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‘Premedia’ is a term that has become commonplace over the past decade across the media & graphic communications industries such as packaging graphics, publishing & marcoms. ...

‘Premedia’ is a term that has become commonplace over the past decade across the media & graphic communications industries such as packaging graphics, publishing & marcoms.
This presentation specifically focuses on opportunities for PRINT premedia services in the brand communications (packaging, advertising & marcoms) verticals.

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Img premedia globalization_theindiaopportunity Img premedia globalization_theindiaopportunity Presentation Transcript

  • Premedia Services Globalization The India Opportunity DJ Balodi, Nov 2011PROPRIETARY: INTERMEDIA GLOBAL. 2011 PARTNER
  • Context & Scope ‘Premedia’ is a term that has become commonplace over the past decade across the media & graphic communications industries such as packaging graphics, publishing & marcoms. This presentation specifically focuses on opportunities for PRINT premedia services in the brand communications (packaging, advertising & marcoms) verticals. Related industry terms Type of businesses offering premedia services • Production Agency • Prepress tradeshops & service bureaus • Graphics Production • Design studios • Media Production • Ad agencies • •PROPRIETARY: INTERMEDIA GLOBAL. 2011 Brand Production Print service providers • Digital Prepress • Specialist knowledge process outsourcing • Cross-media Production (KPO) firms.
  • Premedia Services Defined BRAND BRANDING PREMEDIA/ PRODUCTION PRINTER/ PRODUCT DESIGN RETAIL/ OWNER AGENCY PRODUCTION PREPRESS CONVERTER AGENCY PRINT MEDIA AGENCY Takes Takes marketing Translates Converts print- Manufactures marketing briefs and brand design ready electronic the printed briefs and translates to to consistent, artworks to product translates to visual branding/ error-free printing plates & (packaging, physical form graphics. execution cylinders. POS materials of products across all media etc.) (Package/ forms. POS) CORE SKILLS: CORE SKILLS: CORE SKILLS: CORE SKILLS: CORE SKILLS: • Conceptual • Brand • Design & • Reprographics • PrintingPROPRIETARY: INTERMEDIA GLOBAL. 2011 design communications artwork • Color Mgmt. • Finishing & • Consumer • Graphic design adaptation • Proofing post- research • Media planning • Reprographics • Plate/ Cylinder production • CAD/CAM • Campaign • Color Mgmt. making • Logistics & • Materials execution • Project Mgmt. Inventory Science • Brand • Digital asset/ Mgmt. guardianship workflow Mgmt. • Print Mgmt.
  • Premedia Market Realities Global Brand Owners Global Premedia Service Providers • Expect their service providers to • Margin pressures, high labour costs + leverage globalization to drive down cost-reduction/ time-to-market costs, increase service levels, widen expectations of brand owners geographic coverage • Clients expect global service capabilities • Need the same quality of service in including in emerging markets India as they get in developed • Growth opportunities in Europe/ N.A markets now very limited – market saturation • Pressure on go-to-market timelines • India emerging as a highly attractive force localized fulfillment of future market – retail growth and strong production consumer demandPROPRIETARY: INTERMEDIA GLOBAL. 2011 • India is a significant print market • Setting up global delivery centers out of especially for packaging India a proven strategy now in the graphic arts industry
  • The India Opportunity GREATER MUMBAI: DELHI (NCR): India’s commercial capital National Capital Region Population: 16 mln Population: 18 mln Largest commercial hub. Headquarters to Second largest commercial hub after several large Indian & MNC companies. Mumbai. Headquarters to several large Advertising & print industry hub Indian & MNC companies. Gurgaon & Noida major BPO hubs DELHI (NCR) GURGAON/ NOIDA INDIA AS A LOW-COST INDIA AS A PREMEDIA HUB GROWING MARKET FOR GLOBAL FOR PREMEDIA NEEDS SERVICES MUMBAI PUNE HYDERABAD: PUNE: HYDERABAD Major IT/BPO hub Population: 8 mlnPROPRIETARY: INTERMEDIA GLOBAL. 2011 2nd largest city in west India. 160 Kms from Mumbai Home to major print companies Population: 7 mln BANGALORE Major IT/ BPO hub CHENNAI CHENNAI: India’s financial back office BANGALORE: Population: 8 mln India’s Silicon Valley. Automotive, software & Population: 8 mln BPO hub. Emerged as a Automotive, software & BPO major publishing BPO hub. Home to India’s biggest centre last 2 decades. IT companies
  • INDIA: THE GLOBAL DELIVERY HUB FOR PREMEDIA SERVICESPROPRIETARY: INTERMEDIA GLOBAL. 2011
  • India: The Destination of Choice India has natural and multiple advantages over countries like China or other Asian or Latin American countries that are emerging as outsourcing hubs. In the recent past, India Inc has been able to establish its brand in the international market. Its extraordinary quality of human resource and domain knowledge clearly puts it in an advantageous position.PROPRIETARY: INTERMEDIA GLOBAL. 2011 Bruce Chizen President & CEO Adobe Systems Inc, USA
  • India: The Global Services Leader FINANCIAL ATTRACTIVENESS • Compensation costs • Infrastructure costs • Tax & Regulatory costs PEOPLE SKILLS & AVAILABILITY • Remote services sector experience & quality rating • Labour force availability • Education & Language • Attrition riskPROPRIETARY: INTERMEDIA GLOBAL. 2011 BUSINESS ENVIRONMENT • Politico-economic environment • Infrastructure quality • Cultural exposure Source: A.T.Kearney Global Services Location Index, 2011
  • India: Advantages LOW LABOUR COSTS LANGUAGE SKILLS • Artworker with skills on Adobe, India’s education system ESKO platforms is typically bi-lingual with • 8-10 years in packaging/ English as the primary commercial prepress TIME ZONE DIFFERENCE medium of education. Urban Indians grow up USA: US$ 28,000 – 40,000 p.a India’s geographic location puts it speaking their local UK: US$ 32,000 – 48,000 p.a right in the heart of a East-West language as well as timezone divide. A regular 10 a.m English. The Times of Europe: US$ 32,000 – 48,000 p.a – 6 p.m work shift in India is the India is the world’s India: US$ 8,000 – 12,000 p.a equivalent of an additional 4-5 largest circulated English hours work time for Europe/ UK & daily newspaper. ANZ and a full shift for America… MNC BRAND PRESENCE 10.00 am in India is: MATURE BPO / KPOPROPRIETARY: INTERMEDIA GLOBAL. 2011 Consumer Goods: Unilever, INDUSTRY 3.30 p.m in Sydney P&G, Reckitt Benckiser, Kellogs, Kraft, Coca Cola, Pepsico… 4.30 am in London From market research & Pharma: Pfizer, Merck, Glaxo 5.30 am in Berlin analytics to engineering Smithkline, J&J. design, IT support, Retail: M&S, Walmart, Tesco, 1.30 a.m in New York, Toronto software services, legal, Carrefour, Metro, Kenneth Cole. 10.30 p.m in Los Angeles (prev. day) accounting & publishing…
  • Outsourceable Premedia Services Hi Artwork MECHANICAL/ RULES-BASED WORK Repro/ File Production (Collaboration Not Necessary) Preparation Artwork Adaptation Ideal for Design Adaptation Image Offshore 3D Retouching Visualization Production Packaging/ StructuralPROPRIETARY: INTERMEDIA GLOBAL. 2011 Design Graphic Design Lo Lo LABOUR COSTS DEPLOYMENT Hi (High-volume Labour Deployment)
  • Premedia Globalization: First MoversPROPRIETARY: INTERMEDIA GLOBAL. 2011 Source: Intermedia Global research, updated Nov, 2011 This list is representative. We believe between 50-60 other small, medium & large premedia & graphic services players from Europe, America & ANZ currently outsource with multiple Indian suppliers across commercial publishing & packaging premedia.
  • Lenovo’s Global Marketing Hub Lenovo zeroed in on India for its global marketing hub for many reasons: India is among Lenovos fastest growing markets, offers a cost advantage and has a large pool of marketing talent. India was the first market outside of China where Lenovo introduced its consumer products in March 2006. (Lenovo entered the global consumer space later in 2008.) hub in Bangalore. The hub, which currently has It was not just its own around 40 members, began Both Lenovos global with baby steps. The marketing communications marketing hub and the Ogilvy and services teams that translation and production team in Bangalore have work that were happening in Lenovo grouped in onePROPRIETARY: INTERMEDIA GLOBAL. 2011 executives dedicated to the different regions of the world location. At that time, Lenovo various geographies in which worked with advertising moved to Bangalore as did Lenovo operates. These some aspects of creative agency Ogilvy & Mather in 25 executives work closely with different locations across the development. each other and with the world. In a parallel move, Lenovo teams to fulfil their Lenovo convinced Ogilvy to specific requirements, taking Source: Excerpted from an article by centralize all its operations for into account geographical and Knowledge@Wharton, June 2010 Lenovo and locate its own local cultural sensibilities.
  • PROPRIETARY: INTERMEDIA GLOBAL. 2011 INDIA: THE NEXT BIG MARKET
  • India The Market: A Snapshot The 11th largest world economy in 2010 • Real GDP : ~ $1.5 trillion. • GDP (PPP) : $4 trillion. (5th largest) • GDP Growth Rate (last 5 years) : ~6 - 8.5% p.a • Workforce labour : ~ 500 million (2nd largest) • Middle class consumer base : 300 mln by 2015 (~ the US population) • Exports : $210 billion (17th largest)PROPRIETARY: INTERMEDIA GLOBAL. 2011 • Imports : $327 billion (11th largest) • Mobile phone penetration : 700 million users (2nd largest) Source: IBEF US $ = ~ 49 | GBP = ~ 75 | Euro = ~ 68.5 | AUD = ~ 52 | CAD = ~ 49
  • Global Brand Owners Believe… The Indian market is at We will be investing one of our the cusp of a revolution We cannot biggest amounts in the Indian in packaged beverages. remain a market this year and a part of As a general rule, we expect India to outgrow global industry the investment will be used for the world average; leader without developing new products and outgrow Eurasia and technologies. the Africa group... a strong Stefano Pelle Ahmet C Bozer presence in MD, Perfetti Van Melle President, Eurasia and Africa, Coca-Cola India. India is a long-term Karl Slym investment for us and India has a huge Head, GM India we are keen on buildingPROPRIETARY: INTERMEDIA GLOBAL. 2011 opportunity to the supply chain. We are very optimistic become a food basket Herve Clech about India as a brand for the world. Managing Director Scott Price destination. Carrefour WC&C India President and CEO Martin Jones Wal-Mart Asia CEO, Marks & Spencer Reliance India Source: IBEF
  • International Brand Gurus Say… Compared to China, Whats struck me is the India is an energy and restless interesting India has a much ambition in India. You can combination - stronger and self- actually, tangibly feel sufficient skill base... world class talent the drive... India is truly the Peter Knapp that can speak powerhouse of the Executive Creative Director, English and a Landor Associates future. strong Michael Maedel Here in India and technological President, JWT Worldwide expertise. Asia the evolution Tony Wright Chairman, Lowe Worldwide has reachedPROPRIETARY: INTERMEDIA GLOBAL. 2011 India has a fantastic future in terms of the revolution. In a communications industry. John Hegarty good sense. Chairman & Worldwide Creative John Dooner Director, BBH Chairman & CEO, McCann Worldgroup Source: IBEF
  • Leading Business Analysts Think… If you put one dollar in The dynamism Asia should not be the US, you may get two shown by India in the painted with one dollars in three years. But last 15 years is brush; India has if you put the same dollar phenomenal. Paul Wolfowitz separated itself from in India, there is a high President , World Bank the pack; it is not chance of getting three dollars. unduly dependent on Wayne W Tosu external demand, and Managing Director, Carlyle Group India is now it has an increasingly Indias highly educated truly a land of powerful IT-enabled, services-led growth workforce, management opportunity.PROPRIETARY: INTERMEDIA GLOBAL. 2011 talent, rule of law, John Redwood dynamic. transparency, cultural affinity Economic Competitiveness Stephen Roach Policy Group, UK Chief Global Economist & and regulator environment are Managing Director more favourable than Chinas. Morgan Stanley A T Kearney FDI index report Source: IBEF
  • Global Political Leaders Feel… America cannot ignore the fact that the centre India is not Indias unprecedented of gravity is moving eastwards to Asia, away simply emerging: economic growth over the past from Europe and North India has already decade makes it an America, and India will be attractive prospect the motor force in emerged. for companies globalisation. Barack Obama seeking new Frank G Wisner President, US Former US Ambassador to India markets for their and Vice President products and American International Group The courageous reforms have services...PROPRIETARY: INTERMEDIA GLOBAL. 2011 External Affairs led to enormous economic Bertie Ahern growth in India. With a growth Prime Minister, Ireland rate of over eight percent, India ranks at the top even in this very difficult period globally. Gerhard Schroeder Chancellor, Germany Source: IBEF
  • The Rise of Indian Retail By 2015: • India is set to be a US$ 450 bln retail market. In 2008, Italy was at US$ 462 bln and Brazil at US$ 258 ORGANIZED RETAIL • Organized retail in India to be SEGMENTS, 14-18% of total retail (5% of INDIAPROPRIETARY: INTERMEDIA GLOBAL. 2011 market in 2008) • Indian retail will cater to 300 mln shoppers – about the size of US’ population. Source: McKinsey & Co., The Great Indian Bazaar, 2008 Source: Dun & Bradstreet
  • Global Retailers & India On November 23rd 2011, the Government of India in a landmark decision allowed new norms for FDI in the retail sector: 51% FDI allowed in multi-brand retail & 100% in single-brand retail (up from 51%) MAJOR GLOBAL RETAILERS WITH INDIA PLANS: MULTI-BRAND SINGLE-BRAND Wal Mart – Currently in India with a 50:50 JV M&S – 51:49 JV with Reliance Retail with Bharti Enterprises Giorgio Armani – 51:49 JV with DLF Group Carrefour – Likely to tie up with Future Group Tommy Hilfiger – JV with Arvind Brands Tesco – JV with Tata Group since 2008. Versace – Licensed reseller arrangement with Metro AG – Currently in India with a 50:50 JV Blues ClothingPROPRIETARY: INTERMEDIA GLOBAL. 2011 with Bharti Enterprises Zara – JV with Tata Group Auchan – plans not known Mothercare – JV with DLF Group Target – plans not known IKEA/ H&M/ GAP – plans for a 100% subsidiary Best Buy – plans not known Ahold – plans not known Source: Dun & Bradstreet
  • PROPRIETARY: INTERMEDIA GLOBAL. 2011 IMPLEMENTING YOUR INDIA STRATEGY
  • Your India Strategy Options Establish presence Strategic WHOLLY-OWNED in emerging Indian SUBSIDIARY Company control JV – B.O.T market is transferred to MODEL you in a phased, pre-agreed time Develop a global INTENT BEHIND INDIA STRATEGY 3rd PARTY Your ownership/ plan B.O.T Turnkey managed by services capability vendor/ Operations transferred to you over JV MODEL Long-term strategic pre-agreed time plan relationship/ Dedicated Resourcing/ Dedicated Be price competitive Company (co-branded)/ on global projects Equity participation LONG-TERM CONTRACTUAL Dedicated staff/ Acct. Mgmt/ Manage peak- Space/ Assured work volumes VENDOR RELATIONSHIP load/ production Option: Dedicated companyPROPRIETARY: INTERMEDIA GLOBAL. 2011 overflow (no Equity participation) Reduce current CLIENT-SUPPLIER PRICING On-demand resources typically Tactical AGREEMENT BASED RELATIONSHIP project based operating costs Immediate Long-term TIMELINE Vendor-sourced path Self-ownership path
  • How We Can Help - Build-Operate-Transfer (BOT) captive operations - Your ownership, your investments, our management expertise. - Intermedia Global (IMG) takes turnkey responsibility to set-up facility, hire resources, transition processes, operate the studio and manage delivery of services on your behalf. - Over a pre-agreed timeline, IMG hands over operations to your team and exits/ continues to provide advisory services. - Manage vendor-sourced operations - IMG helps you identify right vendor, ensure allocation of right M&A AND STRATEGIC resources, manage process migration (project management) and ADVISORY SERVICES PARTNER provides on-going management oversight as your India representatives.PROPRIETARY: INTERMEDIA GLOBAL. 2011 - JV partner/ acquisition services - Custom projects
  • Intermedia Global Credentials • Marketing and management consulting firm with strong roots in the graphic arts, ITeS/KPO, publishing and brand communications industries. • Over 20+ man years of our unique professional and managerial experience in setting up and running successful premedia KPO businesses & large-scale outsourcing projects across: – Packaging Premedia – Marketing Communications – Publishing Prepress Services PARTNER – ePublishing/ Cross-media Production • Strong relationships with top-of-the-line Indian print, premedia, publishing & graphic communications companiesPROPRIETARY: INTERMEDIA GLOBAL. 2011 • Satisfied global customers • Access to specialist skills and expertise across production, technology, industry knowledge within India and overseas.
  • Client Engagements (Representative) Top UK packaging premedia Strategic partner of imaging & company (Clients include Pepsico, digital print MNC Cadbury, M&S) looking for India supplier for offshore artwork production. IMG services: Strategy/ design & development of new services in IMG services: Vendor/ partner partnership with large IT company/ identification & evaluation Business model/ Go-to-market/ Business Offshore strategy development development German premedia consortium Leading Indian commercial prepress (Clients include Nestle, Suzuki Motors) provider (Looking to transform into premedia KPO services provider)PROPRIETARY: INTERMEDIA GLOBAL. 2011 IMG services: Vendor/ partner identification & evaluation IMG services: Strategy/ business design Capability development/ marketing & operations excellence/ KPO culture
  • Clientspeak “Intermedia Global did great work for us in first giving us a very detailed and precise analysis of the Indian advertising, marketing and media production industry. And they showed deep understanding of the prepress and print industry again in providing and managing relationships to great potential partners for our company. The companies all fitted our needs perfectly!“ Managing Partner & Director of a leading German premedia (packaging, commercial, design) services group. “Intermedia Global has been an outstanding business partner, exceptionally goal oriented and a thorough professional. On a project we worked on together, Intermedia Global demonstrated exceptional business acumen, solution and customerPROPRIETARY: INTERMEDIA GLOBAL. 2011 management skills. They have gone out of the way to set up a new line of business and delivered services with a third party. A very committed and dedicated professional team that brings high energy and enthusiasm.” General Manager & Practice Lead, Media & Entertainment, Top 5 IT services firm.
  • Clientspeak “I have worked with Intermedia Global on market and business development projects where their strong skills in strategic planning and tactical execution were critical. I have found them to be professional and honest in all our dealings and would recommend Intermedia Global for any marketing or market development role.” Leading Packaging Industry Consultant based in New York area. “I had the distinct pleasure of working with Intermedia Global while leading a global packaging initiative. Their team provided tremendous support and professional service, while partnering on the initiative. As a thought leader within the globalPROPRIETARY: INTERMEDIA GLOBAL. 2011 outsourcing of premedia solutions, Intermedia Global is knowledgeable, proactive and has the experience to deliver success. I highly recommend Intermedia Global.” Program Manager/ Sr. Consultant at a Top 3 global branding agency.
  • Author Profile DJ is Founder & Managing Partner at Intermedia Global – a strategic marketing and premedia KPO consultancy and an Esko Artwork consulting partner. Over a 19 year career, DJ has successfully built and managed premedia offshoring businesses, led e-Commerce & IT services initiatives at a Top 5 IT services company, launched and edited a popular German magazine in the Indian market and designed and developed a collaborative publishing workflow software. DJ is currently involved in a consulting role with Eastman Kodak for a global strategic initiative involving the development & market rollout of a new managed services business. He has been consulting for premedia and marketing services businesses across Europe & America interested in the India opportunity. Earlier, DJ was Managing Partner in a joint venture with a leading commercial prepress company where he successfully led the business’PROPRIETARY: INTERMEDIA GLOBAL. 2011 transition into a global premedia outsourcing supplier in the packaging & commercial premedia services market. In October 2008, DJ was invited to be panelist at the US FTAA’s (Flexographic Technical Trade Association) annual conference to speak on trends in premedia offshoring. DJ can be reached on email at dj@intermediaglobal.com or on cell phone at +91 98923 23661.