the ebay of product placements - brandguru com

8/9/2019 The eBay of Product Placements - BrandGuru Com

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TEAM DETAILS

TeamDetails

TEAM LEADER* Member I* Member II Member III

Name* Srikant Rajan Sriram Varadarajan Gunjan DeoNarayanan

Vivek Prabhu

EducationalQualification*

B.Tech B.Tech B.E B.E

CurrentOrganization/

Institute*

Institute for Financialmanagement and

Research(IFMR)


Research(IFMR)


Research(IFMR)


Research(IFMR)Work Experience

(In Months)

21 48 32 34

Contact No.* 91-9962552824

E-mail Id * [email protected]


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Executive Summary BrandGuru.com

Business Description: We propose to create a platform that would provide advertisers to placetheir products within the natural course of progression of a TV serial/soap on an ongoing basis.Television serials most often portray stories about human relationships. The filming of suchincidents would require the use of a number of services and products used in day-to-day life. For instance the use of calcium tablets in a serial presents an opportunity to showcase the Sandoz

brand. Thus in this situation featuring a commercially available product within the serial would be an effective form of advertising. We propose a system that would provide for an effectivemeans to engage in these types of advertisements, commonly referred to as product placements(PPs) . Specifically with the advent of reality television, PPs can work in a dominant manner. For instance in Top Chef, a US reality TV shows; aspirants extol the use of Glad products. Howeverthe lack of a common platform where product suppliers could access all availableopportunities has limited the use of PPs.

Furthermore the evolution of the TV industry with technology has put the consumer in a unique position where he can pick the channels he wishes to watch. In particular Digital VideoRecording (DVR) allows for an opportunity to skip advertisements altogether. Thus PPs mayhelp in reaching out to the consumer in an effective manner as compared to advertisementsas it is subtle and inescapable .

Management : Our team comprises of four members, out of which two have extensive experiencein IT and ITES. One of our group members has worked on an advertising product for a leadingUS media client. Other two members have experience in banking and financial services sector aswell as core engineering sector and business consultancy. Hence the team comprises of eclecticindividuals who would help in effective development and overall management of the proposed

business activity.

Products/Services: The product offered would be a package of advertising slots in a particular television serial at a particular time. The product would also include services such as specificsregarding the impacted audience, the viewer ship statistics of the serial, expected exposure timeand proposed manner of exposure. These product offerings would be offered using an onlineauction site ( www.BrandGuru.com ), similar to eBay. Here each Product Supplier (PS) canlogin to view the product listings and bid. Additionally after a given period of time Valueadded services (VAS) such as the impact of PPs on brand perception, and product saleswould also be incorporated. Presently no such product is commercially available.

Markets: The Indian Entertainment and Media (E&M), industry has seen a robust CAGR of 19

% in the past four years. The TV industry is presently estimated to be Rs. 226 billion which isnearly 50 % of the total E&M industry (Rs 500 billion). Industry estimates forecast a tripling of the TV segment, by the year 2012 .Forecasts of a rapid growth highlight the enormous potentialof TV for advertising and brand-building. In fact high growth in advertising revenues (anestimated 22% from 2006-2007) contributed 196 billion to the total industry revenue.Additionally TV segment is expected to grow and evolve with the entry of foreign players. Thisis exemplified by the fact that the foreign investment in the E&M sector recorded a high of Rs 8.5

billion in 2007 and is further expected to increase.
http://www.brandguru.com/http://www.brandguru.com/


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4. Competition for the product and its USP: The product does not entail expensive celebrityendorsement for brand building. It employs real life characters to simulate product use and tapsinto the serial popularity for brand building which is cost effective as compared to celebrityendorsements. Furthermore PPs are dynamic , i.e. they advocate use of the products in differentsituations as compared to a static form of advertisements.

SWOT Analysis

Strengths

1.Unavailability of an effective portal for PPs

2.Assured exposure

3.Pre- segmented customer base

4.Dynamic exposure of products, adding to realtime credence of products utility

5.Growth of the TV sector with increasing FDI

6.Advent of pay TV and DVR, making traditionaladvertising ineffective

7.Increased penetration of TV in the rural sector

Weakness

1.Limited exposure time2.Long gestation period to gauge potentialimpact on sales3.Risk of consumer apathy and indifference

Opportunities

1. Greater reach than internet based advertising particularly in Indian TV industry.2.Growth of internet and mobile advertising

Threats

1.Delay in acceptance by Production Houses toincorporate PPs in their serials

Execution Strategy : Networking with prominent Production Houses (PH) to identify availableopportunities in the TV service offerings and also investigate any future possibilities for featuringof particular goods and services. Once a product has been designed, IT solutions would be usedto maintain database of various product offerings. Each PS would be charged a fixed subscription

fee for viewing the products offered. Direct sales force would be utilized for interfacing with PSto obtain subscriptions. Revenue generation is a two-fold process . The first being fixedmembership subscriptions and the major revenue generation are anticipated through the sale of products. Additionally we also plan to diversify our product offerings to include PPs in featurefilms.

Fund Flow Analysis


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Input Cost

1. Infrastructure: INR 10 lakhs (1 Million)

2. Monthly Expenses: Salaries + Operating Expenses

We anticipate 6 people initially working with the team members (4 in number).Here 3 would bein charge of interacting with the PHs and 2 interacting with PSs .In addition 1 person would behandling IT implementation. Team members would initially be coordinating the entire work flowand doing research about market for PS and PH.

3. Salaries: 1 lakhs 80 thousand (30000*6)

4. Operating Expenses (Including maintenance and running costs): 2lakh /pm

Total Expenses: Setting up (one time) + Operating Costs (ongoing monthly) = 10lakhs+ 3 lakhs80 thousand is approximately = INR14 lakhs

RevenueResearch indicates dominance of major production houses such as Balaji Tele-films, UTV,Cinevista, capturing 70%of the market. We have analyzed service offerings of Balaji Tele-filmsto get an estimate of potential earnings, assuming:

1. Availability of a 2 second slot in each serial,

2. Pricing on an average: INR 50000 for a 10 second slot

Duration/Slot 2 seconds

Number of Primetime Serials 6

Number of Non-Primetime Serials 4

Prime Time Pricing/Slot INR10000(= 5000*2)

Non-Prime Time Pricing/Slot INR 5000(primetime rate / 2)

Number of Prime Time Slots/day 12

Number of Non-Prime Time Slots/day 6(Primetime slots/2)

Total Duration/day 18

Prime Time Revenue/day

INR1lakhs 20thousand(primetime slots*

primetime rate)

Non Prime Time Revenue/day 30000

Total Revenue per day INR1 lakh 50 thousand


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Monthly Revenue INR 30lakhs

Assuming a gestation period of 6 months no revenue generation and no subscription basedrevenue in the first year of operations, revenue generation in the seventh month leads to

breakeven.

References

FICCI - PricewaterhouseCoopers 2008 Report on Indian Entertainment and Media Industry was

used to gauge the market size and growth of the TV industry. Additionally we also used the

following links to understand the present state of the Indian TV industry and feasibility of PPs.

http://www.npr.org/templates/story/story.php?storyId=94851729

http://www.indiantelevision.com/headlines/y2k8/apr/apr267.php

http://www.indiantelevision.com/mam/headlines/y2k5/oct/octmam5.htm

http://www.televisionpoint.com/news2008/newsfullstory.php?id=1205761776

http://www.indiantelevision.com/interviews/y2k6/executive/joy.htmhttp://www.indiantelevision.com/headlines/y2k8/apr/apr267.php

http://www.televisionpoint.com/news2008/newsfullstory.php?id=1205761776

the ebay of product placements - brandguru com

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