September 1-15, 2012 Volume 1, Issue 8 `100 As Dentsu snaps up Taproot India, we explore whether independents can stay that way for long. 32 408 34 22 PLUS GLOBAL ADVERTISING Emerging Epicentre 14 HINDI SITCOMS Shying Away 26 TAM Other Side of the Coin 42 PROFILE ZEE NETWORK DEFINING MOMENTS Dheeraj Sinha Beauty Booty Swapan Seth OBITUARY Grey India’s new planning How the Miss World contest Equus Red Cell’s founder is head is set for the grind. proved lucrative for Zee. a man of few words. Prabuddha Dasgupta 48 EDITORIAL This fortnight... Volume 1, Issue 8 EDITOR Sreekant Khandekar he Richards Group is an independent advertising agency based in Dallas in the US. The agency, one PUBLISHER T of the largest advertising independents of America, has a very interesting message displayed in its lobby. Prasanna Singh It reads: ‘Not for Sale Now. Not for Sale Ever.’ The agency has been true to its philosophy for close to five EXECUTIVE EDITOR decades now, but the fact is that such statements seem to be rather revolutionary in today’s world. Prajjal Saha SENIOR LAYOUT ARTIST The fact that the world’s largest advertising network, WPP (Wire & Plastic Vinay Dominic Products), is itself a result of numerous acquisitions, says it all. A company which PRODUCTION EXECUTIVE started off as a manufacturing outfit has fuelled its growth for 26 years through Andrias Kisku September 1-15, 2012 Volume 1, Issue 8 `100 acquisition and mergers. WPP began its acquisition spree in 1986 with 10 marketing ADVERTISING ENQUIRIES services companies and followed it up in quick succession with two prestigious takeovers Neha Arora, (0120) 4077866, 4077837 As Dentsu snaps up Taproot India, we explore whether Noida independents can stay that way for long. - J Walter Thompson (JWT) in 1987 and Ogilvy & Mather in 1989. This growth continued for the group through several other acquisitions like Young & Rubicam, Khushboo Varadkar, (022) 40429702-5 Mumbai Cordiant Communications and Grey Global Group. In a world dominated by the big ad networks, an independent finds it difficult not to become the target of a takeover. [email protected] MARKETING OFFICE But, the network giants aren’t the only ones responsible for this situation. If they B-3, First Floor, Sector-4, Noida-201301. 32 are ready to gulp the smaller outfits, the independents are also just waiting to be taken Tel: (0120) 4077800. over – irrespective of whether the latter is three years old or 30. The lure, often, is just MUMBAI 408 34 22 PLUS 501-502, Makani Center, 5th Floor, GLOBAL ADVERTISING a good price. Emerging Epicentre 14 Off Linking Road, Bandra (W), HINDI SITCOMS Shying Away 26 Mumbai - 400050 TAM Other Side of the Coin 42 In the advertising world, being ‘independent’ is a claim that has turned out to PROFILE ZEE NETWORK DEFINING MOMENTS Tel: +91-22-40429 709 - 712 Dheeraj Sinha Beauty Booty Swapan Seth OBITUARY Grey India’s new planning How the Miss World contest Equus Red Cell’s founder is head is set for the grind. proved lucrative for Zee. a man of few words. Prabuddha Dasgupta 48 be quite pretentious, nowadays. Especially when the flag bearers like BBH and BENGALURU Mudra have finally given it up. While a few would have resisted an acquisition for S-1, New Bridge Corporate Centre, years, many new agencies are born just to be sold. Interestingly, as we go to press, the 777 D, 100 ft Road, Indira Nagar, news of Japanese ad network, Dentsu buying 51 per cent stake in Taproot, a young and renowned Indian Bengaluru - 560038, India independent, floats in. SUBSCRIPTION ENQUIRIES Akhilesh Singh, (0120) 4077837 The reasons for giving up independence could be many – absence of a succession plan, lack of founder’s [email protected] motivation or to fuel future scope of growth and expansion. The current issue of the magazine tries to find out Owned by Banyan Netfaqs Pvt Ltd and how long independents can stay that way. Printed and published by Prasanna Singh, 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. Prajjal Saha Cover Illustration [email protected] Gogol CONTENTS 36 16 PLUS COMSCORE GREENLAM Beautiful Idea India is more Social 20 The laminate brand MTS MBLAZE uses the sutradhar concept in its new Ablaze on the Streets 52 TV commercial. TATA DOCOMO Larger than Life 52 HINDI GECS 12 18 Poor Cousins RED FM What keeps the bottom rung Tales of Heroism 54 GECs there? 28 DS GROUP POV One Minute Shake 54 Sensitive ads BLACKBERRY PHILIPS Does ‘sensitivity’ in advertising Getting into Action Making Light LOOP MOBILE campaigns hurt a brand’s recall The mobile phone maker is Inspired by Indian culture, Royal Message 56 value? using its signature red splat. the brand creates a glow. afaqs! Reporter, September 1-15, 2012 5 MTS AND UNINOR 1(:6%8//(7,1 :KDWOLHV$KHDG" Sponsored by icenses of all the telecom opera- a pan India network). MTS also has Ltors who entered India in 2008 grievance about GSM players getting were cancelled. While most of them liberalised spectrum that can be used wrapped up their businesses MTS to offer any wireless service, while and Uninor claimed that they were CDMA spectrum can only be used Krispy Kreme Doughnuts> Krispy Kreme Doughnuts Inc plans to open its first Indian store this year, but the committed to India and that they for 2G services. maker of the Original Glazed will find it is not alone in its will win back spectrum when it is bid to cash in on the $13 billion Western fast food market auctioned, provided the conditions UNINOR: in Asia’s third-largest economy. The firm plans to open 80 are right. However, given the high Uninor is the bigger player of the stores in southern and western India over five years with reserve price set for spectrum, what two with almost three times more its franchisee partner Citymax India, which will spend $13.5 are the chances of their survival in subscribers at 45 million, despite million to get the hot sugar-glazed doughnuts rolling. India? being present in only 13 circles (of While MTS, which operates a which it is strong only in nine). CDMA network, has more than 16 The trouble for Uninor is two- million customers across the coun- fold: Telenor (which is the majority Panasonic> The Japanese giant is now planning to focus try, Uninor, which partner with 67.5 on its professional product business. The company is eye- ing 100 jump in sales of its professional product business operates in only 13 percent stake) has a % to `655 crore by this fiscal, said Panasonic India managing circles, has 45 million troubled relation director (system sales division) Toru Hasegawa. The com- customers. with its Indian part- pany till now has been growing the business by ner, the real estate MARKETING 40%. MTS: firm Unitech, which MTS is the only it wants to sever ties CDMA-only opera- with and is in the tor in India had said process of finding a The acquirer Riverside> Global buyout fund Riverside and three that it will bid for MTS, which oper- replacement. would get a European fashion retailers are in the fray to acquire India’s CDMA spectrum ates a CDMA The other trouble ready platform in biggest home-grown denim brand Spykar Lifestyles after only and won’t jump is that the company Avigo Capital, which controls about 60% stake in the com- network, has Spykar, which has pany, renewed plans to sell the business. The acquirer would on to the GSM band- operates in the GSM get a ready platform in Spykar, which has a strong distribu- wagon, despite GSM more than 16 mil- space, which is already a strong distribu- tion network and tion network and sourcing setup. The brand - with 1,350 point being more popular in lion customers, crowded and will see of sales, including 250 stand-alone stores - reported store India. So, in case the a lot of interest from while Uninor, sourcing setup. sales of `325 crore last fiscal in an $800 million denim mar- company decides to operators who want ket where international brands Levi’s and Pepe hold the lead. participate in the auc- which operates in additional spectrum tion process it will have 13 circles, has to reduce congestion no competition and in their network. But will therefore likely 45 million Uninor will have to Usha> Shriram group firm Usha International has exited win spectrum. customers. win in at least a major- from its joint venture with Honda Motor Company (HSCI) by On the other hand, ity of circles to have selling its entire 3.16 per cent stake to the Japanese partner MTS is also facing trouble. The a viable business case in India. The for `180 crore. Following this, HSCI will now be a 100 per government of India has hiked the choice of circles will make it possible cent Honda subsidiary in India. Usha has had a relationship price for CDMA spectrum in the for the company to keep the cost of with the Japanese auto major since 1985 when Honda Siel 800 MHz band by 1.3 times, which spectrum down. Power Products (formerly known as Shriram Honda Power MTS claims is unfair given that there The company plans to enter Equipment Ltd) was started. The group became Honda’s part- is no competition for this spectrum. the auctions with a plan to fur- ner while looking to enter the Indian automotive market.