Changing Its Stripes

Panthera Tigris. There are only 5000 of this species in the world. But if one particular advertising agency has its way, there would be one more added to this list. Thats the Rs 207 crore Rediffusion-DY&R Brand Communications, sporting the dynamic tiger icon.

Last fortnights restructuring of the companys logo, from the hypnotic, concentric circles to the rather ferocious looking tiger, is more than just symbolic. Led by its international partner, Dentsu Young & Rubicam (DY&R), there will be a complete overhaul of Rediffusions corporate identity. More importantly, it will kick off the evolution of a once hotshop creative outfit to a multi-functional global agency covering the entire gamut of brand communication.

 

Says ex-Leverite and founder chairman and managing director of Rediffusion, Diwan Arun Nanda, With this, we want to be a global agency, at par with any agency across the world, anywhere.

Adds Ashoke Bijapurkar, group president, The tiger stands for two things: what we want to be as an organisation and, what it will bring to bear on the business. In a way, it is an anachronism for what Rediffusion once represented -- a passionately creative agency. Today, it wants to go beyond just creating good advertising. It wants to build brands. In other words, Rediffusion wants to be a one-stop shop catering to all the communication requirements of clients. So in keeping with DY&Rs plans for the Asian business, Rediffusion will have on offer an integrated package which includes direct marketing, design consultancy, public relations and healthcare communications.

The restructuring comes at a time when Rediffusion completes 25 years in July in the Rs 5,000 crore Indian advertising industry. A closely held agency until the early nineties, Rediffusion was set up in 1973 by Nanda, Ajit Balakrishnan and Mohammed Khan (the present chairman of Enterprise-Nexus). It was formed when MCM, one of Indias most dynamic agencies set up by Kersy Katrak downed shutters. Along with Clarion, it made political advertising a high profile, creative activity. It was also the first Indian agency to recruit management trainees, Rediffusion was a major draw on campuses for years.

Today, some of its by-products include creative agencies like Enterprise-Nexus and Ambience. They were followed by plum accounts like Lakme, Garden-Vareli and the erstwhile Parle Gold Spot handled by Rediffusion. What was soon evident was the fact that an agency which was once considered a powerhouse of advertising talent was unable to retain people for long. Says Rajeev Agarwal, a Rediffusion alumni and the presently managing director of Enterprise-Nexus, These were the guys who showed many of us the way. When we left, many expected our agency to be called Bediffusion.

Again, if Rediffusion was the most happening place in the eighties, industry sources claim that in recent years, it was slow in detecting notable trends in the adworld. Like when other large and medium-sized agencies were diversifying into allied fields like public relations, media buying and planning, Rediffusion continued to focus on mainstream advertising. Somewhere along the way, due to its small size, Rediffusion had lost its fire, reveals an old timer.

To be fair, one reason could be Rediffusions very own client roster. With a host of multinational clients including Colgate Palmolive, Rediffusions creative was restricted to local interpretations of global campaigns. As a creative boutique, the agency was picking up business from clients who had small budgets but were willing to take large risks in their communication.

Gradually, with increasing competition, the client profile was changing. They had larger budgets and breakthrough creativity was no longer the only criterion. As they grew big, clients wanted much more than advertising. They wanted a one-stop shop to service their communication needs. And the old Rediffusion profile of a creative retailer was no longer relevant. The agency had to keep pace with changing client needs.

Says Nanda, The transformation from a creative boutique to a solid multi-function agency is not easy, it requires a change in mindset. Adds Bijapurkar, It was a period of transition. We were in the process of setting up systems and business practices for full-service offices across the country. For instance, Rediffusions Mumbai headquarters was the creative hub for the four branches. Besides, when agencies were making aggressive client pitches, Rediffusion had to empower managers to lessen response time.

In the last couple of years, Rediffusion has been more than active. In 1995, it solemnised its 10-year affiliation with Dentsu and Young & Rubicam to form Rediffusion-DY&R. Both Dentsu of Japan (the worlds largest agency with billings of $15 billion) and the American Young & Rubicam (the worlds largest integrated agency with $12 billion billings) picked up 20 per cent equity each in Rediffusion.

Moreover, at a time when the advertising industry is reeling under an economic downturn, Rediffusion has bucked the trend with a 42 per cent growth in calendar 1997. The surge in billings has come from two channels. Existing clients like Colgate, Eveready, Airtel, Maruti and The Taj Group of Hotels have upped spends. Today, Rediffusion has over 45 people who work exclusively on Colgate, its largest account. And it is virtually a part of the marketing group at Eveready.

Secondly, thanks to its foreign affiliation, Rediffusion has picked up new business from Citibank, Canon and Fuji. Says Nanda, During this period, we have participated strongly and aggressively in the maximum number of pitches ever.

It also embarked on a global head hunting exercise. Today, the agency has hired two creative directors from Australia and a client services director from New York exclusively for The Taj account. No, they were not borrowed from the DY&R network. In fact, Rediffusion became the first Indian agency to advertise for personnel in established global advertising magazines like Campaign, Advertising Age and A&M, Hong Kong.

In June 1998, the proprietary Brand Asset Valuator which covers 1,427 brands will debut in India. The study which includes global, local and regional brands will put forth the Indian consumers point of view on the brands. These will be based on differentiation, relevance, esteem and well-known. Says Nanda, The BAV which is exclusively for our clients will also help us when we pitch for new accounts.

It is even more relevant now, as Nanda has been inducted on the board of DY&R. This a tribute perhaps to the fact that the Indian arm contributes 15 per cent of the networks Asia-Pacific billings, the second largest after Japan.

In 1996, Rediffusion diversified into the media business. Apart from being an online magazine, Rediff On the Net also designs websites. Says Ajit Balakrishnan, managing director of the agency and the brain behind the online debut, Capitalise our billings and you will see we are bigger than agencies like Sistas and MAA Bozell. With current billings of Rs 6.5 crore, Balakrishnan expects this division to contribute 50 per cent to Rediffusions bottomline in eight years.

Another division will be action marketing. A group stable firm, Wunderman Cato Johnson, specialising in activities like direct marketing and sales promotion, will soon look for business here. Also on the anvil is a division specialising in events and exhibitions.

All these functions ranging from advertising to design will be looked after by Bijapurkar. The agency is also investing in training and managers are being sent overseas on a train the trainer programme.

All these aggressive steps are more in sync with the new corporate logo. In the next couple of years, Nanda wants Rediffusion to be one of the top five agencies in India. As he puts it, In the future there will be only two types of agencies -- the big ones and the creative boutiques. To be able to deliver and to retain the best talent, you need to be up there.