Iqbal singh
Advertising

This is the Star TV Network... Part II

The second part of this article explores how Star is deploying its newly-formed teams to rebuild ‘relationships’ with its clients

Some apprehensions remained though. "If you are heading a channel one day and the next you are told to function as a regional head, be it for x number of channels, how would you view it?" asks the sales and marketing head of a general-entertainment channel. "This isn't like a regional head of Asia or something, but just India." The head of one Star channel, it is learnt, suffered from such a hangover. So Star pulled a smart one - open new functions. Thus the three new departments. At the same time, they serve an equally important purpose in Star's growth plan and also position the network as a pioneer in this direction. Each of the three functions is not new to channels in India, but it is not known if anyone has gone ahead and formalised them.

Nayak does hint at that. "We knew that we had the best sales team and there are people we do not want to lose," he explains. "So we have taken our best people to create new departments." He also adds that inventory management and cost-control is perhaps the "first such attempt in Indian television". On the business side, all three connect very well with the advertiser in mind. CRM, under Vijay Koshy, is expected to evolve as a support service. It will assist in sales' media plans, customer-care, monitoring sales deals on a continuous basis, providing information on client spends, percentage spends on channels, competitive tracking, and acting as sales' link to programming, marketing and distribution for all innovations and other needs of the team.

Inventory-management and cost control, under Amrit Rai, is again a step toward reducing customer dissatisfaction by managing the equation between spot-booking and actual airing. "Typically, there are cases where channels overbook and then have to drop spots," explains Nayak. "It is very unfair to a client." He adds that Star has also faced such problems but as it grows, it cannot afford to. So Rai's job would be to manage inventory in a way that allows Star to have a better look at pricing, fill up last-minute inventory and monitor net yield on programmes.

This is what Nayak sees helping his team as it sets out, from now on, with a new sales package - ‘seven ways to hit your target', as Star has titled its new rate card. Programmes have been divided into seven categories based on three parameters: performance, time band, and the cost of production. Rates of categories vary for each channel. Advertisers can still buy single channels, but there are appetising incentives in spreading your monies beyond Star Plus. A 30-second spot on any of the top-rated Star Sweepstakes category of programmes on Star Plus comes for Rs 1,008,000. Buy the same spot on Star Plus and two more channels and you pay Rs 912,000. Take the entire network and you pay Rs 960,000. Which would you choose? He is backing it up with a set of statistics sent to advertisers and agencies recently conveying the strengths of the Star Network ("share is 1.5 times that of Sony plus Zee in primetime"), and its cover of C&S homes sans Star Plus.

There is a danger though, in all network selling that bears a semblance to Times' Mastermind launched in the early 1990s. (Zee launched one a month or two back). It can backfire badly on weaker channels that tend to be discounted each time. Nayak's argument is that it is only a means of encouraging extensive sampling of channels besides Star Plus. Once the advertiser tastes blood, it will be his team's job, along with CRM, to lock-in the client. "I always tell my team, we are in the repeat-order business," Nayak sums up his approach. "We see this as the time when we can build relationships."

And that's not all. Advertisers have some more money tucked away for events and similar televised occasions. Sailesh Bijlani and his team of Live Events and Specials will tap into these monies. The benefit here is that the premium on event spots can go as high as 50 per cent, if marketed well, says Nayak. A separate team gives events its due importance. His team is already preparing for the Lakme India Fashion Week, coming up on Star World and CHannel [V] between August 6-12, 2001. The promos and other broadcasts though, will consume two and a half months, thus justifying the premium on sponsorships. With a special focus on events, Nayak hopes to see 10 per cent of his business coming from the sector this year.

So what does Nayak make of his new role? "My own revenue target has increased five to six times," he replies. "And I always had this complaint before that I never had the engine," he muses. "Now I have the engine and the bogies."

© 2001 agencyfaqs!

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