Reckitt Benckiser changes rules of advertising game

Reckitt Benckiser wants advertising agencies to pay for the privilege of making a pitch. Will the agencies fall in line?

The Advertising Agencies Association of India (AAAI) recently reacted to the outrage among advertising agencies over Reckitt Benckiser (India) Limited trying to change the rules of the business to make agencies more accountable.

Reckitt Benckiser, a multinational household and personal care products company with big-budget brands such as Cherry Blossom, Dettol, Harpic, Clearsil, Lizol, Mortein, Strepsils, Vanish, Veet, etc, had called for a fresh pitch for its business from advertising agencies, but with a big catch.

It wanted agencies to pay for the privilege of making a pitch. According to Exchange4Media.com, which tracks the advertising business very closely, this amount may have been as high as Rs3 lakh-Rs4 lakh. The irony of this demand is that it has come at a time when the industry is debating aloud whether it ought to charge clients for making a pitch, because they are giving away creative ideas for free. In fact, Raj Nayak, formerly of NDTV Media, had raised this question while moderating an industry seminar earlier this month.

The immediate reaction to its move was howls of protest. Some called it ridiculous, others wanted agencies to "unite and fight" the move. Some said that it will only lead to cost-cutting without improved efficiency, and so on. At the same time, nobody is willing to bet on who will blink first. After all, Reckitt has one of the biggest advertising budgets in the country and spends as much as 14% of total turnover on advertising.  Dettol, its flagship brand, alone fetches Rs1,000 crore and accounts for 25% of the company's turnover. Significantly, competition in all its product categories is intense and Reckitt is working hard to contain cost pressures and increase sales through innovation such as smaller unit prices instead of cost cuts. Obviously, in Reckitt's case, the large advertising budget is bound to be one of the many big-ticket items that would be under management scrutiny for possible cost-cutting or wringing out more value.

Clearly, clients are in the driver's seat and both media and advertising will end up falling in line. So, while AAAI may have advised agencies not to pitch for the Reckitt Benckiser business, not everybody agrees with its stance. The blunt speaking Meenakshi Madhvani, founder and managing partner of Spatial Access Private Limited, says, "Smart clients have realised that agencies make huge incomes from media owners in the form of volume discounts and rebates.

The valid point is-why should the advertiser pay if the media is paying extra commissions? Therefore, in my view, hats off to Reckitt. They have brought into the open an issue that agencies and advertisers together shy away from acknowledging." Ms Madhvani should know-her firm specialises in helping companies evaluate their media investments and get more bang for their marketing and advertising buck.

Interestingly, behind the public outrage at advertising summits and on blogs, Reckitt Benckiser's strategy is not without supporters. One insider says, "Frankly, if agencies can expect a bonus for over-deliveries of targets, then surely the clients should seek a compensation for under-delivery on promises?"

So, what exactly had Reckitt Benckiser asked for? Apparently, the company is not talking. But Exchange4Media reports that it wants commitment rates (per rating point). For the first 12 months, it wants the agency to pay Reckitt Benckiser a commission, because association with it would increase volumes significantly.

Advertising stalwarts wryly admit that competition is so intense that some agency is bound to find it worthwhile to agree to Reckitt's terms. And then, it is only a matter of time before all major advertisers in the auto, durable, personal care and food space demand similar terms.

When asked, Archna Vyas, media relations executive of Reckitt Benckiser, said, "We are aware of the questions raised and believe that they are ill-conceived and the fears are incorrect."
 

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Inflation in double digits, at 10.16% in May

The double-digit inflation rate may put the RBI in a spot as it would like to tighten money supply to tame rising prices, but liquidity in the system is too tight due to payments towards spectrum for 3G mobile services and broadband wireless access

Inflation hit double digits as it rose to 10.16% in May from 9.59% in April due to elevated food prices and certain manufactured items like metals turning expensive, reports PTI.

In fact, inflation for March was also revised upwards to 11.04% from 9.9% estimated earlier.

The double digit inflation in May was partly attributed to low base of 1.38% a year ago. However, inflation is clearly spreading to manufactured items. Food inflation remained at enhanced level of 16.49% despite moderation from 16.87% in the previous month.

Among manufactured items, wood products prices rose by 8.8% due to higher rates of plywood commercial planks.

Metal prices on an average rose by 3.4%. Within this category, prices of stainless steel rose by 26% and that of steel sheets, plates and strips by 14%.

Among primary (raw) food items, tea turned costlier by 21%, urad by 5% and moong by 3%.

The double digit inflation may put the Reserve Bank of India (RBI) in a spot as it would like to tighten money supply to tame rising prices, but liquidity in the system is too tight due to payments towards spectrum for third generation (3G) mobile services and broadband wireless access (BWA).
 

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SBI buys back 14% stake in SBI Caps from ADB

ADB, which bought the stake in 1997, decided to exit as it wanted to invest in 'other development activities and ventures' in the country and felt that it has achieved its initial goal of 'giving a fillip' to the local firm

The country's largest lender, State Bank of India (SBI) has bought back its nearly 13.84% stake in its investment banking arm—SBI Capital Markets (SBI Caps)—from Asian Development Bank (ADB), for an undisclosed amount. This would make SBI Caps a wholly-owned subsidiary of State Bank, reports PTI.

 

ADB, which bought the stake in 1997, decided to exit as it wanted to invest in 'other development activities and ventures' in the country and felt that it has achieved its initial goal of 'giving a fillip' to the local firm, SBI Caps managing director and CEO, S Vishvanathan, said.

 

"ADB sold its stake to State Bank in March as it wanted to invest in other development activities. The deal has made SBI Caps as the wholly-owned subsidiary of State Bank," Mr Visvanathan told PTI in Mumbai, but declined to divulge the valuation amount.

 

According to a senior official with the State Bank Group, SBI paid a hefty premium to ADB's stake and decided to buy-back the shares as ADB's holding did have 'hardly any value' in the company any longer as the agency had achieved its aim in the investment arm.

 

Asked whether SBI plans to sell the stake to another partner, the official said SBI is unlikely to look for another partner in the near future and is likely to keep the entity as the wholly-owned subsidiary of the bank.

 

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COMMENTS

Dipak Kumar Adhikari

7 years ago

Kind Attention
To,
The Incharge, S.B.I. Anti Corruption Department.
Please help me. If required please send this mail to appropriate authorities. Mr. Shankar Kumar Samanta S.B.I. Officer purchased local Police, Please help me.
Respected Sir,
100% now I believe that if you have money then you can get anything, every thing is possible by you. If you are a poor then you can’t get anything, every thing is far and beyond possible to you, also you get poor judgment and poor comportment in all aspects of life, in our country INDIA. For example 1. I. I went to Police Station more than 100 times, made 5times entries (complaints) into G.D. but Not even a microscopic actions took place against the alleged bodies. On the contrary Sandip Samanta, S/O. Shankar Kumar Samanta (S.B.I. OFFICER Ph. No. 9830366434, Branch: 24B, Nimtala Ghat Street, Jorabagan, Kolkata- 700006, West Bengal, India‎, Bank Ph. No. 033 25308337) he has much more and enough money so they purchase all police personnel's and some political leaders, some Dada. Etc. Only I used to get many letters and many phone calls which all seem to me needs to be thrown in the trash, as it all are valueless, toothless and only simply a solace to the poor. What an undone boy I am! Woe is to me! My wife and her family, Sandip Samanta and his family harassed me and my family, they are torcher me physically and mentally.

We got married 05/03/2002, and have a daughter who took birth on 09/07/2005. My wife and her family lodged a case 498A/34 IPC, FIR NO.276, date 31/08/2009, P.S.: BAGUIATI, against me and some of my family members it’s a fabricated, baseless, legless, toothless and doesn’t have any commensurate to the fact. My wife is engaged and having an illicit affair with a boy (Sandip Samanta, S/O. Shankar Kumar Samanta S.B.I. Officer Ph. No. 9830366434, Branch: 24B, Nimtala Ghat Street, Jorabagan, Kolkata- 700006, West Bengal, India‎, Bank Ph. No. 033 25308337) just opposite to my house, all the matters are known to every person in my village, and also they have certified me written about my fresh character and nature. When my wife left form my house with Sandip Samanta taking many vory gold and cash 1.20 lack Indian rupees. What a demon she is! She didn’t take our only daughter (only four years old) who is now in my house having severe asthma supported by inhaler. My wife filed the 498A case dated 31/08/2009 and I was arrested on 06/09/2009,The Learn" ed court granted me on bail on 19/09/2009. Barasat court. I have lots of irrefutable evidences, (20 pcs. Adult S.M.S., Adult picture with the boy and a c.d.) with me where it is cleanly reveals which translates my wife and the boy that they are in illicit relations. Believe me I and my family would love very much (which is very rare seen in our society) to my wife and never any kind of love lost didn’t happen. They (My wife family) are very very poor and live in a bosti Address: 70/H/8 Manicktolla Main Road, Kolkata – 700054, Beside 5 Star Club, my mother saw 1st time and she arranged my marriage. Before marriage my family did not see the pedigree of my wife’s family, now we understood also realized that they hailed from a worst status. My wife, her family and (Sandip Samanta, S/O. Shankar Kumar Samanta) all they are misusing this law. Now my wife’s family knows all the affair-related matter. My wife left our only solitary daughter to me who is 4 years old having severe "Asthma Disease, depends on INHALER, here political Hide and seek, ducks and drakes and lots of unfair means are going on and the father of the parents (THE FATHER OF THE BOY WHO HAS ILLICIT RELATIONS WITH MY WIFE) are rich, so they are spending money to everywhere with a view to be escaped. Now I decided that in no way I can’t accept that demon wife. I hired a lawyer his name Mr. Kamelash Nandi. I don’t know what will be happened next? It’s an utterly a huge and a palpable offence subsequent to which the boy deserves severe and examplanary punishment so that no one can dare to abuse this law. My mother is a sugar present shies sugar is now 400. If possible please help me. Please investigate the matter thread barely and save me and my family. I leave here one question to every one that in this die-straits situation whom do I take care to myself (TRAGEDY), my daughter, or my mother (severe Diabetic)?. My wife filed another case me U/s. 125 Cr. P. C. Case NO.167/2009, (Smt. Nita Sarkar Judicial Magistrate. 1st Court Sealdah South 24 Parganas. Date 16/12/2009.) I am millions miles away from the genuine and authentic investigation and inquiry. No inquiry, investigation were executed against the F.I.R lodged by my wife. It is very painful, lamentable as well as heart rendering, breath taking affair to me and my family. My heart bursts into guffaw when I see the nature of the inquiry and investigation. One thing is as clear as crystal to me that the law and the task of the law enforcing agencies vary from man to man. A new proverb is going to take birth very soon that "Justice for the rich and Injustice is for the poor" A rich reserves the right to indulge in any kind of heinous business but the poor is restricted to involve in any type of excellent deeds" To see all these my heart is about to come in the mouth and the ground under my feet gets shook. In a word all types of Law are for the poorest and the richest will enjoy the richest judgments from all quarters.

After coming form the DumDum Central Jail, I mat with the BAGUIATI POLICE O.C. Mr. Goutam Mitra, and asked him politely: “ SIR I FAILED TO UNDERSTAND THAT I MADE SO MANY ENTIRIES INTO YOUR G.D.E. BUT YET NO ACTION SO FAR HAS NOT BEEN TAKEN FORM YOURSELF” then BAGUIATI POLICE O.C. Mr. Goutam Mitra, went through all my papers (20 pcs. Adult S.M.S., Adult picture with the boy, G.D.E, MANY MANY OTHER PAPERS RELATED TO MY CASE and TWO c.d.). After seeing all my papers he told me that I cannot take any action until and unless you lodge a case against all of them.

Then I Prayed to the Ld. C.J.M at Barasat court to lodge the case, against the alleged person. (the payer to the Ld. C.J.M. is enclosed which is self-explanatory) after filing the case the BAGUIATI POLICE O.C. Mr. Goutam Mitra, and I.O. Mr. Prasenta Kumar Das, Mr. Ajay Kumar Ghosh, in stead of taking not any take proper investigation/ not take any action/ not take any type of query to recover my Cash and Gold form the house of Shankar Kumar Samanta, The BAGUIATI POLICE O.C. Mr. Goutam Mitra, and I.O. Mr. Prasenta Kumar Das, Mr. Ajay Kumar Ghosh, took my case as a Golden Goose, and how much money BAGUIATI POLICE O.C. Mr. Goutam Mitra, and I.O. Mr. Prasenta Kumar Das, Mr. Ajay Kumar Ghosh, has taken is well known to them. Neither he took any take proper investigation/ not take any action/not take any type of query nor he did roundup them against my case.

When I saw that already near by 70-80 days went by “ I went to the BAGUIATI P.S. to know the status of the case then BAGUIATI POLICE I.O. Mr. Prasenta Kumar Das, Mr. Ajay Kumar Ghosh, became outraged me and my mother that if you ask about Shankar Kumar Samanta and his family I will sentence you and your family in the Jail, all their languages is so much filthy dirty which I cannot express front of you.
As I’m 100 percent innocent so I screw up my courage to place my grievances to every body in order to get redress. So I want to let my matter informed all the Indian and others. I wrote my matter to our local P.S., Local Councilor, all M.P., M.L.A., Minister in W.B. and Other States, C.M. in W.B., CBI Department, CID Department, S.P. and Dy.S.P.(N.) 24 Parganas, DGP Bhupindar Singh, All the I.P.S. AND I.A.S. OFFICERS. Governor in W.B, and President in India. P.M. in India, National/International Human rights department, AAP KI KACHEHRI – KIRAN KE SAATH, Kolkata Police, and all police officers in W.B. informed Kolkata Commissioner of Police, Manager S.B.I.-Branch: 24B, Nimtala Ghat Street, Jorabagan, Kolkata- 700006, West Bengal, India‎, Bank Ph. No. 033 25308337. My nation, all of the news channels, and all press, Talking with some NGO’s: 1. Universal Right and Duty for Human to Abide URDHA, 2. Human Right Commission’s Mr. Ujjal Paul and Mr. Shibaji Dasgupta. 3. Bhatat Bachao Sangathan BBS. 4. Forum for Social Justice and Development FSJD. 5. Ajjtak News Channel’s Miss Menogya. and many more, (anybody can’t help me/ fight for truth /don’t take proper investigation/do not take any action/don’t take any type of query/ Still Now, many department told does not comes under the purview of our department. Then my question is where I go now? I see they all are in sound asleep. The reason is best known to them.
I hope you would care to me, your prompt action shall be highly appreciated and deserves to be lauded.

With kindest regards,
Dipak Kumar Adhikari
Tegharia(Dhali Para),NandanKanan. P.S.: Baguiati.
P.O.: Hatiara. Dist.: North24Parganas.
Kolkata-700059 Email: dipakadhikari_59@yahoo.com
W.B. India. PH. 9836149983


Anant Kumar Mundhra

7 years ago

What abt the shares of SBI Home Finance............Its still an delisted company & shareholders are still awaiting frm the company to buy back shares or relist the company.........

On behalf os the general shareholders can MoneyLife take an action.....

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