Interview with Jai Subramaniam

The VAT regime must be implemented rigorously and Indian Government’s losses must be plugged” andmark has lived up to its name. This pioneering Chennai-born book-destination is today a leading ‘family centric multi-product leisure store’.

e4m by exchange4media Staff
Published: Jun 20, 2005 6:10 PM  | 6 min read
Interview with Jai Subramaniam

The VAT regime must be implemented rigorously and Indian Government’s losses must be plugged” andmark has lived up to its name. This pioneering Chennai-born book-destination is today a leading ‘family centric multi-product leisure store’. From its first store in 1987 (focused on selling books, magazines, greeting cards and stationery), which was a 5,500 sq. ft. space in Nungambakkam, Chennai, Landmark has grown today into a five-store chain with revenues of Rs 800 million. An online store, landmarkonthenet.com, adds to its increasing penetration across the country. And the chain has ambitious plans — which, in revenue terms means — becoming a Rs 2.5 billion chain within the next three years.

Its flagship store, located at Chennai’s Spencer’s Plaza and having a sprawling area of 37,000 sq. ft., was inaugurated in the year 2001. Its largest store is located in Bangalore at ‘The Forum’ in Koramangala, spread over 45,000 sq. ft. Books alone account for a whopping 13,000 sq. ft. of this space. In Kolkata, Landmark opened its first store in 1999 with a 5,500 sq. ft. selling area, at Emami Shoppers City, Lord Sinha Road. The store is a 50:50 JV between the promoters of Landmark and the Rs 3.50 billion Emami Group, and has tripled in size since then to 15,000 sq. ft.

The chain’s growth plans go beyond selling-spaces and revenues. Landmark is all set to enter more cities across the country soon. And with retail being ‘the’ segment many a foreign player is looking to enter into in India, one wouldn’t be surprised if some major developments in the space involve established players like Landmark. Landmark would be a target, perhaps, as it will be looked at as a proudly original and hardbound Indian classic. And the illustrious pages in the history of this book-lovers’ paradise promise to keep growing. Landmark is a brand to reckon with.

One of the promoters, Jai Subramaniam, who takes care of the financial and operational functions, spoke to Gokul Krishnamurthy. This Chartered Accountant, who ran a stock broking firm before plunging headlong into the retail universe, spoke about Landmark’s plans for the future and the chain’s learnings. Excerpts…

You are a ‘family centric multi-product leisure store’. Who is your primary target audience?

The core of our audience has been and will remain the EEMI or the English-speaking middle class Indian. This segment is growing at a rate of at least 8 to 9 per cent each year. We are talking about a base of 350 million people or so. We are extremely optimistic about this segment.

What are Landmark’s expansion plans?

We are looking at four more cities very aggressively. In this financial year, we are looking at two of these stores. In the subsequent couple of years, our plans are to expand by four stores each year in new cities as well as cities where we already have a presence.

How has the e-business performed so far?

It has been exciting but not moneymaking as yet. There simply aren’t enough Internet users. There is a lot of space that needs to be covered. The quality of hits has not risen to a point where people are habituated to making purchases online.

In a way it is good for all of us that there is still life beyond computers, at least all in the business of retailing. Different delivery modes will survive and computers will, at one stage, take over our lives. But the rate of change in adopting computers is not as much. Though the Internet business is growing, the growth is not at the same rate as our brick and mortar business.

E-business also gives you a micro picture of cities you plan to move into.

How is the brand ‘Landmark’ being communicated?

At the moment, our word-of-mouth (WOM) is very strong. We are continuously looking at different media options like radio, hoardings, events and co-branding options. But then, there is no point in doing co-branding for the sake of doing it. It should be a win-win situation for both.

Our stores are, I believe, dramatically innovative, customer friendly and offer some unique value and knowledge propositions. Each store also has its own identity and is full of different surprises. Which is one of the reasons our WOM is very strong.

How do you plan to grow from Rs 800 million to Rs 2.5 billion in three years?

We are expanding to more cities and we are expanding continuously. The growth will be organic and we might look at acquiring brands also. We are looking at opportunities.

Will the acquisitions be in the same space?

They may not necessarily be in the same space. In the past too, we have had acquisitions, but in the back end.

On the suppliers’ front, how much does the tag of a national chain help?

It makes a lot of difference. If you have a non-bureaucratic set up, you don’t miss out on opportunities. We speak to a lot of people across cities.

Another factor is that each store in our chain likes to be a local store. We want to build great boutique departmental stores with a sense of ownership with the customer. This identity needs to be total within the store. And obviously, the audience varies from city to city making each store customised for the city.

How would you compare the customer profile in the cities where you are present?

We are present in the heart of the real Silicon Valley of Bangalore, Koramangala. It has a lot of young people. It’s a different boomtown and the customers are very upbeat. The location is absolutely exciting and the profile comprises great people and a great culture. There is a lot of buzz in this market.

On the other hand, Chennai primarily comprises the educated middle class. The people coming in are more in families. The customer is more staid, more traditional, and there is a deep rooting in culture and a high level of loyalty.

Kolkata is a city that is highly conservative but wanting to burst out. There aren’t enough opportunities to burst out of the conservativeness. The Kolkata customer, we find, is a very careful customer. The purchase is highly cherished by the customer here.

In which store do you record maximum conversions on footfalls?

Our first store at Nungambakkam records the highest conversions. The whole atmosphere is filled with the excitement of selling a variety of goods at this destination store.

To read the entire story, grab your copy of Impact Advertising and Weekly magazine issue dated June 20-26, 2005

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Lionhearts at Cannes

The Indian lion hunters have had their best year so far. Cannes Lions 2006 is an even bigger whirligig of Advertising and the business of marketing advertising. And much more. Anurag Batra, Publisher and Editor-in-Chief – exchange4media Group, who’s in the thick of it all with his ear to the ground, writes from the French Riviera

e4m by exchange4media Staff
Published: Jun 26, 2006 5:40 PM  | 4 min read
Lionhearts at Cannes

The Indian Bull Run continues at Cannes as wego into print. Film is one category that might add further to India’s already respectable tally. There were a healthy number of entries too,from India this year – 738 against the 602 we sent in last year.

Sometimes, the list of winners doesn’t do justice to those that came so close to a Lion. So, for the record, and also in appreciation of all the blood, sweat and tears that went into each and every glorious short listed Indian entry at Cannes Lions 2006, Impact is printing the list of the short listed entries.


THE INDIAN SCORECARD:
At the time of going into print, JWT has two Gold Lions for the count, with fi ve entries in Press (Levi’s) bagging Gold, and one Promo Lion for Pepsi’s urkure. O&M and Rediffusion DYR won one Outdoor Gold each, for clients Discovery and MidLand Bookstore respectively. Also in the Outdoor category, Leo Burnett won Bronze for Dinodia Photo Library, and so did Everest for clients Cancer Patients Aid Association.

In Press, O&M’s work for Indian Association for Promotion of Adoption and Child Welfare won Silver, with its two entries. Leo Burnett bagged the Bronze Lion for its campaign for Maneland Jungle Lodge. In the Lions Direct competition, ediffusion DYR raked in Silver, for work on MidLand Bookstore.

Among the Media Lions were Leo Burnett and Madison. Leo Burnett won Silver for Prerana, while Madison Communications bagged two Bronzes – one for P&G Home Products and the other for Cadbury.

Our favorites like the Ariel ‘Corners’ campaign didn’t feature even in the shortlist, leaving us bewildered. But that’s the beauty of Cannes. You can’t really track who has done what and entered what in each sub category. Having said that, except for the Promo Lions winner from JWT, most other pieces are familiar works recognized at several awards.

At last count, we won four Golds, three Silvers and fi ve Bronzes. (See list of winners) And the Film Lions holds promise. We’re getting there.


UNIVERSITY OF CONVERSATIONS
I listened to Maurice Saatchi on Thursday, spellbound by his “One Word Equity for Brands” concept. Saatchi’s ruthlessly imple philosophy boiled down to the word being the word that a company wants associated with its brand. Google can be described through the One Word Equity by the word Search. Saatchi‘s call inspired and impressed me a lot. I also try and follow what I learn and implement it in my daily work. What is the point of knowledge if one does not apply it? We are not into it for intellectual and visual masturbation.

When I sat to write about Cannes for Impact, I said to myself I should be able to describe Cannes Advertising Festival in a single word. The two words that competed in my mind for that single word were: ‘University’ and ‘Conversations’. I am not sure the festival organizers necessarily think the same.

Before I elaborate on the choice of my words, let me start by telling you a story about Roger Hatchuel. Hatchuel was the founder of the Cannes Advertising festival which is regarded by most as the “Olympics of Advertising”. Now that could be another expression for Cannes. Romain Hatchuel, Roger’s son, who was the festival’s chief executive till 2002, joined EURO RSCG in a senior position after disagreements with his dad over shifting the festival’s London headquarters to Paris, and this led to Emap communications taking over the festival two years ago. While Emap has tried to broaden and professionalize the appeal by initiatives like the Media Person of the Year, giving a separate award and jury for outdoor, it would be fair to say that Hatchuel has created and left behind a masterpiece and laudable celebration of advertising creativity. What continues aspart of his legacy is the weeklong stint at Roger Hatchuel Academy by international students studying advertising and communications.

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Kids have emerged into an assertive consumer group, says KidSense study

So you’re buying a car? Or an exotic summer holiday package for the entire family? A washing machine, perhaps, to replace the one that’s, well, outlived its lifespan, or an air conditioner? Or Insurance, maybe? You’ve compared prices, specifications, colour, plan, features, whatever, right? And made a decision about what to purchase? Good. But wait. Don’t bring out that cash or credit card yet, because if your toonager or tweenager, or even your tot of a toothager prefers something else, chances are you will change your mind, give up your own selection, and end up buying what your kid prefers.

e4m by exchange4media Staff
Published: Jun 12, 2006 12:06 PM  | 3 min read
Kids have emerged into an assertive consumer group, says KidSense study

So you’re buying a car? Or an exotic summer holiday package for the entire family? A washing machine, perhaps, to replace the one that’s, well, outlived its lifespan, or an air conditioner? Or Insurance, maybe? You’ve compared prices, specifications, colour, plan, features, whatever, right? And made a decision about what to purchase? Good. But wait. Don’t bring out that cash or credit card yet, because if your toonager or tweenager, or even your tot of a toothager prefers something else, chances are you will change your mind, give up your own selection, and end up buying what your kid prefers.

So – and much more – say the findings of a study conducted by Disney, the leading media brand, and GroupM, the world’s leading full service media investment management company.

KidSense, which Rajat Jain, MD, The Walt Disney Company (India) describes as “ a strategic initiative to bring insights into the world of kids,” is a comprehensive single source study on Kids in India that combines both quantitative and qualitative research.

And why did Disney and Group M decide to venture upon this joint endeavor to explore the exciting world of kids in India?

Because kids have been largely ignored by the media and marketing fraternity due to their insignificance and their relatively lower spending power. Hence they have for long been classified into a holistic segment of ‘4-14 year olds’ which was rarely researched into. This led to the failure to realize the potential of this knowledge to create better and relatable products for Indian kids.

Says Jain, “The study was jointly launched to explore the world of kids and share insights with the media and marketing fraternity. Kids have increasingly emerged as savvy, sensitive and an extremely important consumer segment today. As global leaders in this genre, it is our responsibility to understand kids and provide a knowledge-house for all the stakeholders.” Jain hopes that the findings of this study would act as “a credible reference-point for the industry, our business partners and help grow the business in this industry as a whole.”

Ashutosh Srivastava, CEO, GroupM, South Asia, says, “The association of GroupM with Disney is all about unlocking value in this growing market segment of young consumers. An important learning for all is that kids like to be spoken to in their own environment – their schools, their play areas, their homes and their shows. Disney’s KidSense shows new realities of influence from this genre on purchase decisions in categories ranging from confectionery to cars and insurance companies.” In other words, if marketers want to sell more, they need to influence the parents through the kids. And how do they do that? Simple. As Srivastava puts it, “talk the kids language to enter their homes.” And if you want to connect with kids in the 4-14 age group, you’ll have to speak not one, but three languages. That’s right, but more on that in a bit.

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New Age Media: Wanna read my newspaper? Sorry – it’s personal!

e4m by exchange4media Staff
Published: Jun 3, 2006 1:25 PM  | 1 min read
New Age Media: Wanna read my newspaper? Sorry – it’s personal!

The first thing that begins our morning everyday, along with the mandatory cuppa is the newspaper. People from all walks of life- vegetable vendors, businessmen, savvy housewives and inclined-towards-art souls read it. While there are some news pieces which are relevant to all, quite a bit of the content as well as the advertisements fail to evoke the desired interest in some readers.

We have come a long way from having print editions to the online avatars. A logical step ahead would be a possibility that would accommodate customized content and advertisements based on the reader's preferences.

This will bring about a shift from a pushed content to a pulled content. The possibilities are vast. There can be translated versions for people who want news only in a particular language. There can be kids who will be happy with a personalized edition that features stuff on their favourite games. The stock market buff will be delighted to go through his unique personalized newspaper that has anamysts' say on the ongoing boom or bearish trends as the case may be.

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Baby I’m A-want You!

e4m by exchange4media Staff
Published: Jun 3, 2006 1:23 PM  | 3 min read
Baby I’m A-want You!

That’s what each women’s magazine seems to be telling every potential reader. Women's magazines arguably have a certain homogeneity to them. The glossy look, the thin, preposterously dressed women, the endless perfume and make-up ads. Yet we love the escapism they offer. The Indian market place has exploded with brands and magazine in the last 10 years, and now, there’s another – Marie Claire’s India edition, launched on the 2nd of June. Shalini Amarnani casts an analytical look at the world of Indian Women's magazines – which are definitely bracing for renewed battle with one more aggressor – and tries to see where Marie Claire is likely to find its place.

The battle for the Indian Woman's mind-space began some 10 years ago. Till then the English magazine-consuming population had a limited choice reading women Eve's Weekly, Femina and Women's Era.

The paper quality was poor, as was the photographic element. The content was mainly about how to be a blushing bride, handle your in-laws and dish out the most scrumptious food. Woman' Era is still stuck in that era.

Foreign magazines like Vogue, Harper Bazaar, Cosmopolitan, Elle, Marie Claire and the like would come to you only if you had friends coming from abroad, or you could catch a year-old issue at the raddiwala.

Enter stage left : Marie Claire

After a decade we are seeing the entry of another big international name. The entry of Marie Claire in the Indian market from the solid Outlook Group has rattled a few quarters. The advertising pie will be redistributed, as will the readership. Claims Suresh Selveraj, the magazine’s Associate Publisher, “Marie Claire's entry in India will change the journalist standards amongst the women's magazine in India.”

Marie Claire is known worldwide as a fashion magazine for the thinking woman. So, besides a lot of elegant fashion and beauty they have strong features content. Says Editor Shefalee Vasudev, “We have first-person articles, special investigative reports, relationships, photo stories, and hope to develop a lot of bold and beautiful reports that tell people about India and not the rich urban India. We believe in being real. So we will talk about issues in India as they are. Our fashion content is slick and doable – it doesn't come from a dream factory but it shows women possibilities in fashion. And leaves them with many good ideas.”

The older players are shuffling along The change in Women's magazines in India came with the entry of Cosmopolitan and Elle in the Indian marketplace. It shook the players out of their slumber and got them rethinking their strategy. In this story, one has attempted to analyze the major players in this arena, and their strengths and weaknesses.

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Research shows how B2B sites can achieve success

Anew research study by the International Federation of the Periodical Press (FIPP) has unveiled key methods used by business-tobusiness (b2b) magazine publishers to create some of the world's most successful and profitable b2b websites.

e4m by exchange4media Staff
Published: May 21, 2006 7:42 PM  | 1 min read
Research shows how B2B sites can achieve success

Anew research study by the International Federation of the Periodical Press (FIPP) has unveiled key methods used by business-tobusiness (b2b) magazine publishers to create some of the world's most successful and profitable b2b websites. The Routes to Success for Business-to-Business Publishers' Websites study has found that around 66 per cent of websites surveyed are in profit, compared with only about 25 per cent in the same survey four years earlier. The proportion of sites making a loss has fallen from about 50 percent to less than 20 per cent. The objectives of the survey were: to examine good practice online among publishers of printed b2b magazines worldwide; to learn how success has been achieved; and to better understand how publishers are using the internet in conjunction with their magazines.

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Will Bangalore move to the Mid-day beat?

Word on the streets of Bangalore is that The Hindustan Times is looking to enter the market. Admittedly, Bangalore is next on the Deccan Chronicle's agenda too. Rumors on the next stage of DNA's ambitions featuring Bangalore are doing the rounds too. But all these are rumours. And then, there's fact. About a publication. t h a t ' s mastered the art and business of the English tabloid in India. Midday, the paper whose t a g l i n e professes it's for - and profiles -- Mumbai on the Move, is on the move itself. Midday, it's been confirmed, is Bangalorebound.

e4m by exchange4media Staff
Published: May 21, 2006 7:39 PM  | 2 min read
Will Bangalore move to the Mid-day beat?

Word on the streets of Bangalore is that The Hindustan Times is looking to enter the market. Admittedly, Bangalore is next on the Deccan Chronicle's agenda too. Rumors on the next stage of DNA's ambitions featuring Bangalore are doing the rounds too.

But all these are rumours. And then, there's fact. About a publication. that's mastered the art and business of the English tabloid in India. Midday, the paper whose t a g l i n e professes it's for – and profiles -- Mumbai on the Move, is on the move itself. Midday, it's been confirmed, is Bangalorebound.

Four weeks from now, a team of 50-odd journalists and other staffers that comprise the team of the forthcoming Bangalore Mid-day, will heave a collective sigh of relief. Many of them were hired as long as three, even four months ago, but were sort of kept on hold, doing nothing much.

A few got so bored, they left. But now, it is final. Under the stewardship of Editor Anil Thakraney and Publisher Sundar Kondur, Tariq Ansari is now ready to unleash the Bangalore edition of Mid-day, with the same tagline: Bangalore on the move. And so, Bangalore will soon witness intense action in the print daily space in English, in the months to come. Vijay Times, the last entrant into Bangalore's English daily market, from the. publishers of the leading Kannada daily (ABC) Vijaya Karnataka, has grown appreciably since its early hiccups. Market leader The Times of India is still miles ahead, and Deccan Herald from The Printers (Mysore) is ahead too, but by a much smaller margin

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It’s EMVIES time again

e4m by exchange4media Staff
Published: May 13, 2006 5:21 PM  | 4 min read
It’s EMVIES time again

The time to celebrate media initiatives are here again. The Bombay Ad Club instituted Media awards, EMVIES are just around the corner. In keeping with its annual schedule, this year the awards are planned on June 22, 2006. Action around the EMVIES has commenced with the Bombay Ad Club inviting entries for the event. In the past four years, EMVIES has seen the trend of increasing the number of entries that it has been getting last year seeing a peak of over 350 entries. EMVIES Chairperson Apurva Purohit states that this is what The Ad Club is expecting this year as well. To take a closer look before commencing action around the awards, the Ad Club had organised a pre-judging cocktail, inviting professionals from the industry to given their opinions on the awards and the judging process. “We received a very positive feedback from these industry leaders and they commended the Ad Club to be able to out together such an event for the media,” informed Ad Club's Bipin Pandit.

The EMVIES has seen in participation year-on-year, the number of entries in the first year was 78, which steadily notched up to 125 plus, 200 plus to the 350 plus mark last year. Purohit puts in a word of caution here. Purohit said, “Getting the mark of 400 was a sense of peak as every agency had participated last year with a decent number of entries.We are expecting to secure the margin this year as well.” She believes that between the addition of new categories and streamlining of some of the existing categories, the said target can be achieved. Another noteworthy factor that was seen in 2003 were the different industry bodies that participated in the EMVIES. Moving beyond from just the media agencies, research agencies, marketers, channels and interestingly creative agencies had competed to take home an EMVIE. “And we had seen some very good work coming from all of these organisations,” emphasised Purohit.

She further added, “EMVIES really are pan industry award for media innovations and I expect the same kind of participation this year as well.” Another area of expectations comes from the quality of entries. Purohit said, “Without doubt, every year we have seen improvement in the kind of entries that have come and this year wouldn't be any different either. Especially in categories like new media, out-of-home, never before used media, we have seen some genuine innovations.” Hopefully TV and Print will also show the next level of media innovations this year. Nonetheless, all said and done, the expectations from the industry to feature some ground breaking work is also high. EMVIES forms are sent across to agencies and can also be downloaded from exchange4media.com. The last date isMay23, 2006. The awards has roped in Times Now as the title sponsor. The category sponsors are indiatimes.com for the digital category and Radio Mirchi for the radio category. TAM continues with the award sponsorship of the 'Best TV Research' category. exchange4media.com is the official media partner.

Explaining more on the reasons why TimesNowpartnered with the event, Partho Dasgupta, Vice President and Business Head of the channel elaborated, “Times Now supports advertising and media fraternity.We even have a weekly show called the Brand Equity dedicated to this audience. We were associated with the Ad Review 2006, International Advertising Association, the Brand Equity Quiz and with Abbys. EMVIES takes us a step further in our celebration of good work by media agencies.” While Dasgupta “wishes to recognise the excellence in media industry through EMVIES”, Prashant Panday, Dy CEO, Radio Mirchi opines that as a media event, EMVIES has come a long way. “Given the kind of industry initiatives we have been associating with, EMVIES surely fits our scheme of affairs perfectly.” The countdown has begun. Can MindShare retain its Champion status?Will Lodestar claim back 'Agency Of The Year' Award? Will agencies like Maxus and Initiative, Starcom take home the Grand EMVIES?

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