Pitch CMO Summit 2008: Marketing budgets stay put
The Pitch CMO Summit 2008 that was held in Delhi on November 13 saw at least four of the top spending advertisers in the country reiterate that there are no cuts in the various marketing budgets, at least in the near future. These brand managers, however, admitted that the choice of media vehicles in a plan was under much greater scrutiny now to ensure a ‘bigger bang for the buck’. Pitch, the marketing magazine from the exchange4media Group, organised the event, which was presented by Colors.
The Indian media and advertising industry has been abuzz with talks of marketers cutting down on ad spends for some time now. The spiralling impact of a step like this on the Indian media fraternity was only imaginable. The Pitch CMO Summit 2008, that was held in Delhi on November 13, saw leading advertisers of the country discuss the slowdown and the challenges that it posed in the marketing of a brand. The top honchos stated that while there were no cuts in ad spends just yet, the effort now was to rigorously look at media vehicles that delivered a bigger bang for the buck.
This Summit was an initiative of Pitch, the marketing magazine from the exchange4media Group. Colors was the main sponsor for the event. The topic of discussion of the panel was ‘Impact of slowdown on Marketing’. While Alchemy’s Rahul Sen was the moderator, the panelists included Ankush Arora, VP - Marketing, Sales & After Sales, General Motors India; Saloni Nangia, VP, Technopak; and Sunil Dutt, Country Head, Samsung Mobile.
Indian marketing industry not in recession yet
Moderator Rahul Sen kicked off the discussion directly with the slowdown and its impact. Ankush Arora clarified at the outset, “We are not in recession yet, nor are we in slowdown. It really depends on how you look at the situation; the typical case of the glass is half full. We have in the past witnessed unimaginable growth levels, and those growth rates are not realistic to match anyway. However, it is not as if we are in the negative now. We have to now see how our business adapts to the present growth rate.”
He further said, “The automotive industry’s growth rate has been unbelievable. The automotive business is cyclical, and the last two months have been tough on the industry. This is primarily due to the problems of credit availability in the market. The next 12 months is challenging for sure, but by 2010, things would be looking better again.”
Sunil Dutt added here, “If you had to see the telecom industry, we are speaking of a base that is at 300 million and growing every month. That is not slowing down. There are specific segments where you don’t see such growth and you see postponing of various decisions, but there are segments that have more than normal growth too. This impact would stay for the next 12 months, following which the boom sentiment would return.”
Saloni Nangia stressed that even for her clients in sectors like retail, the sentiment was still of optimism. She said, “We have not witnessed a slowdown in retail and consumer products yet, but we expect it in the next year. But this is only a slowdown and we should not be getting nervous. It is true that the Indian economy is growing at 6-7 per cent, unlike the expected 9 per cent, but all this growth is coming from India itself, and that is something to cheer about.”
An age of sub-segmenting and creating new opportunities
The panel agreed that in a situation where some aspects of a brand’s business were growing and some were not, the need of the hour was to sub-segment the market further and identify the newer avenues of growth. Arora said, “This is the time to sub-segment as therein lays the opportunity. Even there, it is the mid-segment that is in power. The second point is that when you see that liquidity is important and cash is king, look at your supply chain for efficiencies. It would be better to keep yourself very liquid.”
Dutt added here that for Samsung, being present in rural markets was not a matter of choice but a matter of compulsion, given the kind of audiences emerging there. For him, growth was in maximising opportunities. He said, “The mobile phone industry has been accused of adopting a ‘Swiss knife approach’. The idea is to get that difference in your product, and at the right value, to maximise the rupee that you are spending.”
Nangia observed, “Companies were in any way looking at fine-tuning, and right from the product mix, pricing, the format that they are selling through, and how they communicate with the consumer to manage the sale. Brands have been looking at different markets and rolling out those kinds of plans.”
The panel said that the next year could see the focus on the premium segment of audience and also on the mainstream segments. Arora observed, “Consumer still has cash, especially the mainstream. The ticket size is low and it would be a challenge for brands in some of the categories to be able to straddle both premium and mainstream segments.” Speaking on the need for building brand trust, Dutt added, “Consumer needs a back-up in his psyche when something from the brands go wrong, since these are big brands.”
The panel stated that marketers needed to build brands, and perhaps more so when the general mood was low. In such a scenario, prudence was not in bringing down the marketing budget, but to use it judiciously between various mediums.
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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur
The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more
With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.
The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.
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ShareSwapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."
The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."
COOL has been published by Simon & Schuster India and is available on Amazon.
Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.
He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.
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Disney Star signs 9 sponsors for Asia Cup PAK
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board
e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.
According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.
As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.
A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.
Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.
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Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.
“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.
“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.
"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."
"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."
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KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
KlugKlug has appointed Hemang Mehta as its Country Manager for India.
Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy
Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.
Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."
Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."
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