Did Deepika Padukone have a better OPTION?

Deepika Padukone has been recently signed a deal to endorse Axis Bank. I haven’t seen any mainstream Hindi film actress endorsing a bank. This fact itself is testimony to her track record and the trust factor she brings in. Her last four films have collected over a billion rupees each at the box office.

Thus, it makes sense to have this young lady as the brand ambassador. It augers well for the connect the brand may want to establish with the youth of India.

I was interested to know how much they have paid Deepika Padukone. Even after extensive google search, I couldn’t figure this out. What I did figure though is about a brand paying her about 6 Crore {60 million} Indian Rupees for a year of association.

I have assumed that she gets paid the same amount for endorsing other brands as well. The first advertisement of what looks like a campaign is on air. 

If the advertisement is out now, it would have been conceptualized a month or two ago. Scripting, approvals, ideas, dates of Deepika Padukone and allied activities ought to be aligned before the final product is shot and cleared. Hence, it may be safe to assume that Deepika and Axis Bank may have entered into this agreement in February or even earlier. I am assuming it was in the last week of January, 2014.

If you look at the history of Hindi cinema, actresses have ruled for a decade at the most and then new faces become the reigning queens. While I am sure this is changing and the audience and film-makers are not afraid of viewing and presenting newer themes/ concepts respectively, a very good performer like Deepika would still have to be content with newer and younger actresses coming in and taking over at some point of time.

This is not just because she is an actress. Most brands want to retain their youth connect hence we see a Ranbir replacing Shahrukh Khan and Kohli filling in Sachin’s shoes for brands. It is natural and understandable.  Brands have to keep finding newer icons irrespective of the legend of the previous ones.

Coming back to Deepika and Axis Bank now. As I said earlier, let’s assume that Deepika and Axis Bank decided to associate in the last week of January, 2014.

Instead of a deal in cash and cash equivalents { I am assuming it is an all cash deal as I haven’t read about any stock options being given to her}, if she had opted for some stock options, then it is worth noting the value it would have been today. 

I am making an assumption that the law allows the brand to pay the celebrity for endorsements in stock options. So, let’s say Deepika had opted for 3 Crores in cash and the rest in stocks. If she had been allotted these stocks on 31^st January, 2014, the number of shares of Axis Bank, she would have had are around 26812 shares {3 Crore/1118.9}.

The value of these 26812 shares at yesterday’s closing price of 50031280 {a little over 5 Crores}. Considering the fact that actors may not necessarily have a great shelf life and monthly income guarantee, should Deepika and other actors/ sportspersons opt for stock options?

A counter argument could be that the same stocks may also slide down and erode in value. However, with brands as robust as Axis Bank or other leading banks and FMCG companies, while they may lose steam on the markets at some points in time, they are known to do well in the long run.

Has Deepika missed a sweeter deal with Axis Bank? Was there a better {stock} Option {if she hasn’t considered it already}? 

The Marriage of the decade (2011-2020)

I am not here to talk about marriages. I am no expert on it and am lucky to be married to a wonderful lady. What I am talking about comes from my experience of working on marketing strategies for an IT services firm and some observations. The views may look a bit premature. I am sure there will be counter opinion and would be glad to listen to all the constructive criticism and comments around the view.

I have been hearing a lot about technical consultant, functional consultants, business analysts et al. I think for most meetings with customers, a combination of personnel with functional and technical expertise is required to “go for the kill” or close deals using a consultative approach. This potent combination can clear all doubts in the customers’ mind and clinch the deal to offer solutions required by the customer.

But where is Information Technology moving? It is an era of quick decision, quick strategies, quicker execution and even quicker results. The time to analyze, ponder, plan, etc. is hard to find.

With the advent of Big Data and Analytics, almost all unstructured data can also be put into formats which will make them meaningful for decision making. Imagine if all structured and unstructured data is available for decision-making; does it make life easy or difficult?

It depends on the human mind to which this is facilitated after all. Let’s leave it at that. Now, customers of tomorrow with Big Data, social media and the likes will have an information overload. The meeting of IT Services companies with customers would be to offer comprehensive IT services from Database to Middleware to Applications, to Business Solutions to Business Intelligence and this too would be passé in no time.

Though the last element in the list, i.e. business intelligence, becomes key to how things may evolve. Let us take an example, imagine an IT Services company using a consultative approach to provide solutions for a Pharmaceutical company. While it will be able to create application, plant management systems, trackers etc., it might also offer to predict the best price point at which the new drug should sell in a particular market?

This is where the Marriage will happen. Marketing will play a key role in the new generation IT service firms. How?

The meetings would have a Technical expert talking on systems, a functional expert talking on the domain and a marketing expert talking on how to leverage all this and launch services/ products. It will predict everything from price points, to time of launch, to target market, avenues to maximize sales.  

And that to me will be the Marriage of the Decade. 

IT Services firms will evolve into Comprehensive IT services players + marketing consultancies. The following predictions can be made (I am not a thought leader hence not to be held responsibleJ):

• The IT services providers which are more contemporary and allow this inter-caste, inter-religion marriage will do better than the traditional ones
• Technologies such as Big Data and Business Intelligence will ensure a seamless marriage
• The internet will host the marriage ceremony and all netizens from across the globe will grace the occasion
• IT Services firms which open its doors to this couple will be the pioneers of a new era in IT services
• Now, if we look at this from a career perspective, a thin line will separate marketing and IT. Professionals who have a fair idea of marketing and also understand a bit of IT will be in demand (selfish interest here)
• We will see IT companies playing a major role in test marketing, Product Planning, Marketing intelligence and insights, Market Research, and will give insights into segmentation, targeting, positioning etc.

 So, when will this marriage happen? As early as we allow it, because if we are stubborn and stick to our traditional values, this very modern and happening couple will elope before we even realize it. 

The "PARKING LOT" Principle

I had a tough time reaching office this Thursday with two hours and a bit more in a not so comfortable bus. It felt like a bullock cart ride, thanks to the competition between the potholes and the traffic, each trying to outdo the other in delaying the journey.

After the struggle, I managed to walk into the office building and a colleague of mine was parking his car. After the customary “Good morning” and “how are you”, he asked me a question.

He asked, “How do you come to know how much a company pays its employees, how do you judge if they pay as per industry standards?” I thought he was asking me this question because my profile involves web communications and leveraging social media.

I replied promptly that you can go on websites such as www.glassdoor.com , www.payscale.com etc. and check out what is posted there. It will give you a fair idea.

He told me that all you need to do is check the Parking lot of the companies. Depending on the cars parked in the parking lot, you could actually gauge the pay scale and then map it as per the level you are selected for.

 I tried to visualize the parking space of organizations I have been to and tried to apply this. Hence was born the “Parking Lot Principle”.

This excellent learning was enough to recharge my batteries and I was looking forward to doing great work. I believe, sometimes, great ideas, observations etc. at the beginning of the day might help employees put behind hectic travel and other such problems encountered before reaching work and contribute to the fullest. It had that effect on me. It is just such sparks that ignite the interest in work and help individuals put in their best.

If such sparks are provided every day, I believe the results will be overwhelming. I am sure, The “Parking Lot Principle” is surely one such example.  

100 yards of potholes

The genesis of this blogpost is attributed to my colleague Preethi Menon, who offers me a lift back home to Navi Mumbai from Andheri where we work. Every day, we have to go through a long stretch on Jogeshwari Vikhroli Link road (JVLR as it is popularly known). Last week, while the car was moving at snail’s pace, we were deliberating on why the traffic would move slowly till we could see L&T and then it would start to ease out. My opinion was that the road is narrower till L&T and is broad after that. She told that it is because of a 100 yards of potholes and suggested to me that I should consider writing an article on this.

The thought has lingered in my head ever since. I was wondering if “100 yards of potholes “could be of any significance. I am a marketing and communications professional so of course, first thought would go in that direction.

To the marketing person in me, it seems like every person passing the area stops and pays respect to a giant conglomerate called “L&T”. I wonder how many who pass that area might actually be shareholders of L&T. I am sure L&T has become a part of everyday conversations of the lives of the people passing that stretch. I am tempted to think that Powai is a talking point because of that stretch and talks about traffic near L&T only did good for the brand.

If I were to try personification with the “100 yards of potholes”, it is probably a philosopher telling fast moving Mumbai to slow down and take it easy. To introspect and then move ahead. In collaboration with the better stretch of road near Powai lake, it might be giving a message that after “100 yards of potholes” (troubles, hindrances, struggle et. al.), a smooth ride could be expected not only in Powai but also in life. There isn’t much I can talk on Philosophy so I stop here.

Now the business angle. While the cars slow down there, many vendors selling groundnuts are a common sight. If we are to take the number of cars that get stuck in peak hours, even if a small percentage of people manage to buy this offering, the “100 yards of potholes” are a means of livelihood. It is an instant shop, much like a drive through McDonalds.

“100 yards of potholes” also highlights the importance of maintenance of resources to avoid sluggish progress. It also enables us to think of what elected politicians and governments have done. As it is perennial in nature and does not cease to exist (whatever the season may be), it raises its ugly head to stand as a harbinger of false promises that the government and elected representatives made. If it has not been looked at or repaired for many years, its life is symbolic of how our elected representatives address problems.

“100 yards of potholes” is a boon for tyre manufacturers and suppliers of fuel. It seems to freelance for them and gets good commission as it contributes to augmenting the requirement of tyres and fuel.

In essence, the “100 yards of potholes” epitomizes everything from corruption to poverty, to opportunities and valuable lessons. Long live the “100 yards of potholes”: I wish I could say this but I don’t wish for this wish to come true.

Two blogs on Social media

Blogs on branding, marketing and social media are posted on the links below:

SOCIAL MEDIA:The best gift for a new age introvert?

http://thebrandmaverick.wordpress.com/2012/03/11/social-media-the-best-gift-for-a-new-age-introvert/

Twitter: An alternate to traditional channels?

http://thebrandmaverick.wordpress.com/2012/03/17/twitter-an-alternate-to-traditional-channels/ 

Not Yet to Coming Soon: Is Facebook pressing the Panic Button?

A little more than a fortnight ago, at the eG8 Forum in Paris, Mark Zuckerberg was asked whether Facebook was going to bring out its IPO soon, and he said "Not yet."


In the beginning of the week, June 13th to be precise, it was reported that “Facebook is expected to file for $100 Billion IPO this year. (http://www.businessinsider.com/facebook-ipo-could-come-in-q1-2012-after-october-filing--cnbc-reports-2011-6 )

What changed within a fortnight? What is it that turned the outright rejection of the idea of an IPO by its CEO into an announcement by the company specifying even the amount it intended to raise through the IPO.

A few hours before this announcement, I read an article titled “Facebook Is Losing Users in the Countries Where It Took off First”

(http://www.businessinsider.com/facebook-is-losing-users-in-the-countries-where-it-took-off-first-2011-6  )

With a drop of nearly 6 million users in the U.S, an 8% drop in users in Canada and nearly a 100, 000 in Norway, Russia and the U.K., Facebook has a reason to worry. Is it reaching a saturation point with the users? This is the second month in a row with slower than normal rates.

More importantly, is Facebook pressing the panic button. Is this the reason why the “Not yet” by Mark Zuckerberg on the Facebook IPO turned into a “Coming Soon”.

A few questions that arise in my mind:

• In marketing parlance/ BCG Matrix terms, is Facebook trying to milk the cash cow as much as it can before it turns into a Dog?

• When any product which becomes a brand overnight reaches the Maturity stage of the PLC (Product Life Cycle), does it start cashing in as much as it can?

I leave it to the marketing geniuses around me to answer and enlighten me with examples. I believe it will make an interesting case study for B-School students.

You saw it but WERE YOU SEEN???

The India Pakistan Semifinal clash probably attracted more media attention than the Earthquake in Japan. The “Fourth estate” went into a real frenzy. A room in Amritsar would have sold for more than the same in most Tier 1 cities of India. And for all Indians, it was joy all the way as India won comfortably.


Did you see the match? I can ask this question to most Indians, wherever they are on this planet, and I am most likely to get a reply in the affirmative. There were about 50, 000 in the stadium who will be etched forever in the stills of one of the greatest days in cricketing history. What a platform it was! Wouldn’t it have been a great marketing platform?

You saw the match but WERE YOU SEEN? Two geniuses (read astute marketing minds) from India ensured they were.

While the Prime Minister of India and his Pakistani counterpart decided to watch it from the VIP box, it was brand “Sonia Gandhi” and brand “Rahul Gandhi” who leveraged this mega event to the optimum. They saw the match with the aam aadmi (Common man) in their non-air-conditioned stands. They surely won the match. With elections in many Indian states just around the corner, they have definitely gathered enough video footage which will stand testimony to prove that their heart goes out to the common man. The footage will be as fresh when the congress contests the assembly elections in two years’ time. This is Brand Visibility at its best. India did not hit even a single six in their match but Sonia and Rahul surely hit their oppositions for a six!

From the netas(politicians), let’s move to the abhinetas(actors). Aamir Khan is one of the finest actors Indian Cinema has produced. He is an even better marketing brain. Did you know that he will be seen in the role of a cop in his next movie? Yes, it made headlines and so did the fact that he will have a new look for the film. While he ensures that his look is a major selling point of his films, he also finds an apt platform to unveil it. So the new look for the upcoming movie was unveiled to the World at the greatest sporting extravaganza you can manage to host in India. His look will be the talking point for sometime now. As the movie nears release, the footage from the match will surely help with some word-of-mouth. He also ensured that he was seen with the Big boys of the BCCI for a brief period. Optimum use of the stage, the world saw your news look. Kudos Aamir!

There are many who saw the match but MISSED BEING SEEN. Aamir’s competitors and Sonia’s opponents are among those and have surely missed a trick yesterday.

Viewing things from a marketing perspective and posting my thoughts at http://thebrandmaverick.wordpress.com/. Do let me know your thoughts. Cheers!!!

Subscription/Addiction: The better marketing weapon?

After all the non-sense that I have been subjecting to you all through my blog, I thought I will write a thought-provoking article. (Atleast I think it is..)

So, all my friends out there who have waited patiently for something sensible, I think this is the closest I can get to it... will not stop trying though.

For now http://thebrandmaverick.wordpress.com/ will give you an idea of what I am talking about.

Do let me know your thoughts. Good Day:)

Untitled

Guys, before I begin writing this post, let me tell you that I have incorporated a new verse in my post titled " Can't afford to miss her at any cost"... couldn't resist writing about Mr. Soumyadeep Das, a welcome addition to our already rocking group in the 7:19 train.
So, here I am... writing an article after more than a month. Frankly speaking, I wasn't busy at all and had all the time in the world to write a blogpost. I have been pondering about what to write and am still not clear on what I should about. I guess that justifies the rather odd title... Ok, let me begin before I drive my limited audience away.

Have you ever read about "Untitled"? I have read this in newspapers... for instance: Mani Ratnam begins shooting for his "Untitled" next venture. As the shooting of the film and other aspects progress, so will you read about a number of stories woven around it which are extremely well written. Things of the nature of :
"Himesh Reshammiya ate only tandoori rotis during the making of Karz and hence, the song Tandoori nights".... that's pathetic... it was easier to bear his songs...
"Imran Khan doesn't put on weight so he gorges on food whereas Minissha has to starve".. what nonsense!
"Asin, the new girl signed in for Ghajini had a heated argument with Aamir Khan"... I think Aamir khan is too intelligent to have an argument in public..

Now, you will read many such articles and they are so well written that people tend to believe that they are true. I have seen people discussing these articles in local trains. Whether these stories are true or not, they definitely help create a buzz around the movie and ensure great Viral marketing ( word-of-mouth). Right from the so called "Untitled" stage, these stories woven around films provide for excellent PR and branding of the venture. By the time the movie releases, there is great buzz and publicity created around it just by these news articles.

We have many MBA's around who will know all about the Kotler's and the Jack Trout's of marketing but all of them can take a leaf out of Bollywood. They may not be MBA's but they are brilliant marketers of their products. I genuinely believe, a movie like Om Shanti Om din't have much in it but for SRK's great marketing acumen which ensured great collections in the first week itself. The point here is that while Corporates spend so much on Marketing Strategies and their implementation, they can keenly watch the film industry's style and learn a lesson or two. Kudos to the film fraternity, they can definitely rewrite the marketing adage" No marketing effort can save a bad product"... they have changed this to ..." A great marketing effort can definitely turn a mediocre project into a bockbuster!"
Guys, if you have managed to read till here, just think back of the number of times you were fooled into believing that the Bombay Times(BT) article that you just read was true... and from now on, read it as if it is nothing more than a marketing gimmick... then and only then will you truly appreciate the film industry's ways of extracting the maximum out of print as a medium for a film... IT COULD,well, HELP YOU FORM GREAT STRATEGIES SOMEWHERE DOWN THE LINE AS A TOP MANAGEMENT EXECUTIVE.