Interview with FCB Ulka ED and Lodestar Media chief executive Shashi Sinha
 

"Channels, rather than agencies should be concerned about media audit firms "

Posted on 6 September 2003
 

"Intellectual professionalism" is what drives him! He has reputation for calling a spade a spade; and his 'attitude' has been amply reflected in his ability to professionally take on the big guns and hold his own against them. Meet FCB Ulka Advertising executive director and Lodestar Media chief executive Shashi Sinha. Sinha started his career in account planning at Ulka way back in 1986.

An engineering graduate from IIT Kanpur and an MBA from IIM (Bangalore), Sinha first practised his skills as a product manager with Parle Beverages - then India's largest soft drinks company; and then as a product and sales manager at Herbertsons - a liquor and beverages company. Well, after dabbling with soft and hard drinks, he finally discovered the world of advertising.

Besides heading Lodestar (which was awarded "The Media Agency of the Year" at the EMVIES - 2002 and runner-up at the EMVIES - 2003, India's premier media awards), Sinha has handled some of FCB-Ulka's most prestigious accounts including Amul, ITC Foods, Kinetic Engineering, Zodiac, Ceat, Duncans, Zandu. He spearheaded the team that won awards for some memorable campaigns such as the launch of Captain Cook Atta and NDDB's milk promotion campaign, "Doodh, Doodh".

Sinha spoke to indiantelevision.com's Ashwin Kotian about Lodestar's high points, media audit firms, media independents and cut-throat competition in the media business. Excerpts:

 
Lodestar is an interesting name. How did it come about?
I remember that when we decided to coin a name for the media division, I entrusted Apurva (Apurva Purohit is the president of Zee TV now) with the responsibility of coming up with something unique. Of course, I told her that it has to be something that will conjure associations with the sky - as is the case with FCB Ulka (Ulka means meteor in Sanskrit) - names such as True North, Meteor, Galaxy, Nebulae. She came up with Lodestar and that's what we are - somewhere high up in the media stakes. At the end of the day, media is all about empowerment.
 

Talking of empowerment, do you feel that Indian advertising is ready for a media audit firm?
Media accountability in the present context is the key. A media audit firm has been globally acknowledged as a great concept. In India, it is an idea whose time has come - but implementation is the key.

The media audit's success will depend several factors. For instance, this issue of benchmarking rates has always been a cause of concern. In fact, channels, rather than agencies, should be concerned about media audit firms. After all, in India, there are direct deals between the clients and channels. In India, differential rates are confidential and a closely guarded secret.

It is important to point out that the Indian market hasn't really matured. Secondly, even today, a lot of pitches in India are fought on rates. Impact and effectiveness - the oft-used hyped up terms used by marketing and advertising professionals take backstage. Needless to say, this obsession with rates is very short-sighted.

Also the media audit will have to take other issues into consideration. In India, personal relationships are the key; and people end up taking one another for granted even in their professional lives. Therefore, lot of compromises are made.

As far as Meenakshi Madhvani (ex Carat Media Services CEO turned entrepreneur of India's first-of-its-kind media audit outfit Spatial Access Solutions) is concerned, the success of her venture will depend on people and the clients that she bags in the initial days. Yes, the emphasis will be on tools and techniques - which will be an expensive investment - but talent is equally important.

 

Is the emergence of media audit firms a sign of changed client mentality? Is there a difference in client attitudes today when compared to the earlier decades?
These days, clients ask for much more in terms of accountability or deliveries in a fragmented market or breakthroughs in a cluttered marketplace. Competition is definitely sharper and it keeps everyone on their toes. But, yes, there is a perceptible change.

Earlier, the advertising manager or corporate communications head used to brief the media team whereas marketing/sales directors or MDs would brief the client servicing or creative teams. Nowadays, I see more and more involvement of the senior level management in media decisions. However, this involvement must increase gradually.

In fact, Tata Motors is a great example of client-agency teamwork where everyone contributed. As an agency, we spoke tough while presenting the macro-strategy right upfront - after all the client budget was less than what Hyundai had spent till July. Managing expectations was the key. We communicated that we would strive hard to deliver within the constraints. At the end of it, we did deliver and this resulted in a better, tighter bond between the agency and the client.

 
"Remember that the advertising and media industry thrives on FMCGs (Fast Moving Consumer Goods) and the toplines of these companies haven't grown phenomenally"
 

What about the existing market situation? Can we expect a boom in advertising in this year?
The general sentiment about the Indian market is positive - with good monsoons and resurgent stock markets. But I don't know whether this will translate into reality. The next three to four months are very crucial.

Remember that the advertising and media industry thrives on FMCGs (Fast Moving Consumer Goods) and the toplines of these companies haven't grown phenomenally. The advertising industry will not show a dramatic growth in this year unless the market grows stupendously in the next quarter. But yes, there are other sectors that are looking up - automobiles, insurance and telecom amongst others.

Since the monsoons have been good, the rural demand will pick up. The definition of "rural" is also very subjective in India. And the wholesale market in rural areas is a different ballgame. The real challenge here is to ensure that the distribution systems are in place.

How many companies have the wherewithal to invest in setting up distribution network across the length and breadth of the country and advertise constantly to stimulate demand? I would say - just five or six companies.

It's easy to crack "rural media" but distribution is the true challenge. I would say that several clients haven't been able to reap the benefits of TV advertising due to weak distribution channels in rural areas.

Infrastructure, too, has to improve in rural India too and the onus of that rests on the government.

 

You were one of the first in the Indian ad industry to talk about integrated media-account planning. Tell us about your experiment - its success and failure?
Well, way back in the 1990s, I conducted this successful experiment of merging the media and account planning teams. You can ask Arpita (Arpita Menon is Lodestar media director) because I bounced the idea with her; convinced her that it was workable and we worked together. I even convinced other account management expert friends like Ashok Aggarwal.

I do admit that the experiment didn't click because of various reasons. The market at that point of time was less mature than what it is today. Media logistics was a key issue then (it is even today) and therefore clients preferred to interact with number-crunching executives who had TRPs, FCTs at the tip of their tongues. Account planners weren't too well versed with media facts and figures then.

In the new millennium, people are talking about the efficacy of account management and planning teams independently because it seems to be fashionable. But, no one is talking about exploring the options of merging the two and getting into integrated account-media planning.

I regret the fact that I wasn't able to pull it off earlier; my greatest dream is to make this a reality. The point remains that even in media, strategy is the key or rather the roots.

 
"For instance, I am the "Model of one" for Amul. As a brand "pilot", I have to wear multiple hats that go beyond my routine duties and responsibilities"
 

Can integration really take place in today's context?
We have this very interesting concept called "Model of one" within the FCB Ulka fold. One person within the ad agency or media agency is the central authority responsible for the macro-strategy of a brand. This central figure's responsibilities towards that particular brand transcend the routine responsibilities.

For instance, I am the "Model of one" for Amul. As a brand "pilot", I have to wear multiple hats that go beyond my routine duties and responsibilities. It is here that a media standalone has its own advantages - everyone is hands-on as far as the macro-strategy is concerned.

But, yes there are disadvantages too - for instance the profiling of media professionals can be much sharper but again it depends on the individual. The fact - that nearly 95 per cent of our business is not of the "aligned" nature and that we have several MNCs such as Whirlpool - proves that we have succeeded in our efforts.

 

Have the newly formed media independent agencies changed the face of the Indian ad industry?
As far as media independents are concerned, I belong to a group that pursues a different school of thought. Media independents in India aren't a five-year old phenomenon. We had explored this concept of media independents or stand-alone media entities long before anyone in India thought about it. In the early 1990s, I had spoken about media-account planners. But the structure was very different from the contemporary connotations of the term "media independent" - the way it is understood today.

Here, it is important to mention that right from the very beginning, I structured Lodestar very differently. We were independent but had a holistic approach that gave precedence to the overall brand strategy. For us, media effectiveness was a tool to attain the macro-objective - mutually defined by the client and ad agency teams.

The fact of the matter remains that media is one aspect of the larger picture. I often refer to this example of Zodiac Clothing's brand Zod! Club Wear - that won us an Emvie 2003 award (Silver for best media strategy). The mandate was to sell 75,000 shirts and the allocated budget was measly. It wasn't not about tools and techniques but was a far more intellectually appealing challenge. The key was provide results that the core brand team wanted rather than the usual media deliveries. We delivered and won awards; I wonder how many media independents would have accepted this challenge.

Another relevant example is that of Tata Motors (formerly TELCO) Indica launch. At that time, Hyundai was all over the place - TV and cinema ads featuring Bollywood icon Shah Rukh Khan. Our brand strategy was to give an overall "Big Brand" feel to Indica - 'more car per car', 'hope and hype'. Everything that we did - be it media or creative or promotions or POPs - spouted forth this idea. After all, media is just an extension of the overall brand strategy. Therefore, we opted for full page newspaper ads in top mainstream publications. We didn't use TV or regional press at all during the launch phase. It clicked big time.

 

Has this concept of integrated media-account planning clicked with clients?
Some time back, Castrol changed its agency affiliations due to global re-alignments. However, we persisted by providing them great media ideas - for instance we kept the client abreast of media opportunities such as association with cricket or sports. The client came back to us with media consultancy projects although our parent agency is not involved with the creative implementation.

Similarly, the Frito Lays account got realigned but they came to us for media strategy. In fact, that reminds me - the person who looked after the advertising function in Frito Lays - who worked with me - ardently believed in my theory of combining the media and account planning functions.

 
"In the last two years, Lodestar Media India has got international recognition with the FCB-True North global fold"
 

So what is your greatest achievement as of date?
Years back, we took a decision to create a separate media outfit and we also came up with the one-of-its kind Lab Centre. We really did some pioneering work in terms of tools and techniques.

In the last two years, Lodestar Media India has got international recognition with the FCB-True North global fold. Interestingly, we have received several compliments for the indigenous tools and techniques developed by our team. Importantly, the tools (MediaGraphics) have been acclaimed despite the fact that they originated in India.

Although India is acknowledged as an IT superpower, the global ad fraternity doesn't tend to take India seriously because they feel that the market has to evolve and mature. Doubts have been cast on our capabilities in the past but mindsets are changing now.

The origin of these tools can be attributed to the emphasis on strategy. Now, our global peers have recognized that these tools are of world standards. They are being adopted in Asia and Europe. The US arms are looking at these tools seriously. Lodestar Media has made a mark in the global map. This is the biggest high for me and my team.

 
"Remember, in our media business, we take a risk of 97.5 per cent - which is perpetually stuck - for 2.5 per cent commission"
 

Do you feel that the Lodestar model is workable?
Our model is very robust. There are P&L (profit and loss) pressures but not to the extent that it forces head honchos to resign and venture elsewhere.

P&L has really emerged as a big headache for media outfit head honchos. The low margins originating from cut-throat competition have added to this pressure. It is difficult to invest in proprietary research; varied data sources; talented reserves; and maintain profitability. Even a simple allied function like spot monitoring costs Rs 30-35 lakhs (Rs 3-3.5 million). Being a part of the parent organisation's P&L equation allows a lot of financial flexibility to cater to the requisite investments.

To cut costs, media agencies have often been tempted to get in international software planning packages and make cosmetic changes in them. It's a vicious cycle and we need to make a concerted effort to get out of this rut and think afresh. Ad agencies take a risk of 85 per cent for 15 per cent commissions or even lesser.

Remember, in our media business, we take a risk of 97.5 per cent - which is stuck - for 2.5 per cent commission. And there are players who are willing to give credit even in this!

 

What do you feel about programming on Indian television?
Channels have to put in a lot of thinking into their programming. They have to examine whether big ticket items are feasible and explore niche areas of viewer interest. Comedy on Indian television has had its crests and troughs; and currently comedies aren't getting large numbers. Indian viewers seem to appreciate slapstick rather than the British sense of understated humour. Media planners will be more concerned about negotiations with the mainstream channels.

 

What is your view on the conditional access system (CAS)?
CAS is a good thing in the long run even if there are problems in the short term. It will inspire a lot of segmented programming. Indian television will also see the emergence of embedded advertising.

 

What drives you? What are your hobbies?
As far as I am concerned, professionalism, entrepreneurial spirit combined with intellectualism is what drives me.

On the lighter side, I love the game of bridge. Of course, I am a cricket fan. As far as traveling is concerned, I play safe - London, New York - rather than going to exotic locations. I watch a lot of sports and news on television.

 
 
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