india story 2009
TRANSCRIPT
-
8/7/2019 India Story 2009
1/69
THE INDIA STORY
SCRIPTING A BRIGHTER FUTURE
-
8/7/2019 India Story 2009
2/69
India overview
Media & entertainment in India
Indian advertising industry
Outline
-
8/7/2019 India Story 2009
3/69
India Overview
-
8/7/2019 India Story 2009
4/69
28 states & 7 union territories divided largely on the basis of language
22 official languages
Over 1700 dialects
4532 culturally distinct communities that co-exist in harmony
1088 million people* reside across 91 eco-cultural (ecological & cultural) zones
(Source: Census of India 2001); * Estimate based on 2001 Census figure of 1028.7 mn
The Great Indian Diversity
-
8/7/2019 India Story 2009
5/69
India: Eclectic Mix
27.8% of India is urban and 72.2% is still rural
No. of inhabited villages 593,731
Indian consumer market is well spread outgeographically
A high concentration exists in urban centres
-
8/7/2019 India Story 2009
6/69
India: Eclectic Mix
Projected Population
(Source: National Commission on Population Government of India)
2264
5
5
2 2 2 6
ear
Population(inmillions)
-
8/7/2019 India Story 2009
7/69
Demographics
India still has population around
28% in the rural areas
26%in the urban areas livingunder the national poverty line
(Source: World Bank Indicators,2008) 0
5
10
15
20
25
30
35
40
45
50
India China
% Population Pov rty Line
-
8/7/2019 India Story 2009
8/69
Demographics
Literacy is low, however
increasing at a good pace. The
total adult literacy rate in India
was 66% in 2007
Most developed countries have
close to 100% literacy
(Source: UNICEF- India stats 2008)
US & UK
Brazil
China
India
0 20 40 60 80 100
-
8/7/2019 India Story 2009
9/69
Demographics
A new India, a young India
(Source: UNICEF- India stats 2008)
-
8/7/2019 India Story 2009
10/69
below 6yrs
7 to 14yrs
15 to 59yrs
60+
Demographics
Population Distribution
(Source: UNICEF- India stats 2008)
-
8/7/2019 India Story 2009
11/69
Demographics
Population Distribution
Fun seekers (0 - 6yrs): being exposed to
information technology, internationalbrands and cartoons
Discoverers (6 - 14yrs): discovering new
fashion, brands, status and lifestyle
-
8/7/2019 India Story 2009
12/69
Demographics
Population Distribution
Career seekers and Home makers (15 -
59yrs): eager to channelise theirenergies in new career avenues and
busy investing in household goods,
characterised by high investment, low
savings potential
Settlers (60 yrs+): Ready for
retirement after years of income
generation
-
8/7/2019 India Story 2009
13/69
Demographics
Population Characteristics
Over 50% of Indias population is below 25forming one of the worlds youngest populations
According to UN demographers, Indiaspopulation will surpass Chinas by 2040
Three Indian cities amongst the most populous
cities of the world i.e
.Mumbai
, Kolkata andDelhi
India has the worlds largest English-speakingpopulation
-
8/7/2019 India Story 2009
14/69
-
8/7/2019 India Story 2009
15/69
Politics
An era of unstable multi-party and coalition governments began in the late 90s and
has continued since then
An average of26 candidates competed for each of the territorial constituency seats
Caste & Community have been playing a big role in elections until now
2009 elec ions: People have voted for candidates with qualifications/proof of work
rather than manifestoes and community affiliation
Dr. Manmohan Singh Indias current PM
-
8/7/2019 India Story 2009
16/69
Economy
A Macro View
India is a $575 billion dollar economy
GDP growth for the year 2007-08 was 7.2%.
GDP expected to grow at a healthy 6.6 - 7% in 2009-10
Corporate Indias PAT expected to grow by 77.3% in 2009-10
Economy is highly dependent on the monsoons as a high proportion
of the population is employed in the agricultural sector
-
8/7/2019 India Story 2009
17/69
Economy
A Macro View
Peak import rate has fallen to 20% in 2004 from 150% in 1992
Moodys Investor Service, the credit rating agency, has upgraded India toinvestment grade which has opened the doors for fund managers abroad to
invest in India
-
8/7/2019 India Story 2009
18/69
Economy
A Macro View
India said to be on a stronger foundation than China due to democratic styleof government, independent judiciary, transparent banking system and
liberal media
-
8/7/2019 India Story 2009
19/69
Economy
Goldman-Sachs Report 2003
Projections for Indian Economy
By 2050, India will become the third largest economy after USA and China
2 3
10
27
0
5
10
15
20
25
30
2011 2020 2025 2032 203 2050
G
P
In
trillion
-
8/7/2019 India Story 2009
20/69
Economy
Indian Industry: Taking on the World
The fourth largest pharmaceutical industry in the world growing at 8-10%annually
Fifteen of the world's automobile makers source components from India, anindustry projected to be worth $US 15-20 billion in five years
-
8/7/2019 India Story 2009
21/69
Economy
Indian Industry: Taking on the World
India is the largest manufacturer of motorcycles in the world
100 of the Fortune 500 countries are operating in India as compared to 33in China
Indian companies are now becoming truly world-class. For the first time,Indian companies have acquired more than 40 companies in USA, Europe,
Australia and Asia
-
8/7/2019 India Story 2009
22/69
Economy
Technology: India takes a BIG BYTE!
Growth in exports of electronic components is 200% over three years
India is one of only three countries to have built a supercomputer (theothers being USA and Japan)
The leading provider of IT and IT-enabled services in the world with world-class companies like TCS, Infosys, Wipro, etc.
Outsourcing firms look at India for growth
The IT industry has looked outwards. Now it is time to look inwards, said
the commerce ministerK
amal Nath
-
8/7/2019 India Story 2009
23/69
Economy
India: On the travellers map
India has become the destination for medical tourists for affordable and world-
class medical treatment. e.g. A cataract operation costs $1500 in the USA. It costs$12 in India
Indias tourism industry is also steadily growing from 0.52% in 2006 to 0.55%
in2007 and is now being marketed better e.g Incredible India
-
8/7/2019 India Story 2009
24/69
Economy
India: On the CEOs radar
AT Kearney report: India tops the 2004 Offshore Location AttractivenessIndex by a wide margin. Reasons:
Cost advantages Depth & breadth of off-shoring experience
People skills
According to J.P.Morgan, listed Indian firms deliver a higher return on
equity (ROE) than comparable companies in S.E.Asia
-
8/7/2019 India Story 2009
25/69
India: Getting connected
Telephony
Total no. of phone connections: 429.72 mn
No. of mobile connections: Above 391.76 mn No. of broadband subscribers base: 6.22 mn
No. of connections growing at nearly 60% a year
(2008-09; Source: Government of India Report, Semiconductor India Report
on Wireless Potential)
-
8/7/2019 India Story 2009
26/69
India: Getting connected
Mobile Telephony: Future Projections
-
8/7/2019 India Story 2009
27/69
India: Getting connected
Internet in Urban India
-
8/7/2019 India Story 2009
28/69
India: Getting connected
Internet
Total no. of users has gone down from 49 million in 2008 to 47 million in2009
About 80 per cent of the users are in the age group of 19-35 yearsSource: IMNAI report 2008
-
8/7/2019 India Story 2009
29/69
India: Getting connected
Internet Penetration
Source: IMNAI report 2008
-
8/7/2019 India Story 2009
30/69
India: Getting connected
Growth in PC Owners & Internet usage
Source: IMNAI report 2008
-
8/7/2019 India Story 2009
31/69
India: Getting connected
Growth in PC Owners & Internet usage
Low internet penetration; Big potential for growth
Source: IMNAI report 2008
0
00
200
300
India apan China
2000
2008
-
8/7/2019 India Story 2009
32/69
India: Getting connected
Indian Internetizens V/s Rest of World
-
8/7/2019 India Story 2009
33/69
Huge market Opportunities
0 20 40 60 80 100
e
icyc e
ectric fanransistor
ressure ooker
Se ing ac ine
o ee er
Refrigeratore evision
e ep one
ar
ractor
% Popul tion O ning Ass t Larger future market
Aroun 40% have ecentstan ar of iving
-
8/7/2019 India Story 2009
34/69
Show me the Money!
Money matters
Traditional aversion to debt is on the wane
People are no longer willing to wait seven generations for a better qualityof life - Jairam Ramesh, Congress Cabinet Minister
More and more people are becoming open to the Buy now, Pay laterculture. It is seen in the increase in the disbursement of loans, use of creditcards etc.
-
8/7/2019 India Story 2009
35/69
Show me the Money!
Expenditure segments
(Source: NSSO, 1998-99)
010
20
30
40
50
60
70
80
125
Household Annual Expenditure (Rs. '000)
H
ouseholds(mill
ions)
-
8/7/2019 India Story 2009
36/69
Huge market Opportunities
Low growth had adverselyaffected consumption
Now consumption is
increasing
Priv C mp i
(Bi i USD )
3
I dia Chi a S. K r a
(Source: World Bank Indicators, 1998)
-
8/7/2019 India Story 2009
37/69
New face of India
Times, they are a-changing: Young educated Indians are happy to continueliving in India
There is a new-found confidence and pride in being Indian
Case in point:
Namrata Yadav, 23, working for Daksh, one of Indias largest call centersand BPO firm, says, I wouldnt trade my life here to go abroad
-
8/7/2019 India Story 2009
38/69
Media & en er ainmen in India
-
8/7/2019 India Story 2009
39/69
Media & Entertainment
According to a Millward Brown Survey, 93% of Indians responded to thestatement I love entertainment with a strongly agree response
Only 79% of those surveyed in China and the USA responded with similar
enthusiasm
Indian ladies performing at
a traditional Dandia Raas,
celebrating Navratras (a
major Indian festival)
New-age Indians enjoy the
Retail Therapy: Malls &
Multiplexes
Night-life in India is as
spirited ass any where else
-
8/7/2019 India Story 2009
40/69
Media & Entertainment
Entertainment industry continues to outperform the economy
Growing at 17.49% to an estimated $472.81 billion
Projected to become a Rs. 300 million industry by 2012
Revenues for television to grow at 17%
Over 240 channels are beamed to Indian television viewers PAN-India
Every cable & satellite household receives an average of 100+ channels
(Source: Ernst & Young Study)
-
8/7/2019 India Story 2009
41/69
Media & Entertainment
Indian Cinema aka Bollywood
Worlds second largest film industry in the world
Produces over 800 films a year
India has around 12900 cinema halls
Generates over Rs.10000 Crores and providesemployment to Lakhs of people
-
8/7/2019 India Story 2009
42/69
Media & Entertainment
Indian Cinema aka Bollywood
Disorganised, fragmented, lack of transparency and corporate governance
Dominated by family-run companies with no access to institutional finance
Finance is tapped from family friends and other sources where interest ratesgo up to 40%
Only in the last few years, Corporates have entered the scene therebyincreasing the share of the organised market
-
8/7/2019 India Story 2009
43/69
Media & Entertainment
Serial Bombing: Constant reinvention
From Kyunki Saas Bhi Kabhi Bahu Thi to Balika Vadhu
Then: Kyunki saas with 1830 episodes was, for the longest
period,
the top-grosser daily soap,
aired on Star Plus since the year2000. This hugely popularised Actor Smriti Irani in the Indiantelevision scene
Now:
Balika Vadhu, a daily soap aired on Colors (Viacom Group),
since its launch on 21st July 08, has become a phenomenontoday tops that chart at 10
Chhoti Bahu, another top-grosser soap on Zee, launched on5th Dec 08
Bidaai from the Star Plus stable, the 2nd runner-up
-
8/7/2019 India Story 2009
44/69
Media & Entertainment
Entertainment is part of the Indian psyche, and the consumption of variousforms of entertainment is one of your most pleasurable past-times
60% of the Indian population is under 34 and 7 million Indians will enter
the lucrative 20-34 age group every year for the next decade, almost noother country can in the world can make these claims
India, the cornerstone of Disneys Global Strategy.
- Andy Bird, President, Walt Disney
-
8/7/2019 India Story 2009
45/69
Media & Entertainment
Only one in 15 households have running water butone in 7 households have cable television
- THE ATLANTA JOURNAL
An urban adult spends an average of 4.9hrs a weekon press, 10hrs a week on radio and the most timei.e. 11.8 hrs on television
-
8/7/2019 India Story 2009
46/69
Media & Entertainment
Print: Between the lines
Readership of dailies and periodicals not showingsignificant growth
Losing out to cable television and private dishtelevision (Tata Sky, Dish TV, etc.)
Fastest growing segment in print are the regional
players
-
8/7/2019 India Story 2009
47/69
Media & Entertainment
Print: Between the lines
Amongst the top 80 dailies
Avg. readers/copy: 7.1
Max. readers/copy: 19.2 Min. readers/copy: 1.4
Amongst the top 130 magazines:
Avg. readers/copy: 13
Max. readers/copy: 75.2 Min. readers/copy: 1.8
-
8/7/2019 India Story 2009
48/69
Media & Entertainment
Print: Between the lines
The top 5 English dailies are:
The Times of India
Mumbai Mirror (Times supplement)
Hindustan Times
The Hindu
The Telegraph
Deccan Chronicle
The Indian Express
-
8/7/2019 India Story 2009
49/69
Media & Entertainment
Print: Between the lines
The top 5 English magazines are:
India Today
2. Readers Digest
3. General Knowledge Today
4. Competition Success Review
5.Stardust
-
8/7/2019 India Story 2009
50/69
Media & Entertainment
Cricket: A Sport, A Religion
A colonial hangover of three centuries of British rulein India
Cricket: The one religion that unifies India
Cricket stars: Larger than life!
Attracts the biggest marketers from FMCGs toElectronic appliances
Played in every nook and corner of the country
-
8/7/2019 India Story 2009
51/69
Indian Adver ising
-
8/7/2019 India Story 2009
52/69
A Birds Eye-view
Indian media market will grow only 4.7% year-on-year in 2009, comparedwith 14.7% in 2008
Advertising revenues of newspapers, the biggest segment within the media
industry, will actually see a fall (-2%)
Televisionthe second biggest categorywill grow at a much slower rateof 7%
Digital media and radio are expected to be the front-runners this year,growing at 25% and 15%, respectively, thus enabling the media market toexpand to Rs. 23,755 Crores by this years close
India & China are driving ad spends in the Asia-Pacific region
-
8/7/2019 India Story 2009
53/69
Media Spends
(Source: GroupM report 2009)
-
8/7/2019 India Story 2009
54/69
Media: YOY %age Change
(Source: GroupM report 2009)
-
8/7/2019 India Story 2009
55/69
Media: %age Shares
(Source: GroupM report 2009)
-
8/7/2019 India Story 2009
56/69
Media: USD M, Net
(Source: GroupM report 2009)
-
8/7/2019 India Story 2009
57/69
Category Growth Estimates
(Source: GroupM report 2009)
-
8/7/2019 India Story 2009
58/69
Category Growth Estimates
(Source: GroupM report 2009)
-
8/7/2019 India Story 2009
59/69
Media Spends: Snapshot
Medium %age of Spends
Newspapers 18%
Magazine 21%
TV 18%
Radio 48%
Outdoor 20%
Digital 91%
Cinema 50%
(Source: GroupM report 2009)
-
8/7/2019 India Story 2009
60/69
Snapshot of TV Advertising during QI 2009
Key Findings
20 per cent rise in TV advertising during the first quarter of2009 compared
to same period in 2008
'F&B' sector had the maximum share of overall TV advertising during the
first quarter of2009
'Social advertisement' was the top category on TV during Jan-Mar '09
'HUL' leads in TV advertising during the first quarter of2009
'LIC Jeevan Varsha' topped the list of new brands advertised on TV duringQ1'09
Source: AdEx India Analysis, May 2009
-
8/7/2019 India Story 2009
61/69
Volume of growth of TV Advertising during QI 2009
During the first quarter of2009, TV advertising has seen a rise of20% compared to the same period in2008
-
8/7/2019 India Story 2009
62/69
Share of sectors in TV advertising during Jan-Mar '09
Top 10 sectors contributed for 60 per cent share in overall TV advertising during Q1 '09. 'Food &Beverages' sector leads with 17 per cent share. 'Personal care/personal hygiene' and 'telecom/internetservice providers' with 9 per cent and 6 per cent share were at second and third position in the top 10list of sectors on TV during this period
-
8/7/2019 India Story 2009
63/69
Contribution of top categories in TV advertising during Q1 '09
During the first quarter of 2009, 31 per cent share was contributed by the top 10 categories. 'Socialadvertisement', 'cellular phone service' and 'aerated soft drink' were the top three categories on TV. Fiveout of the top 10 categories on TV belonged to 'FMCG' sector while two were from the 'auto' sector
-
8/7/2019 India Story 2009
64/69
Top Advertisers on TV during Q1 09
'HUL' maintained its first position on TV during the first quarter of 2009 and 2008. Compared to Q1'08, three advertisers - 'Cadburys India Ltd', 'Smithkline Beecham' and 'Procter & Gamble' - hadrecorded a positive shift in their respective ranks to be in the top 10 advertisers list of Q1 '09. 'VodafoneEssar Ltd', which was at the third position during Q1 '08, moved down to the ninth position in the top10 advertisers list of Q1'09
-
8/7/2019 India Story 2009
65/69
New brands advertised on TV during Q1'09
'LIC Jeevan Varsha', 'Mahindra Xylo' and '7 Up Natural Lemon Flavour' were the top 3 new brandsadvertised on TV during the 1st quarter of 2009. Top 10 new brand list was a mix of five brands of'FMCG' sector, three of 'auto' sector and two from 'banking/finance/investment' sector
-
8/7/2019 India Story 2009
66/69
Agency Rankings: Top 15
1. O&M
2. JWT
3. Lowe
4. Mudra
5. McCann Erickson
6. Rediffusion Y&R7. Leo Burnett
8. Contract
9. RK Swamy BBDO
10. Draft FCB Ulka
11. Grey Worldwide
12. Bates 14113. Saatchi & Saatchi
14. Percept/H
15. Ambience Publicis
(Source: Ad Agency Reckoner 2008, Economic Times)
-
8/7/2019 India Story 2009
67/69
Par ing T o g s
-
8/7/2019 India Story 2009
68/69
Indias progress is far more impressive than Chinas
- Peter Drucker, management guru
Asian century, Indias decade
- Surjit Bhalla, leading economist
-
8/7/2019 India Story 2009
69/69
N
amas e!