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In 2004, after watching the campaign which Leo Burnett had planned for Congress, party leaders Jairam Ramesh and Salman Khurshid took Arvind Sharma and team to meet Sonia Gandhi. Clearly then it was Mrs Gandhi who was marshalling and planning the Congress attack on BJP. Circa 2009 and sure enough it’s still a Gandhi — just that it’s Rahul Gandhi this time. True to his reticent style, Rahul Gandhi may not be at the forefront when it comes to talking about things, but baba it is believed is keeping an eagle’s eye on the Congress campaign strategy.
Senior officials from one of the agencies mandated to handle the campaign indicate that though Rahul is not part of the publicity committee, he is very much in the know of what the party is going to talk about in this election. In the run up to the general elections , Congress is increasingly using Rahul as the face together with Sonia Gandhi and Manmohan Singh. Thus campaigns like ‘Atit ke Neev Par Bhavish Ka Nirman’ has Rahul with the slogan ‘Bhavish Ka Saath De, Congress Ka Saath De’ . Gandhi’s importance in the overall scheme of things is not surprising. Even as the party is projecting him as a potential prime ministerial candidate albeit not in this election, but in the time to come, the fact that Congress can use Gandhi to woo the youth has emerged as a key factor. “Congress clearly looks at him as a future leader. Look at Omar Abdullah . He’s cogent and logical and is part of the next generation of politicians. He completely immersed in understanding the nuances of politics and emerged as the chief minister. Gandhi in all likelihood is following the same route,” says Prathap Suthan, NCD, Cheil Worldwide. Given the surge of consciousness which followed post 26/11 particularly amongst the youth to participate in the electoral process, political parties realize that the segment can no longer be ignored. And that’s where Congress hopes to use Rahul and other young leaders to entice the target audience . “Congress’s claim of focusing on the youth will be more credible because there is Rahul and other young leaders in the party,” says an official close to the party. So it’s no surprise that Rahul is expected to be the key differentiator for the Congress. Interestingly though while the older generation of politicos like LK Advani and Narendra Modi of the BJP, have made their presence felt with blogs/websites in order to connect with the youth, Rahul has no cyberspace presence of his own. Not that, it’s stopping others from writing about him on the web. From people commenting about his visit to campuses to institutions to an online TV dedicated to the young politician — Aam Aadmi it seems has a lot to say about Rahul Gandhi. So will this latest and very carefully packaged ‘Brand Gandhi’ extension deliver in the coming general elections? That as they say is the billion voter question.
Source: http://economictimes.indiatimes.com/Features/Brand-Equity/Kin-Cong/articleshow/4186437.cms
Monday, March 16, 2009
Dhoni The Boss is worth Rs 300 crore
It is estimated that Brand Dhoni is worth close to Rs 300 crore, which most believe would be a conservative estimate. It is believed that The Boss charges close to Rs 5 crore for every brand he endorses; and each deal typically runs for three years. He endorses 19 brands as of today, which means a cool Rs 95 crore a year and as the deals are committed for three years his net worth stands at close to Rs 300 crore. However, this figure could be much higher as not all contracts are for three years. In fact his contract with Pepsi and Reebok is believed to be for ten years each.
These two contracts alone could be worth close to Rs 100 crore. In addition, Reebok is launching a Dhoni line, and while it is not known if he would receive royalties from the same, all international contracts awarded by sneaker companies would suggest that could be the case. Also brands which would want him to stay away from rivals or allied categories by use of an exclusivity clause would have to pay him more. When brands enter into a deal with sportsman, performance based incentives are built into the contract. So in case of Brand Dhoni, incentives based on scoring a ton or crossing a milestone would be in-addition to the base price of the contract. This base price remains intact if he is injured and cannot play. In the event of him getting dropped or losing his captaincy, marketers say it is only the performance based incentives that gets impacted but the contract remains intact. While the big contracts took a while coming increasingly Dhoni is now picky about the brands he endorses. Bobby Agarwal, COO, Godrej Hershey says the man himself realises how stretched his brand image and therefore is choosy about the brands he partners. “There is no problem, if it will serve him well in the long run,” says Agarwal. On this, Dhoni says; “I feel I am person for the masses. I see how honest is the company who wants to sign me.” Such exclusivity could mean a further hike in his rate. The downturn is unlikely to affect Brand Dhoni given that the captain of the Indian cricket team is unique and not easily substitutable by an endorser of similar stature. “He wants to sign on big brands only, develop his own style, look and feel. He has definitely wisened up,” reveals a friend.
These two contracts alone could be worth close to Rs 100 crore. In addition, Reebok is launching a Dhoni line, and while it is not known if he would receive royalties from the same, all international contracts awarded by sneaker companies would suggest that could be the case. Also brands which would want him to stay away from rivals or allied categories by use of an exclusivity clause would have to pay him more. When brands enter into a deal with sportsman, performance based incentives are built into the contract. So in case of Brand Dhoni, incentives based on scoring a ton or crossing a milestone would be in-addition to the base price of the contract. This base price remains intact if he is injured and cannot play. In the event of him getting dropped or losing his captaincy, marketers say it is only the performance based incentives that gets impacted but the contract remains intact. While the big contracts took a while coming increasingly Dhoni is now picky about the brands he endorses. Bobby Agarwal, COO, Godrej Hershey says the man himself realises how stretched his brand image and therefore is choosy about the brands he partners. “There is no problem, if it will serve him well in the long run,” says Agarwal. On this, Dhoni says; “I feel I am person for the masses. I see how honest is the company who wants to sign me.” Such exclusivity could mean a further hike in his rate. The downturn is unlikely to affect Brand Dhoni given that the captain of the Indian cricket team is unique and not easily substitutable by an endorser of similar stature. “He wants to sign on big brands only, develop his own style, look and feel. He has definitely wisened up,” reveals a friend.
Mahendra Singh Dhoni - The man, the brand - Part 1
It was an effort that took three months to fructify. Hundreds of man hours spent meeting, calling and emailing people — from brand valuation experts and marketers to cricket enthusiasts, historians to close friends across India to understand what makes him The Boss. However, a story about the Boss would have been incomplete without talking to the man himself. But given that India, from the fans to the brands, queue up to get a piece of the man, we knew our task was cut out. Countless calls were made and emails mailed to the manager. Each time the answer was — Dhoni is busy. We exhausted every trick in the book, including calls to Dhoni’s dearest pals and associate marketers. We even went as far as Australia, and tried to get a close friend of the manager to call him from down under. Still no luck! Now it was time to take the bull by its horns. Notepad in hand and the arsenal loaded with questions, we headed to an ad shoot at DY Patil stadium in Mumbai. After an exhausting six hour long uncertain wait on a sweltering hot Mumbai day, we caught him on his way back to his van and asked him about the interview. His quick reply was a polite ‘No’. But it was too late in the day to give up, we pushed on and learnt that his answer didn’t stem from arrogance but it was due to a fear of being misquoted or quoted out-of-context. So Dhoni prefered to answer over mail and we were promised it will be in the inbox soon. By the end of the day, The Boss had answered and the thrilling chase came to an end.
His is a brand that defies all conventional logic. He is not the best cricketer in the Indian team and yet he has managed to become the Boss of the team. As a rule Chennai may not look too kindly on ‘North Indian’s but after just one year with the Chennai Superkings T-20 team, he is now one of the city’s favourite sons. He can wear his hair long and streaked blonde, yet he is seen not as an oddball but as a fashion icon. He can lead a bunch of no-names, written off by experts and fans alike, to a T-20 World Cup win. He hangs out with the Bollywood set when in Mumbai but is equally proud to be seen with his childhood friends in Ranchi. He maybe a superstar who has crores in his bank account but still wants to get his college degree, because he does not want his children to think of their father as uneducated . So what makes the fascinating and at times enigmatic Dhoni, the most sought after brand today? For Sandeep Singh Arora, category director - Colas, Pepsico, Brand Dhoni encapsulates the energy, excitement of a young confident India. “He reflects what the youth of today are all about. They are making choices, exploring unchartered territories, challenging conventions and winning,” says Arora. Couple that with the fact that he cuts across all divides and it’s hard to find a more compelling brand. Amit Burman, vice chairman, Dabur puts it well when he says that Dhoni is an ordinary Indian who’s made it big with his achievements and on his own merit. “He is special because he cuts across geographies, across masses and across SECs and appeals to every consumer,” says Burman.
It’s something that is evident in the numerous different roles that Dhoni has essayed as a brand ambassador. From the Pepsi ‘Rajnikant’ spoof by Dhoni during the IPL last year to the Brylcreem ad where Dhoni returns to his small town roots. From the Sonata ad with Dhoni dressed as a bridegroom with a Tamilian, Bengali and a Punjabi girl readily giving their consent to marry him to the Pepsi commercial where he talks about making it on his own steam, Dhoni has emerged as a national phenomenon cutting across the North-South , East-West divide. The man himself agrees to the fact that he has been able to transcend the regional boundaries across India
The rage that is Brand Dhoni is quite phenomenal. A decade ago, every kid wanted to be Tendulkar and for a brief while it was Sehwag who ruled the roost. Today every kid wants to be a Dhoni. In a study done by Cartoon Network in 2008, the favourite sportsperson with boys and girls aged between 7-14 years was Dhoni, with Sachin in the second spot followed by Yuvraj Singh and others. When asked to choose between Yuvraj Singh and Dhoni pair, 67 % of the kids chose Dhoni, while Yuvraj garnered 32 %. TAM data of the ad volumes in seconds in 2008 reveal Dhoni hot on the heels of Shah Rukh Khan with Sachin a distant second. But hindsight as they say is twentytwenty and even marketers who signed him up in their early days never dreamt that his appeal would one day rival and surpass that of say a Sachin Tendulkar. Brands like Reebok, which signed on Dhoni during his domestic cricketing days, did not do so in anticipation of the fact that they were signing a prodigy. Sajid Shamim, director, marketing, Reebok accepts that it was just another of those endorsement deals when they first signed on Dhoni. “It was a regular bread and butter move, given the fact that we are firmly entrenched with the game in India,” says Shamim. He adds that from a talent perspective, Dhoni had the goods. “But we never thought that he will become this successful,” admits Shamim. Not surprising, given that by Indian standards, where star cricketers break into the team in their teens, Dhoni was a late entrant, who when he broke into the team was a ticket checker with the Indian Railways. Not to mention that he played for a rather weak cricketing state which had no history of sending players into the national team. There are some who believe that it is this precise lack of legacy, which has helped Dhoni attain such spectacular success. Santosh Desai, CEO, Future Brands agrees, adding that Dhoni represents a class with no benchmarks. “If you came from Mumbai, you are weighed down by legacies like Gavaskar or Poly Umrigar. Dhoni though has no such reference point and was not weighed down by constant comparisons.” He adds that Dhoni exudes a neanderthal, almost eerie sense of cool which says, ‘I back myself and my team without fear.’ To Desai the difference between Sachin and Dhoni is the fact that: “Sachin was an icon in a team which was not winning, while Dhoni has got a winning team.” Noted historian and cricket writer Ramachandra Guha though believes that too much is being out of Brand Dhoni. “So far Dhoni has been lucky as he has not been tested in tough environment. Two-three months down the line, if Dhoni fails to perform, Brand Dhoni will also collapse,” states Guha. Harsha Bhogle too believes that the brand value of cricketers rises and falls with their performances and it is not something in their control. However he believes that there are some cricketers who can transcend their performance in the short run and remain acceptable.
Source: Brand Equity, The Economic Times
His is a brand that defies all conventional logic. He is not the best cricketer in the Indian team and yet he has managed to become the Boss of the team. As a rule Chennai may not look too kindly on ‘North Indian’s but after just one year with the Chennai Superkings T-20 team, he is now one of the city’s favourite sons. He can wear his hair long and streaked blonde, yet he is seen not as an oddball but as a fashion icon. He can lead a bunch of no-names, written off by experts and fans alike, to a T-20 World Cup win. He hangs out with the Bollywood set when in Mumbai but is equally proud to be seen with his childhood friends in Ranchi. He maybe a superstar who has crores in his bank account but still wants to get his college degree, because he does not want his children to think of their father as uneducated . So what makes the fascinating and at times enigmatic Dhoni, the most sought after brand today? For Sandeep Singh Arora, category director - Colas, Pepsico, Brand Dhoni encapsulates the energy, excitement of a young confident India. “He reflects what the youth of today are all about. They are making choices, exploring unchartered territories, challenging conventions and winning,” says Arora. Couple that with the fact that he cuts across all divides and it’s hard to find a more compelling brand. Amit Burman, vice chairman, Dabur puts it well when he says that Dhoni is an ordinary Indian who’s made it big with his achievements and on his own merit. “He is special because he cuts across geographies, across masses and across SECs and appeals to every consumer,” says Burman.
It’s something that is evident in the numerous different roles that Dhoni has essayed as a brand ambassador. From the Pepsi ‘Rajnikant’ spoof by Dhoni during the IPL last year to the Brylcreem ad where Dhoni returns to his small town roots. From the Sonata ad with Dhoni dressed as a bridegroom with a Tamilian, Bengali and a Punjabi girl readily giving their consent to marry him to the Pepsi commercial where he talks about making it on his own steam, Dhoni has emerged as a national phenomenon cutting across the North-South , East-West divide. The man himself agrees to the fact that he has been able to transcend the regional boundaries across India
The rage that is Brand Dhoni is quite phenomenal. A decade ago, every kid wanted to be Tendulkar and for a brief while it was Sehwag who ruled the roost. Today every kid wants to be a Dhoni. In a study done by Cartoon Network in 2008, the favourite sportsperson with boys and girls aged between 7-14 years was Dhoni, with Sachin in the second spot followed by Yuvraj Singh and others. When asked to choose between Yuvraj Singh and Dhoni pair, 67 % of the kids chose Dhoni, while Yuvraj garnered 32 %. TAM data of the ad volumes in seconds in 2008 reveal Dhoni hot on the heels of Shah Rukh Khan with Sachin a distant second. But hindsight as they say is twentytwenty and even marketers who signed him up in their early days never dreamt that his appeal would one day rival and surpass that of say a Sachin Tendulkar. Brands like Reebok, which signed on Dhoni during his domestic cricketing days, did not do so in anticipation of the fact that they were signing a prodigy. Sajid Shamim, director, marketing, Reebok accepts that it was just another of those endorsement deals when they first signed on Dhoni. “It was a regular bread and butter move, given the fact that we are firmly entrenched with the game in India,” says Shamim. He adds that from a talent perspective, Dhoni had the goods. “But we never thought that he will become this successful,” admits Shamim. Not surprising, given that by Indian standards, where star cricketers break into the team in their teens, Dhoni was a late entrant, who when he broke into the team was a ticket checker with the Indian Railways. Not to mention that he played for a rather weak cricketing state which had no history of sending players into the national team. There are some who believe that it is this precise lack of legacy, which has helped Dhoni attain such spectacular success. Santosh Desai, CEO, Future Brands agrees, adding that Dhoni represents a class with no benchmarks. “If you came from Mumbai, you are weighed down by legacies like Gavaskar or Poly Umrigar. Dhoni though has no such reference point and was not weighed down by constant comparisons.” He adds that Dhoni exudes a neanderthal, almost eerie sense of cool which says, ‘I back myself and my team without fear.’ To Desai the difference between Sachin and Dhoni is the fact that: “Sachin was an icon in a team which was not winning, while Dhoni has got a winning team.” Noted historian and cricket writer Ramachandra Guha though believes that too much is being out of Brand Dhoni. “So far Dhoni has been lucky as he has not been tested in tough environment. Two-three months down the line, if Dhoni fails to perform, Brand Dhoni will also collapse,” states Guha. Harsha Bhogle too believes that the brand value of cricketers rises and falls with their performances and it is not something in their control. However he believes that there are some cricketers who can transcend their performance in the short run and remain acceptable.
Source: Brand Equity, The Economic Times
Saturday, February 7, 2009
Teens: They are a Moving Target
Hi All,
Few days back, I was travelling with my friend who's a photographer in his car. On the way, he picked up his 19 year old daughter from college. We started talking and in the short span i spent talking to her gave me some interesting insights and also made me realise the sweeping changes taking place among the teenagers today. For teens, there's no permanent role model and it's a moving target for say the favourite sportsman. It is Nadal one day, Federer the next and Dhoni next. Among movie stars, the current fav is Farhan Akhtar, but one is not sure for how long. Another trend in teens is trying to be the first on the block to know a new personality and flaunt the knowledge amongst peers. It is obvious that teenagers are more clued on thanks to availability of information across channels, but the most important platform is the Net. Mobile phones is another gadget which occupies a lot of mind space not only in teens but also children. The other my friend who has a seven year old son was telling me about how savvy his son is when it comes to navigating the phone. Truly, the worlds' changing and changing how? Little wonder, marketers spend sleepless nights trying to unravel the key to reaching out to these segments.
I welcome your thoughts on the topic.
Few days back, I was travelling with my friend who's a photographer in his car. On the way, he picked up his 19 year old daughter from college. We started talking and in the short span i spent talking to her gave me some interesting insights and also made me realise the sweeping changes taking place among the teenagers today. For teens, there's no permanent role model and it's a moving target for say the favourite sportsman. It is Nadal one day, Federer the next and Dhoni next. Among movie stars, the current fav is Farhan Akhtar, but one is not sure for how long. Another trend in teens is trying to be the first on the block to know a new personality and flaunt the knowledge amongst peers. It is obvious that teenagers are more clued on thanks to availability of information across channels, but the most important platform is the Net. Mobile phones is another gadget which occupies a lot of mind space not only in teens but also children. The other my friend who has a seven year old son was telling me about how savvy his son is when it comes to navigating the phone. Truly, the worlds' changing and changing how? Little wonder, marketers spend sleepless nights trying to unravel the key to reaching out to these segments.
I welcome your thoughts on the topic.
Wednesday, February 4, 2009
Article on Political Advertising
Hi All,
Here's the link to the article i wrote on political advertising in Brand Equity. Look forward to your comments.
Cheers
http://epaper.timesofindia.com/Daily/skins/ET/navigator.asp?Daily=ETM&login=default
http://epaper.timesofindia.com/Daily/skins/ET/navigator.asp?Daily=ETM&login=default
Here's the link to the article i wrote on political advertising in Brand Equity. Look forward to your comments.
Cheers
http://epaper.timesofindia.com/Daily/skins/ET/navigator.asp?Daily=ETM&login=default
http://epaper.timesofindia.com/Daily/skins/ET/navigator.asp?Daily=ETM&login=default
Retail Shakeout
Hi All,
Apologies for the long absence, but have been extremely busy the last few months. However my new year resolution is to update my blog regularly, so here goes.
The slowdown's real and everyone is now busy grappling with it. Nowhere is it more visible than retailing in India. Dwindling footfalls, discounts galore as retailers try to woo the shoppers to their shop. Manufacturers stopping supplies to retailers over non payment of dues is becoming common and one of the retail chain which expanded aggressively sometime back is facing huge capex constraints. As a result, the shelves is devoid of products, employees have been sacked and some stores have been shut.
So is there a way retailers can tide over the slowdown? Did the aggressive expansion plan become their undoing? There are many questions to be mulled over and addressed. I invite thoughts and ideas on the topic.
Apologies for the long absence, but have been extremely busy the last few months. However my new year resolution is to update my blog regularly, so here goes.
The slowdown's real and everyone is now busy grappling with it. Nowhere is it more visible than retailing in India. Dwindling footfalls, discounts galore as retailers try to woo the shoppers to their shop. Manufacturers stopping supplies to retailers over non payment of dues is becoming common and one of the retail chain which expanded aggressively sometime back is facing huge capex constraints. As a result, the shelves is devoid of products, employees have been sacked and some stores have been shut.
So is there a way retailers can tide over the slowdown? Did the aggressive expansion plan become their undoing? There are many questions to be mulled over and addressed. I invite thoughts and ideas on the topic.
Wednesday, September 17, 2008
Realty check at the check-out counters
No where is the maxim of retailing in India — location, location and location — better illustrated than the cash tills of modern formats. As retailers grapple with shortage of good retail space outside, the limited space near the check out counters is setting their cash tills on fire. It’s simple, limited supply, enormous demand for the space. The result — premium pricing charged by the retailers. “It’s after all real estate for the retailers and like any good location, it is getting the premium tag,” says Sameer Satpathy, head – marketing, Marico. Brands enter into either long term understanding with retailers where using space near the cash counters forms part of the deal. However, Ashutosh Chakradeo, business head – food & grocery, Hypercity says independent deals are also struck with brands for using only the cash till space. Typically the rates depend on the size of the format, whether it is hypermarket, supermarket or discount stores. Also the kind of SKUs/categories to be placed comes into consideration while negotiating the rate. “On an average, the premium earned near the POS could be 70-100 % more than the rate per sq feet on the shelves. It is also dependent on the catchment area of the store and the footfalls it accrues,” says Salil Sahu, MD, Home Stores India. While retailers are reluctant to reveal the price tag for POS, industry sources indicate that given the demand for the space, it is not uncommon of rates touching Rs 6000/cubic feet in major metros like Mumbai and Delhi. “The terms of trade also include providing for 0.5-1.5% extra margin, over and above the product line margin offered to retailers,” explains Himanshu Arora, VP- client management, In-Store consulting.
And if one thinks that long term deals involve brands locking in for months together with retailers, one is way off the mark. “No retailer will want to hand over the proverbial golden goose to brands on a platter,” remarks a senior marketing official from a FMCG company. So POS deals comprise of weekend special deals, festival days or special discount day deals, he reveals. “So if some special days have done well, then we are looking at another round of negotiations to decide on POS deals for the next special days,” he states.
And if one thinks that long term deals involve brands locking in for months together with retailers, one is way off the mark. “No retailer will want to hand over the proverbial golden goose to brands on a platter,” remarks a senior marketing official from a FMCG company. So POS deals comprise of weekend special deals, festival days or special discount day deals, he reveals. “So if some special days have done well, then we are looking at another round of negotiations to decide on POS deals for the next special days,” he states.
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