits news channels uplinking from India to have a maximum foreign holding of 26 per cent.

    The IPO is lead managed by ICICI Securities and Kotak Mahindra Capital Company Ltd. The co-book running lead managers to the issue are JM Morgan Stanley and IL&FS Investment.

  • Info Edge debuts with 62% premium on BSE

    Info Edge debuts with 62% premium on BSE

    MUMBAI: DotCom days are here again. Info Edge (India), a provider of online recruitment, matrimonial classifieds and related services in India (through its Websites naukri.com, jeevansathi.com etc) made a very impressive debut with a 62.5 per cent premium at Rs 520 on BSE today against the offer price of Rs 320 per share of Rs 10 each.

    The price shot up to Rs 623.80 intraday before closing for the day at Rs 593.20, a hefty premium of 85 per cent with a volume of 7.8 million equity shares on BSE.

    The volume on NSE was higher at 11.6 million equity shares, taking the total volume on both the exchanges to 19.4 million equity shares on the very first day.

    The company would use issue proceeds to purchase or lease real estate for their office, to acquire companies and use alternative delivery models such as messages through mobiles, etc. ICICI Securities and Citigroup Global Markets India were the book running lead managers to the issue.

    The company entered the capital market on 30 October with an IPO of 5.32 million equity shares in the price band of Rs 290 to Rs 320 per equity share. The issue closed on 2 November. The issue constitutes 19.5 per cent of the fully diluted post issue paid-up equity capital of the company.

    Info Edge wants to maintain its position as the leading provider of online recruitment solutions in India and further enhance its position as one of the leading providers of internet based matrimonial services. In addition, it seeks to diversify into and establish a position of leadership in the diverse spectrum of the online classified market and also to create such markets in those segments, which are currently catered to by the print media only.

    In order to achieve these objectives, it will continue emphasis on innovation and customization of its products and services, enhance and diversify its advertising revenue streams, leverage offline relationships and diversify into providing online classified services in new market segments.

    Presently its business activities are limited to primarily providing information exchange services in the recruitment, matrimonial and real estate markets; and the activities are concentrated in India.

    Now the Company proposes to diversify into other segments of the online classifieds market such as automobile products, educational products and industrial products and expand its present business to the countries in the Middle East and in South Asia. It also intends to start several initiatives to enhance the features and qualities of its currently existing products and services.