• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Market entry strategy ooh
 

Market entry strategy ooh

on

  • 1,274 views

Market Entry Strategy Presentation on Out of Home Media Industry

Market Entry Strategy Presentation on Out of Home Media Industry

Statistics

Views

Total Views
1,274
Views on SlideShare
1,274
Embed Views
0

Actions

Likes
2
Downloads
157
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Market entry strategy ooh Market entry strategy ooh Presentation Transcript

    • Market Entry Strategy – OOH Advertising IndustryDecember 16, 2011
    • Table of Contents Topic Page Market Size Estimate 3 Industry Overview 8 Competitive Mapping 14 Key Operating Strategies 21 2
    • Market Size Estimate 3
    • Advertising is a non-personal presentation of anidea or a product Television Above the Line Advertising Broad Target Market Difficult to Print Media measure effectiveness Radio Audio/Visual Brand Above the Line Estimated Internet Awareness Market - ` 247.5 size of Mass Reach billion Indian Outdoor Ads Advertising THE LINE Industry - `Tele marketing Below the Line 450.0 Consumer billion as on Defined Market - ` 202.5 POP/VM Induces billion 2011 Transaction Also smell, Direct Mail touch & taste Effectiveness Road Shows measurable Currently,Events/In-signs ATL:BTL ratio in Below the Line Advertising India stands at 55:45Sales Promos Source: India Entertainment and Media Outlook – 2011, PWC, Demand Estimation Model, ATL:BTL study report, Internal Research 4
    • Segment-wise breakup of ATL marketOOH advertising, unlike print and television, is not a mass medium for advertising. It is a niche medium with focus ongeography, audience, type of property, location of property and various other parameters. Market Size Segments (` in billion) Television advertising 101.5 TV 42% Print advertising 113.5 Radio advertising 10.8 BTL ATL Internet advertising 7.7 45% 55% Print 45% OOH advertising 14.0 Above the Line Market Size 247.5 Radio 4% Internet 3% OOH market OOH 6% size - ` 14.0 billion TV and Print Media have 87% share of ATL spends. The share of Out of Home Advertising (OOH) stands at 6% in 2011 Source: India Entertainment and Media Outlook – 2011, PWC, Demand Estimation Model 5
    • Target Market for OOH Advertising - ` 10.6 billion Others Telecom 24% 29% Segment-wise Market Size of OOH as on 2011 Telecom 4.1 E&M BFSI 1.8 10% FMCG 1.8 BFSI Auto 1.5 Auto 13% FMCG E&M 1.4 11% 13% Others 3.4 Total 14.0 Telecom, BFSI, FMCG, Automotive and Entertainment & Media were among the top OOH advertisers for 2011 contributing almost 76% revenue to OOH advertising Industry Real estate is another sector which is not among the biggest advertising sector on OOH but is growing fast Source: India Entertainment and Media Outlook – 2011, PWC, Demand Estimation Model 6
    • OOH advertisement is expected to growth at aCAGR of 10.8% by 2011-2015 Figures in ` billion IndicativeTimeline 2011E 2012F 2013F 2014F 2015F CAGR Telecom 4.1 4.4 4.6 4.9 5.4 7.4% BFSI 1.8 2.1 2.5 3.0 3.5 17.8% FMCG 1.8 2.0 2.2 2.4 2.7 10.1% Auto 1.5 1.7 1.9 2.1 2.4 11.4% E&M 1.4 1.6 1.8 2.1 2.4 13.9% Others 3.4 3.7 4.0 4.4 4.8 9.3% Total 14.0 15.5 17.1 19.9 21.1 10.8% Source: India Entertainment and Media Outlook – 2011, PWC, Demand Estimation Model 7
    • Industry Overview 8
    • Segments and Products in OOH AdvertisingIndustry Large Format Street Furniture Alternative Media Transit AmbientBillboards/Uni-poles Bus Shelters Arenas & Stadiums Buses Lift Branding Wall Displays Urban Furniture Airborne (Blimp) Airports Shopping Mall Building Wraps Gantries Marine Tram branding Multiplex Displays Scrollers Foot Over Bridge Campuses Taxi Display Drop downs Neon Signs Public Utility Outdoor Signages Van branding Counter branding Standees, Floor, 3D & Drop downs Leisure Area branding Rickshaw branding Digital Graphics Tri-visions Metro branding Interactive Kiosks Billboards/Uni-poles advertising is the most common channel of OOH advertising in India Source: Other Research 9
    • Broad Value Chain of Out of Home AdvertisingIndustry Outdoor Media Media Planning Designing Manufacturing Buying & Selling Although not a part of Companies like Bright Designing Companies Manufacturing value chain, Advertising Outdoor Media, etc. designs the layout, Companies provides Agencies plans bids for and buys graphics, etc. for Printing and advertising campaigns advertising rights at advertising campaign Fabrication serviceswhich includes mix of ATL various locations from & BTL campaigns at Government and various locations Private parties and earns rent by lending these spaces to the interested buyersThis segment is highlycompetitive in naturewith large number oforganised players, with Retail Audit Implementationlarge financial muscle,operating in the Companies which ImplementationIndustry. audits the advertising Companies have team campaigns at regular of implementers intervals and also which installs gauge its effectiveness products at various through research location Source: Interview Insights, Insights from Internal members, Other Research 10
    • Target Segment-wise Buying Decisions Media Buying & Selling Design Manufacturing/Installation Retail Audit Segment Decision Key Decision Decision Decision Decision Key Decision Decision Key Decision Key Influencer Making Influencer Maker Making Maker Making Influencer Maker Making Influencer Maker Hub Advertising Hub Circle Hub Hub Advertisin Hub Circle Circle BrandTelecom Marketing Agencies/Inhous Marketing Head VM Brand Hub Level Marketing Level g Agencies Level Level Manager Manager e Creative Team Manager Manager Manager Regional Group Group Advertising Group Marketing Regional Regional Marcom Centraliz Advertsing Centraliz Regional CentralizeBFSI Marcom Agencies/Inhous Marcom Team/Bra Marketing Marketing Head/Region ed Agencies ed Level d Head e Creative Team Head nch Manager Manager al Marketing Managers Manager Head Marketing Advertising Centralize Marketing Marketing Centraliz Advertsing Brand Centraliz Brand Regional VM/Marke Manager/FMCG Agencies/Inhous d/Regiona Manager/Bra Manager/Bra ed Agencies Manager ed Manager Level ting Brand e Creative Team l Level nd Manager nd Manager Manager Manager Advertising Regional Regional Centralize Marketing Centraliz Advertsing Brand Centraliz Brand Regional BrandAuto Agencies/Inhous Marketing Marketing d/Regiona Team/Market ed Agencies Manager ed Manager Level Manager e Creative Team Team Manager l Level ing Manager Advertising Regional Regional Centralize Marketing Centraliz Advertisin Brand Centraliz Brand Regional BrandE&M Agencies/Inhous Marketing Marketing d/Regiona Team/Market ed g Agencies Manager ed Manager Level Manager e Creative Team Team Manager l Level ing Manager Decisions related to Media Buying & Selling and Design are mostly taken at central level, except for Telecom which is taken at Hub level. Advertising Agencies are the key influencers and brand manager is the key decision makers in most of the targeted industry. Advertising agencies generally outsource designing to specialized design house Most of the decisions related to manufacturing and execution are taken at regional with directives related to the brand communications coming from the centre Most of the decision related to related audit are centralized, which regional managers are the key influencers and brand managers are key decision makers Source: Interview Insights, Insights from Internal members, Inputs from Primary Research already conducted, Other Research 11
    • Current Trends in the IndustryDesign Thinking out of the box and creating something memorable that makes a lasting impression for the brand Shocking imagery, content and visuals are used to quickly grab commuter’s attention and intrigue them to act When it comes to the world of outdoor — people are on the move so design considerations revolve around simplicity. Work is showcased by: Using fewer elements, Using larger elements, Creating simple arrangements Keeping the colors fully saturated to create eye-popping designs Use of digital media is on rise as dynamic video and high quality images tell the storyPrinting Printing trends have pointed towards shorter production runs and schedules. On demand and the ability to manage custom kit configurations fit the demand of the customized industry Production now shifts closer to the point of distribution as lower lead time/ontime delivery has become a critical success factorSubstrates Flex and Vinyl are the most common and effective substrates used for static advertising and host of substrates like ACP, Backlit, electronics, LED screens, prisms, metals, etc. are used for digital advertising campaignInks Effective graphics are much more than great design, the use of specialty inks can make any static sign more dynamic. Currently Solvent Inks are used on static billboards and signages for low cost advertising campaign and UV and Eco-Solvent are used for fairly higher cost of advertising campaignSource: Interview Insights, Insights from Internal members, VJ media works, Company’s website, Other Research 12
    • Future TrendsDigital is the future in Outdoor Advertising Digital outdoor advertising medium offers communicators an efficient platform that allows them to more precisely target the audience with their unique message at the most opportune moment. Though digital OOH in India has grown, it is still not on par with other developing countries, as per PWC report the share of digital OOH in India has gone up from approximately 1% to 5% over the last four years. However, this is significantly lower than the global average of approximately 20%. The growth in digital OOH through LEDs has been slow. One of the main reasons is that advertisers are not customizing content for this medium and are instead recycling TV advertisements However, though users are slowly realising the advantages of digital OOH, the medium still needs to be sold. Digital OOH is expected to grow at the rate of 30% to 35% in the next few years as to the Report published by PWC Source: Interview Insights, Insights from Internal members, India Entertainment and Media Outlook – 2011, PWC, Other Research
    • Competitive Mapping 14
    • Competitor’s Presence in Value Chain Outdoor Media Designing Manufacturing Implementation Retail Audit Buying & Selling Type 1 Competitors - Presence across entire spectrum of value chain with selective outsourcing In-House Outsourced In-House TDI International Pvt. Ltd. Jagran Engage Partly In-House Outsourced In-House Outsourced Selvel Advertising Bright Outdoor Media Pvt. Ltd. 15
    • Competitor’s Presence in Value Chain Outdoor Media Designing Manufacturing Implementation Retail Audit Buying & Selling Type 2 Competitors – Owns Media and Provides Designing services only Prakash Arts Pvt. Ltd. Outdoor Media Designing Manufacturing Implementation Retail Audit Buying & Selling Tie-up with In-House professional Market Research Companies Type 3 Competitors – Owns Media, Provides Designing and Retail audit services Laqshya OOH Media Assets and Solutions Times Innovative Media Ltd 16
    • Competitor’s Presence in Value Chain Outdoor Media Designing Manufacturing Implementation Retail Audit Buying & Selling Type 4 Competitors – Pure Media Buying & Selling Companies Out-of-Home Media (India) Pvt. Ltd Times Innovative Media Ltd Outdoor Media Designing Manufacturing Implementation Retail Audit Buying & Selling Type 5 Competitors – Engaged in Media Buying & Selling, Designing and Implementation India Outdoor Advertising Pvt. Ltd. 17
    • Competitor’s Presence in Value Chain Outdoor Media Designing Manufacturing Implementation Retail Audit Buying & Selling Type 6 Competitors – Pure Manufacturing Company Numerous unorganised players providing Printing and Fabrication services 18
    • Competitive Landscape Fragmented Industry – Outdoor Advertising Industry, baring outdoor Media Buying & Selling segment, is highly fragmented and unorganised in nature with large number of players catering to various industries Industry Dependent – Players are Industry dependent and caters to majorly Telecom, BFSI, FMCG, Automotive and Entertainment & Media (E&M) Industry Ease of Entry – There are no entry exit barriers. Large number of unorganised manufacturers caters to the demand of OOH advertising regionally. However, in Media Buying & Selling space, there are large organised players like Bright Outdoor Media Limited (Mumbai), Times OOH (Mumbai & Delhi), OOH Media (Presence in 18 cities), TDI International India Pvt. Ltd, etc. which makes it difficult for new companies to penetrate that segment. Segmental Focus – Few players in Media Buying & Selling Space, although caters to various segments, are focused on specific segments, eg., Bright Outdoor Media are specialized in Bus advertising in Mumbai, TDI International India Pvt. Ltd. are specialized in Airport Advertising, Times OOH Media are specialized in Bus Shelters advertising and so on One Stop Shop Concept – Few players are serving as “One Stop Shop” with selective outsourcing of manufacturing and implementation services Product Specific Presence – Few players like OOH media, deals only in buying and selling OOH TV screens. It has installed over 4500 screen in more than 18 cities Presence across all segments - Times Innovative Media Ltd. (TIML) is a subsidiary of Bennett, Coleman and Co. Ltd (BCCL) has presence in all media segments, i.e. Street Furniture, Transit, Large Formats & Digital Screens Locational Presence – Majority companies have bought advertising rights in premium locations of Metros. However, infrastructure growth in India has opened up many new spaces for OOH advertising including Tier 2 and Tier 3 cities. Few companies like India Outdoor Advertising Pvt. Ltd. provides installation services on Pan-India basis Other Services – Apart from catering Outdoor Advertising Industry, few companies like also deals in other products like Media and Celebrity Management, PR, Location for Shootings, Satellite and Cable TV Advertising, etc. Pure Media Trading – Few players like Out of Home Media Pvt. Ltd., Times Innovative, etc are pure Media traders. These Companies buys media from government or private parties and sells it to the interested buyers. Media Buying & Selling is influenced by various factors such as geography, audience, locations, type of property, etc Source: Company’s websites 19
    • OOH Advertising Industry – Key Takeaways Lack of quality OOH properties - The quality of OOH properties in India is not up to the same standards as in the western countries. In India, most billboards need to be changed manually and cannot be controlled. The west has digital signages which are dynamic and can be adjusted with the ambience. They give more control to the advertisers and help them evolve with the customer need One Stop Shop – The concept of “One Stop Shop” is gaining importance among customers. One Stop Shop means presence across the entire value chain, right from Media Buying & Selling to Designing to Implementation Pain Points of customers – Lack of on-time Implementation and Retail Audit are the main area of pain points to the customers in this Industry Presence in major cities – Outdoor advertising Industry is most popular in Metro cities. However, Infrastructure growth in India has opened up many new spaces for OOH advertising including Tier 2 and Tier 3 cities Decision Making – Decisions regarding OOH advertising largely happens centrally and Brand Manager is a key decision maker. However, in few sectors like Telecom decision regarding OOH advertising at taken at a circle level. Decisions regarding manufacturing are decentralized Digitalization - Digital OOH is the next growth medium for the industry in India. According to PWC analysis, digital OOH is expected to grow at the rate of 30 to 35% in the next few years Substrates, Inks & Product Preference – At an overall level, Flex and Vinyl seems to be the most preferred substrates for manufacturing of OOH advertising products. Billboards advertising is the most common channel of OOH advertising. However, with the increase in digitalization, usage of ACP, Backlite, etc. for manufacturing are expected to increase. Also, Solvent Inks are most commonly used, however with the increasing environmental concerns, many advertisers have started recommending the usage of UV and Eco-Solvent Inks in static advertising mediums. Source: Interview Insights, Insights from Internal members, Company’s website, India Entertainment and Media Outlook – 2011, PWC 20
    • Key Operating Strategies 21
    • Critical Success Factors Ability to fulfill “Order Ability to attract andOn-time today deliver maintain wide range of SkillsDelivery tomorrow” type of skill sets through orders on time effective HR policies Ability to provide latest Quality at Value engineering – Tech- technological support optimum Modular costing andsupport to clients for retail audit Price Pricing system Ability to influence Presence in entireSolutions advertising agencies at spectrum of value chain Services concept level and ability to provide customize service Ability to Manage outsourced capacities Media Ability to identify and Sites at different locations Buying & bid for the right and define right mix Selling locations and right price Appropriate organizational structure Having partnershipStructure model with one meeting dynamic Strategy customer needs “Anchor Client” for sustainabilitySource: Internal Analysis 22
    • Strategic Theme – Market Positioning Innovate Designs and One stop Shop Solutions Pan India Presence for Shorter lead effective time installation 23
    • Sales Org Structure Option Evaluation Parameter Industry Based Size Based Region BasedEase in Target Setting &Tracking   Client Serviceability   Customer Knowledge   Target Market Alignment   Number of People Required   Critical Mass in Each Sub-Segment    The Company should structure its sales organisation as per industry segments thereby giving a proper focus in targeting the shortlisted industries. Also, there should be regional industry sales team in order to have close contact with the customers for repeat business  Good  OK  BadSource: Internal Analysis 24
    • Build Market Intelligence Building up to date market intelligence will enable the Company to capture big clients and larger share of business Pre Sales Customer Intelligence Pre Sales Market Intelligence • Organisation and brand structure of the target client • Identification of new players / brands in the segment • Contact database of buyer, decision marker and • Research on trends and seasonality in OOH advertising influencer spending in the segment • Detailed pre-sales brief on the brand covering • Benchmarking of OOH advertising spend of the players in the segment • Brand sales, key challenges faced, current OOH Enter advertising supplier, recent OOH advertising • Successful case studies activities, etc. Market Intelligence Post Sales Customer Intelligence Post Sales Market Intelligence • Movement of key personnel • Creation of industry specific news letter • Recent / upcoming events in the company / brand Penetrate • Updates on introduction of new products / technology impacting OOH advertising purchases / designs at global level • Entry of competition • New best practices • Any challenges / issues faced by the company • Key challenges / issues facing the market • Change in market position of the company 25
    • Build Strong Brand Branding Strategy Website Public Relations Promotional Activities  Website must be easily accessible  Build a database of media houses and  Participate in Exhibitions to showcase their Point of contact and keep them our range of offerings  Website must clearly define the updated Company’s Products and Services  Sponsor Exhibitions and have road  Build a relationship with Editors and shows  Website must be interactive rather Producers of Print and Television than a information provider (e.g. Chat media  Have regular Vendor Management programme to connect with our staff) meets  Should have the bandwidth of a PR  Must have an online Vendor and Client company to carry out promotional  Have Advertising agencies/ Brand portal activities Managers/Marketing Managers meets to make them aware of new  Must have some blogs  Must keep the website updated developments in our Core regularly competencies  Comments regarding the Website in blogs across the Internet space must  Invite our clients to our offices and  Send regular feeders on the Ongoing be monitored and acted upon factories developments in our Service offerings to Influencers and Key decision makers 26
    • Following Details are pending due to lack of time A Detailed Competitors profiling is required covering Products and Services Offered, Segmental Presence, Client Base and Locational Presence. Regulations related to Outdoor Advertising like Tobacco billboard ads are not allowed, etc. Information on Pricing through primary research 27
    • THANK YOU 28