November 16-30, 2011 Volume 2, Issue 22 `100 46 PROFILE Ravi Rao Of happy accidents, media planning and Indology. 58 AFAQS!-FIREFLY MILLWARD BROWN Young and Restless A new study on the youth and reality television. 63 TOI Online players are stepping Perk it Up out to aggressively advertise on TOI asks Chennai’s readers traditional media to get more to choose the lively option. business. WGC Festive Glitter 16 ALLEN SOLLY Look Smart 20 SPICEJET The Social Route 40 38 MUDRA-OMNICOM Decoding the Deal 60 EDITORIAL This fortnight... Volume 2, Issue 22 EDITOR ronical, isn’t it, that when a new medium does well, older media benefit as well? Take the current Sreekant Khandekar Icase: as a fresh wave of investments is taking place in online e-commerce firms, a large chunk PUBLISHER of that money is going into advertising those businesses in print, on TV and on radio. This issue’s Prasanna Singh cover story is the first hard look at the Indian scene to figure how much money is being EXECUTIVE EDITOR spent offline in the new online boom. Prajjal Saha SENIOR LAYOUT ARTIST Is this really a new e-commerce-led boom or merely the harbinger of a new bust Vinay Dominic November 16-30, 2011 Volume 2, Issue 22 `100 which is typically preceded by rash spending, which includes ego-satisfying but LOGISTICS 46 pointless mass media advertising? Isn’t it well established that online advertising Rajesh Kanwal works best for online properties? ADVERTISING ENQUIRIES PROFILE Ravi Rao Neha Arora, (0120) 4077866, 4077837 Of happy accidents, media planning and Indology. Internet businesses tend to burn cash as they take off. Broadly speaking, a player 58 Noida has to choose between –and within - one of two extremes as he goes to investors for Khushboo Varadkar, (022) 40429702-5 funding. Mumbai AFAQS!-FIREFLY MILLWARD BROWN Young and Restless A new study on the youth and reality television. 63 Option One: Here, the entrepreneur decides that an underdeveloped online [email protected] market will grow at a predetermined speed and he will pace himself accordingly. He is Marketing Office conservative with costs and uses largely lead-based online advertising to get customers. B-3, First Floor, Sector-4, Noida-201301. TOI Online players are stepping Perk it Up Tel: (0120) 4077800. out to aggressively advertise on TOI asks Chennai’s readers traditional media to get more to choose the lively option. business. The money he has raised will go a long way as he grows steadily and surely. WGC Festive Glitter 16 ALLEN SOLLY Mumbai Look Smart 20 SPICEJET 501-502, Makani Center, 5th Floor, The Social Route 40 Option Two: The entrepreneur punts that he is at that moment before the market 38 MUDRA-OMNICOM Decoding the Deal 60 explodes and he can be the player to take the lead. He raises funds aggressively and Off Linking Road, Bandra (W), Mumbai - 400050 spends rapidly too: he hires a big team, sets up large infrastructure, and advertises Tel: +91-22-40429 709 - 712 heavily to gain customers and build a brand name. The intent is to create momentum Bengaluru and so much buzz that investors believe in his big dream for tomorrow and overlook the massive S-1, New Bridge Corporate Centre, 777 D, 100 ft Road, Indira Nagar, losses of today to put in money at crazy valuations. Of course, if his assumptions are wrong funding Bengaluru - 560038, India could dry up and a negative spiral could take root, sending the venture plummeting to disaster. Subscription Enquiries All this has been just great for TV and print companies which have received several hundred Garima Agnihotri, (0120) 4077837 crore rupees worth of unexpected advertising from online firms. In addition to online firms, it’s boom [email protected] time for them as well. Printed, published, and owned by Prasanna Singh, Publisher, at 7-A/13, Ch. Ratan Singh Complex, Jawala Heri Market, Paschim Vihar, New Delhi-110 063. Printed at Cirrus Graphics Private Limited B-62/14, Naraina Industrial Area, Phase II, New Delhi – 110028. Sreekant Khandekar [email protected] Cover Illustration Gogol CONTENTS 62 50 PLUS 9X MEDIA ADASIA 2011 Local Lingo 40 Manage Change How advertisers BBC.COM and marketers must Eyeing New Territories 42 change to handle uncertainty. SAB TV A Refreshing Change 48 INTERVIEW 12 22 Kelly Clark MEN’S HEALTH Maxus’ CEO on measuring Going Digital 48 success. HDFC LIFE POV 34 The Power of Planning 64 Ra.One Marketing RELIANCE COMMUNICATIONS DISH TV Was the film an advertiser’s Evergreen Romance Question Time BAJAJ ALLIANZ delight or a cluttered Why telcos love a lovey-dovey Dish TV takes on rival Tata Watch That Turn 64 nightmare for brands? couple. Sky with a spoof ad. afaqs! Reporter, November 16-30, 2011 5 TATA DOCOMO Sponsored by oday’s mobile consumers pany says. Tata DoCoMo says it is don’t just use their phones getting a good response for services Tto talk, but look for internet like Doctor on Call, which enables access, entertainment content and users to consult doctors 24x7, and GSKCH> GlaxoSmithKline Consumer Healthcare (GSKCH) other data related services. And to Family Tracker that can be used to is all set to enter the breakfast cereals space with the launch cash on this demand, Tata Docomo track one’s kids. of oats under its Horlicks brand. The company will roll out has introduced services like Doctor Smart Home is another unique Horlicks oats in the south initially. It has been test marketing on Call, Family Tracker, Tutor on solution which enables users to the product in select southern markets. Packaged ready-to- Mobile and Smart Home solution– watch a video of their homes and its cook oats is an emerging category with an estimated market some of these services are being surroundings (depending on where size of around `200 crore and growing at about 25 per offered for the first time in the coun- you install the camera) from any- cent. It will compete with PepsiCo’s Quaker, Kellogg’s and try and have been well recieved. where in the world. Marico’s Saffola. Tata DoCoMo, in which Japan’s While these services have just biggest operator DoCoMo has a been introduced, the company is 26 per cent stake, betting big on them. It Besides ramping Liberty> The footwear company plans to raise `500 crore has been bringing already offers services up the number as part of its expansion plans. The company is looking to in innovative value like Docomics (com- of stores in India, ramp up it retail stores apart from modernising distribution added solutions. The ics on mobile), prayer, and warehouse infrastructure over the next strategy seems to be career counselling on the company three years. Liberty is also planning paying rich dividends mobile and the blood wants to venture to expand its overseas presence MARKETING as Tata Teleservices line club for blood overseas. by entering South Africa and Maharashtra (TTML) DoCoMo is known donation requests. Russia. It uses Hrithik Roshan as which is part of Tata Apart from these, its brand ambassador. Docomo and is a list- for its cutting Tata DoCoMo offers ed entity within the other plain-vanilla ser- edge, high-tech The US based agri-business major plans to re- group, has reported vices like caller ring Cargill> VAS offerings. enter the packaged food market in India with staples and that VAS forms more back tones and ring cereals in the next two years. The company also plans to than 33 per cent of its By partner- tones through several extend its edible oil brands Nature Fresh and Sweekar, which revenues. ing with Tata tie-ups with content it recently acquired from Marico, to the packaged food seg- The figure is one Communications providers. For instance, ment. The company could also consider the option of aquiring of the highest in the some time back dur- domestic staples brands. Cargill is among the largest whole- industry beset with it has been able ing the Independence sale suppliers of domestic and imported food grains to the the problem of low to bring some of Day celebrations it private sector processed foods companies in India. average revenue per offered exclusive access user (ARPU) due to those services to to AR Rahman’s lat- falling voice earnings. India. est Satyamev Jayathe The American Kenneth Cole> The American clothing brand has entered Most Indian telcos album. clothing brand into a deal with Reliance Brands, to retail its collection of have seen the profit margins shrink. A major contributor to the com- men and women’s apparel and accessories in 25 stores Here’s a look at pany’s soaring revenues is Tata has joined hands across India over the next five years. Kenneth Cole and Tata DoCoMo success Photon+, a CDMA high speed with Reliance Reliance Brands have signed a licencing agreement for retail strategy: DoCoMo in Japan is known wireless broadband service, which Brands to set up and premium wholesale distribution in India. The agreement for its cutting edge, high-tech VAS according to sources has close to 25 stores in India includes opening of ‘‘dual offerings. And by partnering with 42 per cent market share. Photon gender’’ retail stores across Tata Communications it has been doesn’t offer just internet but mobile five cities initially. able to bring some of those services TV as well. to India. “Thanks to our partner- “The other major chunk of the ship with DoCoMo we are miles VAS business comes from the enter- Westinghouse Electric Corporation> ahead of competition on the value prise segment–some it from Tata US-based consumer durables firm has added services front, and we will group companies like TCS and Tata entered the Indian home appliances market.