Business strategy presentation on mudra communication

Vikash Kumar vermaVijay bala chandran

Vision We want to be the leading marketing communication group in the country by 2020.

Madhukar KamathGroup CEO & MD, Mudra Group

In the days of Doordarshan, newly-available color TVs religiously played a handful of tele-serials and entertainment programs that were intermittently interrupted by advertisements. Not many can forget ‘I love you Rasna’, Dhara, Dhara, Shudh Dhara and Only Vimal. These home-grown brands became household names, thanks to the Mudra Group.

Mudra also brought international brands like McDonalds and Samsung to India. In no time, Mudra rose to join the ranks of the top five companies in the advertising industry. Brand Mudra quickly became a force to reckon with.

Milestone25th March - A G Krishnamurthy founded Mudra Mudra Ahmadabad was born with 15 employees, 500 sq.ft space, Rs 40,000 . 25th March is still celebrated across all Mudra offices as Mudra Day.

Vimal as its first client. This is the brand that launched Mudra on its tryst with destiny. What began with sarees, moved towards suiting's, shirting's and dress materials.

Rasna launched a soft drink concentrate with a range of nine flavours on a platform that offered both taste and economy. In 1986, Rasna became India's largest selling soft drink concentrate.

Handled the Reliance Cup, which was the 1987 Cricket World Cup. Mudra's relationship with Paras Pharmaceuticals began this year, going on to build brands like Moov, Itch guard, Dermicool, Livon and Recova.

Mudra spread its wings - Delhi, Bangalore, Chennai and Hyderabad operations commenced. In 1990, Nestle walked in as the first MNC client. In 1990, Mudra signed a collaboration agreement with DDB Needham Worldwide.

MICA is the first residential academic institution in the Asia-Pacific region, dedicated to meet the needs of the integrated Marketing Communications industry. Since it inception, MICA has produced nearly 1000 professionals in the field of advertising, communications & marketing and is the country's best communications school.

McDonald's has taken a big leap in the consumer's mind. The change of perception was made possible through a carefully executed communication plan that also complemented the strategic changes in pricing and menu.; leading to an almost perfect example of a successfully executed campaign.

Launch of reliance infocomm "Make a phone call cheaper than a postcard and you will usher in a revolutionary transformation in the lives of millions of Indians." - Dhirubhai Ambani

Mudra wins Big Bazaar (Is se sasta aur accha kahin nahin!)

On 31 October 2011, Omnicom announced that it had acquired a majority stake (51 %) in Mudra Communications. This represented a natural culmination of a partnership process that began in an informal way in 1988 with DDB Worldwide and led to Omnicom acquiring a 10% stake in Mudra in 1993.

Strategic design unit

DDB Mudra: The influence and behavioral change agency with a pan-India presence across Ahmadabad, Bangalore, Chennai, Delhi, Kochi, Kolkata and Mumbai.DDB MudraMax: The experiential and engagement agency which offers media, out-of-home, retail and experiential.Mudra: The partnership for entrepreneurs agency with a pan-India presence across Ahmadabad, Bangalore, Chennai, Delhi, Kochi, Kolkata and Mumbai.DDB Health & Lifestyle: Health and lifestyle solutions practice.RAPP: Data driven marketing services agency.Tribal DDB India: Interactive and new media agency.Water: Brand and design consultancyMaatra: Localization and pre-media services agency.

Design Thinking

Kamath on reinventing the brand image From the consumer’s point of view we were able to identify the touch points and build businesses at all these touch points. Then we looked at it from the client's point of view, to understand where he is investing to reach the customer, and ensured that we were present at every single customer touch point with our specialist business solutions. This is how we built a true marketing services group. But I think I would have still done a few things differently. Perhaps, in hindsight, we could have taken one or two strategic decisions slightly faster. For example, we acquired Kidstuff (a promotional marketing company) but spent four to five years integrating it. Perhaps we could have done that faster and better. Nevertheless, Kidstuff is a very good experiential and engagement agency today

Reinventing the Brand Image : an interview with cio.in, ceo interview

Swot analysis of DDBmudra groupStrength WeaknessSatisfying the need of the customers.Meeting up the client requirements in time.Innovative & creative in advertisement segment.Global exposure with higher rewards & appreciation.Efficient team working environmentStrong network in IndiaStrong workforce of 1100 employeesHigh reputation for quality work to corporate High number of mergers and acquisitions for expansion Expertise and experienced workforce

Pricing strategy.Lack in promotional strategies towards increasing the brand name.Market share is limited due to many competitors.Geographic penetration is also limited.They do have low budget marketing plans for small entrepreneurs. They lack in service design concept. They are not utilizing their potential as a company to the fullest.They are not putting requisite amount of efforts to take advantage of Internet boom.Their website is not attractive.

(they have made so many brands renown, but did not brand themselves)

Opportunities ThreatsEntering in global market to attract global clients.They have good client base. Strong brand Image.Online advertisement is a new source of revenue.Growing population and industrialization.Rising costumers parity and aspirations.Social media boom.Potential market in services.Youngest country with skilled labor force.Government incentives on the establishment of IT and other companies.Use high end film technologies to make events more interactive and appealing such as motion capture, lidar scanning etc. Focus more on technology for interactive designs.

Increased taxation.Inflation rates.High labor costs.Increasing lawsuits due to sheer negligence in preparation of ads.Recession may hit the industry as cut is primarily on marketing budget of corporate.Lack of creative minds & also too expensive in overall management.Cut-throat competition offered by other players in the industry.Changes in the taste & preferences of clients.Technology based interactive events and artificial intelligence advertisements to make ads more live and connecting.

“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” – Charles Darwin

The External Factor Evaluation Matrix

EFE Matrix for Marketing Agency: DDBmudra Group

KEY EXTERNAL FACTORS RATING WEIGHT WEIGHTED SCORE

OpportunitiesEntering in global market to attract global clients. 2 0.04 0.08

They have strong client base (Brand Image) 4 0.08 0.32

Proliferation of new media channels. 2 0.05 0.10

Growing population and industrialization. 3 0.07 0.21

Rising costumers parity and aspirations. 3 0.06 0.18

Youngest country with skilled labor force. 2 0.06 0.12

Government incentives on the establishment of IT and other companies.

2 0.05 0.10

Rapid growth in e-commerce and m-commerce 3 0.07 0.21

Potential market in services. 2 0.05 0.10

EFE Matrix for Marketing Agency: DDBmudra group

KEY EXTERNAL FACTORS RAING WEIGHT WEIGHTED SCORE

THREATS

Increased taxation. 3 0.04 0.12

High labor costs 2 0.04 0.08

High Inflation rates 3 0.05 0.15

Consumer entrenchment 2 0.06 0.12

Changes in the taste & preferences of clients 2 0.04 0.08

Cut-throat competition offered by other players in the industry.

4 0.08 0.32

Lack of creative minds & also too expensive in overall management.

2 0.05 0.10

Recession may hit the industry as cut is primarily on marketing budget of corporate.

3 0.06 0.18

Increasing lawsuits due to sheer negligence in preparation of ads

2 0.05 0.10

Total 1.00 2.67

The Internal Factor Evaluation Matrix

IFE Matrix for Marketing Agency: DDBmudra Group

KEY INTERNAL FACTORS RATING WEIGHT WEIGHTED SCORE

Strengths

Satisfying the need of the customers. 4 0.08 0.32

Meeting up the client requirements in time. 3 0.07 0.21

Global exposure with higher rewards & appreciation. 4 0.07 0.28

Efficient team working environment. 3 0.06 0.18

Strong workforce of 1100 employees. 3 0.07 0.21

High reputation for quality work to corporate. (Innovation)

4 0.07 0.28

High number of mergers and acquisitions for expansion. 3 0.07 0.21

The largest pool of highly recognized and awarded talent across five continents.

4 0.07 0.28

Strong network in India. 3 0.06 0.18

IFE Matrix for Marketing Agency: DDBmudra Group

KEY INTERNAL FACTORS RATING WEIGHT WEIGHTED SCORE

Pricing strategy. 2 0.04 0.08

Lack in promotional strategies towards increasing the brand name.

2 0.03 0.06

Market share is limited due to many competitors. 3 0.06 0.18

Geographic penetration is also limited. 2 0.04 0.08

They don’t have low budget marketing plans for small entrepreneurs.

3 0.06 0.18

They lack in service design concept. 2 0.04 0.08

They are not utilizing their potential as a company to the fullest.

1 0.03 0.03

They are not putting requisite amount of efforts to take the advantage of Internet boom.

2 0.05 0.10

Online presence is not attractive. 1 0.03 0.03

Total 1.00 3.00

The Competitive Profile Matrix

MudraCommunications Ogilvy & Mather JWT

CSF’S Wt Rating Wt’d Score Rating Wt’d Score Rating Wt’dScore

Market share 0.14 4 0.56 3.5 0.49 3 0.42

Fin. position 0.11 3 0.33 3.5 0.385 3.3 0.363

Service quality 0.10 4 0.40 4 0.40 4 0.40

Client. Loyalty 0.8 4 0.32 3 0.24 3 0.24

Global Exposure 0.10 3 0.30 4 0.40 4 0.40

Org. Structure 0.8 3 0.24 4 0.32 4 0.32

Pricecompetitive

0.5 2 0.10 3 0.15 3 0.15

Mgt.experience

0.3 2 0.6 4 0.8 3 0.6

The Competitive Profile Matrix

MudraCommunications Ogilvy & Mather JWT

CSF’S Wt Rating Wt’d Score Rating Wt’d Score Rating Wt’dScore

Market penetration

0.10 3 0.30 3.2 0.32 3.3 0.33

Customer service 0.8 3 0.24 4 0.32 3 0.24

R & D 0.6 3 0.18 3 0.18 3 0.18

Network 0.7 3 0.21 4 0.28 4 0.28

Total 1.00 3.78 3.885 3.883

FINANCIAL STATEMENT ANALYSIS OF OMNICOM

DuPont Analysis

…… $ in Million …

Fiscal Year 

Fiscal Year 

Fiscal Year 

Fiscal Year 

Fiscal Year 

Ending 2008

Ending 2009

Ending 2010

Ending 2011

Ending 2012

Net Income (NI) 1B 783.9M 819.7M 941.9M 975.8M 1,000 Net Income (NI) in million 1,000 784 820 942 976Equity 3.75B 4.67B 4.09B 4.18B 4.15BEquity in million 3,750 4,670 4,090 4,180 4,150 Sales 13.36B 11.72B 12.54B 13.87B 14.22BSales In million 13,360 11,720 12,540 13,870 14,220 Total Assets (TA) 17.32B 17.92B 19.57B 20.51B 22.15BTotal asset (TA) in million 17,320 17,920 19,570 20,510 22,150 Return on Investment (ROI)ROI = NI / TA 5.77% 4.37% 4.19% 4.59% 4.41%Return on Equity (ROE)ROE = Net Income / Equity 26.67% 16.79% 20.04% 22.53% 23.51%Net Profit Margin (NPM)NPM = NI/Sales 7.49% 6.69% 6.54% 6.79% 6.86%Asset Turnover Ratio (ATR)ATR = Sales / TA 0.771363 0.654018 0.640777 0.676255 0.641986Equity Multiplier (EM)EM = TA / Equity 4.618667 3.837259 4.784841 4.906699 5.337349ROI = NPM * ATR 5.77% 4.37% 4.19% 4.59% 4.41%ROE = NPM *ATR * EM 26.67% 16.79% 20.04% 22.53% 23.51%

Space matrix

Financial position (FP)• Sales increases by 450M in comparison with last year, i.e. 3.5 % increase from last year revenue.

+2• Return on equity is on an average 24 %.

+3• P/E ratio is 17.32 is better than average for marketing and communication industry.

+5• Total Asset turnover ratio is .67 , that is not good in comparison with international standard.

+1

Industry position (IP)• Well known brand in international market place. +3• Having very good potential to tap opportunity in emerging market. +3• High number of merger and acquisition to grow exponentially. +5• Prudent financial leverage & strong balance sheet to meet future requirement. +4

Space matrix

Stability position (SP)• High inflation rate and economy stability leads companies to cut cost of advertisement. - 5• High competitive pressure from leading firms as Ogilvy & Mather, JWT . - 3• As entry barrier is not very high chances of getting competition from new agency. -2• Technological changes and emerging new media interactive media for campaigns design. -3

Competitive position (IP)• Company provides wide ranges of product and services. -1• Having very good customer loyalty and satisfaction . -3• experienced management team & best creative brain as workforce. -3

• International & Domestic presence -4

ConclusionFinancial position : 11/4 =2.75 Stability position : -13/4 = -3.25Industry position : 15/4 = 3.75 Competitive position : -11/4 = -2.75Directional vector co-ordinates :x-axis : -2.75 + 3.75 = 1

: y- axis : -3.25 + 2.75 = -.5 Mudra should pursue competitive strategy.

Conclusion

References :www.ddbmudragroup.comwww.omnicomgroup.comwww.marketwatch.comarticles.economictimes.indiatimes.com

Thank you