DNA Money editor Raj Nambisan co-authored this Q&A appearing in the edition on Monday, Feb 11, 2013.
Rishad Tobaccowala is a marketing innovator of visionary proportions. The semantics he spouts are bewitching, but their essence is persuaded by a simpler dictum: be 360-degree relevant, grasp the future and thrive in it. He is the chief strategy and innovation officer at the Chicago-based Vivaki, which is an amalgam of the digital and media assets of advertising giant Publicis Groupe such as Starcom Mediavest, Zenith Optimedia, Razorfish and Digitas. In an interview with Raj Nambisan and Ashish K Tiwari, he tells it as he sees it. Edited excerpts:
You talk of advertising having entered a golden age. Is it primarily because of the measurability factor?
There are actually five factors, including measurability. It starts with people, because marketing is about understanding and meeting customer requirements. In the past, people were not so empowered so you could get away with stuff. Today that’s harder, which basically means you have to understand and listen. The second is because everything from social media to people wanting to know who’s in the company and what’s in the company. You actually have to train all of your company to be marketers of some sorts or the other. Because there is twittering coming, there is CRM (customer relationship management) -- even the truck driver has to be trained because he’s a brand ambassador.
The whole organism morphs into a brand ambassador…
Yes, the whole organisation has to become marketing-oriented. The third reason is there are many more ways to marketing than before. And digital allows you to do what is the fourth and very important thing: tell the story, which is what marketing is all about. So what is happening now is that you’ve got new ways of storytelling. The old way was with images, words, pictures and sound. But now you have participation, mobility and data that allow you to tie into YouTube and other kind of stuff. The fifth and the last one is better metrics. Take all the five and you get a pretty potent thing.
Where is India in this process of impactful digital adaptation? Anywhere near the golden age?
See, anything you can say about India, as we know, the opposite is also a true. But what you can say today is that India is in the process of doing the leapfrog. All of us are old enough to remember how we had to wait for months to get a phone line...
Skipping technology generations?
We are going to not skip, but almost-skip, the entire PC-based digital revolution and go directly to mobile and tablets. That is one. The second is, because infrastructure in some places is broken down, electronic commerce is taking off. Third is, in India, whatever we may say about our government, it has been far more progressive on things that have to do with digital than even the United States. For instance, I noticed that 75% of e-commerce is about travel in India, but a lot of it is basically Indian Railways. And this unique identity card will set off something very interesting. And electronic tendering systems will become a way to fight around corruption sooner or later.
Your thesis is that brands will be important in this era of infinite information. Shouldn’t it be products than brands?
The reason it will be brands more than products is not because they are not connected. You know, a brand is built on five different things -- resonance with culture, design, utility, storytelling and value. Utility is where the product is delivered, and, sometimes, on value. The interesting thing is, the other three have nothing to do with the product. So it is not that the product doesn’t matter. But the reason why the brand has to be involved is because product lifecycles are becoming shorter and shorter.
You famously talked of the future belonging to mongrels – metaphorically, of course, referring to the imperative of a combination of talents and self-upgradation needed to survive today…
What happens is there is a personality -- what they now call a ‘T’ person talent: someone who is very specialised in one or two things. It’s like imagining the bottom of the T. But they need to be enough of a generalist, and, more importantly, have the ability to network and collaborate across silos. If you stay narrow in a world that’s interconnected, how will you connect with other people? You don’t even know what to connect to! So that’s what a generalist does. The vertical line in the T is your skillsets, the horizontal is your ability to connect to other verticals and connect the dots.
Is information power or the door to power?
Information is the door to power more than information is power. There is a lot of information and my belief is that there are four levels -- data, on top of data is information, on top of information is insight, on top of insight is wisdom. Insight is by taking a lot of information and figuring out how to make sense. Wisdom … you add a sort of a layer of a combination of experience and humility that takes you to a different stuff. There is a lot of information about digital – a lot of data -- but very little insight and very few people have done it long enough to basically say this works and this doesn’t. But if you don’t have any information … that’s why I say it’s a door to power; without it you can’t even get insights.
You tweeted a few days ago on wisdom, where you said you have to become who you are. On other hand, you persuade us to get out of silos -- unbecome what we are, as it were…
Yes, but there’s a very big difference. The ‘become who you are’ and unbecome what you are two different things. Become who you are – is about things that you are naturally good at and which make you happy. For instance, I’m perfectly capable and I used to run large accounts for Leo Burnett, but it was very clear that gave me a certain level of joy but not the same joy I get from what I do now. When people say you are very good at what you do, I say, “No, no no!” ... I’m now doing what I am very good at -- which is a huge difference. But in doing what I am doing, I am constantly reinventing myself. So I what I basically do is help my companies reinvent, help people reinvent, clients reinvent and I myself am reinventing. But what happens is, if you put me into something that was static it would be nicer on my travel and other schedules, but I’d probably be less excited. But if you put some people who like managing static organisations on to my stuff, they’ll probably shoot themselves. Hopefully everyone’s doing something that’s exciting and as valuable as I’m doing. There’s that definition of justice by Plato or Socrates, which says everybody in their rightful place.
How do monolithic content companies survive because there are low-to-no entry barriers? Anyone who writes well can live off a blog and gnaw away at the content business…
A blogger can write well but a blogger, with a few exceptions, will never make enough money to live. Won’t have scale and a way to monetise content. Even if he gets scale, it’s not going to be anything like online or what anything else gets. The other thing is, they don’t know how to monetise because you need to have things like a sales force, a cross medium and all kind of stuff. Sure the barrier of entry is none, but the barrier of entry to get a continuous audience is huge. And the barrier of entry to monetise is even huger.
Guess why I blog myself? I do it because of three things. And this is in backward order: but the third reason is so that I can learn how to actually do it, like what is it to write a blog. The second is to share my opinion with the world. If I get enough traffic, it influences the world and therefore helps me build a brand. And the first and biggest reason is, it is a sales tool. It helps me sell to clients. So the way I make money is I’m better known and somebody asks me to go and speak, and my clients and the agency get something.
What’s your advice to the other Chicago Booth School fellow, Raghuram Rajan?
We are just good friends. His kids were taught by my wife, who is a teacher at Booth and that’s how we came to know him. He is incredible.
Rishad-isms
Factions result in Fractions. Factions result in Friction. Factions create Fiction. In an interconnected world silos are for losers. In the end, time is the only thing we have. And the way we spend our time is the way we spend our lives. We often say we are killing time. But really, it is time that is killing us. So, how best to make the most of time? Five steps: Eliminate (needless activity), Focus on comparative advantage and positive outcomes, Scale yourself, Do new things, Give time to others.
Sunday 14 April 2013
At Cadbury's, all went on a sales call
This story first appeared in DNA Money edition on Monday, Feb 4, 2013.
Is sales all about selling and servicing?
Chocolate maker Cadbury India, for one, seems to believe it is possible to put the sales function to various other uses, including gauging consumer buying behaviour, increasing visibility and footprint, and even creating demand – transforming an art into a science, as it were.
“The approach is crucial if sales as a function has to deliver expectations and the organisation’s wider vision,” said Sunil Taldar, director - sales and international business of Cadbury India.
“Besides, the Indian retail sector is undergoing significant changes and hence a lot of our focus is on display and compelling in-store execution through perfect stores. As our products are mainly in the impulse buying category, creating an overall shopping experience by making the entire product range available in the perfect stores is crucial. We also work towards prioritising the channel and retail environment that will give maximum traction,” he said.
In view of the growing intensity of competition in the Indian fast-moving consumer goods space, Cadbury India — a subsidiary of Mondelez International, the $32 billion global snacking major formed in October last year after Kraft Foods decided to split its confectionery and grocery businesses into independently listed companies — has over the last few years effected significant changes in the way its sales staff approach the market.
“Creating a seamless, two-way procedure in terms of flow of sales and related information from the company to its distributors and the sales staff booking orders from the retailers” plays a very important part, said another official.
To this end, the company has armed its distributors with touch-screen hand-held devices embedded with proprietary software to ensure smooth and timely flow of information in the distribution channel.
The device gives the sales representative at the distributor end access to all the information about retailers in his area of operation, purchase history (including products and number of units bought, etc). It also allows him to book new orders across product categories without the hassle of making manual notes or filing a purchase order book at the end of the day.
This gives the company a clear understanding of what kind of demand is getting generated, how various products and the stock at the distributors’ end is moving across the retail network that boasts of over 800,000 outlets across the country.
“All the sales representative has to do is download the day’s activity on the distributor’s computer (that also has a proprietary billing software and is connected to Cadbury’s servers) and a purchase order gets generated automatically. This saves a lot of time, while ensuring there is no room for error in the entire process,” a company official explained at the Sales Revolution Day organised by the company on Friday.
The event, yet another strategic initiative, gave the company’s non-sales staff an insight into its sales function.
As part of the first phase of this activity, some 800 non-sales employees drawn from its offices across the country were sent out in groups to different markets along with their sales colleagues.
They were set two tasks for the day – first, follow a seven-step procedure to create a perfect store and second, identify a new store based on three visible markers.
“The next phase will be to compile all the data in terms of stores visited, perfect stores created and new stores opened in the ensuing days. Employee groups will also share insights and observations with the sales staff in addition to a 45-second video capturing specific learnings derived from this exercise,” said a company official.
Is sales all about selling and servicing?
Chocolate maker Cadbury India, for one, seems to believe it is possible to put the sales function to various other uses, including gauging consumer buying behaviour, increasing visibility and footprint, and even creating demand – transforming an art into a science, as it were.
“The approach is crucial if sales as a function has to deliver expectations and the organisation’s wider vision,” said Sunil Taldar, director - sales and international business of Cadbury India.
“Besides, the Indian retail sector is undergoing significant changes and hence a lot of our focus is on display and compelling in-store execution through perfect stores. As our products are mainly in the impulse buying category, creating an overall shopping experience by making the entire product range available in the perfect stores is crucial. We also work towards prioritising the channel and retail environment that will give maximum traction,” he said.
In view of the growing intensity of competition in the Indian fast-moving consumer goods space, Cadbury India — a subsidiary of Mondelez International, the $32 billion global snacking major formed in October last year after Kraft Foods decided to split its confectionery and grocery businesses into independently listed companies — has over the last few years effected significant changes in the way its sales staff approach the market.
“Creating a seamless, two-way procedure in terms of flow of sales and related information from the company to its distributors and the sales staff booking orders from the retailers” plays a very important part, said another official.
To this end, the company has armed its distributors with touch-screen hand-held devices embedded with proprietary software to ensure smooth and timely flow of information in the distribution channel.
The device gives the sales representative at the distributor end access to all the information about retailers in his area of operation, purchase history (including products and number of units bought, etc). It also allows him to book new orders across product categories without the hassle of making manual notes or filing a purchase order book at the end of the day.
This gives the company a clear understanding of what kind of demand is getting generated, how various products and the stock at the distributors’ end is moving across the retail network that boasts of over 800,000 outlets across the country.
“All the sales representative has to do is download the day’s activity on the distributor’s computer (that also has a proprietary billing software and is connected to Cadbury’s servers) and a purchase order gets generated automatically. This saves a lot of time, while ensuring there is no room for error in the entire process,” a company official explained at the Sales Revolution Day organised by the company on Friday.
The event, yet another strategic initiative, gave the company’s non-sales staff an insight into its sales function.
As part of the first phase of this activity, some 800 non-sales employees drawn from its offices across the country were sent out in groups to different markets along with their sales colleagues.
They were set two tasks for the day – first, follow a seven-step procedure to create a perfect store and second, identify a new store based on three visible markers.
“The next phase will be to compile all the data in terms of stores visited, perfect stores created and new stores opened in the ensuing days. Employee groups will also share insights and observations with the sales staff in addition to a 45-second video capturing specific learnings derived from this exercise,” said a company official.
DLF sells 150 mw wind farm for Rs280 crore
This story first appeared in DNA Money edition on Friday, Feb 1, 2013.
Moving closer to its goal of exiting non-core businesses, realtor DLF has sold its 150 mw wind turbine project in Gujarat to a unit of Bharat Light & Power Pvt Ltd, netting Rs 282 crore, minus liabilities.
Under the deal, BLP Vayu (Project 1) Pvt Ltd would take over the wind turbines in Kutch on ‘as in where in’ basis via slump sale.
Industry sources said the deal value is around Rs500 crore as BLP Vayu is also taking over liabilities and relevant long-term loans of Rs 215 crore.
Sriram Khattar, senior executive director, DLF, said, “We are well on way to get north of Rs 800 crore through sale or transfer of our entire wind turbine projects. Negotiations are on for the balance projects and we hope to close them soon.”
DLF, along with wholly owned subsidiary DLF Home Developers, had 227 mw wind turbines in four states.
The BLP Vayu deal leaves it with three sites – Rajasthan (34 mw), Tamil Nadu (33 mw) and Karnataka (11 mw). It is not clear if the remaining projects will also be acquired by BLP Vayu or there are other bidders as well.
Industry experts said as the wind turbines are located in different locations, valuations will have to be different.
“I’d expect the balance projects to be valued in the same ratio, give or take 5-7%,” said an analyst. Aashiesh Agarwaal, research analyst, Edelweiss Securities, said the deal is a positive as DLF is currently saddled with a huge debt of Rs 21,200 crore.
“Consummation of the wind power sale, along with Aman Resorts sale, would contribute Rs 2,100 crore towards debt reduction. The closure of the deal would bring total divestments in fiscal 2013 to around Rs 5,240 crore as against its guidance of Rs 5,000 crore.
“Divestment of the balance wind power units, at advance stages of negotiations, is expected to generate around Rs 250 crore,” said Agarwaal in a company note. “The deal is among the last of the assets lined up for monetisation,” he noted.
Moving closer to its goal of exiting non-core businesses, realtor DLF has sold its 150 mw wind turbine project in Gujarat to a unit of Bharat Light & Power Pvt Ltd, netting Rs 282 crore, minus liabilities.
Under the deal, BLP Vayu (Project 1) Pvt Ltd would take over the wind turbines in Kutch on ‘as in where in’ basis via slump sale.
Industry sources said the deal value is around Rs500 crore as BLP Vayu is also taking over liabilities and relevant long-term loans of Rs 215 crore.
Sriram Khattar, senior executive director, DLF, said, “We are well on way to get north of Rs 800 crore through sale or transfer of our entire wind turbine projects. Negotiations are on for the balance projects and we hope to close them soon.”
DLF, along with wholly owned subsidiary DLF Home Developers, had 227 mw wind turbines in four states.
The BLP Vayu deal leaves it with three sites – Rajasthan (34 mw), Tamil Nadu (33 mw) and Karnataka (11 mw). It is not clear if the remaining projects will also be acquired by BLP Vayu or there are other bidders as well.
Industry experts said as the wind turbines are located in different locations, valuations will have to be different.
“I’d expect the balance projects to be valued in the same ratio, give or take 5-7%,” said an analyst. Aashiesh Agarwaal, research analyst, Edelweiss Securities, said the deal is a positive as DLF is currently saddled with a huge debt of Rs 21,200 crore.
“Consummation of the wind power sale, along with Aman Resorts sale, would contribute Rs 2,100 crore towards debt reduction. The closure of the deal would bring total divestments in fiscal 2013 to around Rs 5,240 crore as against its guidance of Rs 5,000 crore.
“Divestment of the balance wind power units, at advance stages of negotiations, is expected to generate around Rs 250 crore,” said Agarwaal in a company note. “The deal is among the last of the assets lined up for monetisation,” he noted.
Samsung lines up durables push
This story first appeared in DNA Money edition on Wednesday, January 30, 2013.
Samsung India Electronics is aiming at a 35% turnover growth this fiscal on the back of its new range of split air conditioners and refrigerators.
Last year, too, its revenues grew 35% to Rs27,000 crore.
Rajeev Bhutani, head - home appliance business, Samsung India, said, “With the 2013 range, we are looking at a 50% growth both in the split air-conditioners and refrigerator categories.”
Samsung’s home appliance segment grew 7% in 2012, with the frost-free refrigerator category growing 25% and split AC segment 88%.
The company had a 24% market share in the overall refrigerator category in 2012 with the frost-free share of 33.6%, up from 31% last year.
Mahesh Krishnan, VP-consumer sales, said the split AC segment grew 27%, which was very good.
“We exited the window AC market last year and are now focusing completely on the split ACs with the new range,” said Krishnan.
The company is also looking to almost double the number of Samsung Digital Plaza, its single-brand retail store chain, to 600-700 by December.
Samsung has launched 29 new split AC products for the Indian market in the price range of Rs23,100-60,990.
Its new digital inverter refrigerator series is customised for the Indian market. With a strong compressor, the new range eliminates the need for a separate stabiliser.
“The refrigerators come with a 10-year warranty, which is a world’s first. Other features include ‘coolpack’ that delays the rise in temperature when the power is off and prevents food from spoiling,” Bhutani said.
Samsung India Electronics is aiming at a 35% turnover growth this fiscal on the back of its new range of split air conditioners and refrigerators.
Last year, too, its revenues grew 35% to Rs27,000 crore.
Rajeev Bhutani, head - home appliance business, Samsung India, said, “With the 2013 range, we are looking at a 50% growth both in the split air-conditioners and refrigerator categories.”
Samsung’s home appliance segment grew 7% in 2012, with the frost-free refrigerator category growing 25% and split AC segment 88%.
The company had a 24% market share in the overall refrigerator category in 2012 with the frost-free share of 33.6%, up from 31% last year.
Mahesh Krishnan, VP-consumer sales, said the split AC segment grew 27%, which was very good.
“We exited the window AC market last year and are now focusing completely on the split ACs with the new range,” said Krishnan.
The company is also looking to almost double the number of Samsung Digital Plaza, its single-brand retail store chain, to 600-700 by December.
Samsung has launched 29 new split AC products for the Indian market in the price range of Rs23,100-60,990.
Its new digital inverter refrigerator series is customised for the Indian market. With a strong compressor, the new range eliminates the need for a separate stabiliser.
“The refrigerators come with a 10-year warranty, which is a world’s first. Other features include ‘coolpack’ that delays the rise in temperature when the power is off and prevents food from spoiling,” Bhutani said.
Sunday 17 February 2013
At Aegis, digital, OOH big bets
 |
| Ashish Bhasin |
After 21 years with Lintas Group, an opportunity came by in 2008 from Aegis Media which had a struggling unit in the country – Carat. It had 50-odd people, making losses and wasn’t doing global standards of work. That’s when Ashish Bhasin took over as CEO for South East Asia and South Asia and Chairman for India. Since then, the company has grown to 500 people as of today and from one business to 11 different lines of businesses. He spoke about the agency’s overall business and the advertising industry in general. Edited excerpts...
How
far as the Dentsu-Aegis deal reached since considering it was signed in the
first quarter of fiscal 2013?
Dentsu is in the process of acquiring Aegis
Plc and being a global deal it will take time to conclude. The transaction hasn’t yet completed but once
it is done we will be part of the Denstu family. We do anticipate that it
should happen soon, but nothing is done till it is done. The situation is that the
deal requires regulatory clearance from several countries. I am not very sure
but my understanding is that approvals have been received from most of the key countries
except China where it is work in progress.
How
will both entities function after the deal is completed?
Our global CEO has very clearly said
that it will be business as usual. Aegis Media will work as a brand by itself.
What and how will things unfold is something that I’m not privy to but our
understanding is that it will be an independent operation that will continue to
run under the Dentsu umbrella.
The
year gone by has been a very exciting one for Aegis. How was the business like
for the Indian unit?
With a total of 150-odd clients all across
in the group, it has been a very good year for Aegis globally and an
exceptional one for us. In 2012, we crossed the Rs 1,000 crore turnover mark
and the year has been a record breaking spectacular year both in terms of
growth in revenues/billing/profits as well as number/quality of people etc.
Which
segments have seen the maximum growth?
While all businesses have done well, digital
and out of home (including retail) in particular are very fast growing
verticals. That’s because more clients and volumes are coming in, in these
lines of businesses. However, print and television continue to be large in
India and hence are major contributors to the business.
Your
company straddles the entire gamut of advertising and marketing services. How has
the approach helped?
Clients today want the benefit of specialisation
but are fed up of silos (an advertising industry jargon indicating various departments
/ divisions). Each one is trying to push their agenda. For instance, the out-of-
home (OOH) guy will focus only on outdoor and scrap every other media. Clients
today want a complete solution and not just print or television. At Aegis, we have this system of ‘one country
one P&L’. While all the departments / divisions have their individual
targets, the profit and loss (P&L) statement outside India goes through one
person.
For us, what really matters is doing things
that are right for the client. As a result the client benefits from all the specialisation
we offer and is saved from the hassles of siloisation. This philosophy has clicked
very well for us. Having said that, we might only have an advantage window of around
six months or so because others are quickly catching up to this approach of
doing business.
With
business growing exponentially, you must have a very aggressive expansion plan.
India is not really four metros of
Mumbai, Delhi, Kolkata and Chennai, which is why we already nine offices and
should be adding another one in Kochi sometime soon. The ambition is to have a
minimum of 16-18 offices in two years from now. Reason being, there is a lot of
business in tier II and rural markets. It’s more about touch and feel these
days besides what may work in Kochi may not necessarily work in Chandigarh. One
needs to understand the local market / media and related outfits to ensure best
results and maximum impact of the client’s communications and initiatives.
Talking
about rural demand, there are very mixed opinions in the market. Could you
throw some light on the ground realities?
I think there is complete confusion. I can
confidently say that having pioneered rural marketing in India by setting up set
up Linterland – the rural marketing unit of Lintas – which was the first
attempt any agency made to have a proper rural network. I am a big believer in
rural markets. There are 100 ways in which one can touch and engage a consumer
and touching, feeling, reaching out to them in person is definitely very
important.
Despite phenomenal growth in the number
of television and newspapers, there is a very large part of our population that
is unreached by any mass media. Even if they are theoretically reached the
communication isn’t effective because for eight hours in a day they don’t have
electricity.
On the other hand, there is this largest
gathering of humanity at Kumbh Mela with almost 10 crore people attending which
presents a huge opportunity for marketers and brands to reach out to them. There
is no option or alternative for companies to look at rural and reach out. Companies
will have to find a way and as agencies it is our duty and a great opportunity
to be able to deliver that.
What
is your approach the rural markets? What activities are undertaken there?
I was involved in the launch of Wheel detergent
powder for Hindustan Lever (now Hindustan Unilever Ltd - HUL) back in mid 80s
to early 90s. When I started working as an account executive on the brand, first
thing HUL made you do was to go for 15 days and live in Etah (a village in
Uttar Pradesh HUL had adapted). So you literally lived the way villagers would
live there. What you learnt out of that was really insightful. That’s why I insist
my rural guys to go and spend some time in villages before they actually start
talking about it. That’s where all of India. It is through these initiatives
that we have tracked various activities for the rural market including drawing
up a calendar of village supermarkets or ‘Haat’, ‘Mela’ calendars, van
operations, planning and data mining for rural markets etc.
What
are your plans for 2013 looking like? Could you tell us about the key
opportunities for Aegis this year?
Our plans are largely based on the clients
and opportunities in India. The key opportunities we see are in the digital and
mobile space. That is why we have made disproportionate
investment in this space including acquiring iProspect. Considering a lot of
search is now happening on mobile handsets / devices so digital will certainly be
the name of the game. The OOH media will be huge and so will be outreach (touch
and feel activation or experiential).
Print and TV will continue to dominate
for a long time to come but agencies will have to discover new ways of handling
it.
For instance, there is complete lack of qualitative research in India hence
as a result we have made the largest investment ever on a single source data. Imagine,
despite having a 20,000-25,000 crore advertising market, we don’t have any
large reliable single source data in the country. We have Consumer Connection System
(CCS), which is a global Aegis Media tool and world’s largest single source
data. It has more than 300,000 samples globally. We have brought that and are running
it in India with a very large sample size across 18 cities which is a very
robust plan. This initiative is giving us immense insights into how a consumer
interacts, how s/he consumes media - you can actually take it down to a
category and a brand.
Could
you elaborate a bit on the digital and mobile space activities?
Digital is not about putting a banner
advertisement on a website anymore. It’s about engaging the consumer, developing
applications for mobile phones related devices. While Ipads and Tablet devices are
not that big in India, with prices coming down gradually, the entire dynamics
of the game is changing and very rapidly than anyone can realise. In such an
environment continuing with just a print, television or banner advertisement will
not help the client engage a consumer because s/he is moving much faster. Our
entire focus on digital is holistic and there is no line or separation between
creative and media in digital because it’s all one.
People earlier didn’t think that a large
set of consumer will transition from desktops to mobile devices and
advertisements were never made keeping mobile devices in mind. This is
certainly a huge problem for marketers and brand managers. Interestingly, one
of our verticals, Isobar enjoys a preferred Facebook page developer status and
those are the kind of areas we will have to stay ahead of the curve and your
job is never done here. By the time you’ve finished it, you become obsolete.
How
do you deal with the related technology requirements?
We are putting together a large tech
team including programmers, net developers – nothing to do with advertising –
to be able to deliver the digital communication. One can conceive and create a
great idea but delivering it will be impossible if you don’t have an equally great
tech team. In a sense tomorrow, our competition could very well be a large information
technology (IT) major because that whole line is blurring now. Currently we
have 18 people and the plan is to at least double the number in the next few
months.
Do
you see the tech team getting bigger eventually?
If the approach really works one can
easily look at a number of 200 people just doing tech because the business
vertical will then be catering to the global markets and not just India. It’s
like how the IT majors including Infosys, Wipro and TCS that do tech
development in their areas globally. There is nothing that prevents advertising
companies like ours to start doing it as well.
Sunday 27 January 2013
Zee thumps St with 41% profit growth
This story first appeared in DNA Money edition on Thursday, January 24, 2013.
Zee Entertainment Enterprises Ltd, India's leading media company, has reported a 40.5% year-on-year (yoy) growth in net profit for the third quarter at Rs 193.3 crore, lifted by a strong surge in advertising and subscription revenues.
Advertising and subscription revenues during October-December grew 28.8% and 25.6% yoy to Rs 509.4 crore and Rs 409.8 crore, respectively.
Subhash Chandra, chairman, Zee, said the first three quarters of this fiscal have been good for the company with strong performance relative to the industry and competition.
“With one quarter to go, we are looking forward to a strong growth this year. The highlight for this quarter is the strong growth momentum in advertising revenues, despite subdued spends. The performance illustrates that our investments in content are yielding good returns,” said Chandra.
The company’s consolidated operating revenues at Rs 938.8 crore for the third quarter rose 26.3% over the year-ago period.
Operating profit, or earnings before interest, tax, depreciation and amortisation (Ebitda), for the third quarter stood at Rs 261.1 crore. Ebitda margin for the quarter was 27.8%, while net profit margin stood at 20.6%.
With digitisation bringing in a transformational change in the Indian television industry, the company is of the opinion that it will benefit all stakeholders.
Punit Goenka, managing director and chief executive officer, Zee, said, “Our subscription revenues during the third quarter are the highest ever, and with digitisation rollout they will improve in the medium term.”
While the Zee network viewership witnessed a successful mix of new and returning shows, the management is confident of the next 12 months and will continue to invest in new content and channels.
“These investments will have an impact on our operating margins in the short term, but will enhance our performance in the medium term as well,” said Goenka.
The company trumped the overall industry, too.
Atul Das, chief strategy officer, Zee, said, “While the overall industry is estimated to have grown 9-10%, our performance in the first nine months has been 27% growth over the same period last year. The growth is also an indication of strong performance on viewership and better monetisation of our properties,” said Das.
The third quarter also saw Zee launch India’s first edutainment channel called ZeeQ aimed at children in the age group of 4 to 14 years.
Response to the channel has been very good, Das said, adding the company is keen on adding more pay TV properties.
Ankit Kedia, analyst with Centrum Broking, said the company will benefit from the Phase II and III of digitisation and margins will continue to be healthy at 26-27%.
With more than Rs 1,100 crore of cash, the company would look at new investment opportunities, he said, citing the new initiatives, including ZeeQ and Ditto TV
Zee Entertainment Enterprises Ltd, India's leading media company, has reported a 40.5% year-on-year (yoy) growth in net profit for the third quarter at Rs 193.3 crore, lifted by a strong surge in advertising and subscription revenues.
Advertising and subscription revenues during October-December grew 28.8% and 25.6% yoy to Rs 509.4 crore and Rs 409.8 crore, respectively.
Subhash Chandra, chairman, Zee, said the first three quarters of this fiscal have been good for the company with strong performance relative to the industry and competition.
“With one quarter to go, we are looking forward to a strong growth this year. The highlight for this quarter is the strong growth momentum in advertising revenues, despite subdued spends. The performance illustrates that our investments in content are yielding good returns,” said Chandra.
The company’s consolidated operating revenues at Rs 938.8 crore for the third quarter rose 26.3% over the year-ago period.
Operating profit, or earnings before interest, tax, depreciation and amortisation (Ebitda), for the third quarter stood at Rs 261.1 crore. Ebitda margin for the quarter was 27.8%, while net profit margin stood at 20.6%.
With digitisation bringing in a transformational change in the Indian television industry, the company is of the opinion that it will benefit all stakeholders.
Punit Goenka, managing director and chief executive officer, Zee, said, “Our subscription revenues during the third quarter are the highest ever, and with digitisation rollout they will improve in the medium term.”
While the Zee network viewership witnessed a successful mix of new and returning shows, the management is confident of the next 12 months and will continue to invest in new content and channels.
“These investments will have an impact on our operating margins in the short term, but will enhance our performance in the medium term as well,” said Goenka.
The company trumped the overall industry, too.
Atul Das, chief strategy officer, Zee, said, “While the overall industry is estimated to have grown 9-10%, our performance in the first nine months has been 27% growth over the same period last year. The growth is also an indication of strong performance on viewership and better monetisation of our properties,” said Das.
The third quarter also saw Zee launch India’s first edutainment channel called ZeeQ aimed at children in the age group of 4 to 14 years.
Response to the channel has been very good, Das said, adding the company is keen on adding more pay TV properties.
Ankit Kedia, analyst with Centrum Broking, said the company will benefit from the Phase II and III of digitisation and margins will continue to be healthy at 26-27%.
With more than Rs 1,100 crore of cash, the company would look at new investment opportunities, he said, citing the new initiatives, including ZeeQ and Ditto TV
Ikea gets FIPB go-ahead for Rs10,500 crore FDI
This story first appeared in DNA Money edition on Tuesday, January 22, 2013.
The Foreign Investment Promotion Board (FIPB) has cleared Rs 10,500 crore investment proposal of Swedish furniture major IKEA to set up shop in the country with cafeterias. The FIPB had earlier permitted it to invest Rs 4,200 crore for opening single-brand retail stores.
Commerce Minister Anand Sharma said late on Monday that IKEA's case for investment is cleared, which is a positive development. "The government is committed to playing a constructive role in enhancing FDI, especially in areas which create jobs and provide technological enhancement. Globally, IKEA has a business model which integrates in its embrace SMEs (small and medium enterprises) and domestic industry, making them the part of global value chain," he said.
IKEA Group, which manufactures and sells home and office furnishing products, proposes to invest in single-brand retail trading in India through a 100% subsidiary. With the FIPB clearing the way, the retailer would also be able to open cafeterias in their stores.
The proposal will now be placed before the Cabinet Committee on Economic Affairs (CCEA) for final approval. Any investment over Rs 1,200 crore requires approval from the CCEA which will take another 15-odd days to clear the proposal.
Calling it a sane decision, Arvind Singhal, chairman, Technopak Advisors, said there was no reason for the Indian government to take such a long time on a globally respected and ethics-driven company.
"However, I don't think we will see the first IKEA store opening anytime in the next two years if not more. While they are a very successful retailer globally, they do a careful study before entering any new market. Whatever they will do in India will be after a very careful evaluation of the ground realities viz Indian consumers' buying habits, whether they will travel long distances or not, etc," said Singhal.
IKEA typically takes over five to seven lakh square feet of retail space in most of the markets it operates in. Will it take the same approach in India given the kind of retail space in the country? "It is not necessary if they will replicate a particular approach / format in other countries of the world, feels Singhal.
"I really don't know what would be their store size in India, but whatever IKEA stands for in terms of good quality, affordable pricing, good service and good dealing with their vendors, etc. is something that will be consistent in the Indian market as well," he said.
The Foreign Investment Promotion Board (FIPB) has cleared Rs 10,500 crore investment proposal of Swedish furniture major IKEA to set up shop in the country with cafeterias. The FIPB had earlier permitted it to invest Rs 4,200 crore for opening single-brand retail stores.
Commerce Minister Anand Sharma said late on Monday that IKEA's case for investment is cleared, which is a positive development. "The government is committed to playing a constructive role in enhancing FDI, especially in areas which create jobs and provide technological enhancement. Globally, IKEA has a business model which integrates in its embrace SMEs (small and medium enterprises) and domestic industry, making them the part of global value chain," he said.
IKEA Group, which manufactures and sells home and office furnishing products, proposes to invest in single-brand retail trading in India through a 100% subsidiary. With the FIPB clearing the way, the retailer would also be able to open cafeterias in their stores.
The proposal will now be placed before the Cabinet Committee on Economic Affairs (CCEA) for final approval. Any investment over Rs 1,200 crore requires approval from the CCEA which will take another 15-odd days to clear the proposal.
Calling it a sane decision, Arvind Singhal, chairman, Technopak Advisors, said there was no reason for the Indian government to take such a long time on a globally respected and ethics-driven company.
"However, I don't think we will see the first IKEA store opening anytime in the next two years if not more. While they are a very successful retailer globally, they do a careful study before entering any new market. Whatever they will do in India will be after a very careful evaluation of the ground realities viz Indian consumers' buying habits, whether they will travel long distances or not, etc," said Singhal.
IKEA typically takes over five to seven lakh square feet of retail space in most of the markets it operates in. Will it take the same approach in India given the kind of retail space in the country? "It is not necessary if they will replicate a particular approach / format in other countries of the world, feels Singhal.
"I really don't know what would be their store size in India, but whatever IKEA stands for in terms of good quality, affordable pricing, good service and good dealing with their vendors, etc. is something that will be consistent in the Indian market as well," he said.
HUL set to pay Rs150 crore extra royalty next year
This story first appeared in DNA Money edition on Wednesday, January 23, 2013.
Hindustan Unilever Ltd (HUL), the country’s largest fast moving consumer goods company, reported a 15.59% on-year jump in net profit to Rs871.36 crore for the October-December quarter on a 10% rise in sales to Rs6,433.69 crore.
The performance was not impressive, considering the company has witnessed around 5% volume growth, said Naveen Trivedi, FMCG analyst at Karvy Stockbroking.
“The price hike taken hasn’t helped in expanding margins as well. On that basis, the numbers were not substantially great. In fact, they show some concern on the company’s overall volume growth.”
The results were, however, overshadowed by the news about HUL’s increased royalty payment agreement to parent Unilever for technology, trademark licence and other services.
Till now, HUL used to pay 1% royalty on net sales of specific products manufactured with technical inputs developed from Unilever. The new arrangement, effective February 1, envisages a gradual increase in the existing royalty cost.
According to R Sridhar, CFO of HUL, royalty from February 1 to March 31 next year is estimated to be 0.5% of turnover.
At an expected turnover of Rs30,000 crore next fiscal, that would mean an additional outgo of Rs150 crore – or about Rs37.5 crore per quarter.
The company will pay about Rs22 crore extra for February and March this fiscal.
Thereafter, the increase will be in a range of 0.3% to 0.7% of turnover in each financial year, leading to a total estimated royalty cost increase of 1.75% of turnover, Sridhar said.
The impact under the previous agreement resulted in a royalty cost of around 1.4% of turnover. But with the new agreement in place, royalty is expected to be around 3.15% of the turnover by March 31, 2018.
“Since royalty will increase every quarter, Ebitda margin in the next quarter will be suppressed by 50 basis points, at least moving up to 170 bps by fiscal 2018. We will have to see how the company performs in the coming quarters going forward,” said Trivedi.
Industry observers and stock market experts gave a thumbs-down to the royalty issue, saying it harms the interests of minority investors in India.
Hindustan Unilever Ltd (HUL), the country’s largest fast moving consumer goods company, reported a 15.59% on-year jump in net profit to Rs871.36 crore for the October-December quarter on a 10% rise in sales to Rs6,433.69 crore.
The performance was not impressive, considering the company has witnessed around 5% volume growth, said Naveen Trivedi, FMCG analyst at Karvy Stockbroking.
“The price hike taken hasn’t helped in expanding margins as well. On that basis, the numbers were not substantially great. In fact, they show some concern on the company’s overall volume growth.”
The results were, however, overshadowed by the news about HUL’s increased royalty payment agreement to parent Unilever for technology, trademark licence and other services.
Till now, HUL used to pay 1% royalty on net sales of specific products manufactured with technical inputs developed from Unilever. The new arrangement, effective February 1, envisages a gradual increase in the existing royalty cost.
According to R Sridhar, CFO of HUL, royalty from February 1 to March 31 next year is estimated to be 0.5% of turnover.
At an expected turnover of Rs30,000 crore next fiscal, that would mean an additional outgo of Rs150 crore – or about Rs37.5 crore per quarter.
The company will pay about Rs22 crore extra for February and March this fiscal.
Thereafter, the increase will be in a range of 0.3% to 0.7% of turnover in each financial year, leading to a total estimated royalty cost increase of 1.75% of turnover, Sridhar said.
The impact under the previous agreement resulted in a royalty cost of around 1.4% of turnover. But with the new agreement in place, royalty is expected to be around 3.15% of the turnover by March 31, 2018.
“Since royalty will increase every quarter, Ebitda margin in the next quarter will be suppressed by 50 basis points, at least moving up to 170 bps by fiscal 2018. We will have to see how the company performs in the coming quarters going forward,” said Trivedi.
Industry observers and stock market experts gave a thumbs-down to the royalty issue, saying it harms the interests of minority investors in India.
Hind Unilever bets big on product innovation
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| R Sridhar |
Hindustan Unilever’s third-quarter performance presentation starts with a visual on the Dove Elixir premium hair oil brand, a category into which the company has recently extended the Dove brand. R Sridhar, chief financial officer, is quick to point out that it’s a key innovation, apart from several others by the company in the third quarter. He spoke about the overall fast moving consumer goods (FMCG) market scenario in the country, consumer behaviour, etc as also the company’s plans and strategy ahead. Edited excerpts...
On overall FMCG market scenario
During the third quarter, the FMCG market continued to grow in double digits. However, we also saw that slower growth in discretionary category continue on a sequential basis. As for soaps and detergents, growth continues to be price-led. We have also seen a slowdown in modern trade (as a channel) retail growth in the December quarter. On the other hand, Canteen Stores Department (CSD), which was a bit of a challenge, has shown recovery. The pace of store additions has slowed, in fact it is negative, indicating that the more stores were shut than new ones were opened. The input cost environment was holding firm as was the competitive intensity during the quarter.
On the HUL’s third quarter performance
In what has clearly been a challenging environment, it is a consistent broad-based growth and margin / profit improvement. While our reported growth might be 10%, but because of the exports demerger our underlying domestic consumer business growth is about 15% and volume growth is 5%. Both Home and Personal Care and Foods & Beverages registered double-digit growth. Operating margin has expanded by 40 basis points and this is the sixth consecutive quarter wherein the company has shown consistent (40 bps) growth. Advertising and promotions have been stepped up by Rs150 crore to 12.8% of the sales. For the nine months ended December, we have grown consumer business 16%, with a 7% underlying volume growth. Margin is up by 100 bps and profit after tax before exceptions is up roughly 27%.
Key product innovations
The Lifebuoy colour changing hand wash and the Dove Elixir premium range of hair oil are some of the key innovations being introduced. This apart there was a new variant in Sunsilk, Vaseline, whole new range of Brylcream hair gels and cream and Knorr soupy noodles towards the end (last week of December) of the quarter.
Immediate concerns
In the near term however, there are a couple of concerns, particularly volatility - global markets, local markets, currency, commodity - which is continuous in nature. We will have to be very conscious as the inflationary pressures may put some stress on consumer wallets.
Outlook
As we look ahead we are positioned well in a FMCG market, which has clearly got positive growth outlook over the medium to long term. The company is positioned well, whether it is our portfolio of brands or our superior capabilities.
From bulk sales, DLF goes piecemeal
This story first appeared in DNA Money edition on Tuesday, January 22, 2013.
DLF Ltd is staggering inventory from its projects to benefit from frequent price increases and protect margins from cost escalations.
India’s top realtor, which launched quite a few projects in the last year, has been offloading inventory in bulk till now.
Rajeev Talwar, executive director of DLF, said, “We are now releasing limited stock so that the increase in costs will be met through differential pricing over each subsequent release. While the idea is to release a large number of projects, taking a piecemeal approach will help us increase returns.”
In the absence of an escalation clause, cost increases had to be borne by the developer. Over the next 3-4 years, DLF expects new projects to generate Rs2,000-3,000 crore in sales annually. While launches would happen across the country, most would be in the National Capital Region and some pockets in south India.
The realtor launched a couple of residential projects last quarter including the luxury development DLF Sky Court at Gurgaon. Talwar said all projects have received a good response.
DLF Sky Court was launched at `6,000 per square foot (psf) and is currently being sold at Rs6,250 psf, according to real estate brokerage, InvestInNest.com.
On revival in real estate, Talwar said traction in the commercial space will largely depend on how soon the economy improves. The residential market, on the other hand, has kept up with people’s aspirations, he said.
“As the economy gets better and incomes get distributed, there will be greater traction in the entire residential segment – be it luxury, premium and middle-income. We are quite certain that future launches will elicit a much higher response than what was seen in the last 2-3 years,” he said.
DLF Ltd is staggering inventory from its projects to benefit from frequent price increases and protect margins from cost escalations.
India’s top realtor, which launched quite a few projects in the last year, has been offloading inventory in bulk till now.
Rajeev Talwar, executive director of DLF, said, “We are now releasing limited stock so that the increase in costs will be met through differential pricing over each subsequent release. While the idea is to release a large number of projects, taking a piecemeal approach will help us increase returns.”
In the absence of an escalation clause, cost increases had to be borne by the developer. Over the next 3-4 years, DLF expects new projects to generate Rs2,000-3,000 crore in sales annually. While launches would happen across the country, most would be in the National Capital Region and some pockets in south India.
The realtor launched a couple of residential projects last quarter including the luxury development DLF Sky Court at Gurgaon. Talwar said all projects have received a good response.
DLF Sky Court was launched at `6,000 per square foot (psf) and is currently being sold at Rs6,250 psf, according to real estate brokerage, InvestInNest.com.
On revival in real estate, Talwar said traction in the commercial space will largely depend on how soon the economy improves. The residential market, on the other hand, has kept up with people’s aspirations, he said.
“As the economy gets better and incomes get distributed, there will be greater traction in the entire residential segment – be it luxury, premium and middle-income. We are quite certain that future launches will elicit a much higher response than what was seen in the last 2-3 years,” he said.
Sunday 20 January 2013
‘Social media, consumers are today’s advertising regulators’
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| Josy Paul |
This Q&A first appeared in DNA Money edition on Wednesday, January 16, 2013.
Unusual is the business card of Josy Paul, chairman and chief creative officer of the Indian branch of BBDO, the global advertising major. It has neither office address nor landline telephone numbers. Even more surprising, it has his mobile number and email ID – things that VIPs usually prefer to keep private. The elegant black card even contains his Jet Privilege card number. Surprises don’t end there: the card gives away the registration number of his five-year-old Black Honda Civic. “I’m either on the road or on a flight travelling across the country. It’s practically a mobile office in my case. Hence, it made sense to have office coordinates replaced with these numbers.” In this discussion the adman speaks about Strategic design in communications, reality advertising, the digital medium, corporate campaigns. Edited excerpts...
You pioneered reality advertising in India, isn’t it?
Reality advertising as a concept was explored even before we experimented with it. It’s just that in our case the timing was very appropriate. We conceptualised an idea and designed a communication strategy around it when reality television programming was gaining momentum in the country. The Gillette ‘Women Against Lazy Stubble’ campaign for P&G not only became a huge movement in the country but also activity that created a world record in the Guinness Book and the Limca Book of Records. We have only built on what other good people have left behind.
While not taking credit for anything, it was just our response to a situation, opportunity or a problem. We feel that it has to be real and engage people in the real way that is authentic. If it happens to have some correlation with some work done before, we are more than happy. We accept that, maybe, things like this have been done before and hence would not claim to be pioneers. We have set up a philosophy for ourselves — that of creating ‘acts’ and not ‘ads’. In a way, we’ve laid down a set of principles which, maybe, the people before had not fully organised. Earlier, people were doing random ads while we’re taking a more organised approach to it.
Do you agree that advertising is closer to what the product / service stands for these days?
We’re living in a new world with a new kind of consciousness, that of a Facebook and Twitter, which is out there and driven by real people in a real world. That consciousness won’t allow the false and fakeism. Therefore, it’ll be very important that we only talk about what’s being achieved rather that what is going to be achieved. One can talk about ideas that are useful, something that is real and measurable; or you can be highly entertaining and help people be entertained for that moment. Ads could be illogical sometimes but should be highly entertaining. Having said that, nobody will be able to fake it in their communications any more because social media will kill you even before industry body takes you up. People these days are not shying away from speaking up, if they find something that’s objectionable. I’d say the consumers are the biggest industry regulators today.
Is the corporate sector getting more serious about campaigns?
I’m seeing greater consciousness among our clients for the simple reason that they also believe that’s the future. We aren’t telling them any new things. They are already in it and are trying to find a way to leverage a social context and still be sustainable at a commercial level. None of the work we do is CSR (corporate social responsibility) as companies are seeing direct benefits as well. The ecosystem is benefiting out of it and so are brands at sales and goodwill levels. It’s straddling both ways and can’t be one versus the other because then it’s not sustainable.
What kind of an impact will new media like online platforms and social networks have on television ads, in terms of reaching the target audience?
Television is still the lead medium to reach out to a larger set of people whom the corporate sector is targeting. Having said that, the way people are using television as a medium these days is changing significantly. Companies may decide to go with various available formats: that is, public relations, documentary, 30-second advertisements, etcetera. So, the corporate sector is still using the television medium, but the format is changing. Social media is playing its part by keeping the engagement alive and forcing everybody to think about interface and whether it will become a one-to-one transaction (which is a short-term thing) or a one-to-one interaction (which is a long-term thing).
How is 2013 looking for BBDO in terms of business?
We had a fantastic 2012 with interesting campaigns like the re-launch of Blackberry with ‘Action starts here’ where we made the star the hero. I think the challenge in 2013 is how to scale up these ideas and create greater impact. I think the base has been set — in the sense that this approach to appetising is here to stay for a while. Now we’ve to think about how to make it really big. The second challenge is, culturally, how do we get every one of us in the agency — we were two people earlier; now, we’re more than 100; and more will join — to understand and be with us equally and hunt for both the solution and craft and quality of solution. It’s a huge challenge and we are focusing on our reputation rather than our bottomline.
Consolidation is seeping into the Indian advertising industry. Is BBDO looking at any inorganic opportunity?
There are conversations at all times and the thing is, it’s not only about BBDO, which is part of a large organisation called Omnicom which is always looking for opportunities or possibilities to grow its objectives. I think it’s in that zone and we personally don’t get involved. We are content creators and like to remain that way.
Unusual is the business card of Josy Paul, chairman and chief creative officer of the Indian branch of BBDO, the global advertising major. It has neither office address nor landline telephone numbers. Even more surprising, it has his mobile number and email ID – things that VIPs usually prefer to keep private. The elegant black card even contains his Jet Privilege card number. Surprises don’t end there: the card gives away the registration number of his five-year-old Black Honda Civic. “I’m either on the road or on a flight travelling across the country. It’s practically a mobile office in my case. Hence, it made sense to have office coordinates replaced with these numbers.” In this discussion the adman speaks about Strategic design in communications, reality advertising, the digital medium, corporate campaigns. Edited excerpts...
You pioneered reality advertising in India, isn’t it?
Reality advertising as a concept was explored even before we experimented with it. It’s just that in our case the timing was very appropriate. We conceptualised an idea and designed a communication strategy around it when reality television programming was gaining momentum in the country. The Gillette ‘Women Against Lazy Stubble’ campaign for P&G not only became a huge movement in the country but also activity that created a world record in the Guinness Book and the Limca Book of Records. We have only built on what other good people have left behind.
While not taking credit for anything, it was just our response to a situation, opportunity or a problem. We feel that it has to be real and engage people in the real way that is authentic. If it happens to have some correlation with some work done before, we are more than happy. We accept that, maybe, things like this have been done before and hence would not claim to be pioneers. We have set up a philosophy for ourselves — that of creating ‘acts’ and not ‘ads’. In a way, we’ve laid down a set of principles which, maybe, the people before had not fully organised. Earlier, people were doing random ads while we’re taking a more organised approach to it.
Do you agree that advertising is closer to what the product / service stands for these days?
We’re living in a new world with a new kind of consciousness, that of a Facebook and Twitter, which is out there and driven by real people in a real world. That consciousness won’t allow the false and fakeism. Therefore, it’ll be very important that we only talk about what’s being achieved rather that what is going to be achieved. One can talk about ideas that are useful, something that is real and measurable; or you can be highly entertaining and help people be entertained for that moment. Ads could be illogical sometimes but should be highly entertaining. Having said that, nobody will be able to fake it in their communications any more because social media will kill you even before industry body takes you up. People these days are not shying away from speaking up, if they find something that’s objectionable. I’d say the consumers are the biggest industry regulators today.
Is the corporate sector getting more serious about campaigns?
I’m seeing greater consciousness among our clients for the simple reason that they also believe that’s the future. We aren’t telling them any new things. They are already in it and are trying to find a way to leverage a social context and still be sustainable at a commercial level. None of the work we do is CSR (corporate social responsibility) as companies are seeing direct benefits as well. The ecosystem is benefiting out of it and so are brands at sales and goodwill levels. It’s straddling both ways and can’t be one versus the other because then it’s not sustainable.
What kind of an impact will new media like online platforms and social networks have on television ads, in terms of reaching the target audience?
Television is still the lead medium to reach out to a larger set of people whom the corporate sector is targeting. Having said that, the way people are using television as a medium these days is changing significantly. Companies may decide to go with various available formats: that is, public relations, documentary, 30-second advertisements, etcetera. So, the corporate sector is still using the television medium, but the format is changing. Social media is playing its part by keeping the engagement alive and forcing everybody to think about interface and whether it will become a one-to-one transaction (which is a short-term thing) or a one-to-one interaction (which is a long-term thing).
How is 2013 looking for BBDO in terms of business?
We had a fantastic 2012 with interesting campaigns like the re-launch of Blackberry with ‘Action starts here’ where we made the star the hero. I think the challenge in 2013 is how to scale up these ideas and create greater impact. I think the base has been set — in the sense that this approach to appetising is here to stay for a while. Now we’ve to think about how to make it really big. The second challenge is, culturally, how do we get every one of us in the agency — we were two people earlier; now, we’re more than 100; and more will join — to understand and be with us equally and hunt for both the solution and craft and quality of solution. It’s a huge challenge and we are focusing on our reputation rather than our bottomline.
Consolidation is seeping into the Indian advertising industry. Is BBDO looking at any inorganic opportunity?
There are conversations at all times and the thing is, it’s not only about BBDO, which is part of a large organisation called Omnicom which is always looking for opportunities or possibilities to grow its objectives. I think it’s in that zone and we personally don’t get involved. We are content creators and like to remain that way.
Prozone spots new USP in luxury housing
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| Nikhil Chaturvedi |
This Q&A first appeared in DNA Money edition on Monday, January 14, 2013.
Having built shopping malls in Tier II cities, Prozone Capital Shopping Centres Ltd, is now looking at bringing about a shift in the way real estate is sold in these markets with its affordable luxury housing projects. Prozone, which has already invested close to Rs 1,000 crore in the realty business, is targeting Rs 300 crore in annual sales across its three ongoing developments. Nikhil Chaturvedi, managing director, Prozone, speaks about how the company is adopting novel strategies and the way ahead. Edited excerpts...
Developing retail shopping spaces being the core business, what motivated the company to make a residential development foray?
Our joint venture with Capital Shopping Centres (CSC) in this business follows a very interesting business model in the international markets they operate in. They'd generally acquire four times the land parcel required to develop a shopping mall. First they'd develop the mall thereby making the surrounding land parcel invaluable, which would then be exploited through residential, commercial and related developments. The basic idea behind this approach to create long-term, debt-free assets (malls) that are core to the business through short-term disposable assets like residential and commercial developments. We realised the business model made so much sense especially in the Indian market where cost of debt is so high, hence the foray.
So you decided to outright replicate the model in India?
A slight tweaking to the model had to be done as CSC's overseas developments were at the edge of the city while the Indian projects had to be located right in the city centre. We also decided to simultaneously develop the residential catchments when doing malls. Considering the amount of demand for housing in the market we realised it was very much doable. We also adapted a few interesting learnings from our JV partner's overseas residential developments.
And what were these learnings like?
First we went to UK to see how were they doing the residential developments and realised the approach there wasn't relevant to India. In UK they did ground plus one housing projects which was just not viable here given the scarcity and high land costs. CSC also has investments in China so we visited the sites there. We found interesting similarities to residential developments prominent one being going vertical. They'd also make a huge boundary walls, large doors and when you entered the site there was a sales and marketing office and show flats very much like what we do here in India. There was one differentiator though, a little inside the site, they had a very beautiful fully operational club house with the best of facilities and amenities. We were intrigued, the buildings were yet to be constructed so why build the club house so much in advance.
That's interesting. You mean to say the last component in a large scale residential development was the first one to be built.
Exactly. They said, every customer visits the site once in 10 weeks. If I have a thousand customers, there would be 100 customers lining up in the site every week leading to a chaotic situation. And because the competition allowed such visits they couldn't say no to the customers and every one would come back with differential levels of experience and concerns while it was still work in progress at the site. The only way to give them a powerful message was to show them an operational club house and tell the customers that site visits can be done only on a specific day of the week citing hazardous (health and safety) conditions.
What also came out of this approach is that a realistic asset was created that gave customers a realisation of the kind of environment they would be living in for the rest of their lives. The club house thus became the anchor of their development as a result sales increased 1.5 times the competition and prices started shooting north at sites they had limited inventory to offer.
It made so much sense to adapt the strategy in India. If you compare any residential development with or without visible infrastructure, the former would always register increased traction and faster price growth. And that's the approach we are taking with our residential developments in India.
But your projects are largely located in the Tier II Indian cities. Has the approach helped?
It has certainly made a paradigm shift in the way real estate is being sold in Tier II markets. There are a few challenges to this approach though. The most important being that the developer will have to be courageous enough to invest in building a state-of-the-art, fully functional club house at the start of the project, followed by the patience level for business to start kicking in. Financial soundness is very crucial for the success of this strategy.
Prozone is among the select few realty players to operate at almost negligible debt as our net debt is just Rs 10 crore. Lastly, we decided to create the visible infrastructure on the ground level as against podium level which was very time consuming. Since all this could be done with larger developments we chose to do 20 to 30 acre residential projects where 6-7 acres can easily be carved out for gardens (with 30 feet trees relocated to the site from a distance place), clubs and other leisurely facilities. A lot of care is also taken to ensure safe vehicular movements inside the development akin to what one sees with developments in Singapore. The residential developments would come up at the edge of the site which is the case with our first project in Indore Prozone Palms which is spread across 40 acres.
Selling luxury housing must be very challenging in the Tier II markets. What has been your experience?
We showcase the efforts being taken to create the luxuries through various communication initiatives including owner's manual that spell out every thing clearly thereby bring in a sense of ownership to the customers. Luxury positioning in our case is not the Italian marble and premium designer elements but the thought and attention to details being put make the product. It's about luxury tailored to the buyers lifestyle with things like sundeck and walk-in wardrobes, privacy, high railings, state-of-the-art safety and security including swipe cards for all the residents, professional facility management to name a few.
I am selling to the middle-class Indian household and make it at the rate that affordable to them. Our housing unit prices are in the Rs 2,800 to Rs 3,500 per square feet (psf) range and very much comparable to what is available in that area. The only difference in our case is that we have created economies of scale (with the number of units ranging from 1,200 to 1,500) and efficient spaces within the developments to give them a luxury feel through efficient planning and optimum utilisation of space.
Could you share some details the target audience buying into your developments. Do you also get a lot of investors wanting to make a quick buck?
Besides the middle-class households that form 70% of our customer base take the home loan approach, we have seen a lot of trader community buying into our developments. These are businessmen who prefer internal accruals and in some cases equity raised from relatives, friends and families to buy residential apartments. That is also one big reason why we stick to a 24 month delivery time as it gives these set of buyers enough time to arrange funding. There could be investors in our developments but we have devised a way to discourage them -- a two year lock-in period.
On an average how many housing units are you targeting to deliver annually?
While we have developments planned in six markets spread across 17.9 million square feet, only three i.e. Indore (40 acre), Coimbatore (26 acre) and Nagpur (41 acre) are active while developments in Aurangabad, Mysore and Jaipur is yet to start. Coimbatore and Nagpur will also have malls. All the developments will be completed in two phases at least and we are targeting at handing over 250 housing units every year. Our first mall is already operational in Aurangabad and we are currently developing commercial offices with 2 lakh square feet sold already. We have just started sales of Saral Bazaar -- kind of a flea market concept for that location -- basically shops for local people on a ownership basis as they are very averse to coming on rent but are ready to buy at premium.
Having built shopping malls in Tier II cities, Prozone Capital Shopping Centres Ltd, is now looking at bringing about a shift in the way real estate is sold in these markets with its affordable luxury housing projects. Prozone, which has already invested close to Rs 1,000 crore in the realty business, is targeting Rs 300 crore in annual sales across its three ongoing developments. Nikhil Chaturvedi, managing director, Prozone, speaks about how the company is adopting novel strategies and the way ahead. Edited excerpts...
Developing retail shopping spaces being the core business, what motivated the company to make a residential development foray?
Our joint venture with Capital Shopping Centres (CSC) in this business follows a very interesting business model in the international markets they operate in. They'd generally acquire four times the land parcel required to develop a shopping mall. First they'd develop the mall thereby making the surrounding land parcel invaluable, which would then be exploited through residential, commercial and related developments. The basic idea behind this approach to create long-term, debt-free assets (malls) that are core to the business through short-term disposable assets like residential and commercial developments. We realised the business model made so much sense especially in the Indian market where cost of debt is so high, hence the foray.
So you decided to outright replicate the model in India?
A slight tweaking to the model had to be done as CSC's overseas developments were at the edge of the city while the Indian projects had to be located right in the city centre. We also decided to simultaneously develop the residential catchments when doing malls. Considering the amount of demand for housing in the market we realised it was very much doable. We also adapted a few interesting learnings from our JV partner's overseas residential developments.
And what were these learnings like?
First we went to UK to see how were they doing the residential developments and realised the approach there wasn't relevant to India. In UK they did ground plus one housing projects which was just not viable here given the scarcity and high land costs. CSC also has investments in China so we visited the sites there. We found interesting similarities to residential developments prominent one being going vertical. They'd also make a huge boundary walls, large doors and when you entered the site there was a sales and marketing office and show flats very much like what we do here in India. There was one differentiator though, a little inside the site, they had a very beautiful fully operational club house with the best of facilities and amenities. We were intrigued, the buildings were yet to be constructed so why build the club house so much in advance.
That's interesting. You mean to say the last component in a large scale residential development was the first one to be built.
Exactly. They said, every customer visits the site once in 10 weeks. If I have a thousand customers, there would be 100 customers lining up in the site every week leading to a chaotic situation. And because the competition allowed such visits they couldn't say no to the customers and every one would come back with differential levels of experience and concerns while it was still work in progress at the site. The only way to give them a powerful message was to show them an operational club house and tell the customers that site visits can be done only on a specific day of the week citing hazardous (health and safety) conditions.
What also came out of this approach is that a realistic asset was created that gave customers a realisation of the kind of environment they would be living in for the rest of their lives. The club house thus became the anchor of their development as a result sales increased 1.5 times the competition and prices started shooting north at sites they had limited inventory to offer.
It made so much sense to adapt the strategy in India. If you compare any residential development with or without visible infrastructure, the former would always register increased traction and faster price growth. And that's the approach we are taking with our residential developments in India.
But your projects are largely located in the Tier II Indian cities. Has the approach helped?
It has certainly made a paradigm shift in the way real estate is being sold in Tier II markets. There are a few challenges to this approach though. The most important being that the developer will have to be courageous enough to invest in building a state-of-the-art, fully functional club house at the start of the project, followed by the patience level for business to start kicking in. Financial soundness is very crucial for the success of this strategy.
Prozone is among the select few realty players to operate at almost negligible debt as our net debt is just Rs 10 crore. Lastly, we decided to create the visible infrastructure on the ground level as against podium level which was very time consuming. Since all this could be done with larger developments we chose to do 20 to 30 acre residential projects where 6-7 acres can easily be carved out for gardens (with 30 feet trees relocated to the site from a distance place), clubs and other leisurely facilities. A lot of care is also taken to ensure safe vehicular movements inside the development akin to what one sees with developments in Singapore. The residential developments would come up at the edge of the site which is the case with our first project in Indore Prozone Palms which is spread across 40 acres.
Selling luxury housing must be very challenging in the Tier II markets. What has been your experience?
We showcase the efforts being taken to create the luxuries through various communication initiatives including owner's manual that spell out every thing clearly thereby bring in a sense of ownership to the customers. Luxury positioning in our case is not the Italian marble and premium designer elements but the thought and attention to details being put make the product. It's about luxury tailored to the buyers lifestyle with things like sundeck and walk-in wardrobes, privacy, high railings, state-of-the-art safety and security including swipe cards for all the residents, professional facility management to name a few.
I am selling to the middle-class Indian household and make it at the rate that affordable to them. Our housing unit prices are in the Rs 2,800 to Rs 3,500 per square feet (psf) range and very much comparable to what is available in that area. The only difference in our case is that we have created economies of scale (with the number of units ranging from 1,200 to 1,500) and efficient spaces within the developments to give them a luxury feel through efficient planning and optimum utilisation of space.
Could you share some details the target audience buying into your developments. Do you also get a lot of investors wanting to make a quick buck?
Besides the middle-class households that form 70% of our customer base take the home loan approach, we have seen a lot of trader community buying into our developments. These are businessmen who prefer internal accruals and in some cases equity raised from relatives, friends and families to buy residential apartments. That is also one big reason why we stick to a 24 month delivery time as it gives these set of buyers enough time to arrange funding. There could be investors in our developments but we have devised a way to discourage them -- a two year lock-in period.
On an average how many housing units are you targeting to deliver annually?
While we have developments planned in six markets spread across 17.9 million square feet, only three i.e. Indore (40 acre), Coimbatore (26 acre) and Nagpur (41 acre) are active while developments in Aurangabad, Mysore and Jaipur is yet to start. Coimbatore and Nagpur will also have malls. All the developments will be completed in two phases at least and we are targeting at handing over 250 housing units every year. Our first mall is already operational in Aurangabad and we are currently developing commercial offices with 2 lakh square feet sold already. We have just started sales of Saral Bazaar -- kind of a flea market concept for that location -- basically shops for local people on a ownership basis as they are very averse to coming on rent but are ready to buy at premium.
Revamp to make Provogue a youth brand
This story first appeared in DNA Money edition on Saturday, January 12, 2013.Premium apparel maker Provogue is aggressively revamping its business. To start with, the look and feel of its 130-odd outlets will get a global appeal in the next 6-8 months.
“With times and targeted consumers changing, Provogue reached a tipping point between heritage and destiny. Thus, the ongoing revamp became inevitable,” said Timothy Eynon, business head of Provogue, a 12-year-old brand.
Focus is now on consumers in their late 20s. “We are not a teen brand nor an ‘old’ brand. Our positioning is very clear, that of a youth brand that offers innovative and stylish products for the target audience,” said Eynon.
The eagle and ‘double P’ that are part of the Provogue logo will give way to a prominently displayed ‘Provogue’ on all apparel, accessories and other product categories to be launched soon.
For instance, Provogue is set to launch new categories of apparel, men’s inner wear and premium accessories like belts and bagsfor women.
Provogue will also soft-launch an e-commerce platform next month. The company is targeting to double its store count by adding 100-odd company-owned or company-operated outlets over the next five years. With 15 franchisee outlets at present, the number is likely to swell to 300 by 2020.
For fiscal 2013, the company is targeting Rs650 crore in revenue with equal contributions expected from its domestic and export verticals.
While domestic sales have been showing higher growth, the company expects the revamp, new collections and new product categories to increase the growth rate in exports, going forward.
Eynon said 25 stores in landmark shopping malls and high streets have already been given a makeover, in terms of design, colours, lighting and amenities like trial rooms. New collections and accessories for men and women are in the pipeline.
Consequently, sales at these outlets are up 25%, driven by Provogue’s famed innovative products, technologically superior fabrics and strong colours, he said.
“The revamp will take two years (or four seasons, as they say in the fashion apparel industry) to start showing results,” he said.
Building blocks in place, Dentsu to cart in global brands
 |
| Rohit Ohri |
Rohit Ohri, executive chairman, Dentsu India Group, said 2012 was a defining period for Dentsu. He shares plans and developments at the Indian business unit, how 2012 has been for the advertising agency and so on. Edited excerpts…
How has 2012 been for Dentsu? What were the key milestones like?
The year 2012 was a clearly a defining period for Dentsu. The organisation underwent a transformation in terms of systems, technology, processes, talent, culture and so on. The company focused on building a foundation and setting a direction for the Dentsu India Group for the next three to five years. The last 12-odd months were fairly challenging as well as enormously rewarding. Many new businesses were won and many of our existing clients expressed a great deal of satisfaction with the enhanced services coupled with improved quality of work.
The year 2012 also saw Dentsu aggressively pursue inorganic approach in India and overseas. What led the decision?
The Taproot acquisition, led out of India, was certainly part of the foundation building exercise. It was a strategic acquisition wherein we wanted best-in-class creative capabilities within the group. Taproot is regarded as one of the most creative communication agencies in India and that’s what really prompted our decision. My vision on the overall approach is that, we don’t want to be a fringe player in the Indian advertising industry. We want to be pretty much in the centre stage not necessarily defined by size. We don’t want to be the largest but the most creative integrated marketing and communications agency in India, which is what our stated objective is going forward. Unlike other players in the country, Dentsu is not an unbundled because Dentsu Media and Dentsu Digital are all part of the Dentsu India Group (DIG) with one profit and loss (P&L) statement. So to a great extent that enormously helps us in facilitating integration.
How has it worked for the agency thus far? Market believes the deal was fairly overvalued?
Not really. I don’t think the deal was overvalued. And honestly speaking, all that was quoted in the media was highly inflated. No one really knows the value as we have not talked about the deal size at all. So I am quite surprised if the market is calling it overvalued and I’d really not like to comment on such a market perception.
How challenging was the integration process? How did Dentsu deal with it?
It was not like we were setting up an agency or starting from zero because Dentsu already had an operational base in the Indian market. Integration is always challenging when there are a set of people who have already been in the organisation and one is bringing in fresh talent from the outside. To ensure that everyone (Japanese and Indian talent) worked harmoniously playing to each others’ strengths and understood how to take the new vision and culture of Dentsu forward was critical. While it certainly was a challenging task, everyone was focused around making it work and I am very happy with the end results.
Will 2013 also see some inorganic activities?
We are looking at scaling up on the digital front because that’s one of the core strengths of Dentsu Group. In the US as well as in Japan, there are state-of-the-art companies being acquired by Dentsu and we are exploring various options right now. While acquisition is one, we are keen to explore the option of bringing some of our global brands into India. The other fact is that through the Aegis acquisition we will have digital capabilities at our disposal like Isobar etc. We are evaluating all the options to identify the best way to build a compelling digital offering in India.
There were some reports about Dentsu acquiring Network18’s majority stake Webchutney.
We are exploring all our options at the moment. Yes we did meet Webchutney like we did 6-7 others in the process of exploring the possibility of acquisition. However, what the media reports have stated is baseless. Acquisition is only one of the many options and we are currently in the evaluation mode. Hopefully in the next 30-45 days we will have more clarity on what is the future course.
You earlier mentioned about bringing some of the global brands into India. Could you throw some more light on the same?
One of the things we are going to do very shortly is launching a number of Dentsu intellectual property (IP) in to India. Dentsu has an innovation centre in Japan where they work with Apple, Massachusetts Institute of Technology (MIT), Facebook etc to develop what is the next phase of consumer connect to technology. How do you create platform that consumers can use to connect with brands. Dentsu has enormous capabilities in this area and we are leveraging that strength. One of these technology platforms will be launched this month (third week of January), which will be for the first time in India. This will be the start of one of the big initiatives (with more to come) from Dentsu in the Indian advertising industry.
How has 2012 been for Dentsu? What were the key milestones like?
The year 2012 was a clearly a defining period for Dentsu. The organisation underwent a transformation in terms of systems, technology, processes, talent, culture and so on. The company focused on building a foundation and setting a direction for the Dentsu India Group for the next three to five years. The last 12-odd months were fairly challenging as well as enormously rewarding. Many new businesses were won and many of our existing clients expressed a great deal of satisfaction with the enhanced services coupled with improved quality of work.
The year 2012 also saw Dentsu aggressively pursue inorganic approach in India and overseas. What led the decision?
The Taproot acquisition, led out of India, was certainly part of the foundation building exercise. It was a strategic acquisition wherein we wanted best-in-class creative capabilities within the group. Taproot is regarded as one of the most creative communication agencies in India and that’s what really prompted our decision. My vision on the overall approach is that, we don’t want to be a fringe player in the Indian advertising industry. We want to be pretty much in the centre stage not necessarily defined by size. We don’t want to be the largest but the most creative integrated marketing and communications agency in India, which is what our stated objective is going forward. Unlike other players in the country, Dentsu is not an unbundled because Dentsu Media and Dentsu Digital are all part of the Dentsu India Group (DIG) with one profit and loss (P&L) statement. So to a great extent that enormously helps us in facilitating integration.
How has it worked for the agency thus far? Market believes the deal was fairly overvalued?
Not really. I don’t think the deal was overvalued. And honestly speaking, all that was quoted in the media was highly inflated. No one really knows the value as we have not talked about the deal size at all. So I am quite surprised if the market is calling it overvalued and I’d really not like to comment on such a market perception.
How challenging was the integration process? How did Dentsu deal with it?
It was not like we were setting up an agency or starting from zero because Dentsu already had an operational base in the Indian market. Integration is always challenging when there are a set of people who have already been in the organisation and one is bringing in fresh talent from the outside. To ensure that everyone (Japanese and Indian talent) worked harmoniously playing to each others’ strengths and understood how to take the new vision and culture of Dentsu forward was critical. While it certainly was a challenging task, everyone was focused around making it work and I am very happy with the end results.
Will 2013 also see some inorganic activities?
We are looking at scaling up on the digital front because that’s one of the core strengths of Dentsu Group. In the US as well as in Japan, there are state-of-the-art companies being acquired by Dentsu and we are exploring various options right now. While acquisition is one, we are keen to explore the option of bringing some of our global brands into India. The other fact is that through the Aegis acquisition we will have digital capabilities at our disposal like Isobar etc. We are evaluating all the options to identify the best way to build a compelling digital offering in India.
There were some reports about Dentsu acquiring Network18’s majority stake Webchutney.
We are exploring all our options at the moment. Yes we did meet Webchutney like we did 6-7 others in the process of exploring the possibility of acquisition. However, what the media reports have stated is baseless. Acquisition is only one of the many options and we are currently in the evaluation mode. Hopefully in the next 30-45 days we will have more clarity on what is the future course.
You earlier mentioned about bringing some of the global brands into India. Could you throw some more light on the same?
One of the things we are going to do very shortly is launching a number of Dentsu intellectual property (IP) in to India. Dentsu has an innovation centre in Japan where they work with Apple, Massachusetts Institute of Technology (MIT), Facebook etc to develop what is the next phase of consumer connect to technology. How do you create platform that consumers can use to connect with brands. Dentsu has enormous capabilities in this area and we are leveraging that strength. One of these technology platforms will be launched this month (third week of January), which will be for the first time in India. This will be the start of one of the big initiatives (with more to come) from Dentsu in the Indian advertising industry.
Tuesday 8 January 2013
DTH and theatrical release of Kamal Hassan’s Vishwaroopam delayed
Actor producer Kamal Hassan's much awaited block buster
film Vishwaroopam will not make it the television screens or for that matter
the theatres and multiplexes on the scheduled date of its release.
A landmark development for the Indian film industry, Kamal
Hassan had decided to premier his Rs 95-crore venture through DTH before its
release in wide screens. The film was to be shown on the direct to home (DTH)
platform on January 10, 2013 i.e. a day before its theatrical release on January
11, 2013. The DTH viewers would have had to pay Rs 1,000 for the Tamil version
while it was Rs 500 for the Telugu and Hindi versions.
However, it so appears that Rajkamal films has failed
to garner enough support from the multiplex / theatre fraternity that has been
opposing the film’s DTH release.
Rajkamal Films’ media representative Nikhil Murugan did
not respond to calls made on his cell number for an official confirmation.
The DTH players including the likes of Airtel Digitel,
DishTV, Tata Sky etc. have however, already stopped taking bookings for the
screening of Vishwaroopam on their respective networks.
Shashi Arora, CEO - DTH / Media, Bharti Airtel, said, “In-line with the postponement of the release date of the movie Vishwaroopam (Tamil & Telegu) / Vishwaroop (Hindi) across theaters and on the DTH platform by Rajkamal Films, we have stopped taking bookings for the movie premiere that was scheduled for January 10, 2013 at 9.30pm on Airtel DTH. The interest of our customers is paramount for us and regret the inconvenience caused to them. We are awaiting confirmation from Rajkamal Films on the revised dates.”
Shashi Arora, CEO - DTH / Media, Bharti Airtel, said, “In-line with the postponement of the release date of the movie Vishwaroopam (Tamil & Telegu) / Vishwaroop (Hindi) across theaters and on the DTH platform by Rajkamal Films, we have stopped taking bookings for the movie premiere that was scheduled for January 10, 2013 at 9.30pm on Airtel DTH. The interest of our customers is paramount for us and regret the inconvenience caused to them. We are awaiting confirmation from Rajkamal Films on the revised dates.”
A Tamil-Hindi bilingual Indian spy thriller film
written, directed and co-produced by Kamal Haasan that features Hassan in the
lead role, Vishwaroopam also has Rahul Bose, Andrea Jeremiah and Jaideep
Ahlawat in supporting roles.
The soundtrack is composed by Shankar-Ehsaan-Loy,
with lyrics by Vairamuthu and Kamal Haasan for the Tamil and Javed Akhtar for
the Hindi versions respectively. The film was shot with the same cast in both
languages simultaneously, and is titled in Hindi as Vishwaroop.
It is the first
Indian film, and second world film (after Red Tails) ever to be equipped with
Auro 3D sound format.
According to Kamal Haasan the film is expected to earn Rs
350 crore (US$63.7 million).
For some hotels, green is the colour of bigger profit
This story first appeared in DNA Money edition on Monday, January 7, 2013.
Efficient eco-friendly practices have meant two Mumbai hotels – Meluha and Rodas, both located in Powai – save Rs1 crore and Rs29 lakh every year, respectively. Both are Ecotel-certified, a breed that’s increasing these days.
Ecotel is an environment certification administered by HVS, a hospitality-focused consulting and advisory firm. HVS claims Ecotel helps hotels enhance profits. By integrating efficient equipment and operating measures into standard business practices, Ecotel hotels enjoy reduced consumption of resources like energy and water; emissions and wastes, too, are lower.
Besides, some waste material is converted into wealth in the form of biogas. Despite initial costs, alternative energy resources like solar and windmills are encouraged. All this enhances overall performance, boosting both revenues and operations, says HVS.
Ecotel involves the entire value chain: owners, architects, operators, employees, suppliers and hotel guests. It even encompasses development of the local community. Hotels can apply for Ecotel at any stage of development, not just during construction.
Ecotel’s cost is Rs5 lakh, valid for two years. Later, hotels are re-certified (some for over ten years), provided they meet Ecotel standards and clear the property audit.
Ecotel, initially viewed as a mere marketing and branding exercise, has started gaining traction among hotel owners as the boost to profitability becomes clearer. “Fiscal benefits of operating sustainable hotels is becoming more and more known to the industry,” said Manav Thadani, chairman, HVS India.
The three upcoming Ecotel hotels will be operated under the Fern brand managed by Concept Hospitality, Asia’s largest operator of Ecotel-certified hotels.
According to Param Kannampilly, CMD of Concept, hotel asset owners are keen on Ecotel as it makes them stand out from the crowd. “Since the conversation on the environment has increased manifold, an increasing number of people want a differentiated product and want to do the right thing.”
What’s more, Ecotel norms increase the per-room cost by 10-15% at the most — something clients don’t mind paying. “A guest selects the hotel based on location and then brand. If an Ecotel hotel is in their location and if that facility and service quality are comparable, then most guests would opt to stay in an Ecotel hotel rather than a non-Ecotel hotel,” said Kannampilly. “At three years, the return on investment is much faster than non-Ecotel hotels.”
All the same, higher initial cost has kept the industry from adopting Ecotel, say experts. Vikram Vithal Kamat, executive director of Kamat Hotels, said building an Ecotel hotel is slightly expensive (10-12% higher) as there are restrictions on using certain types of building materials and refraining from using cheaper alternatives. “But while the capital outflow is on the higher side, asset owners tend to recover the cost faster because long-term maintenance cost is significantly minimised.”
Besides higher initial cost, increased construction cost, lack of knowledge on how to run an Ecotel hotel, lack of guidance on how to ace the intense scrutiny that precedes Ecotel certification are other reasons why hotel asset owners shied away from adopting Ecotel, industry observers said.
Efficient eco-friendly practices have meant two Mumbai hotels – Meluha and Rodas, both located in Powai – save Rs1 crore and Rs29 lakh every year, respectively. Both are Ecotel-certified, a breed that’s increasing these days.
Ecotel is an environment certification administered by HVS, a hospitality-focused consulting and advisory firm. HVS claims Ecotel helps hotels enhance profits. By integrating efficient equipment and operating measures into standard business practices, Ecotel hotels enjoy reduced consumption of resources like energy and water; emissions and wastes, too, are lower.
Besides, some waste material is converted into wealth in the form of biogas. Despite initial costs, alternative energy resources like solar and windmills are encouraged. All this enhances overall performance, boosting both revenues and operations, says HVS.
Ecotel involves the entire value chain: owners, architects, operators, employees, suppliers and hotel guests. It even encompasses development of the local community. Hotels can apply for Ecotel at any stage of development, not just during construction.
Ecotel’s cost is Rs5 lakh, valid for two years. Later, hotels are re-certified (some for over ten years), provided they meet Ecotel standards and clear the property audit.
Ecotel, initially viewed as a mere marketing and branding exercise, has started gaining traction among hotel owners as the boost to profitability becomes clearer. “Fiscal benefits of operating sustainable hotels is becoming more and more known to the industry,” said Manav Thadani, chairman, HVS India.
The three upcoming Ecotel hotels will be operated under the Fern brand managed by Concept Hospitality, Asia’s largest operator of Ecotel-certified hotels.
According to Param Kannampilly, CMD of Concept, hotel asset owners are keen on Ecotel as it makes them stand out from the crowd. “Since the conversation on the environment has increased manifold, an increasing number of people want a differentiated product and want to do the right thing.”
What’s more, Ecotel norms increase the per-room cost by 10-15% at the most — something clients don’t mind paying. “A guest selects the hotel based on location and then brand. If an Ecotel hotel is in their location and if that facility and service quality are comparable, then most guests would opt to stay in an Ecotel hotel rather than a non-Ecotel hotel,” said Kannampilly. “At three years, the return on investment is much faster than non-Ecotel hotels.”
All the same, higher initial cost has kept the industry from adopting Ecotel, say experts. Vikram Vithal Kamat, executive director of Kamat Hotels, said building an Ecotel hotel is slightly expensive (10-12% higher) as there are restrictions on using certain types of building materials and refraining from using cheaper alternatives. “But while the capital outflow is on the higher side, asset owners tend to recover the cost faster because long-term maintenance cost is significantly minimised.”
Besides higher initial cost, increased construction cost, lack of knowledge on how to run an Ecotel hotel, lack of guidance on how to ace the intense scrutiny that precedes Ecotel certification are other reasons why hotel asset owners shied away from adopting Ecotel, industry observers said.
Saturday 5 January 2013
Media needs to be more than just a mirror of the society: Prasoon Joshi
An edited version of this story first appeared in DNA main edition on Monday, December 31, 2012.
Media is not only the mirror of the society, it also shapes the society. "While mirroring part is taken very seriously," feels Prasoon Joshi, president, McCann Worldgroup South Asia, "shaping is not and that's what I end up arguing with most media professionals including a few who are good friends."
Media, including the film and advertising fraternity, is often accused of commodifying women. There have been several instances of objectionable advertisements, portrayal of women in bad taste by a section of the fraternity. However, industry players feel putting everyone in the same basket is incorrect.
According to Joshi, such people exist in both the advertising and film fraternity. "You find all kinds of films, people and portrayals. Some people actually are very careful about it and would not try and objectify a women or unduly disrespect or degenerate her image. But at the same time there would be others who don't care and bother. As a result you see advertisements and films with objectionable content," said Joshi adding, it is for this reason there are various bodies to regulate such a mindset.
Media has been regarded as reflection of the society and mirror's what it sees across cultures in its communication and messages. While media has to be responsible and understand their limitations, it cannot hide facts. That said, Media also needs to follow certain rules, have a line of control, but some entities do go overboard in an attempt to play the TRP game.
Media is not only the mirror of the society, it also shapes the society. "While mirroring part is taken very seriously," feels Prasoon Joshi, president, McCann Worldgroup South Asia, "shaping is not and that's what I end up arguing with most media professionals including a few who are good friends."
Media, including the film and advertising fraternity, is often accused of commodifying women. There have been several instances of objectionable advertisements, portrayal of women in bad taste by a section of the fraternity. However, industry players feel putting everyone in the same basket is incorrect.
According to Joshi, such people exist in both the advertising and film fraternity. "You find all kinds of films, people and portrayals. Some people actually are very careful about it and would not try and objectify a women or unduly disrespect or degenerate her image. But at the same time there would be others who don't care and bother. As a result you see advertisements and films with objectionable content," said Joshi adding, it is for this reason there are various bodies to regulate such a mindset.
Media has been regarded as reflection of the society and mirror's what it sees across cultures in its communication and messages. While media has to be responsible and understand their limitations, it cannot hide facts. That said, Media also needs to follow certain rules, have a line of control, but some entities do go overboard in an attempt to play the TRP game.
"One tends to see a few instances of women being commoditised on television channels for high TRPs," said Raj Kamble, managing director, Strawberryfrog. "But the audience these days are smart enough and hence do not take them seriously. I can confidently say that a large section of media these days does a lot of sensible things and that's very commendable."
While there is no denying on media being the reflection of the society, is it really doing enough to bring in that much required a change? With atrocities happening time and again, is there a need for introspection in their approach to projecting women in a manner that instills a sense of confidence in addition to providing a safe and secure way of life for women in the country.
"Introspection is necessary anytime some atrocities happen. It should not be restricted only to the advertising and film fraternity but every other place, fraternity, discipline where there are women. They are all part of a society and media can not be singled out as the reason why this is happening or has happened," said Joshi.
Indian psyche, experts feel, is among the various reasons responsible for problems to occur. Nothing happens suddenly as it could be part of a larger consciousness of this country. "It's not as if the film makers in this era are responsible. To be fair, advertisements or films in the past have showcased women in a different light. You can go back and find things that are objectionable throughout," said a media professional.
What is it that can bring change then? The whole consciousness of the society needs to reject something which is objectionable, feels the media fraternity.
"One must understand that advertising or film is also a product. People should get conscious if there is something not acceptable and stop buying than looking upon it. No matter how much people consume pornography, people don't consume and accept it openly. If there is something that's objectionable to women, it should not be the decision of a few people of the society. A larger consciousness of the nation has to reject it," said Joshi.
He added, "When we talk about "dowry" or something like "sati", which is a thing of the past now, those are also part of our tradition and we have realised those are things we have to do away with. Larger consciousness of the society has rejected it and that is the approach really required today."
A section of the fraternity feels that advertising and films are about creating images and it would not be fair to single them out or hold responsible. "Media is a very easy target but there are many hidden layers in the society that are shaping this concept," said a media professional.
"If there is a fashion product and someone is walking the ramp, wearing a certain kind of dress and is very confident about herself, that is what needs to be looked at. Ye thodi ki, bori mein lapet ke aurat ko bitha dein... We have to respect her individuality, dreams and freedom of expression. If she wants to go out on her own she should be able to do that," he added.
Commenting on safety measures for girls/ women in various Indian cities, the fraternity is convinced that one cannot imagine a girl / women anywhere in the country saying that she wanted to watch a movie, bought the ticket and sat in the theatre all by herself. "Very rarely one would find a young girl alone in such public places. I hate people who say why did you go alone. What the hell? What are we talking about, what society are we talking about," said a top media professional with a leading advertising agency in Mumbai.
Secondly, in case of rape we have to remove one very important perception - that the women has been shamed. Why should she be shamed? It is the man who should be shamed. In fact the society should ostracise the rapist. Instead the rapist are celebrating and sitting in various powerful positions in the country. How can we let that happen? Everytime something like this happens, the victim has to go hide her face somewhere and the people who have done it are proudly roaming around in the society. Why such double standards?
"I consider today is a very positive phase because people like you and me are openly talking about it. It's a fact that people have never ever looked at rape so seriously in the past. That fact that people including media are asking questions, there is a sensitivity towards it, there is questioning attitude towards it. The fact that we are ready to introspect. I think it's a very positive sign," said Joshi.
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