Tag: Indian Oil Corporation

  • AIR Mumbai draws plans to beef up revenue

    AIR Mumbai draws plans to beef up revenue

    MUMBAI: In a bid to counter dipping revenues of its two FM channels, All India Radio Mumbai plans to sell packaged ad spots for its primary channels and FM channels together. A policy decision to this effect is expected by early next month, say sources.

    The two FM channels, one of which turned 11 this year, used to rake in a collective Rs 50 million each year in ad revenue per annum, a figure that dipped drastically with the entry of private FM. The five private players ate into the advertising traditionally reserved for All India Radio, forcing the staid public broadcaster to explore other avenues. With private players willing to negotiate on the ad rates, AIR has suffered as government policy does not allow discount selling. To make up for the loss, the programming team led by K Kumudam has designed shows that allow for ad libbing from the interviewees.

    Within shows like Sakhi and Saheli which interview an achiever or entrepreneur in any field, the channel allows two 30 second spots in the one hour show for the interviewee to make his sales pitch. As government guidelines forbid AIR from making a pitch on behalf of the guest, this kind of a ‘paid’ interview is paying good dividends. While it does not cover the production cost of a show, the Rs 1800 charged per guest does go toward adding to the revenue kitty of the channel, says newly appointed station director J S Erande.

    AIR has also decided to target the retail sector, following in the footsteps of the private FM channels. A 13 episode series on various career options has been sponsored by different local institutes, enabling the channel to cast its net wide to scour for more information as well as rake in more listeners.

    Unfortunately, the twin AIR FM channels, Gold and Rainbow, have dropped off the charts of most media buyers, with the result that several FMCG brands earlier advertised heavily on the two channels, are now out. The only regulars are public sector undertakings like Indian Oil Corporation, Life Insurance Corporation and the Insurance Regulatory Development Authority. But with the programming team’s innovative marketing gimmicks, retail is slowly beginning to take another look at the two stations once again. .

  • Leo Burnett becomes full service agency for Indian Oil Corporation

    MUMBAI: In a major development, Leo Burnett India has bagged the integrated “full service” advertising account of India’s only Fortune 500-listed company and the 17th largest petroleum enterprise in the world, Indian Oil Corporation (IOC).

    The size of the account is currently estimated to be in the region of Rs 400 million to Rs 600 million. However, the spends are slated to ramp up significantly in the next financial year due to the impending entry of the Reliance and Essar group into the oil retailing and marketing business in a liberalised environment.
     
     

    With this move, IOC has also shifted away from the public sector undertaking (PSU) norm of having several agencies on the empanelment list. In fact, agencies such as FCB Ulka, Interface, TBWA Anthem, RK Swamy, Mudra, Span and Mercantile, amongst others used to handle the various advertising requirements of the company. The huge chunk of the spend is channelised into tenders, notice ads, direct marketing activities, in addition to the display part of the business.

    In a deal that was reportedly finalised yesterday, IOC decided that Leo Burnett will handle the creative and client servicing functions whereas Starcom will handle the centralised media planning and buying.

    While speaking to indiantelevision.com, Starcom MD (West and South) Ravi Kiran says: “We are absolutely ecstatic about winning the account of India’s largest commercial enterprise, that has achieved commendable performance in all areas of its operations in addition to posting new highs in its financial performance. It is a pat on our backs.”

    When questioned whether the agency will have to set up a separate unit to handle the diverse requirements of the client, Ravi Kiran said that the existing infrastructure and resources would be deployed with the requisite changes: “We shall have a near dedicated team to service the account. In fact, we shall be shopping for resources and will take on new talent.”

    Indian Oil’s sales turnover for the year 2002-03 reached a new high at Rs 1,198.48 billion in the first fiscal after the total dismantling of the Administered Pricing Mechanism in the oil industry. The company has embarked upon the path of undertaking prudent finance and projects management; competitive business strategies to increase market share; customer-focussed innovations in product and service offerings; streamlining of business processes and systems for economies of scale; and greater synergy with group companies in order to face the challenges of a deregulated market.

    The corporation is also simultaneously pushing ahead with other growth initiatives by way of integration and diversification into related areas.