Showing posts with label Reliance. Show all posts
Showing posts with label Reliance. Show all posts

Wednesday, January 09, 2013

If 30 second films win hearts, this one ropes-in the mind too!

This is Docomo’s third ad-campaign during the IPL season, making it three in a row. Expectation from the brand is overblown, but the TVCs are bound to leave an impact

For every minute that went by in February last, Tata Docomo lost 44 customers in the domestic telecom market. That reality was unique to just Docomo. Every other telecom operator’s subscriber base grew during that month. While the industry’s overall base grew 0.82% to reach 911.17 million in February, Docomo lost 2.1%. In terms of customer additions during the month, while the top four players showed a remarkable rise – Bharti Airtel, Reliance, Vodafone and Idea, Docomo’s m-o-m growth fell 24.6%.

While industry watchers blamed the brand rejig exercise (that saw all brands of Tata’s telecom – Indicom, Photon & Docomo – being brought under the Docomo umbrella) for this performance, company sources told 4Ps B&M that the fall in customer base was only because they got rid of all non-active customers from their database. Sounds fair. Whatever be the cause, we have seen the effect. As for the company, by launching a TVC campaign (of four ads so far titled, Idli, Menu, Spoon & Cricket match), it made a prominent mention that it will try all to rebuild equity of the brand, and not slip beyond the 6th spot on the whiteboard.

Like the previous two years, the company chose the IPL season (April-May) as the months to step on the gas as far as advertising is concerned. The campaign also marked a hattrick of togetherness for the trio – Ranbir Kapoor (RK), Docomo & IPL. Unlike the previous two years however, this time, the TVCs contain that extra dash of humour. There is a common production set used for all four ad-films, and the character count is limited in each TVC. Though the scripts used are brief, the creative concept from the shelves of DraftFCB-Ulka helps in getting the message across to the audience without burning much air time. That is praiseworthy. Then of course there is Ranbir, who plays the role of an old ‘phlegmatic’ man, and as expected, does well. Talking about the advantages of roping-in the popular young actor for the third IPL in a row, Ritesh Ghosal, Head – Brand Marketing, Tata Teleservices, says, “In a cluttered window as IPL, where I get 120 seconds spot in a three hour game, in order to stand out and make the most of this very expensive media property, I needed to do all I could to make the ads work. So, we kept the ads short. Also, with Ranbir Kapoor, you get the direct benefit of his fan following, besides being guaranteed of a good act in your TVC to appeal to your TG of 15 to 35 year-olds.”


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles.
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Friday, December 07, 2012

RELIANCE RETAIL: RATIONALISATION

Reliance needs to engage with a global partner for its back end

“Reliance Fresh failed because it was too aggressive with its strategies and wanted to capture the entire market without leaving any space for the middlemen and local retailers,” points out a Mumbai-based retail specialist. Reliance had planned to establish its C&C business (which has attracted international big wigs like Walmart, Tesco, Carrefour, Metro AG, et al) in Tier-II cities. However, tough economic conditions demanded conservation of cash reserves, so that business was scrapped.

Winston Churchill had once said, “If you are going through hell, then keep going.” Indeed, Reliance must keep going, but wthout repeating the mistakes of its past. Quite logically, Reliance will have to cut the flab that it developed in such a short amount of time. The company is also mulling over international tie-ups for back-end support. That is a prudent strategy, which has served players like Bharti & Tata well. Outsourcing supply chain management is more cost effective and feasible, especially for a geographically scattered country like India.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

For More IIPM Info, Visit below mentioned IIPM articles.


 
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Wednesday, July 18, 2012

3G in India is clearly too expensive on a rational and logical basis

The impact of the prices paid in India will result in an increase of capital employed for Idea, Bharti and Reliance of roughly 3.0%, 3.4% and 10.4% compared to the 255% increase for Vodafone. The immediate impact on the ROCE is to reduce the returns in the range of 0.2% to 0.9% which is relatively benign compared to the damage inflicted in the UK. Furthermore, unlike the UK, the Indian operators will be able to deploy their networks more cheaply and achieve greater performance by jumping to 3.5G in the form of HSPA. The spectrum will be used immediately to relieve congestion on the 2G voice networks and India will quickly emerge as the centre of innovation for low cost smart phones, applications and new mobile business models. The auction winners will not have to wait 10 years before they can start earning a return. Indian 3G prices for Mumbai, Delhli and Kolkata were certainly high and above expectations but they were not anywhere near as exuberant as those of the UK or Germany.

As regards the business case for the 3G spectrum, the 3G spectrum in India is both about voice and mobile broadband. Accessing the Internet from handsets i.e. the small screen will be a much bigger phenomena in emerging markets compared to developed countries. This is already apparent in some markets such as Egypt, Morocco and the Philippines. What matters now in India is not how much was paid for 3G spectrum, and as a classic “sunk cost” it should have little bearing on future decision making, but how quickly can a more rational market structure be established. Greater certainty over the future regulatory environment, including 2G spectrum pricing, along with consolidation and an end to the brutal price war will have a far more pervasive impact on future returns than the prices paid for 3G spectrum.


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