Storyboard

Storyboard- CNBC TV 18

Big Stories:
Omnicom, the world’s biggest communication network has bought TBWA.
Aggie and Padhi have quit their respective jobs to start their own Ad-Agency.
Regional Players go shopping for National partners like Big Bazaar and Inorbit Malls.

Omnicom, that owns agencies like BBDO, TBWA, DBD has finally got its the total ownership of TBWA India.

“India is a market that we have pinpointed as a market where we need to build our presence and that’s what we are going do.”
“Our business advises all the studies going on at extremely strong rate. I am here quite relaxed about making sure that if we do make any changes, we certainly going to make with our partners. I am going to do in such a way it franchises both our partners and our firm.”
- Michael Berkin, CEO, Omnicom Asia Pacific

TBWA promoters George John Kurien Metthew and N Krishna have sold their collective 49% stakes to Omnicom TBWA.

“I think what it literal means is the challenge to be as good as any other TBWA offices in the world will be one of the first things that we will have to live up to and I am quite looking forward to do that because that’s the reason I joined the company in the first place. Secondly, I think what it means is that Omnicom TBWA will now be looking at India much more aggressively in terms of investment in this market.”
- Shiv Sethuraman, CEO, TBWA India

Nearly Rs. 75 crore wortht of new business has to come into TBWA this year, taking agency billing to nearly Rs. 400 crore. And some of the TBWA’s biggest clients like Bajaj Allianz, Standard Chartered, Nivea and Henkel are quite confident Omnicom’s global expertise will now work in their favour.



Two of the most creative ad makers of India, Agnello Dias of Mc Cann Ericsson and JWT and Santosh Padhi of Leo Burnett have quit their respective jobs and for their own ad agency, which they will be venturing into.

In the Interview they told why they are leaving their highly successful jobs and starting from the scratch.

They left their jobs in order to achieve the higher goals which they set for themselves. --Another reason that they gave is, that want to do work at their own pace and think that in any organizations they work, creative work in getting lesser and lesser and administrative work is more.

Many regional retailers like Karigar, Identity are are grabbing the opportunity to set up store in store format in the large retailer.
Badrinath Jalaan of Jalaan Group has opened as many as 14 new such stores and all that he has to do is to scale to the piggybank on by Big Bazaar network.

“The biggest advantage is the real estate prices, which are at high and these are the main barriers for not expanding at our own, so, real estate prices we don’t have to pay, if we are expanding through Big Bazaar. Secondly, you already get thousands of customers entering the store, so, you don’t have to do much, in order to bring the customers inside, they are already in, so, you have to focus on the merchandise and sell it.”
- Badrinath Jalaan, Jalaan Group

Other such players such as Identity, a designer name plate brand has recently branched out of Mumbai to 6 cities by tying up with Home Town and Inorbit Mall and they are now interested in opening 100 more shops by 2010. Even Mumbai based handicraft dealer, Karigar is planning a similar move.

“Our business is very small and to actually grow and move out for what we are catually looking for, we need to get into places already established, like malls, like which are well done up and have the footfall which we are looking at.”
- Ulrich Viegas, Business Development Officer, Karigar

Big retailers too are keen to have local brands on board. Regional players with comparatively cheaper and local products are slowly attracting crowd. But most importantly they earn the higher margin and share the profit with their smaller counterpart. But it hasn’t been easy for them to convince small retailers.

“Typically, most of the regional retailers, could be in food, could be in garments, have been on high street and the shop front etc have been a very large part of their planning etc. But then this becomes very important in a mall, esp. when the regional retailer is going to be rubbing shoulder with other International and national brands, which would do a lot of such exercise.”
- Kishor Bhatija, CEO, Orbit Malls

With over 300 such malls are coming up in over 3 years, these regional stores are finding a lot of suitor.

New Commercials lined up for TV:
Lafarge Concerto Cement- By Ogilvy Flying Saucer Films with M S Dhoni

Union Bank Of India- Daanth, By Mudra.

Neha Gupta
MBA- 1B