Indian joint venture partner of Dentsu, today announced its foray into the emerging new media opportunity, popularly called the "mall or retail radio" business. Mogae will partner with MCM (Music Content Management) of the US in a 50:50 joint venture for the purpose. MCM is a global leader in audio solutions and music management at malls, retail outlets and other high volume areas.
MCM's global clients include Marks & Spencer, Ikea, Coca-Cola, Toys 'R' Us, Estee Lauder and Volvo. MCM is headquartered in Los Angeles and has a presence in major global markets such as the US, the UK, South Africa, Australia and Dubai.
So, what is mall or retail radio? Simply put, the audio that plays in public areas with large audiences, such as shopping malls, retail outlets and hotels, is referred to as mall or retail radio. This audio channel carries customised music, advertisements for retailers in malls, and also promotes events and mall specials, which is an internationally tested sales booster for products on sale/ price-offs/ discounts/ mark-downs.
Mogae is the investment vehicle of Sandeep and Tanya Goyal, who own 26 per cent equity in the Dentsu joint ventures in India. "Mogae-MCM will be a pioneer leader in its space," says Tanya Goyal. "The retail boom in India offers this product a unique opportunity to catalyse sales at the last mile. MCM are a very experienced and well reputed global partner. We are privileged to work with them in India."
Larry Gresham, chief executive officer, MCM, who is currently visiting India, is very excited by the India opportunity. "We have more than 1,000 installations globally. Each opportunity is unique and different. But consumer behaviour, irrespective of geography, does not change. Our experience shows us that last minute prompting, shelf proximity messages and meaningful audio alerts work wonders for retailers."
Mogae-MCM has already started test installations at various retail chains and malls in Mumbai and Delhi. The mall radio product is targeted to be commercially launched in the next six weeks.