Ensconced
in his first-floor office in Continental Building in Mumbai's
Worli, an office he moved into just a year ago, Subhash Chandra
is a picture of composure. In starched white collarless shirt,
black trousers, trademark white tuft neatly brushed back, he's
reclining in an oversized leather chair and gazing intently at
a plasma screen mounted next to his desk. The large leather-topped
desk is exceptionally tidy, apart from five complicated looking
remotes, all neatly lined up.
It has been three days since Zee unveiled
its new network logo at the Zee Cine Awards ceremony in London,
the first salvo in a three-year campaign to make Zee Telefilms
#1. Or rather, as the Chairman of the Essel Group sees it, making
its flagship channel Zee, the market leader. "We're already
on top as far as profits amongst all the media companies go,"
says Chandra, ever the contrarian. Zee may be third in line, behind
Rupert Murdoch's Star TV and Sony Entertainment Channel but Chandra
sees no reason why, three years down the line, Zee should not
be able to corner half the profits of the total media and entertainment
market (estimated currently at Rs 2,500 crore) and a 35 per cent
market share. What about the indifferent response to its shows
with TVRs (television viewership ratings) of even its top shows
(see Way Behind) lagging far behind the two market leaders? "Sure,
there are certain gaps in our sales and marketing efforts, but
those are now being addressed," asserts Chandra confidently.
Part of this ebullience might spring from
the recent appointment of seasoned marketer Pradeep Guha as Zee
Telefilm's CEO. Since he came aboard earlier this year, Guha has
already persuaded two highly-regarded marketing professionals,
Joy Chakravarty from Star TV's Ad Sales and Suresh Balakrishnan
from the Hindustan Times, to sign on. Comments Guha-widely regarded
as being the brain behind making Bennett, Coleman & Co. (BCCL)
the marketing success it is today- on the brief he's been entrusted
with: "To strengthen Zee Network and enable it to lead news
and entertainment into new and hitherto uncharted horizons."
Guha and his team are the key to Chandra's
pet project, probably one of the most challenging the rice-trader-turned-media-mogul
has ever embarked on: taking on the formidable The Times of India
head-on, that too in its home turf, Mumbai. Zee, in collaboration
with the Dainik Bhaskar Group, plans to launch a national newspaper
based in the city.
"We're gearing up to take on the market
leader," states Chandra, who, along with the Dainik Bhaskar
Group is pumping in between Rs 800 crore and Rs 1,000 crore into
the venture. The project, barely in its research phase, has already
run into controversy. Zee, which has set aside Rs 25 crore for
the launch, is accusing BCCL of plagiarising its teaser campaign
for its publication, Maharashtra Times.
|
Zee's Chandra: He is plotting yet another
makeover and readying to battle The Times of India |
Vox Populi
Television, clearly, is where the big bucks
are. A recent report by the Confederation of Indian Industry (CII),
an industry lobby, and audit firm KPMG values the television industry
at Rs 13,900 crore and expects it to touch Rs 37,100 crore by
2010 as additional distribution platforms proliferate and offerings
in niche genres grow. The question everyone's asking is how does
Zee's flagship mass-entertainment channel plan to revive its lacklustre
prime-time slot. The perception amongst most media planners is
that Zee is a cost-effective "support" channel. "It's
definitely number three, though it still figures on most media
plans, if you want to reach a wider audience base, especially
upcountry," says Mona Jain, Vice President (Media) of Delhi-based
Cheil Communications. Zee realises the necessity of reviving its
prime-time slot if it wants to be taken seriously by audiences
and advertisers alike.
Guha, reluctant to disclose the strategic
marketing plan being worked out, retorts with a cryptic, "It's
too early for me to discuss this in detail." Zee TV, launched
in 1992, has faithfully stuck to its mass-general-entertainment
positioning. That will continue, says Abhijit Saxena, the channel's
President, but there will be efforts to target niches such as
women, children, and the like. "The staple diet will continue
to be soaps and movies, with new formats like game and reality
shows adding the spice," says Saxena, who looks much younger
than his 36 years. Zee, he adds, will continue with its practice
of outsourcing 90 per cent of its programming, considering that
this helps keep a tight check on costs. As if to emphasise that
this practice no way affects quality or the creative process,
Saxena reels off a long list of new innovative programmes in the
pipeline.
Business Baazigar, with its tagline of "ideas
lao paise le jao" (come with ideas and walk away with money)
is being positioned as a reality show about creating entrepreneurs;
evergreen singalongs Antakshari and Sa Re Ga Ma Pa are being repackaged;
and new frothy soaps like Sindoor and Sarkar are in the works.
Films shall also be a key differentiator with Zee having commissioned
52 feature films by multiplex-directors such as Sudhir Mishra,
Kundan Shah and Saurav Shukla. "Regular innovations from
our side and catering purely to the viewers' taste help in maintaining
the channel's popularity," says Bharat Ranga, Business Head,
Zee Cinema.
»
Changes at the top with Pradeep Guha coming in
as CEO and hiring a crack A-team
» New
programming with a balance of more-of-the-same and niche-specific
software
» Emphasis
on regional language channels, especially in the south, to
attract advertising
» Continuing
efforts in areas such as lotteries and Direct To Home (DTH)
television
» On the
print front, with ally Dainik Bhaskar, taking on The Times
of India in Mumbai |
A Long Way Ahead
Perceptions are hard to change overnight.
Especially when they are based on the fact that this isn't Zee's
first attempt at a makeover (its last big one, soon after advertising
industry veteran Sandeep Goyal took charge as CEO in May, 2001-the
man quit in October 2002-saw it launch 20 new programmes). Loyalty
to the Star platform is still very high, thanks to the "fat
and rich" programming the channel has created in the critical
1-3 p.m. and 9-11:30 p.m. slots. And ironically, even when Zee
gets the formula right, as with Astitva Ek Prem Kahani-the story
of Dr. Simran, a woman of substance that has come in for consistent
praise from media planners and audiences alike-it does not manage
to quite achieve the same television ratings as any of Star's
shows. Evidently, the channel needs more winners to keep audiences
interested. "Good viewer pullers that keep the fickle TV
watcher hooked," is the prescription from Meenakshi Bhalla,
Vice President, O&M.
All this has an impact on advertising. Ad
revenues-which make up half of Zee Telefilms' total revenues-grew
only marginally from Rs 626.5 crore in 2003 to Rs 635.5 crore
in 2004. In contrast, two-thirds of Star India's revenues come
from ads, and this component is growing at over 25 per cent a
year. This, despite Zee's rates being among the lowest. Effective
rates for a 10-second ad on the prime- time television slot are
between Rs 12,000 to Rs 15,000 for Sony, Rs 5,500 to Rs 6,500
for Zee and Rs 1,40,000 to Rs 1,60,000 for Star Plus according
to Ranajit Ghosh, Group Manager, Madison Media. Zee's response
is a marketing blitzkrieg currently on the anvil. "We have
already put a team for network sales in place with clear-cut sales
objectives. This should help put our growth curve in line with
that of the industry's," promises Guha.
A lot of this growth will come from regional
channels. Currently accounting for 38 per cent of all tv viewership
and second only to general entertainment, this genre is expected
to notch high double- digit rates, primarily due to the direct
connect this platform has with local and regional advertisers.
Zee already has five regional language channels and two more will
be launched in the next few months. Two of these are targeted
at the southern market. Star has only one, Star Vijay in Tamil,
but CEO Peter Mukerjea insists that "we have a view on other
south Indian language channels that I am not in a position to
discuss".
Direct To Home (DTH) is another area where
Zee will lock horns with Star. While the Star TV-Tata combine
is awaiting final clearances for its DTH foray dubbed Space TV,
Zee claims to have over 200,000 subscribers for its Dish TV offering
that beams over a 100 channels to each (it is eyeing 10 million
customers by 2010). Zee's plans recently received a boost with
Telecom Regulatory Authority of India's (TRAI) non-discriminatory
directive forcing Star and Sony to provide its services on Zee's
DTH platform. "With competition, service levels and quality
standards will only get better, and this in turn will lead to
a new and different consumer behaviour pattern when it comes to
the consumption of media and entertainment," says Mukerjea.
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Zee's Guha: The new CEO is ready for
the challenge |
Media and entertainment will continue to be
focus areas for the Rs 4,000-odd crore Essel Group. Play TV, billed
as Asia's first online interactive gaming channel, is to be launched
in a few weeks. Play TV is inspired by the group's earlier online
lottery venture, Playwin, which was launched in March 2001, and
boasts over 400 terminals and a turnover in excess of Rs 800 crore.
"It's a completely new concept; put simply, the power of
your remote control is replaced by your mobile phone," says
Ashish Kaul, VP (Corporate Brand Development). And, internally,
efforts are on to remove the perception that Zee is a one-man
show by launching a performance incentive scheme for the company's
1,200 employees. "In some cases, these can be as high as
50 per cent of an employee's base salary," says Sanghamitra
Ghosh, Executive Vice President (hr).
Iron-willed Chandra-he gave up smoking his
trademark 501 beedis almost overnight-has never been known to
shy away from a fight. Currently, he has just taken the powerful
Board for Control of Cricket India (BCCI) to court for Rs 1,630
crore in damages after it cancelled telecast rights-$308 million
(Rs 1,355.2 crore)-for four years of all cricket played in India,
after first awarding it to Zee (that, and the proposed launch
of a sports channel would have helped Chandra even the score with
Star, but it wasn't to be). Sometimes, this entrepreneurial resolve
can cut both ways, especially while dealing with professionals.
Zee has had eight CEOs since its inception. Shriniwas Rao, a media
analyst at Mumbai-based brokerage firm Enam Securities, sums up
the popular perception about Zee. "Sure, content costs have
been cut down to the bone, there's a strong distribution backbone
and margins are being maintained, but blockbusters are a must."
Chandra is searching for them too.
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