Ooh Report

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OBJECTIVES OF THE CORPORATE INTERNSHIP The purpose of Corporate Internship is to connect theory and practice, obtain knowledge & awareness of the functioning of various departments of the corporate and its environment which is utmost necessary for the success as budding managers. The basic objectives of the summer internship programme were: 1. To understand the business and competitive environment in which the organization is operating. 2. To analyze and understand the financial position of the organization viz – a – viz competitors. 3. To study Sales and Marketing process of an Out Of Home Advertising Agency. 4. To get a feel of corporate life and its functioning & understand various interaction styles.

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ABSTRACT Outdoor advertising is no more restricted to billboards. As the Indian consumer is bombarded with 1,00,000 advertisements a day on more than 250 channels, outdoor advertising has shown promise to break the clutter of advertising on traditional mediums. Out-of-home has revolutionized the way outdoor communications is being looked upon by marketers and today, it has transcended the traditional outdoor media options, extending to communicate with the customers at various touch points. The report illustrates the new Outdoor media options starting from the cornerstone of Outdoor the billboards, street- furniture (bus- stops, walls etc.), transit media such as buses, railways and mobile-vans to new alternate media such as mall kiosks, building boards etc. clearly illustrating the media options that planners have and can choose from in OOH depending upon the target audience they have. This report also illustrates about how sales and marketing department functions in an OOH advertisement agency. To do this project I did my internship with “The Zebras - enabling out of home advertising” based in Karol Baag New Delhi in the sales and marketing department of the company. Goal of my internship was to build the database of the prospect client companies as it is the first step of sales process and an important building block of the business. Thus before making contact to them one should know about the company and what they are in to? And last not the least how an OOH agency can benefit in their business to do better. To create this database I used to visit corporate office of various companies and asked the contact details of the person who takes care of the advertisement activity in the company. I have successfully created the database of 40+ companies and also made a proposal for the Mahanager Telephone Nigam Limited New Delhi head office. Key learning’s from the internship were: For a sales organization most important objective is to meet the requirement of the client and building a long term relationship by timely delivery and satisfying their need with a competitive edge. The organization was 100% oriented towards sales and each employee was free to take decision when they are dealing with their client. Financial statements of the companies were not available but in order to analyze financial performance of the industry I have taken the financial statement of ENIL Pvt. Ltd. (Times OOH) a company in the same industry. OOH as estimated by PWC an industry of 10,000 million and is expected to become Rs 17,500 million industry by 2010. Though the part of media-spend in OOH is only 6% for now the industry has shown promising growth. The industry structure as for now is fragmented and less organized.

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[Type text] COMPANY PROFIL

THE ZEBRAS – enabling out of home advertising Company Origin: The Zebras is a part of the AD’s World group founded by Mr. Ajay Dhawan operating in the Out Of Home Advertising domain for more than 17 years. This is the only Group in this domain with An ISO 9001:2000 Certification (refer annexure 4), which goes to show the intent of the Group and the Organisation to follow systems and increase Returns on Investments to Clients. The group has 10 offices in the country and the head office is located at A-191 Okhla Phase 1 New Delhi and three international offices located at Dubai, Sharja, and kualalumpur. The group has been servicing more than a 100 Client’s nationally with a dedicated team of more than 140 people onboard. The group is currently market the advertising on the Airport Baggage Trolleys and advertising on The Rail Sampark Enquiry Number 139. The group also have been recorded in the Limca Book of Records (refer annexure 5) for Making Biggest football Balloon just in period of 10 days for its client Philips and making a tumbler of 12 feet completely made of Glass for its client Rasna. Mission: Enabling Out Home Advertising…… Vision: The vision behind the setup of The Zebras was to grab the opportunities present in the OOH industry. As two companies in the same domain will not advertise through the same agency. This opportunity is being noted by the C.E.O. of AD’s world Mr. Ajay Dhawan and to cater to different companies in the same domain he found The Zebras and appointed Mr. Atul Rai as C.E.O. of Rhe Company who were former C.O.O of the AD’s World. Goals/Objectives: The Goals/Objective of the organization are:  Customer Satisfaction  Timely Delivery of the product and services.  Help customer to grow in their business.  Making Innovations Major Client:

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[Type text] Organizational Structure: • Mr. Atul Rai (C.E.O.) • Mr. Surendra Mohan Sharma (General Manager) • Mr. Aditya (C.S.O.) • Ms Monika Sharma (HR Manager) • Mr. Rajesh Sharma (Finance Manager) • Mr. Varun Sharma (Executive Manager Sales) • Ms. Monika Buswala (Manager For Creative Activities) Business Activities: The group is currently involved in three types of business verticals.

Outdoor Outdoor activities involve advertising on various media which interacts to large mass audience. How the implementation of the activities is done is being illustrate in the figure given blow:

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Retail This involves Fabrication of retail stores for the client companies. Here client companies use to give the place where a retail store is to installed and how the retail activity is done is very well explained in the figure given below.

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__________________________________________________________________________ Experimental Advertising BTL i.e. Below The Line activities are those activities which are done by the compnies on the demand of the client company. It involves Product Launch, On Ground Promotion, Exhibitions, Dealer Meets, Activation – Rural/Urban, Melas & Shows. Most of the time experimental marketig is done where product is very complicated or the target audience is very complicated or they target customer belong to SEC C or D and face – to – face communication is required to make target customer awaer of the product. Best e.g. is when you see a boy is coming to you to give a pumplet or product demo you see on the side of the road when you are on the move. The process through which experimental marketing is acomplised has been illistrared through the given diagram below:

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COMPITITORS’ PROFILE

1. BRIGHT OUTDOOR MEDIA PVT. LTD. Company Origin: Bright commenced business in 1980 as an outdoor media company. Today is one of the leading OOH media organizations in India and is spreading its footprint rapidly across the country. In Mumbai Bright is the privileged to proudly boast of having 700 exclusive hordings in Mumbai metropolis such as Haji Ali, Bandra, Churchgate, Mahim, Cadel Road, Marin Drive, Worli, Borivili, Juhu SV Road, Link Road, Chembur and Sion. Bright serves from 801,Cresennt Towers,Mourya House, Opp. VIP Plaza, New Link Road, Andheri(West) Mumbai Mission: We Create Bright Future…… Major Client: Bright Outdoor is associated with Multinationals comprising of Bank of Baroda, SBI, HDFC, Bank of India, Dena Bank, Union Bank, Kapole, Colgate, Westar, Hindalco, Emami, Sansui, Godrej, Manickchand, Pepsi, Amul, Coca Cola, Reliance, Indian Oil Corporation, MC’Donalds, Indusind Bank, L.I.C, U.T.I., Seasons, Tribhovandas Bhimji Zaveri Jewelers, Whirpool, Onida, Titan, Videocon to name a few. 7

[Type text] Televison channels : Bright outdoor has always been in priority with Television channels like Zoom, Colors, UTV Bindaas, Zee Network, Star TV, Sony TV, Sab TV, CMM, CVO, Sahara, Discovery Channel, Care TV, Doordarshan etc. Film Industry : Bright caters to 90% of Film Industry comprising of UTV, Eros, Percept, Planman, Devgan Entertainment, Yashraj Films, Mukta Arts, Pritish Nandy Communications, V.I.P, Shringar, Balaji, Tilak Enterprise, Time Movies, Metro Movies, Dilsa Distributors, Venus, Time Video, Tips, United Seven Creations, Neha Arts etc. with respect to their outdoor media requirements. Events & Exhibition : Filmfare Awards, Femina Miss India Contest, Zee Cine Awards, IIFA Awards, Sansui Awards, MTR Foods – Indian Telly Awards,CNBC- Mutual Fund Awards, FICCI- Frames- Global Convention on the Business of Entertainment, Grasim Mr. India- Aditya Birla Group, All major events & New Year Nights & Navratri Utsav etc. Business Activities: Bright is in almost every field of advertisement. They are involved in the following businesses: • AD Films & Screening / Films • Hoardings •

Multiplex & Mall Branding

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Flex & Vinyl Printing

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Airport

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Mobile Vans

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T.V

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Gantries

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Radio

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Toll Plaza

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Modelling

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Illuminated Kiosks

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Serials

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Bus Back Panels

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Albums

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Bus Q - Shelters

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Cricket

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Step Branding

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Press & Magazine

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Decorative Poles

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Events

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Foot Over Bridges

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Glass & Building Wrap

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Railway Boards

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P.R

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LCD LED Moving Display

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Shooting Location

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Film Let

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Tele Shopping

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Traffic Bhooths

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Film Promo

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Solous Bus Painting

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Designing

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Standies

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Sponsorship

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In Film Branding DVD / VCD / CD AD

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Railway Panels And Full Train Painting

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Railway Transfer Stickers, Route Maps & Window Display

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Neon & Glowsign at Railway Station

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Celebrity & Artist Management

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Sole Rights of Railway Stations

2. Times OOH PVT. LTD. Company Origin: Times OOH is the part of THE TIMES GROUP (Bennett.Coleman & co. Limited) was established in 1838 and is managed by the Board. It is the largest and most respected Indian media house with an annual revenues of more than US$ 1.1 bn. The times group is the leader across categories. – Times Of India is world’s largest English Broadsheet Daily and The Largest private FM Radio Player.

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Mission: No One Covers India Like Us…. Vision: Our vision is to be a leading city-centric-media company by delivering unique audiences through media vehicles like FM radio, event management and out-of-home media. Major Client: Best of Brands Already On Board…

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[Type text] Organization Structure: Board of directors (as on may 14, 2008) Mr. Vineet Jain, Chairman Ms. Rama Bijapurkar Mr. N. Kumar Mr. Deepak M. Satwalekar Mr. Ravindra Kulkarni Mr. Ravindra Dhariwal Mr. A. P. Parigi, Managing Director Management team Mr. A. P. Parigi, Managing Director Mr. Prashant Panday, Chief Executive Officer Mr. N. Subramanian, Chief Financial Officer Mr. Nandan Srinath, Chief Operating Officer (India) Mr. Sharath Chandra, Chief Operating Officer (International) Mr. Tapas Sen, Chief Programming Officer Company Secretary Mr. Mehul Shah Auditors Messrs Price Waterhouse & Co., Chartered Accountants Legal advisors Mulla & Mulla & Craige Blunt & Caroe, Advocates, Solicitors and Notaries K. Dutta & Associates Prathiba M. Singh, Singh & Singh, Advocates King & Partridge, Advocates & Solicitors Bankers HDFC Bank Limited Registrar & share transfer agents (r & ta) Karvy Computershare Private Limited, Unit:- Entertainment Network (India) Limited, Plot No. 17 to 24, Vittal Rao Nagar, Madhapur, 11

[Type text] Hyderabad - 500 081. Phone : 040 23420818, Fax : 040 23420814. Registered office 4th Floor, A-Wing, Matulya Centre, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400 013. CORPORATE OFFICE Trade Gardens, Ground Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400 013.

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Business Activities: Presence across segments - Billboards, - Street furniture, - Transit and - Digital screens Pan India Coverage through owned properties & Trading capabilities – Portfolio of owned properties in prime locations - Mumbai and Delhi Airports - Patel Bridge in Mumbai, - Delhi-Noida flyway - Delhi Metro Stations

3. OOH MEDIA PVT. LTD. Company Origin: OOH Media is India’s largest out-of-home television company. They leverage robust Business, In-store and Leisure Network to display audio-visual advertisements and engage urban consumers while they work, shop and play. The medium combines the strengths of audio-visual communication with the visibility of outdoor. The ability of this new medium to ensure that advertisers get their message across their most difficult to reach consumers with regularity, across different day parts and in a seamless way, is what differentiates this medium of communication from any other medium. They have already installed over 5000 screens in more than 22 cities across India and propose to set up as many as 30,000 screens in the next 18-24 months. This would make OOH Media India's largest digital out-of-home television company. In November 2006, OOH Media commenced on three keystones: Vision, Ambition and Confidence. A 3i company (http://www.3i.com), ooh media partnered with China-based Focus Media 12

[Type text] (http://www.focusmedia.cn/en/index.htm) — the world's leader in OOH services — to bridge the gap between Indian advertisers and their audiences. To provide advertisers with effortless access to otherwise hard-to-reach consumers, OOH Media has set up a nation-wide network covering over 22 cities via more than 5000 high definition LCD and plasma screens. Through this network, OOH Media guarantee marketers visibility and of course, direct connect with their consumers, as they work, eat, shop or simply relax. OOH Media achieve this through: » OOH Work » OOH Shop » OOH Play Mission: India’s Largest Out Of Home Television Network. Major Client:

Organizational Structure: •

Ishan Raina (CEO)

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Jagadesh Babu Botta (CFO)

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Niloufer Dundh (CSO)

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Sumit Sapru (Vice President - Business Strategy)

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Baagyalakshmi Nagarajan [Director - Sales (South)]

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Raju Sarin ( Director)

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Shamik Talukder (Business Director)

Business Activities: 13

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OOH Work: One of the most challenging tasks for an advertiser is to reach his audience while they are at their workplace. Conventional media rarely achieves this task. OOH Media on the other hand penetrates the largest of offices, (delivering) reaching advertisements to men and women while they relax in the lobby, wait outside elevators or hang out at the food court. OOH Media install LCD and plasma screens in office buildings, IT parks, BPOs, KPOs, airport buses and healthcare centers — to successfully capture high-profile audiences with large amounts of disposable income.

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OOH Shop: Consumers in shopping malls are there for a specific reason: to buy a product or several products. Since they are already in purchase mode, these consumers are acutely sensitive to product advertisements. If an advertisement appeals to them, they will make a spontaneous purchase, even if they had no intention of buying that product before they entered the store. OOH Media connects with these consumers — in malls, hyper and super markets, convenience stores, and CSDs — and swings their purchase decisions in favour of the product being advertised.

OOH Play: A general misconception prevails: Business and pleasure should not be mixed. OOH Media breaks away from this cliche — and takes products straight into entertainment areas: multiplexes, beauty salons, clubs and pubs, cafes, fast food joints, restaurants, and even book shops — to the youth and young families who are highly receptive to advertisements while they relax.

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INDUSTRY ANALYSIS Outdoor is a comprehensive mix of effective media delivery mechanisms that reach people in their cars or on subways, in airports and malls or in any number of growing outdoor media settings. Outdoor is roadside, outside and inside, above and below ground and on the move. Outdoor today is an important element and strategic to a media plan. Outdoor media sites in India are predominantly owned or operated by small, local players and are typically, directly marketed by them to advertisers and advertising agencies. However, this segment too is witnessing a sea-change with technological innovations. Growing billboard advertising is fuelled by technologies such as light-emitting diode (LED) video billboard. This is a segment that is seeing interesting technological innovations across the world and is likely to evolve in India too in the short-term.

STRUCTURE •

Companies in the industry: In India OOH advertising industry is predominantly owned and operated by small, local players but there are various organized companies which are doing well in the industry. Following are the major players in the industry serving the needs of OOH advertising:

o o o o o o o o o o o o o o o

Pioneer publicity (Delhi) VSR (Mumbai) AD’s World (Delhi) The Zebras – part of AD’s World (Delhi) Times OOH, (Mumbai) Clear Channel(Mumbai) Selvel (Mumbai) Vantage (Bangalore) Portland (Bangalore) Lakshya (Bangalore) Media Magic (Chennai) JCDecaux (Delhi) Posterscope (Bangalore) Bright Publicity (Mumbai) Jaya Channel (Mumbai) 16

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OOH Media Pvt. Ltd. MOMS Outdoor Media Pvt. Ltd.(A venture of Madison) Platinum Outdoor Media Pvt. Ltd.(A venture of Madison) Essence advertising Mind makers (Noida) Essence (Noida)

MARKET SIZE AND GROWTH TREND: Today, the Out-of-Home (OOH) market is about Rs.10, 000 million that accounts for approximately 6.0% of the total ad spends in India. As shown below, the OOH ad spends in India compare favorably to the worldwide ad spend on OOH.

Source: Advertising Expenditure Forecasts, October 2004 by ZenithOptimedia

In year 2010 the Out-Of-Home is expected to grow to Rs. 17,500 million with a compounded average growth rate of 14%.

Projected Growth of Out-Of Home Advertising Industry

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PERFORMANCE:

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[Type text] Comparison Between OOH India and OOH Global Characteristics OOH India Status Not recognized as industry Size Around Rs 10,000 million Importance

Add-on media

Holding patterns Regulation Innovation

Large small Players Still to happen Just Begun

R&D

Does not exist

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number

OOH Global Recognized as industry Over US $ 5 bn Strategic importance of Small number large Players Already exists Fair Ahead Exist, but evolving

of

still

Source: Advertising Express, July 2006, Lifestyle Marketing, Media-Options: Breaking Conventional Practices

GDP of India: 2004 8.5%

2005 7.5%

2006 8.4%

2007 9.4%

2008 6.5%

2009e 7%

2007e 16%

2008f 14%

2009f 15%

Growth Rate of OOH Industry: 2004 6%

2005 11%

2006 25%

Since growth of OOH is not showing clear pattern with respect to GDP growth so it is an Acyclical variable to GDP •

LEGAL/REGULATORY ISSUES: 18

[Type text] Registration Requirements: No:

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2

3

Procedure

Time to Cost to complete: complete:

Obtain director identification number (DIN) online from the Ministry of 1 day Corporate Affairs portal (National) Obtain digital signature certificate online from private agency authorized 3 days by the Ministry of Corporate Affairs (National) Reserve the company name online with the Registrar of 2 days Companies (ROC) (National)

INR 100

INR 1,500

INR 500

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Stamp the company documents at the State Treasury (State) or authorized bank (Private)

1 day

INR 1,300 (INR 200 for MOA + INR 1,000 for AOA for every INR 500,000 of share capital or part thereof + INR 100 for stamp paper for declaration Form 1)

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Get the Certificate of Incorporation from the Registrar of Companies, Ministry of Corporate Affairs (National)

5 days

INR 14,133 (see comments)

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Make a seal (Private)

1 day

7*

Obtain a Permanent Account 7 days Number (PAN) from an authorized franchise or agent appointed by the National Securities Depository Ltd. (NSDL) or the Unit Trust of India (UTI) Investors Services Ltd., as outsourced by the Income

INR 350 (cost depends on the number of seals required and the time period for delivery) INR 67 (INR 60 application fee + 12.36% service tax + INR 5 for application form, if not downloaded)

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8*

9*

10*

11*

12*

13*

Tax Department (National) Obtain a Tax Account Number (TAN) for income taxes deducted at source 7 days from the Assessing Office in the Mumbai Income Tax Department Register with the Office of Inspector, Shops, and 2 days Establishment Act (State/Municipal) Register for Value-Added Tax (VAT) at the 12 days Commercial Tax Office (State) Register for Profession Tax at the Profession Tax Office 2 days (State) Register with Employees’ Provident Fund 12 days Organization (National) Register for medical insurance at the regional office of the Employees’ 9 days State Insurance Corporation (National)

INR 57 (INR 50 application fee + 12.36% service tax) INR 6,500 (INR 2000 + 3 times registration fee for trade refuse charges) INR 5,100 (registration fee INR 5000 + stamp duty INR 100) No cost

No cost

No cost

Rights to Advertise: The right regarding to display with a particular site (BQS, Utilities, Pole Kiosk, Billboards, etc.) is available with the concerned authority. E.g. rights to display in the city is available with the local government such as Nager Nigam in cities and Nager Palica in towns. On National highway the right are reserved with NHAI. Right concerned with Airports, Metro Railway and Stations, Railway, DND Flyway, Bus and Station are reserved with their authority. •

FACTORS DRIVING THE GROWTH OF OOH:

Increasing ad-spends The growth in Indian economy has led to better employment prospects and thus people have more disposable incomes. The result of this has been more consumption and more purchase. It requires the brand marketers to reach out to the audience through every possible means. With the increasing media spends the share over OOH media has also increased. Clutter on traditional media 20

[Type text] Media penetration has increased phenomenally over the past few years. Increasing penetration has led to increasing demand from a clutter free advertising. OOH provides ample opportunity to advertise for clutter free advertising. Increasing working population More and more people are on the move today. In metros, on an average, people spend 3-6 hours of the day traveling, which makes them potential audience to OOH media. Aptness in Rural Marketing In rural areas the impact of OOH is high. Rural areas do not have high literacy; therefore print is not the best medium for advertisers. Significant power shortage doesn’t let TVCs to be effective either. To the growing interests of FMCG giants in rural marketing, OOH offers excellent Return on Investment (ROI). Local Advertising OOH being a localized and cheap medium by nature also attracts a lot of local advertising. It turns out to be cost-effective and relatively cheaper medium than other broadcast based regional or national media which is affordable for local advertisers. Language problems can also be easily overcome by this localized medium.

COMPETITION ANALYSIS PRODUCT DIFFERENTIATION The OOH media can be categorized into two different domains: 1.

2.

BTL (Below the line): This means the media which interacts with the target audience on one to one basis. E.g. most of the times when you are travelling on the road some person come to you and give you pamphlets which gave you information about some product. ATL (Above the line): This is the OOH Media in the actual means. This is the media which we can see while on the move. This media interacts to a are number of audience at the same time. Avoidance to this media is very low as it takes a few second to pass on its massage to you.

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OOH Media Vehicles OOH Media broadly describes a variety of advertising vehicles, which reach consumers where they shop and travel.

Billboards •

Billboard formats can reach today's highly mobile consumer audience with highimpact, strategic positioning and market-to-market coverage. But that's not all. Billboards can deliver on clean eye-popping exposure 24/7, clutter free messages in a uniquely customized environment and desirable suburban coverage filling gaps left by other media. One of the new innovations in the area of billboards is the I-Board, which is built on Internet-technology, and can use any telecom backbone facility available to display a sequence of rapidly changing advertisements by a host of different advertisers. The offerings to the advertisers are changing and growing in number.

Street Furniture •

Street furniture advertising is can be very flexible and innovative. Many street furniture displays are located near shopping and commerce centers, these outdoor products provide a last reminder for consumers, just moments before a potential purchase decision is made.

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[Type text] It makes street furniture advertising ideal for brand recognition near a point-ofpurchase. It can also generate high awareness and can effectively target population segments or be used to reach a broad-based marketplace. Formats range from simple to interactive, locations vary from dense urban centers to suburban roadways.

Consumers’ on - the - go •

Transit products such as displays that reach people traveling - by plane, train or automobile, bus or cab, and on foot offer extremely targeted outdoor messaging solutions. They are visible at all hours, with particular strength during rush hour. Take your pick of the product pack - mix and match. Combining transit products can make a tremendous impact improving: reach, frequency and overall impact in one cohesive media package.

Transit •

It include advertising at airport and the medium available at the airport e.g. airport trolleys, quick cabs, etc. Buses and other vehicles which facilitate transportation.

Radio •

Radio is the most popular outdoor advertising media and is very much cost efficient as comparison to tv commercials. Today a large number of radio channels are available such as Radio city, Red FM, Big FM, Radio Mirchi etc.

Alternative Outdoor Media - The New Twist •

A whole new field of advertising formats has emerged in OOH media to impact consumers head-on during the course of daily activities. Originally developed to bridge gaps in urban centers, the alternative outdoor products have today grown into a sophisticated and viable business. The beauty of these ad forms is the targeting they provide, and their synergy within micro markets. Alternative outdoor media can cover a market far and wide or provide synergies with locations strategically placed around a town.

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EXISTENCE OF MONOPOLIES: Monopoly in the industry exists on the basis of product available with the companies. As it has been stated earlier that right of a particular site is issued by the local government of the city or the authority concerned with that site. India’s most expensive location at the Patel Bridge in Mumbai used to rake in Rs 22.5 Lakhs ($ 45000) per month at an average of Rs 7.5 lakhs for 10 days cycle only for morning site. In a recent auction the morning/evening combo property has a new owner with three year tenure. The bid amount of Rs 15.3 has conferred the ownership by Times OOH. The bids by other players were

Agencies Times OOH Jaya Advertising Clear Channel Advertising Pioneer Advertising Bright Advertising

Bid Rs 15.30 crore Rs 14.11 crore Rs 12.15 crore Rs 11.88 crore Rs 11.18 crore

Bidding by Key OOH Players for the Prestigious Patel Bridge OOH location Source: : Outdoor Advertising, Volume 2, Issue 1, Aug- Sep 06, The Long Run

Today the average rental of any OOH location has gone up by 25-40% depending upon the site and part of the year it is bought in. All good properties have registered a growth of 40- 100% in last couple of years. In the long run, these numbers are going to go up. •

The rights related to display on Airport trolleys and quick cabs at Airport of Metro cities such as Delhi, Chennai is available with the AD’s world New Delhi. The company also has rights to play the radio jingles on 139 (Railway Sampark Number).

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Bright Outdoor Media Pvt. Ltd. has its monopoly at Dadar FOB – Cental and full station sole right at Borivili, Kandivili, Goregaon, Dahisar, Mira Road.

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PATENTS HELD BY OTHER COMPANIES: In the out of advertising industry there is no such patent held by the companies. AD’s world is the only Group in this domain with An ISO 9001:2000 Certification. Times OOH has been honored with ‘AWARD FOR BRAND LEDERSHIP’ at Asia Brand Congress, 2008.

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TECHNOLOGICAL/PROCEDURAL ADVANCEMENTS: History of OOH Advertising is quit old in India as initial it war done through ‘Munadi’ where a person used to announce with the help of the ‘Nagara’. Then in many town and villages it is has been done through the mike and loudspekar. Most of us think that OOH is related to billboards only. Initially these billboards were prepared though the paints and emulsions. But it was the old story, now it has been replaced by the vinyl flex which are of three types: non- lit (without lights), back- lit (light behind the flex), and front- lit (light at front). These flexes are printed through the highly advanced printer price starting from Rs. 12,00,000/- to 60,00,000/- and even more. A few example of these printers are: HP Designjet 8000 Printer series

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[Type text] From small signs to large banner s, this 64inch printer is the perfect tool for any printt or sign shop. Experi ence a breakt hrough price/p erform ance combi nation with this lowsolvent largeformat device for a wide range of longlasting applica tions. HP Designjet 9000s Printer series w h i c

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[Type text] OOH has its reach not only through the Radio Stations but also through Railway Sampark no. 139. In this industry there a lot innovation has been done and still more to come •

BARRIERS TO ENTRY: The industry which counts for Rs. 10,000 million in future is still unorganized an there are various which may stop you to enter in to the market if any company is willing to enter into the market. Some of the barriers are: 1. Client – Supplier Relationship: In this industry Client – Supplier Relationship is the most important building block of the business. It very hard for new vender to get a client because already existing company are always focused on delighting the clients by providing one time delivery and best possible service. So if a new vender wants to enter into the market then it must give a competitive edge by providing service at lower or by giving better sites to advertize or both . 2. Government Regulations: The billboards and hoardings have been seen as a nuisance by the authorities. The Delhi government is considering banning the media, and in Bombay, the number of hoardings is strictly restricted. "India is much disorganized, and then there is both an interfering government and small time contractors. Both have destroyed the media to a large extent," says P.S. Pillai, media controller, TBWA Anthem. This has kept the growth of OOH low and media planners away from the medium. 3. Availability of Desirable Site: As it has been mentioned earlier that the rights regarding with the sites are provide by the authority concerned. In India companies use to spend a lot to get the rights to advertize through front and as well as through the back door of these authorities. 4. Facility Installation: A company willing to enter in to the OOH industry have to spend a huge amount on the facility as we have discussed it earlier that a flex printing printer starts from Rs. 12,00,000/- to Rs. 60,00,000/- and even more. Price of flex starts from Rs. 5/- to Rs25/- per square feet depending on the width. Today OOH is not restricted only to Billboards but it has reached to the LCD, LED, and Plasma screens which require a huge investment. Although this block of the industry can be outsourced but these will lead to loss of the low price competitiveness of the firm. 5. Climate: Climate is the big barrier of the industry as during the month of JuneAugust Climate play hard through heavy raining and heavy wind due to which company use to face huge losses because in this time flexes use to destroy due to the climate.

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[Type text] 6. Presence of big and organized players in the industry: Presence of big and organized players in the industry is a big barrier as the companies who are keen to advertise normally advertise with the companies who are more organized and hve desirable site for the advertisements. COMPARATIVE VALUATION: o Competitors with Perfect Substitution: The competitors who offer same product are those companies who provide the same type of product which The Zebras is providing and some of these companies are: Pioneer publicity (Delhi), VSR (Mumbai), Times OOH, (Mumbai), Clear Channel(Mumbai) Selvel (Mumbai) nd many more.

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Competitors with Imperfect Substitution: – Goods serve same basic purpose are:

Television: • • • •

Current size: Rs 14,800 crore Projected size by 2010: Rs 42,700 crore CAGR: 24% Major Companies: Star, Zee, Network 18 etc.

Filmed entertainment: • • • •

Current size: Rs 6,800 crore Projected size by 2010: Rs 15,300 crore CAGR: 18% Major Companies: Red Chillies Pvt. Ltd., Yash Raj Pvt. Ltd.

Print media: • • • •

Current size: Rs 10,900 crore Projected size by 2010: Rs 19,500 crore CAGR: 12% Major Companies: Danik Jagran, India Today magazines etc.

Radio: • • • •

Current size: Rs 300 crore Projected size by 2010: Rs 1,200 crore CAGR: 32% Major Companies: Big FM, Radio City, etc. 28

[Type text] Music: • • • • •

Current size: Rs 700 crore Projected size by 2010: Rs 740 crore CAGR: 1% Major Companies: HMV, Tips, etc.

Live entertainment: • • • •

Current size: Rs 800 crore Projected size by 2010: Rs 1800 crore CAGR: 18% Major Companies: various events organized

Internet advertising: • • • •

Current size: Rs 100 crore Projected size by 2010: Rs 750 crore CAGR: 50% Major Companies: Google, Yahoo etc.

Scope of Business: Today, the Out-of-Home (OOH) market is about Rs.10, 000 million that accounts for approximately 6.0% of the total ad spends in India. As shown below, the OOH ad spends in India compare favorably to the worldwide ad spend on OOH. In year 2010 the Out-Of-Home is expected to grow to Rs. 17,500 million with a compounded average growth rate of 14%. •

4 P’s:

•

Product: The Zebras serve a wide range of services under its three different verticals which has been described earlier i.e. Outdoor advertising, Retail and experimental advertising (BTL). Outdoor is the major business activity of the company while Retail and Experimental marketing are the supportive function to outdoor advertising. In outdoor The Zebras has wide product portfolio which includes: 1. 2. 3. 4. 5.

BQS(Bus Q Stand) Billboard Pole Kiosk Metro Pillar and stations Utilities

29

[Type text] The Zebras also offer two different media to advertise other then these obvious media which are also provide by the other players in the industry. Thus give an competitive advantage over its competitors. These media are: •

Railway Sampark Number (139): There are almost a million advertising messages compete for attention and traditional media vehicles are not enough to deliver due to the growing fragmentation. It’s becoming increasingly difficult to monitor and track consumer behavior, preferences, media habits or purchasing patterns. A clear need to explore innovative mediums to connect with the consumer at the right place, at the right time, every time. As in the following graph it is clearly visible that to which extant people avoid advertisements.

139 is a number that reaches out to 6.3 lakh villages 850 towns and cities. The opportunity associated with 139 is high as India is country having population more than 1.13 billion and currently Telecom penetration is going deeper and deeper with a Growth of 80% where Telephone penetration is of 334 million and Mobile penetration is of 275 million. People use to call 139 for following purposes:

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Almost about 17 Million Passenger travel everyday where 1 Million PNR’s issued everyday with 9702 passenger trains and about 6.37 billion passengers carried every year around 7153 stations. 139 is Launched by IRCTC and controlled by IVR and Call Center operating out of 4 cities for Pan India Coverage. 139 works by utilizing prospects free time for brand communication by broadcasig 15 secs commercial when the customer query is being retrieved and longer the customer stays on 139, the more the commercial he/she listens too but only 15 secs of commercial time is available in order to avoid irritation Eco-friendly electric carts and baggage trolleys at international airports: There is an exclusive arrangement with international airports to provide a free service to ferry passengers between domestic terminals through battery operated carts (provision of an eco friendly convenience) and airport baggage trolleys. The entire exterior of the cart available for display of messages.The rear and the two sides are back-lit creating a higher impact with reflectic material for logo on the front of the cart. Over 35 sq. feet of space available to display your message This medium of Airport Baggage Trolleys gives the feeling of ownership of a particular city and the displays on them could change from time to time to suit the communication need month wise. The front basket of the Trolley carry Company’s Logo & the messege below the basket on the front and back. Needless to add, these 31

[Type text] trolley's move at least 700 times in and out of the airport in a month to give maximum visibility and top of mind recall. Brand Name: The brand name of the company is inspired from the animal Zebra because of its two qualities: 1. Zebra is a animal because of its physical appearance which is different from other animals it looks distinct even in the crowd. 2. Zebra is animal of calm attitude.

Place Market Location: The Zebras is located at 10 different places in India.

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[Type text] •

Head Office, New Delhi M/S ADS Advertising Pvt.Ltd, A-199, Phase-1,Okhla Industrial Area, New Delhi-20 011-40578333,011-40578334

•

New Delhi The Zebras, 201/208 padam chambers, 28/3925 padam singh road, karol Bagh, New Delhi-05 Mumbai M/s ADS Advertising Pvt. Ltd 401-403, D- Wings,Twin Arcade,Military Road, Marol, Andheri East,Mumbai-400059 022-40387373 Bangalore M/s ADS Advertising Pvt. Ltd, 17,JMJ Appartments, 275, 100 feet Road, Indira Nagar,Bangalore-560038 080-42849000 Chandigarh M/s ADS Advertising Pvt.Ltd, #6+, Sector--18A, Chandigarh Chennai M/S ADS Advertising Pvt. Ltd, 6/32-D, Annand Shree Appartments, Hindi Prachar Sabha Street, T. Nagar, Chennai-600017 044-42126119 Cochin M/S ADS Advertising Pvt. Ltd, 3rd floor, Mayor Business Centre, Pullepady Jn. Chittor Road, Earnkulam(Cochin) 0484-4031382,Anil TK-09895131322 Pune M/s ADS Advertising Pvt. Ltd, C/O-Yaswant Kadam, Flat No-5,1st Floor, Prathmesh Heights, Pawale Chowk, Near Kumbhar Wada, Kasaba Peth, PUNE-411038 9225505098, Amit Bhide Kolkata M/s ADS Advertising Pvt. Ltd, Block-A-1,Flat-2G, Vinayak Garden,41,Shimla Road, Raja Dinendra Street, Maniktala, Kolkata-700006 033-23606928,32546774

•

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•

•

•

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[Type text] •

Hyderabad M/s ADS Advertising Pvt.Ltd, Flat No-304A, 4th Floor, Laxmi Nilayam Appartment, Beside YMCA Ground, Narayanaguda, Hyderabad-500029 040-66624656.

The Zebras also has 3 International offices • •

Dubai & Sharjah at the UAE KL – Malaysia

•

State-of-the-art retail furniture factory at Delhi.

Distribution Methods: For distribution company has partnership with various associates throughout the country. S. No.

Location

Number of Associates

Delhi NCR UP Rajasthan Haryana Punjab Uttaranchal HP J&K

73 19 7 6 4 7 4 2 2

Maharashtra Gujarat MP Chhattisgarh

51 13 8 4

WB Bihar Orissa

27 7 3

North 1 2 3 4 5 6 7 8 9 West 1 2 3 4 East 1 2 3

34

[Type text] 4 5

Jharkhand Assam

3 1

Karnataka AP TN Kerala

47 13 13 16

South 1 2 3 4 Total

330

•

Promotion

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Sales promotion: The main tool for the sales promotion is direct marketing where sales team of thee company make contact with the prospect client company and shoe how the company can help then in doing their business better. They promote themselves by client satisfaction and on time delivery of the services. They also use to gift the client on most of the occasions to give feeling of personal touch to the person who takes care of the advertisement in the company.

• •

Sales Force: The Company is powered by 200 strong manpower team across India and Over 200 on contract across India who networked 24 hrs. Follow up and Services After sales: The Zebras use to change flex after every 2 months for free of cost and also replace flexes which got damage anyhow.

Building long-term relationships with customers allows the service provider to leverage or make additional use of the initial investment of time and money spent selling to that customer. In other words, one doesn't have to spend time prospecting, qualifying and conducting other pre-sales activities for that particular customer again. There is no better advertising than a satisfied customer. Good follow-up and service after the sale will: • • •

establish and maintain good reputation of the company, build goodwill between customers and business, and generate repeat and referral business

•

Price The pricing of the company is divided in to three different categories: 1. Printing Charges: Printing charges are different for different type of flex. 35

[Type text] Flex of front – lit (light is in front of the flex) and non – lit (no light) sits are printed at a price of Rs. 12/sq. ft. width of 12 ounce. But these prices can be negotiated as the volume of the advertisement increases. Flex of back – lit (light is at the back of the flex) sits are printed at a price of Rs. 35/sq. ft. with a width of 35 ounce. But these prices can be negotiated depending upon the volume of advertisement. 2. Installation Charges: Installation charges vary from Rs.5/sq. ft. to Rs. 10/sq. ft.. these charges are also negotiable subjected to the volume of the advertisement contract given by the client company. 3. Display Charges: Display charges vary from sites to sites given below: Sr. no. 1 2 3 4 5 6 7 8 9 10

Type of site

Charges/month(in Rs.)

Airport trolleys Airport electric carts Bill Boards BQS (Bus Q Stand) Buses Metro stations Metro pillars Pole kiosk Utilities (e.g. public toilets) 139(Indian Railway)

2500 – 3000 5000 – 7000 2 lk onwards 1.5 lk – 2.5 lk 5000 – 7000 50,000 onwards 3000 – 5000 1000 – 2000 1 lk onwards 8 lk – 12 lk*

* depending upon the time demanded by the client company

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[Type text] MACRO VS MICRO ECONOMIC ANALYSIS Across the world, people, irrespective of their religion and nationality, are all set to celebrate the advent of New Year 2008 with much verve and enthusiasm. All hope for a better future and prevalence of happiness and prosperity in the global family. Economy Watch wishes you all the best for the forthcoming year. On this occasion, we join the global festivity by presenting to our global audience a short analysis and set of predictions on World Economy 2008. The world economy is predicted to continue growing in 2008. However, the rate of growth is expected to be lower than the current year. The projected world growth rate for the year 2008 is around 4.8%, whereas the ongoing growth rate for 2007 year end is 5.2%. Central Banks of different countries are expected to stay away from monetary restrictions in the face of inflations. This is expected to contribute significantly to the growth of the world economy in 2008. Also high investment is expected to continue in the year ahead. The most interesting aspect of economic growth in 2008 is the fact that the world economy in the said year is expected to be driven by emerging economies like China and India, rather than by economies of USA, European countries and Japan. Global Economy: The slowdown in the world economy in recent times has been attributed to the slow growth of the US economy. Private consumption in the USA has lacked momentum. The Real Estate sector worldwide has faced severe crisis. In the global economy, volatile oil prices, fluctuating financial markets and continued inflation are forecasted to be the major threats to economic growth in 2008. However, the momentum of growth in the emerging economies is an encouraging sign for the world economy. According to IMF Chief Economist Simon Johnson, China and India are expected to make the largest country level contributions to the growth of the world economy. Higher corporate profits, high employment and growing international trade are positive traits prevailing in the world economy which can be expected to continue through 2008. The performance of the developing countries will remain a key factor in the world economy in 2008. While Emerging Asia (mostly East and South East) is expected to grow at 8.3% in 2008, Africa and the Middle East are expected to grow at 6.5% and 5.9% respectively. Indian Economy: Indian economy has been witnessing a phenomenal growth since the last decade. The country is still holding its ground in the midst of the current global financial crisis. Quarterly gross domestic product (GDP) at factor cost at constant (1999-2000) prices for Q3 of 2008-09 is estimated at US$ 171.24 billion, as against US$ 162.57 billion in Q3 of 200708, showing a growth rate of 5.3 per cent over the corresponding quarter of previous year. Despite the global slowdown, the Indian economy is estimated to have grown at close to 6.7 per cent in 2008-09. The Confederation of Indian Industry (CII) pegs the GDP growth at 6.1 per cent in 2009-10. This scenario factors in sectoral growth rates of 2.8-3 per cent, 5-5.5 per cent and 7.5-8 per cent, respectively, for agriculture, industry and services. 37

[Type text] A number of leading indicators, such as increase in hiring, freight movement at major ports and encouraging data from a number of key manufacturing segments, such as steel and cement, indicate that the downturn has bottomed out and highlight the Indian economy's resilience. Recent indicators from leading indices, such as Nomura's Composite Leading Index (CLI), UBS' Lead Economic Indicator (LEI) and ABN Amro' Purchasing Managers' Index (PMI), too bear out this optimism in the Indian economy. Meanwhile, foreign institutional investors (FIIs) turned net buyers in the Indian market in 2009. Direct investment inflows also remain strong, prompting official expectations that foreign direct investment (FDI) inflows in 2009 would better the realised inflows of US$ 33 billion in 2008 and touch US$ 40 billion. According to the Asian Development Bank's (ADB) 'Asia Capital Markets Monitor' report, the Indian equity market has emerged as the third biggest after China and Hong Kong in the emerging Asian region, with a market capitalisation of nearly US$ 600 billion. The Economic scenario Investor sentiment in India has improved significantly in the first quarter of 2009, according to a survey conducted by Dutch financial services firm ING. With foreign assets growing by more than 100 per cent annually in recent years, Indian multinational enterprises (MNEs) have become significant investors in global business markets and India is rapidly staking a claim to being a true global business power, according to a survey by the Indian School of Business and the Vale Columbia Center on Sustainable International Investment. Despite the global financial crisis, inflow of foreign capital to the country has increased sharply in 2008-09. •

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India's foreign exchange reserves increased by US$ 4.2 billion to US$ 255.9 billion for the week ended May 8, 2009, according to figures released in the Reserve Bank of India's (RBI) weekly statistical supplement. Net inflows through various non-resident Indians (NRIs) deposits surged from US$ 179 million in 2007-08 to US$ 3,999 million in 2008-09, according to the RBI. FDI inflows during April 2008-January 2009 stood at US$ 23.9 billion compared with US$ 14.4 billion in the corresponding period of the previous fiscal, witnessing a growth of 65 per cent, according to the Department of Industrial Policy & Promotion. FIIs have made investments of around US$ 2 billion as of May 14, 2009, including a record single day net purchase of US$ 824.72 million on May 13, 2009, according to the Securities and Exchange Board of India (SEBI). Inflation for the week ended March 7, 2009, fell to an all time low of 0.44 per cent. The sharp fall in inflation was due to several factors including easing prices of food articles and fuel items along with a high base effect. Currently, the inflation rate stood at 0.7 per cent for the week ended April 25, 2009. The year-on-year (y-o-y) aggregate bank deposits stood at 21.2 per cent as on January 2, 2009. Bank credit touched 24 per cent (y-o-y) on January 2, 2009, as against 21.4 per cent on January 4, 2008. 38

[Type text] •

•

Since October 2008, the RBI has cut the cash reserve ratio (CRR) and the repo rate by 400 basis points each. Also, the reverse repo rate has been lowered by 200 basis points. Till April 7, 2009, the CRR had further been lowered by 50 basis points, while the repo and reverse repo rates have been lowered by 150 basis points each. Exports from special economic zones (SEZs) rose 33 per cent during the year to endMarch 2009. Exports from such tax-free manufacturing hubs totalled US$ 18.16 billion last year up from US$ 13.60 billion a year before.

The rural India growth story The Indian growth story is spreading to the rural and semi-urban areas as well. The next phase of growth is expected to come from rural markets with rural India accounting for almost half of the domestic retail market, valued over US$ 300 billion. Rural India is set to witness an economic boom, with per capita income having grown by 50 per cent over the last 10 years, mainly on account of rising commodity prices and improved productivity. Development of basic infrastructure, generation of employment guarantee schemes, better information services and access to funding are also bringing prosperity to rural households. Per Capita Income The per capita income in real terms (at 1999-2000 prices) during 2008-09 is likely to attain a level of US$ 528 as compared to the Quick Estimate for the year 2007-08 of US$ 500. The growth rate in per capita income is estimated at 5.6 per cent during 2008-09, as against the previous year's estimate of 7.6 per cent. Advantage India •

•

• • •

According to the World Fact Book, India is among the world's youngest nations with a median age of 25 years as compared to 43 in Japan and 36 in USA. Of the BRIC— Brazil, Russia, India and China—countries, India is projected to stay the youngest with its working-age population estimated to rise to 70 per cent of the total demographic by 2030, the largest in the world. India will see 70 million new entrants to its workforce over the next 5 years. India has the second largest area of arable land in the world, making it one of the world's largest food producers—over 200 million tonnes of foodgrains are produced annually. India is the world's largest producer of milk (100 million tonnes per annum), sugarcane (315 million tonnes per annum) and tea (930 million kg per annum) and the second largest producer of rice, fruit and vegetables. With the largest number of listed companies - 10,000 across 23 stock exchanges, India has the third largest investor base in the world. India's healthy banking system with a network of 70,000 branches is among the largest in the world. According to a study by the McKinsey Global Institute (MGI), India's consumer market will be the world's fifth largest (from twelfth) in the world by 2025 and India's middle class will swell by over ten times from its current size of 50 million to 583 million people by 2025. 39

[Type text] Growth potential •

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•

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Special Economic Zones (SEZs) are set to see major investments after the straightening out of certain regulatory tangles. The commerce department expects about 120 SEZs to be operational by 2009-end, up from existing 87. According to the CII Ernst & Young report titled 'India 2012: Telecom growth continues,' India's telecom services industry revenues are projected to reach US$ 54 billion in 2012, up from US$ 31 billion in 2008. The Indian telecom industry registered the highest number of subscriber additions at 15.84 million in March 2009, setting a global record. A McKinsey report, 'The rise of Indian Consumer Market', estimates that the Indian consumer market is likely to grow four times by 2025, which is currently valued at US$ 511 billion. The volume of mergers and acquisitions (M&As) and group restructuring deals in India witnessed a sharp nine times jump at US$ 2.27 billion during March 2009 against the volume of deals in February 2009, according to a Grant Thornton report. India ranks among the top 12 producers of manufacturing value added (MVA)— witnessing an increase of 12.3 per cent in its MVA output in 2005-07 as against 6.9 per cent in 2000-05—according to the United Nations Industrial Development Organisation (UNIDO). In textiles, the country is ranked fourth, while in electrical machinery and apparatus it is ranked fifth. It holds sixth position in the basic metals category; seventh in chemicals and chemical products; 10th in leather, leather products, refined petroleum products and nuclear fuel; twelfth in machinery and equipment and motor vehicles. In a development slated to enhance India's macroeconomic health as well as energy security, Reliance Industries (RIL) has commenced natural gas production from its D6 block in the Krishna-Godavari (KG) basin. India has a market value of US$ 270.98 billion in low-carbon and environmental goods & services (LCEGS). With a 6 per cent share of the US$ 4.32 trillion global market, the country is tied with Japan at the third position.

Exchange rate 1 USD = 49.58 INR (as 1 USD = 49.82 INR (as on April 2009)

on

February

used: 2009)

Advertising Sector: According to the latest Pitch-Madison Advertising Outlook report, the electronics media industry will grow at 22 per cent in 2008, which will be a 3 percentage points more than the growth it achieved in 2007. Advertising Market Stats/Projections: • • • •

The overall advertising and media industry is expected to close at Rs 21,314 crore in revenues in 2008, riding a 20 per cent growth rate Television advertising market is projected at Rs 8,674 crore in 2008 The print industry stands at nearly Rs 10,000 crore. The cinema medium will corner around 0.7 per cent of the total advertising budget in 2008. 40

[Type text] • •

Outdoor media industry will grow at 14 per cent to touch Rs 1,454 crore, Radio is likely to record a 40 per cent growth in 2008 to touch Rs 672 crore [via BS]

•

And the most awaited: Internet advertising will constitute only 1.7 per cent of the overall advertising spends in 2008, up from the current 1.4 per cent.

The turmoil in global financial markets and a slowdown in demand will soon have a major impact on the Rs 18,000 crore Indian advertising industry, predict ad gurus. In fact, the global meltdown has already affected the financial services advertising sector in India as many brokerage firms and financial institutions have slashed their ad spend to handle the downturn. On the impact of global economic slowdown in India, Colvyn J Harris, chief executive officer of JWT India said, “Yes, it will have an impact on the Indian ad industry -especially in the financial services advertising sector. I think automotives, real estates and other sectors which rely on funding will be affected. Interest rates will go up and this will affect consumption levels too. In essence, consumer sentiment is no longer as bullish as it was.” Echoing similar sentiments Pratap Bose, chief operating officer (COO) of the Mudra Group said the global meltdown would have a negative impact on the Indian financial services sector to start with. “In the short term, I see advertising for financial services on the slow burner. I would expect things to stabilise mid next year,” he added. According to Arvind Sharma, chairman and managing director, Leo Burnett India many financial brokerage firms that had started an advertising blitz are now cutting down their ad spends. “I am already seeing the impact of the global meltdown in the ad industry. With rising input costs other sectors such as FMCG and consumers durables will be affected. After financial services ads, travel & tourism advertising will be affected,” he said. Sam Balsara, chairman of Madison World observed that the Indian financial sector would be definitely affected by the global meltdown. “Now, financial institutions will be far more cautions in their approach and would come up with less adventurous schemes relying on aggressive promotions. On the other hand, this would be partly off set with corporate image building campaigns,” he added. In sharp contrast to above views, Bharat Patel, chairman of Procter & Gamble India said Indian consumers would not be directly affected by the recent global meltdown. “I do not think India in terms of its consumption, sales and advertising will be affected by this slow down,” he said. Sharing similar views, Ashish Bhasin, chairman India & CEO South East Asia, Aegis Media Asia Pacific said, “So far it has not impacted the Indian ad industry. But if the slowdown does continue it will have... 41

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OOH Industry: Outdoor advertising sector booming, attracts PE funding Mumbai: The just concluded two-day Outdoor Advertising Convention 2008 (OAC) in Mumbai had three important conclusions: the outdoor media is growing at a fast pace in India; there is a need to adopt to new and emerging changes due to regulations at the Corporation and Municipal levels and thirdly, the creative spark is very much alive and kicking. While size matters in the outdoor advertising industry, leaders in the filed were not sure of the size of this media which is slowly moving from the unorganized sector to the more organised format. While some pegged the size at a conservative Rs 1500 crore, the CEO of Laqshya, Alok Jalan, said it could be much more that probably Rs. 2500 crore and growing exponentially at 25 percent. Little wonder that the outdoor media has started becoming the darling of private equity funding. Sam Balsara of Madison also felt that the outdoor media is growing and probably the estimates put out by Pricewater Cooper may be very conservative. The outdoor media now has an impressive share of the pie of the overall media cake. While the print and television media still dominate, it is the outdoor that is clocking impressive growth year on year, he said. But Noomi Mehta of Selvel Publicity, Kolkata, felt that the valuation and funding numbers just do not add up and wondered if the system needed a correction. Despite all the pocket-warming stories of private equity funding, a word of caution was sounded by R A Rajeev, the Additional Commissioner of Greater Mumbai: Regulations in the outdoor advertising sector is a reality and will only get tougher because nobody has the right to tinker or tamper with the city’s aesthetic beauty. He said that the Mumbai laws on outdoor advertising are aimed to keep the city skyline clutter free, reduce visual pollution and banish illegal hoardings. Rajeev also said that the focus in Mumbai will be on street furniture like bus shelters, public toilets, flower pots etc. ``All this will be of international standards and executed by companies that have global experience,’’ he said. Rajeev’s views were echoed by major international player like Stroer. Indrajit Sen, country head of Stroer, said that the future is in street furniture, not billboards. To an extent, a major regional player, K D Maheshwari, CEO of N S Publicity in Rajasthan, agreed on this trend. He said in Rajasthan, the emphasis is not on billboard proliferation but city beautification. ``Today, Jaipur stands out on this count and is different from other cities. We have voluntarily reduced the number of billboards,’’ he said. For his innovation and the ability to break free from the clutter, he won a Gold for the best media owner of the year for the second year in succession. 42

[Type text] But major outdoor media owners were unanimous that billboards will continue to dominate the skyscapes in one form or the other. They pointed out that various studies have shown that people spend more time out of home than in front of their TV sets or newspaper. Hence, they view outdoor advertising more. Piyush Pandey, the iconic advertising guru and executive chairman and national creative director of O&M agreed with this view. “Billboard advertisements would never die. In a country of a billion people and more, all media will live, if creatively used,” he said. He also said that all creative outdoor advertisements are not measurable on the return on investment scale. ``Billboards don’t need to be all over the place an effective billboard at the right location is all that’s required; the billboard will then speak for itself,’’ he said. This was amply illustrated by The Economist which uses outdoor media extensively. In her presentation, Jacqui Kean, Global Brand Communications Director at The Economist said “The brand budget is deployed to deliver our global brand objectives. It is about increasing awareness, changing perceptions and building consideration to purchase over the long-term.” The convention ended with the award nite where O&M emerged the clear winner. O&M bagged 20 metals, including two Golds and nine silvers and Merit Awards. Saatchi & Saatchi came a distant second with two Golds, one Silver and two Merit Awards. The event was sponsored by Times OOH, O&M, Prakash Arts, Big Street and Pioneer Publicity The Zebras: All though it is tough time but here it high potential for the company. As Indian OOH industry is growing with a CAGR OF 14% here are some good opportunities for the company such as In Dec Year 2009 BID for DMRC sites has been announced. This is a good opportunity for the company as 2010 is the year for common wealth game. As India is 2nd largest growing economy of the world and various MNC are wishing to be the part of it. Thus it is good opportunity for the company as advertising is the essential part of marketing function of any company. Porter’s Analysis Of OOH Industry of India : 1. Bargain Power of supplier: Supplier has bargain power because cost of printing is same around the industry as they are supported by their respective Union. The charges are higher for higher quality of flex printing. Some time the consignment is delayed because of the consignment given by the bigger players in the industry. 2. Bargain Power of customer: Bargain power of the customer depends only upon the size volume and time period of the campaign. 3. Barriers to Entry: • Client – Supplier Relationship: In this industry Client – Supplier Relationship is the most important building block of the business. It very hard for new vender to get a client because already existing company are always focused on delighting the clients 43

[Type text]

•

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by providing one time delivery and best possible service. So if a new vender wants to enter into the market then it must give a competitive edge by providing service at lower or by giving better sites to advertize or both o . Government Regulations: The billboards and hoardings have been seen as a nuisance by the authorities. The Delhi government is considering banning the media, and in Bombay, the number of hoardings is strictly restricted. o "India is much disorganized, and then there is both an interfering government and small time contractors. Both have destroyed the media to a large extent," says P.S. Pillai, media controller, TBWA Anthem. o This has kept the growth of OOH low and media planners away from the medium. Availability of Desirable Site: As it has been mentioned earlier that the rights regarding with the sites are provide by the authority concerned. In India companies use to spend a lot to get the rights to advertize through front and as well as through the back door of these authorities.

•

Facility Installation: A company willing to enter in to the OOH industry have to spend a huge amount on the facility as we have discussed it earlier that a flex printing printer starts from Rs. 12,00,000/- to Rs. 60,00,000/- and even more. Price of flex starts from Rs. 5/- to Rs25/- per square feet depending on the width. Today OOH is not restricted only to Billboards but it has reached to the LCD, LED, and Plasma screens which require a huge investment. Although this block of the industry can be outsourced but these will lead to loss of the low price competitiveness of the firm.

•

Climate: Climate is the big barrier of the industry as during the month of JuneAugust Climate play hard through heavy raining and heavy wind due to which company use to face huge losses because in this time flexes use to destroy due to the climate.

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Presence of big and organized players in the industry: Presence of big and organized players in the industry is a big barrier as the companies who are keen to advertise normally advertise with the companies who are more organized and hve desirable site for the advertisements.

4. Threat of Substitute: As mentioned earlier a large number of substitutes are available for advertisement which fulfills the same need such as TV, Event, Radio, Print, Music and Internet. Thus we can say degree of threat of substitution is much higher in the industry. 5. Degree of Revelry: In OOH industry there is Neck – cut competition among the companies operating in the industry. As a large number of unorganized players and organized players in the industry and industry is also struggling to be recognized as an industry in India.

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SWOT analysis: Strength

Weakness

Wide product portfolio inclusive of They outsource their printing requirement traditional OOH Media vehicles and Airport which do not allow them to get a competitive Trolleys and 139(Railway Jansmpark No.) advantage over the competitors on price. Only ISO certified company in the domain The office infrastructure of the company is and retain a record of Making Largest not up to the extent as per the present football for a campaign (refer annexure 5) scenario. PAN India Reach through 10 offices in The company does not own any website India and global reach through 3 offices which is very much required in the present. around the world. 200 manpower that are highly skilled in their job. More focus on Building Client – Supplier Relationship Maintained a record of timely delivery of service to the client. Opportunity In Dec Year 2009 BID for DMRC sites has been announced. This is a good opportunity for the company as 2010 is the year for common wealth game.

Threat

Advertisement companies who are involved in TV commercials have entered in to the OOH industry as well. g Indian Government has not recognized it as nd As India is 2 largest growing economy of an industry yet. the world and various MNC are wishing to be the part of it. Thus it is good opportunity Presence of large number of unorganized for the company as advertising is the players in the industry who have much essential part of marketing function of any deeper reach as compared o the company. company.

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BCG Analysis of product portfolio of the company:

Airport Trolleys

139(Railway Jansampark No.)

1. 2. 3. 4.

BQS(Bus Q Stand) Billboard Pole Kiosk No product of the company is listed in Metro Pillar and this category. stations 5. Utilities

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Financial Statement Analysis Significant Accounting Policies i. Basis of Accounting These financial statements are prepared under the historical cost convention to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards notified under section 211(3C) of the Companies Act, 1956 (“The Act”) and the relevant provisions of the Act. ii. Use of Estimates The preparation of financial statements in accordance with the generally accepted accounting principles requires the Management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of financial statements and the reported amount of expenses of the year. Actual results could differ from these estimates. Any revision to such accounting estimates is recognized in the accounting period in which such revision takes place. iii. Fixed assets and Depreciation • Tangible assets Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation on tangible fixed assets is provided on written down value method at the rates and in the manner specified in Schedule XIV to the Act. The cost of leasehold improvements are amortised over the primary period of lease of the property. Leasehold land is not amortised. Tangible assets individually costing less than Rs. 5,000 are depreciated @ 100% in the year of purchase. • Intangible assets Migration fees paid by the Company for existing licenses upon migration to Phase II of the Licensing policy and One Time Entry Fees paid by the Company for acquiring new licenses, has been capitalised as an asset. The migration fee capitalised is being amortised, with effect from April 1, 2005, equally over a period of ten years, being the period of the license. One time entry fee will be amortised over a period of ten years, being the period of license, from the date of operationalisation of the station. Expenditure on acquired Computer Software (SAP) are recognised as “Intangible Asset’’ and amortised over a period of twenty five months. iv. Borrowing Cost Borrowing cost attributable to the acquisition or construction of a qualifying asset is capitalised as part of cost of the asset. Other borrowing costs are recognised as an expense in the period in which they are incurred. v. Investments Long term investments are stated at cost. Provision is made for permanent diminution in value, if any. Current investments are stated at lower of cost and market value / repurchase price. 47

[Type text] vi. Taxation Provision for income tax has been made at the current tax rates based on assessable income or on the basis of Section 115JB of the Income Tax Act, 1961 (Minimum Alternate Tax) whichever is higher. Provision for Fringe Benefit Tax has been made in accordance with the Income Tax Laws prevailing for the relevant assessment years. vii. Deferred taxation Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one ormore subsequent periods. viii. Revenue Recognition Revenue from radio broadcasting is recognized on an accrual basis on the airing of client’s commercials net of service tax.

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[Type text] 1.Liquidity Ratios: a.Current ratio b.Quick ratio c.Cash ratio a. Current Ratio = Current Assets Current Liabilities 2008

2007

2006

801414147 461654042

585583381 311747860

392462108 356013185

= 1.735

= 1.878

= 1.102

b. Quick Ratio = Liquid Assets Current Liabilities 2007

200

2006

8

c. Cash Ratio

Analysis On The Basis Of Liquidity Ratios:• Liquidity is the ability of the firm to meet its current obligations as they fall due • If the current ratio is less than 2:1,it indicates lack of liquidity and shortage of working capital • The higher the ratio the better it is because the firm will be able to pay its current liabilities more easily.. • Hence, the year 2007 is more beneficial to the respected firm as its liquid ratios are higher as compared to 2008 and 2006…. 58

[Type text] 2. • • • •

Solvency or Leverage Ratio: Debt Equity Ratio Debt to total capital Ratio Proprietory Ratio Fixed Assets to Long term Fund Ratio Debt equity Ratio= Total Debts Shareholder’s fund 2008

2007

2006

1932500000 3105771394 =

1068011766 2937286879=

350000000 2637409743 =

0.622

0.363

0.132

Debt to total capital Ratio= Total Debts Total assets 2008

2007

2006

1932500000 1068011766

350000000

4147856879 7857152729 = 5831883182 = =

0.465

0.135

0.060

Proprietary Ratio = Shareholder’s Fund Total Assets

2008

2007

2006

3105771394

2937286879

2637409743

4147856879 =

7857152729 =

5831883182= 59

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0.748

0.373

0.453

Fixed Assets to Long term Fund Ratio= Fixed assets X 100 Net Worth 2008

2007

2881806768

2861931073 X 100

X100

2937286879

2637409743

97.43 %

89.77 %

/

2006 / 2367632311 X 100

/

3105771394 =

92.78 %

Analysis On The Basis Of Solvency Ratios:• Solvency ratios are calculated to assess the liability of the firm to meet its long term liabilities as and when they become due. • Generally,debt equity ratio of 2:1 is considered safe. • Debt-Equity Ratio- The lower the debt equity ratio,the better it is for long term lenders because they are more secure in this case. • Hence,2006 is the beneficial year for the firm as it has the lowest debt equity ratio. • Proprietary ratio – A higher proprietary ratio is treated as indicator of sound financial position because a large proportion of assets is provided by equity and the firm is less dependent on external sources of finance. • Hence,2008 is the beneficial year for the firm as it has the highest proprietary ratio. • Debt to total Capital Ratio- The lower the Debt to total Capital ratio,the better it is for long term lenders because they are more secure in this case. • Hence,2006 is the beneficial year for the firm as it has the lowest debt to total Capital ratio • Fixed assets to Long term fund ratio – A higher Fixed assets to Long term fund ratio is treated as indicator of sound financial position because a large proportion of assets is provided by equity and the firm is less dependent on external sources of finance • Hence,2007 is the beneficial year for the firm as it has the highest Fixed assets to Long term fund ratio. 3.Profitability Ratios: •

Net Profit Ratio 60

[Type text] • •

Expenses Ratio Return On Share Capital Employed

Net Profit Ratio = Earning After Tax X 100 Net Sales 2008

2007

2006

161933114X100 290789381X100

294692308X100

2252163574 =

1672035447 =

1174144543

7.1%

17.3%

25.09%

Expenses Ratio=Administrative Expenses ratio= Administrative Expenses X 100 Net Sales 2008

2007

161933114X100 290789381X100

2006 294692308X100

476560600 =

475845750 =

475636650

33.9%

61.11%

61.95%

Analysis On The Basis Of Profitability Ratios:• Net profit Ratio- An increase in the ratio over the previous year shows improvement in the overall efficiency and profitability of business. • There is a decrease in the Net profit Ratio in 2007 over 2006 and also in 2008 over 2007.This shows Loss to the firm. • Administrative Expenses Ratio- An decrease in the ratio over the previous year shows improvement in the overall efficiency and profitability of business • There is a increase in the Net profit Ratio in 2007 over 2006 and also in 2008 over 2007. This shows Loss to the firm. • Return On Share Capital Employed Ratio- The higher the Ratio,it ia beneficial to the firm because it is a measure of the earning power of the business. • 2006 shows the best ratio in this regard it is considered to be the best profitable year as compared to the other two years. 4.Turnover Ratio: Debtor Turnover Ratio = Total Sales 61

[Type text] Trade debtors 2008

2007

2006

225216357 4

1672035447

1174144543

480077801 = 352688071 =

680524300 =

3.30

3.48

3.32

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PROJECT DESCRIPTION

The Zebras is an outdoor advertising agency highly depending on its sales and marketing department. The field work based project which was assigned during the internship was to understand the sales and marketing process of the company. The methodology adopted for the project was interview where I use to ask certain questions from the person in the prospect client company and then send the proposal to these companies regarding outdoor advertisement company on behalf of The Zebras. The OOH industry depends on creating and marinating the clients by satisfying their needs in the best possible manner. The goals for the project were: 1. To understand the business and competitive environment in which the organization is operating. 2. To analyze and understand the financial position of the organization viz – a – viz competitors. 3. To study Sales and Marketing function of an Out Of Home Advertising Agency. 4. To get a feel of corporate life and its functioning & understand various interaction styles. During the study it was found that the company is highly oriented towards sales. The company uses direct marketing as a tool for selling its services to the client company. Direct marketing is a sub-discipline and type of marketing. There are two main definitional characteristics which distinguish it from other types of marketing. The first is that it attempts to send its messages directly to consumers, without the use of intervening media. This involves commercial communication (direct mail, e-mail, and telemarketing) with consumers or businesses, usually unsolicited. The second characteristic is that it is focused on driving a specific "call-to-action." This aspect of direct marketing involves an emphasis on trackable, measurable positive (but not negative) responses from consumers (known simply as "response" in the industry) regardless of medium. In the sales and marketing department of the company a team of five individuals carry out selling and marketing activities. Each individual is empowered to take decision at any step of selling and in dealing with the client if it goes in favor of the company. Every morning C.E.O. of the company use to do a meeting with the sales and marketing team in order to guide, motivate and lead them to goal accomplishment. The remuneration of each individual of selling and marketing department of company involves their fixed salary and the commission they earn in creating, dealing, and maintain client. Direct Selling is a retail channel for the distribution of goods and services. At a basic level it may be defined as marketing and selling products, direct to consumers away from a fixed retail location. Sales are typically made through party plan, one to one 63

[Type text] demonstrations, and other personal contact arrangements. A text book definition is: "The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs and its selling process involves following steps: 1. 2. 3. 4. 5. 6. •

Prospecting Initial Contact Sales Presentation Handling Objections Closing the Sale Follow-Up and Service after the Sale Prospecting: Finding qualified prospects for the products or services ‘which a company offers’ is the natural first step in the sales process. A prospect for an outdoor advertisement company a prospect can be any company who want to promote themselves or their product or services. Today almost every company use to advertise. Prospecting involves creating a database that gives the information about Name of the Company, Industry in which they are involved, Address of their Corporate Office, Person who take care of the advertising in the company, His/her Designation, Landline No. and Mobile No.(refer annexure 1) as it is important understand the business of client and then plan how ooh media can serve their advertising need in the better way. Database creation is the first and foremost step involved in the selling process of the company. It is an important building block of the business as it sets up the foundation of the selling process. No organization in the world without having and maintain a database of its prospects move on in the business or in the industry. Thus it become very important o build and keep on maintain a proper database of the client or customers.

•

Initial Contact: There are two situations in the case of initial contact involved in the selling process.  When the prospect initiates the contact – Prospects usually visit the company during normal business hours if they have a store or business location. In case of The Zebras company has its offices at 10 places around the country. A prospect may also contact the company by phone, mail, email, or through company’s Web site to request information, ask questions and/or to make a purchase.

 When the company initiates the contact – One of the most common initial contacts is a "cold call" conducted by phone or in person. A cold call refers to a contact made with prospects who have not indicated they desire the call. It's obviously much more efficient – and most say more successful – to conduct cold calls on the telephone rather than to drive around town.

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[Type text] In this step the company tries to contact to the person of the prospect client company who has authority to take decisions regarding the advertising function of the company and then finalizing a meeting with the person in order to move on to the next step of the selling process i.e. Sales Presentation. •

Sales Presentation: sales presentation includes making a presentation relevant to your prospect and then creating a connection between services of the company and the prospect. For this the company should get to the point as soon as possible. At this step of selling process The Zebras use to start its selling presentation in the following way:  Introducing Company’s credentials which include profile of the company, its product portfolio and its potential through the manpower and offices at various places around the country.

 Second step include explanation of the product which the company is going to offer to the prospect client company (refer annexure 2). Currently the group is dealing in advertisement on airport trolleys and 139 PNR no. of Indian Railway.

 Third step involves explanation of the benefits which the prospect client company will gain through The Zebras and why they should use OOH Media for advertising for more effective reach to their customer.

 The fourth and final step in sales presentation is showing the estimate which a company has to incur for given period of time (refer annexure 3). •

Handling Objections: It is quite natural after a sales presentation the client will be having certain doubts and objections. Normally these doubts are related to the terms and conditions of the offer. Various objection that used to arise after the sales presentation of The Zebras are related to the following:

1. 2. 3. 4.

Volume of the sits which the company is providing. Display charges of the selected media Time period for the campaign Value additions 65

[Type text] 5. Availability of the desirable site 6. Rights which a company is having on the sites that a company own

•

Closing the Sale: This step involve signing a contract with prospect and turning up into the client. Normally The Zebras signs a deal for a campaign with minimum amount of Rs. 30.00,000 or with a term of six months.

Follow-Up and Service after the Sale: The company has made the sale. Now what? Some sales people believe that follow-up after the sale is just as important as making the sale. That's when company’s relationship with a customer can mature and develop into loyalty to service provided. Building long-term relationships with customers allows the service provider to leverage or make additional use of the initial investment of time and money spent selling to that customer. In other words, one doesn't have to spend time prospecting, qualifying and conducting other pre-sales activities for that particular customer again. There is no better advertising than a satisfied customer. Good follow-up and service after the sale will: • • •

establish and maintain good reputation of the company, build goodwill between customers and business, and generate repeat and referral business

The Zebras use to change flex after every 2 months for free of cost and also replace flexes which got damage anyhow in order to delight its client. Various accomplishments which I able to mark during the internship in various steps of selling were: In Prospecting: I was successful in getting the data of 40+ companies. This data gives the information about Name of the Company, Industry in which they are involved, Address of their Corporate Office, Person who take care of the advertising in the company, His/her Designation, Landline No. and Mobile No. Initial Contact: I have made cold call to every company and has met to the brand manager of various companies e.g. Nikon, Paramount Group, Hotspot, Carnation Auto etc. Sales Presentation: I have sent the offer letter to various prospect on the behalf of The Zebras which include names like BSNL, MTNL, and Indian Oil.

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[Type text] Follow-Up and Service after the Sale: At this step of the selling process I have been a part of the meeting which the company has conducted with the companies like Kohler and Dr. Lal Path Labs.

Methodology: 1. The project was assigned to me under the guidance of Mr. Surendra Mohan Sharma who holds a position of General Manager in the company (The Zebras). I was appointed as trainee and a member of sales and marketing team of the company. The sales and marketing team is consisting of 5 members. 2. Members : -

Mr. Aditya (Chief Sales Officer) Mr. Varun Sharma (Executive Manager Sales) Ms. Monika Buswala (Manager For Creative Activities) Mr. Narendra Sharma (Sales Manager) Puneet Aggarwal (Trainee)

Basis of Team selection: Aditya was appointed as a sales manager in the company in year 2007 in his two year career with The Zebras he has achieved many milestones by creating clients such as Dr. Lal Path Labs, Black Barrys and Kohler. Varun Sharma has joined the company in May 2009 as an Executive Sales Manager in the company. Before The Zebras he was working with Times Of India Delhi. The reason behind joining The Zebras was Higher Salary and other incentives which are given by the company on making remarkable achievements. Monika Buswala is responsible for Creative activities of the company. It includes creative adaptation of the brands on various media vehicles available with the company. (Refer annexure 6). Narendra Sharma is the Sales Manager who is responsible for the implementation of the deal and After sales Services of the company. I was appointed as trainee and my primary objective is to understand the OOH industry and how an OOH company works. 3. Before starting the task, team along with the General Manager (Mr. Surandra Mohan Sharma) and C.E.O. (Mr. Atul Rai) met me to clarify the project given to me and why it is important for the organization. To know the basics of Sales and Marketing Function. How the work is to be carried out? limits and constraints

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[Type text] 4. The info provided by them is given was about industry and the company was very useful in completion of the project and the report as well. 5. To accomplish the objective of the internship following steps were taken: First step was to identify the companies, who can be the client of The Zebras. To collect such data tools like internet and various printed recourses were used. After creating the data base I used to visit the corporate offices of the prospect client companies and ask for the contact details of the person who take care of the advertisement activities in the respective companies. This all data is record in an excel sheet which will help in starting the sales process for the company (The Zebras).

PROJECT ANALYSIS This project was a critical project for the organization, as it was contributing to the database of the company which act as a building block to the sales and marketing function of the company it gives knowledge about the prospect client company and helps in understanding that how the presentation should be planed in such a way that a positive result will come out of it for the company (The Zebras) in terms of revenue, client satisfaction resulting in to long term relationship and for client it should be able to draw out desired result out of its campaign. It was an honour for me as company showed their confidence in me. Though this was a critical project but the sales and marketing department was particularly very hostile for it. It was decided that after working for one month for database , I have to send the proposals to the prospect client company ( refer annexure 2 and 3). Finally we achieved the task on date. We started it on May 20, 2009 and got out of it on July16, 2009. It was a very difficult time particularly because for me. They used to work on their routine work from Morning 8:30 to 5:30 P.M. and from 10:30 A.M. they use to leave the office for pitching and sales. For me it was from 8:30 A.M. till the time I drop. Though there was no official designated hierarchy for the team but since I was able to provide full time to the project, I was made the single point window for all the information and updates for the management. Also the offer letter was designed by me but the approval from the design was taken as in future they will be the custodian of this system. I carried the project from the corporate office situated at Karol Baag Delhi, I were provided with a Laptop and a separate table in office for the project. The most time consuming part was collection on of database for The Zebras, in Noida and Gurgoun; As I got the list with more than 40 corporate offices. The project to ensure that all sales is most important function for any organization. The respective contact points for various companies of the group were very cooperative and did according to the instructions laid down. During our visit to the Head Office located at Okhla Phase I, I explained the whole project and they appreciated the work done by me. 68

[Type text] Various other facts which I was able to draw out of my internship were: 1. The decision related to advertisement is taken at the top level management and is handled at the corporate offices of the companies 2. There is a more demand for the sites which are located at airports and DMRC stations. 3. Cost of an OOH campaign for a client varies highly as per the volume of the company. 4. The client company refer those OOH first which offer a verity of services to them at the same time. CONCLUSIONS The Indian Media & Entertainment industry (M&E) comprises of media (TV, Print, Radio, Out of Home, Internet), distribution (TV, DTH, etc), filmed entertainment, music, animation and others. The M&E space has benefited from the economic boom of the recent years. It is an acknowledged fact that as a country progresses, people tend to spends more on entertainment products. As per the 2008 annual edition of the FICCI and PricewaterhouseCoopers Report, the M&E industry has grown at 17% during CY 2007 growing from Rs 43,800 crores to Rs 51,300 crores in CY 07. PwC believes that the M&E industry will grow faster at 18% for the next 5 years – taking the industry to a level of nearly Rs 1.16 lac crores by 2012.While TV (distribution and advertising), Print and Filmed Entertainment will continue to remain the largest segments in theM&E space, the smaller segments like Radio and Out of Home are also expected to grow sizably. As per PwC Report, 2008, growth forecast for the radio industry for the next 5 years is 24% per annum – a number that the radio industry generally believes to be a conservative one. As per this report, the size of the radio industry will grow from Rs 620 crores in CY07 to Rs 1800 crores in CY12. As mentioned earlier with Indian consumer facing a million advertisements every day on television and less time in the busy run of the day to read the newspaper, this is the perfect time for the OOH media to grow. Some of the fastest growing sectors in India today, such as telecom, real estate and financial services, can all make good use of outdoor. In addition, the booming retail sector will provide plenty of opportunities to innovate and create exciting outdoor advertising. After all, more malls mean more people out of their homes. All that is needed to sustain is recognition of OOH as an industry, regulation and some amount of research to validate the ROI on ad spend by marketers on OOH media. With the above things in place OOH as a medium will witness rapid growth and expansion. 69

[Type text] But major problem with OOH is that Indian Government has not recognized it as an industry and large number unorganized player have demolished the beauty of this industry. If we compare Indian OOH Industry with world US OOH industry, it is far behind from it as in US OOH media is a strategic part of media planning while in India advertisers do not recognize it as a advertising channel although it has least avoidance and high repetition rate. OOH media is also much cheaper than TV advertisement as it cost corors for a campaign on TV and it cost in laces for campaign through outdoor. The Zebras has an competitive edge because of its product (139 railway Jansampark No. and Airport Trolleys) it offer to its client but major segment of the market is captured by the TIMES OOH, BRIGHT OUTDOR and OOH MEDIA, as they are able to giver better sites to advertise as mentioned in their profile. As organization is in growing stage it should focus on more innovative ideas for OOH so that they can stand strongly in the competition. If Indian Government payes attention toward it in order to makr it more organized it has much wider scope than estimated by FICCI and PWC. Limitations with the Company: 1. Indian OOH industry is very much unorganized and is still struggling to be recognized as an industry due to Government’s attitude and presence of unorganized players. 2. Big advertisers like MADISON, JWT etc. have also entered in to the industry whose client – supplier relationships are very strong. 3. They have less innovative services as compared to its competitors. 4. Most of the advertisers still feel OOH as an unnecessary expense. RECOMMENDATIONS: After accomplishing the project assigned to me and deep study of the industry here are some recommendations to the company which may help the company to grow further in the industry and perform better. 1. The Zebras is a good and growing company but office infrastructure of the company is not up to the mark as per the present scenario and it is necessary for a company operating in such domain to have an impressive infrastructure as it gives first impression when a client enters in through the gate. 2. The company should also use interactive marketing as tool for selling i.e.it should own a website necessary according to present competitive market. As other competitors of the company do own a very interactive website. 70

[Type text] 3. In Delhi – NCR Region DMRC sites are emerging as most desirable sites for advertisement soothe company must try to bid to get rights for of advertising on DMRC SITES. 4. 139 (Railway Jansampark No.) service provided by the company is a impressive tool for advertisement as it has least avoidance. But the positing of the product is not correct as they try to target the companies who make lifestyle product. For 139 they should target the companies whose target customers are SEC D and D or ruler segment of India and the companies who focus more on CSR (corporate social responsibility) like PCRA, NACO, NECC, Ministry of Environment and Forest etc.

TAKE AWAYS – KEY LEARNINGS 1. Marketing mix i.e. 4P’s (Product Price, Place, Promotion): these 4P’s of ant company are the guns which should fire at the same time simultaneously in order to have best deal with the client. 2. Client – Supplier Relationship: In an outdoor advertising industry it is very important to maintain relationship with the client as success of an agency depends only upon the success of the client. 3.The Selling Process: The industry follows the similar sales process which is mentioned in the books each step of the selling process is a building block of the business which starts from prospecting and ends with the after sales & services. 4. Qualites of A perfect Salesman: I. II. III.

A salesman should dress in clean formal attire and shine on his/her shoes and shining smiling face which make one more presentable. One must be capable of expressing his/her views in front of the client clearly and should capable of understanding the client requirements. It is important to build and maintain relationship with the client.

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References

1. 2. 3. 4. 5. 6.

http://www.coolavenues.com/know/mktg/parul_1.php/06/16/2009/2:14PM http://www.pwc.com/in/en/press-releases/index.jhtml/06/16/2009/2:19PM http://www.indiaprwire.com/pressrelease/industry/06/16/2009/2:22PM http://www.wikianswers - What are the steps in selling/07/09/2009/2:22PM http://www.economywatch.com/world-industries/advertising/ 07/09/2009/2:25PM http://www.strategicalliance.com/sales_process.htm#prospecting/07/09/2009/2:29PM 7. http://www.economywatch.com/world_economy/07/09/2009/2:29PM 8. http://www.outdooradz.com/07/10/2009/3:00PM 9. http://www.oohmedia.com/07/10/2009/3:05PM 10. http://www.timesoohmedia/0710/2009/3:15PM 11. http://www.brightoutdoor.com/0710/2009/3:20PM 12. http://www.enil.co.in/areport.htm/07/12/2009/4:02PM 13. http://www.pluggd.in/online-advertising-in-india/advertising-market-in-india-tv-andradio-to-grow-faster-than-the-print-internet-1410/07/22/2009/12:00AM 14. http://www.financialexpress.com/news/Global-meltdown-to-dent-financialadvertising-sector-in-India/364585/07/29/2009/11:29PM 15. http://www.signindustry.com/pressrelease/2008/2008-07-02Outdoor_Advertising_Sector_booming_in_India.php3/07/29/2009/11:30PM 16. http://www.economist.com/opinion/displayStory.cfm?story_id=12429544/07/29/2009 /11:33PM

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ANNEXURES

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[Type text] Sr. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38

Nameof Thecompany IDEACelluler Haldiram'sFoodsPvt. Ltd. SaharaComputers&ElectronicsLtd. SpiceHotspot ltd. UflexLimitedFilmsDivision Paramount GroupOf Companies CarnationAuto Ltd. DairyIndiaPvt. Ltd. Info Edge(India) ltd. JaksonPvt. Ltd. JayPeeGreens DishTv B.A.G. Films&MediaLtd. YamahaMotersIndiaLtd. Co. RituWears D.S.Group AsianAcadamyof Film&telivision Monster.com Voiceof IndiaTv Amrapali Group Mahuaa tv HavellsIndiatd Indiatv Niruls I-trust InformtionTvpvt. Ltd. PiccadilyGrup Bharti Airtel Ltd. LeisureHotelsLtd Bajaj ElectricalsLimted ITCLimitd IndianOil Carporation

Pioneer Enterprses LeisureHotelsLtd Honeywell Indialtd

39 TwiningsPvt. Ltd.

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FMCG

City Address Contact Person Department Landlineno. mobileno. e-mail id Noida B- 68Sec64Noida Mr. MaheshDeshmukh G.M. Marketing 9990555555 9891005555 Delhi B-1Sec64 Ms. EktaGupta Marketinghead o120-2400284/85/86(EX: 133) [email protected] Noida B-4sec63 Mr. Asif khan/Mr.KripaShankerAss. Manager Marketi 0120-4397235/1204397222 ng 0120-4397209 [email protected]/[email protected] Noida B-16Sec63 Mr. Sameer BDM Marketing 1204720900 [email protected] Noida A-1Sec60 Ms. Sandhya MarketingManager0120-4002121 HR 0120-3982236 [email protected] Noida H-123Sec63 Ms. AnubhaDhama Media&maeketin0120-4613000 gHead [email protected] Noida StudioNo. 205-06Sec127 Mr.Kashif Khan MarketingHead 0120-4522222 [email protected] Noida H-112Sec63 Mr. RavindraPal Singh MarketingManager0120-4768000 HR [email protected] Noida A-88Sec2 Mr. Sumit Gambhir GM Marketing 0120-4303239/4304601 9810771227/9899111496 [email protected] Noida A-43Pase2Opp.NEPZHosieryComplex Mr. SandeepGupta M.D. [email protected] Delhi JAHouse63, Basant LokVasant Vihar Mr. Vibhor Gupta MarketingHead 011-26141540/011-26147411 [email protected] Noida FC-19FilmCitySec16 Mr. ArvindJoshi Manager Marketin0g120-2599555/4698401 [email protected] Noida FC-23FilmCitySec16A Mr. TrilokChand Ass. Manaer Sales0120-3911541/3911557 &Marketing [email protected] Gr. Noida A-3Surajpur Industrial Area,Noida-Dadri RoadSurajpur Marketing 0120-2351193/94 Noida B-2Sec65 Mr.Rahul Kumar Sales&MarketingHead 0120-2405101/02 [email protected] Noida B-86-87,Sec2 Mr Rajeevjain G.M.Marketing 0120-4032200 [email protected] Noida FCSec16FilmCity Mr. VinayKumar Manager Marketin0g120-2515254/55/56 0120-3945540 [email protected] Gurgoun Mr. ShivanKumar HRHEAD 0124-4682200 9313059637 Noida A-37Sec60 Mr. SPartha Manager sales 0120-4007700 [email protected]/spartha.78@gma Noida C-56/40Sec62 Mr. NandanVerma Media&maeketin0120-4055555 gHead 981093063 Noida FC-13Ist flr Sec16A Mr. HarshVardhan Sales&MarketingHead 0120-3991200 [email protected] Noida Qrgtowers2dSec126YanunaExpressway Mr. MukeshJain AGM 0120-4771000 [email protected] Noida 17B&CFilmcity 1204051000 Noida NirulasCorner housepvt. Ltd. Sec2 Mr. Rohit sharma Ass. Manager Marketi 01204040404/4354080 ng [email protected] Gurgoun 345udyogviharphase2 Mr. Vishal Sharma Sales&MarketingHead 0124-4780222 [email protected] Delhi 276, Capt. Gaur Marg,Shrinivaspuri NewDelhi-65 Mr. KartikeySharma MD 011-66231000 Delhi 276,PiccadliyHouse,Capt. Gaur Marg,Shrinivaspuri NewDelhMr. i-65KartikeySharma MD 01141802300/26316231 [email protected] Gurgoun Bharti Airtel Ltd. UnitechWorldCyber ParkTower -A3rdFlrMr. Sec-39C. SureshNathan Sr. Manager SCM 1244242242 [email protected] Delhi DD29NehruEnclave, kalkaji, NewDelhi19 Mr. MukundPrasad Director 011-26423304/26447803 [email protected] Delhi 1/10,Asaf Ali Road, NewDelhi-02 Mr.GulshanAghi GM NorthRgn. 3236055/3233056/3235057 [email protected] Delhi ITCMaurya, DiplomaticEnclaveNewDelhi21 Mr.Rakeshkrishan Controller 011-26112233 Extn:1841/1861 [email protected] Delhi Yusuf sarai NewDelhi Mr. R.S. Settia DGM Mkt. [email protected] Gurgoun EnkeyCenter 2ndflr VanijayNikunj phase5 Mr. RakeshKumar BrandMgr. Mortin0e124-2398200 9350868521 Gurgoun EnkeyCenter 2ndflr VanijayNikunj phase5 Mr.Rohit Marwah BrandMgr.Dettol 0124-4204553 9313103530 Gurgoun EnkeyCenter 2ndflr VanijayNikunj phase5 Mr. Sachinmehta Brand. MgrAirwick0124-4204553 9811680283 Delhi D-56,FllatedfactoryComplex,JandewalanNewDelhi55 Mr.S.maheswaran Director 011-23614190 [email protected] Nanital ZeroGarjia, Dhikuli,Ramnager244715 Mr.B.K.Suri CoporateMgr.(Hr&A) 05947284132/34 [email protected] Delhi 2ndflr7,FactoryRoadNear safdarjunghospital NewDelhi 29Mr.AvishTyagi territorymanager011-26174240 [email protected] TwiningsPrivateLtd C-062C, 6thFloor , Super Mart - I , DLFPhase-IVGurgaon, India Gurgoun Mr. Jai prkashtoshisal Brandmanager [email protected]

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[Type text] ANNEXURE 2. . OFFER LETTER BY THE ZEBRAS TO PROSPECT CLIENT COMPNIES Reference No. TZ/MTNL/09-10/

June 10, 2009

To The Executive Director, Mahanagar Telephone Nigam Limited, 2nd floor Khurshid Lal Bhawan, Jan path, New Delhi – 110001 Kind Attention: Mr. S M Talwar Sub.: Proposal for Advertising on the Airport Baggage Trolleys at Delhi Dear Sir, We would like to thank you for the courtesies extended to our team during a meeting with your team in your office. As you are aware, The Zebras is a part of the AD’s World group operating in the Out Of Home Advertising domain for more than 17 years. We are the only Group in this domain with An ISO 9001:2000 Certification, which goes to show the intent of the Group and the Organisation to follow systems and increase Returns on Investments to Clients. The group has 10 offices in the country and has been servicing more than a 100 Client’s nationally with a dedicated team of more than 140 people onboard. We currently market the advertising on the Airport Baggage Trolleys and advertising on The Rail Sampark Enquiry Number 139. This medium of Airport Baggage Trolleys gives the feeling of ownership of a particular city and the displays on them could change from time to time to suit the communication need month wise. The front basket of the Trolley could carry MTNL Logo & the messege below the basket on the front and back. Needless to add, these trolley's move at least 700 times in and out of the airport in a month to give maximum visibility and top of mind recall.

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[Type text] We would like to offer the Airport Baggage Trolleys at a special price of Rs. 1500.00 per trolley per month at Delhi Airport. The mentioned rate per trolley is inclusive of production and installation charges and vinyl will be replaced every 2 months at no cost for the entire duration of the Campaign. All taxes as per Government of India norms will be charged extra. We recommend a 6 Months Campaign to enable you to take a favourable decision basis your budgets and internal planning. We are also enclosing a small credential presentation on The Zebras for your kind perusal. Please feel free to call on us should you have any queries on the same. Thanking you and looking forward to a fruitful Business Association with Mahanagar Telephone Nigam Limited (MTNL) in the days to come. Warm Regards For The Zebras

Atul Rai C.E.O. Encl. The Zebras Credentials PowerPoint presentation on Airport Trolleys Attested Copies of Contracts for Delhi Airports Estimate for the Delhi Airport Trolleys

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[Type text] ANNEXURE3.

Airport Trolleys Estimate_Mahanagar Telephone Nigam Limited Estimate No. Dated

Executive Director Mahanagar Telephone Nigam Limited

ZEB/DEL/066/0910 10.06.2009

2nd Floor,Khurshid Lal Bhawan, Janpath New Delhi - 110001 Sr. No.

1

Specifications

Unit

Per Unit Cost In Rs.

Total Cost for 1 Month In Rs.

6 Months In Rs.

1500

750000

4500000

Total Cost for

Towards the Display charges for Mahanagar Telephone Nigam Limited Airport Trolleys at Delhi, details as enclosed below inclusive of Production and Installation

2

Airport Trolleys

500

3

Add Service Tax @ 10.30% In Rs.

463500

Grand Total In Rs.

500

In Words: Fourty Nine Lakhs Sixty Three Thousand Five Hundered only

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4963500

[Type text] ANNEXURE 4. CERTIFICATE OF ISO REGISTRATION

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[Type text] ANNEXURE 5 .LIMCA BOOK RECORD OF THE COMPANY

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[Type text] Annexure 6 Creative adaptation is showing on paper how an advertisement will be displayed on a OOH Media vehicle.

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