BRAND PRESENTATIONON

‘Balaji Telefilms Ltd.’

By- Group VIIshita Dey

Nidhi BhartiVikram Mahajan

Balaji Telefilms Ltd.Came into being on November 10,

1994.Headed by Mr. Jeetendra Kapoor who

has extensive experience in the media and entertainment industry.

Engaged in the development and production of multi lingual and multi genre entertainment softwares for various T.V channels.

Cont.

Strong brand acceptance and recognition amongst industry and consumers.

Maintains a program library of over 1,303 hrs of T.V software consisting of various portfolios.

The core objective of Balaji

To act as Producers, Distributors, Exhibitors, Exploiters, Traders, Exporters and Importers of Television Films and Serials, Video Films, Motion Pictures, Feature Films, Documentaries…

…Recording of Programs on any Disc, Tape, perforated media or other

Cont.

information storage device in colour or otherwise in Black and White and engage in business incidental here to.

Professional managementProduction- Mrs. Shobha Kapoor,

MD and CEO supported by Chief Operating Officer and General Managers and two Branch Heads for Chennai and Bangalore.

Creative- Ms. Ekta Kapoor assisted by 8 Creative Heads and 15 Executive Producers.

Finance and Corporate Affairs- Mr. Ajay Patadia, President;

Cont.

Corporate Affairs & Mr. V. Devarajan, Chief Financial Officer supported by Asst. V.P(finance) and managers.

Marketing- Mr. Rajesh Pavithran, Chief Operating Officer supported by teams across Delhi, Chennai and Bangalore.

Resources available

Human ResourceA team of young and dynamic

professionalsTotal employee strength of 123Existing LibraryOver 1,303.50 hours of library

contentDaily soaps- 1146.50 hours

Cont.

Sitcoms- 53.50 hoursChildren programs- 45.50 hoursOthers- 58 hoursTechnologyCameras, recorders, sound recording

equipment, mikes, lights, reflectors, trolleys, cranes, generators.

State-of-the-art analog & digital

Cont.

cameras, imported SRGB lights.Special suites for graphics,

animation and special effects, content software tapes etc.

The Market-Indian Entertainment Industry

AN OVERVIEW The televised Media Industry

comprising of television broadcasting, cable television and the television software industry will determine the future direction and growth.

Cont.

Television broadcastingDirect-to-home mode through

satellite broadcasting services.Cable televisionConsolidation stage with large

cable operators like Siticable, Asianet setting up their integrated networks resulting in;

Cont.

Up gradation of technology, popularity of satellite channels, increase in delivery capabilities and meeting the viewer preference.

Increased no. of small cities as potential market for operators.

Cont.

Television softwareThe sheer growth in the no. of

channels has resulted in an exponential growth of demand for television software.

Increasing focus of the private channels on the vast, latent and untapped potential of viewership.

Cont.

Preferences of Indian audiences for the native language programs have increased the demand for regional programs.

Non resident Indian population and popularity of Indian programs overseas.

Balaji Telefilms- Channel driving programs…

Star Plus - TRPs

4.19

10.469.53 9.53

11.07 11.25

0

2

4

6

8

10

12

Others Balaji Show Others Others Balaji Show Balaji Show

8.00 pm 8.30 pm 9.00 pm 9.30 pm 10.00 pm 10.30 pm

Prime Time

TRPs

Sony TV - TRPs

0.230.46

2.79

2.18

0.920.55

0

0.5

1

1.5

2

2.5

3

Others Others Balaji Show Balaji Show Others Others

8.00 pm 8.30 pm 9.00 pm 9.30 pm 10.00 pm 10.30 pm

Prime Time

TRPs

Zee TV - TRPs

1.43

0.99 1.040.85

0.58 0.55

00.2

0.40.6

0.81

1.21.4

1.6

Balaji Show Others Others Others Others Others

8.00 pm 8.30 pm 9.00 pm 9.30 pm 10.00 pm 10.30 pm

Prime Time

TRPs

Undisputed Leadership…

Aggregate TRPs for Top 100 Shows

Shows Balaji Shows Others' Shows

Prime Time 170.26 93.94

Non-Prime Time 42.74 110.49

Total 213 222.01

Prime Time Ratings

Balaji Show s64%

Others' Show s36%

Non-Prime Time Ratings

Balaji Show s28%

Others' Show s72%

Diversified channel presence…

41 0 12 3 10 5 21 7 10

65 0 11 6 31 7 4 12

85 1 7 7 000000

0 20 40 60 80 100

Percentage

FY01

FY02

FY03*

Ye

ar

Star, Sony & Zee Sahara Gemini TV Udaya TV Sun TV

DD Metro DD National Metro Gold SABe TV Vijay TV

Balaji SWOT Analysis…

Strengths

Twelve years’ experience in producing all genres of TV content.

Promoters associated with the media industry for more than 3 decades.

Knowledgeable and experienced board.

A team of Executive Producers to create quality content.

Cont.

A library of owned programs with re-run value.

Skilled in-house airtime marketing expertise.

Relationship with broadcasters on different platforms.

Cont.

Relationships with the top advertising spenders in India.

Presence in both markets- hindi as well as regional.

Weakness

Yet to develop its presence on regional platforms other than south Indian.

Lack of adequate resources for propelling full fledged growth.

Not invested much in in-house production equipment and hardware.

Opportunities

Expected growth in TV ad-spend.Cable and satellite channels are

proliferating, providing alternative platforms.

DTH will provide new opportunities for content providers.

Growing international markets for Indian content.

Cont.

Internet provides opportunities for showcasing and distributing content.

Value addition will form new digital technology.

Threats

Change in viewing habits of the Indian people.

Competition from other content providers.

Piracy of creative ideas and concepts.

Shift in sponsorships.Policy changes by Doordarshan and

Government authorities.

Cont.

Technology shifts which may involve expensive retaining of talent.

Emergence of large content corporates through industry consolidation.

The Business Flow…

Diversified Business Model

Across Program -20 programs on air. No program accounts for over 15% of revenues.Channels- Program supply to key broadcasters: Star, Sony, Zee, Gemini, Udaya, Sahara (next, Sun).Genres- Family Drama, Thriller, Comedy, Children programs.

Cont.

Languages- Hindi, Tamil, Telugu, Kannada (next, Malayalam).

Forms of Content supply- Daily / Weekend (next, Television movies).

Time Bands- Programs run across time bands like afternoon and evening prime time (next, morning).

Suggested Future Strategies

Strengthening Sponsored Programming

• More programs on Udaya T.V and Gemini T.V.

• Entry into Tamil Nadu, Kerala and West Bengal markets.

• Further penetration into Doordarshan network.

Cont.

Exploitation of software library

Expanding prime time slots• 7:00 p.m. to 8:30 p.m.and 11:30

p.m. to 12:00 on main line channels

Tapping overseas media market.

Cont.

Expanding satellite channel presence• More programming for Star, Sony, Zee

and Sahara T.V.

Small budget movies.

A balanced mix of programs in sponsored and commissioned category,

Cont.

to optimize its risk-revenue profile.To diversify further into other

regional market.To improve production efficiencies

and economies of scale & to improve the operating margins by investing in studios, production and post production equipments.

Cont.

To increase focus on tapping export and remake opportunities.

To tap web casting opportunities- putting software on internet.

Investment in R&D along with creative conceptualization.

Balaji Telefilm’s Financial Year ’04 Update…

Rs (In Million) Q1FY04 Q1FY03% Change

YoY Q4FY03% Change

YoY

Total Revenues 446.0 397.8 12.1% 445.3 0.1%

Operating Profit 212.2 212.8 -0.3% 199.2 6.5%

Profit Before Tax 221.6 203.4 8.9% 202.1 9.6%

Profit After Tax 141.5 126.8 11.6% 119.7 18.2%

EPS (Annualised) (Rs) 2.8 2.5 2.3

Key Ratios

Operating Profit Margin (%) 47.6% 53.5% 44.7%

PAT Margin (%) 31.7% 31.9% 26.9%

The Story So Far…

Balaji is the largest fiction based content producer in India.

Multi-lingual programming.Presence across premier channels.Content strength: • 62 shows of quality viewing per week• 14 Balaji shows featuring in Top 20

shows in hindi satellite channels

Cont.

• Produced over 52 serials of different genre, translating into over 5200 hrs (around 10400 episodes of ½ hr) of programming.

• A library of over 3000 hrs of programming.

The Success Strategies…

Identification of right concept at right time.

Focus on Indian blend and women strata.

Focus on daily soaps.Right mix of programs on DD and

private channels.

Cont.

Right mix of hindi and regional programs.

Restricting core competence to television software production and no dalliances with non core activities.

Mass Media For Balaji

Owing to the nature of services provided, the Balaji communication process is largely restricted to Business to Business.

The target audience for this communication is:

Primary: Television Channel Heads, Investors etc.

Cont.

Secondary: The viewers; comprising of teenagers, housewives, and a certain category of the male population.

Thus the communication for Balaji

would largely comprise of Public Relation activities

Cont.

EventsSponsorships Outdoor Media like hoardings Social Advertisements for

televisionPromotional films/ Documentaries

The Media Plan…

Public Relations

Location : Delhi and MumbaiMonth : May-June, 2006Procedure : Articles in production

journals and financials

Sponsorships

Event 1 : Abby AwardsLocation : JW Marriott, MumbaiMonth : December 2006Duration : 2 daysApprox. Cost : Rs. 1,00,00,000

Cont.

(Part Sponsorship)

Event 2 : AIDS fund raising eventLocation : India Gate, DelhiMonth : January 2007Approx. Cost : Rs. 15,00,000

Outdoor- hoardings

(Before launch of a new show)

Hoarding size : 10’20’Location : Gurgaon and Mumbai (prime

locations)Month : February 2007Duration : 1 month

Cont.

Gurgaon1 hoarding per week = Rs. 50,00010 hoardings per month = Rs.

20,000,00Mumbai1 hoarding per week = Rs. 2,000,0010 hoardings per month = Rs.

80,000,00

Social Advertisements

Social ad production – Girl Child Welfare

Channels : NDTV India, Star Plus, Sony, and Doordarshan

Duration of ad : 10 secsDuration of campaign : Twice a week

for each channel from June – September 2006

Cont.

1 ad once a week, per channel : Rs. 50,000

For twice a week : Rs. 1,00,000For 1 month : Rs. 4,00,000For 4 months : Rs. 16,00,000Thus, for 5 channels : 16,00,000 X 5 = Rs. 80,00,000

Promotional Film For Balaji

In house film covering technical and creative finesse of Balaji Telefilms, to be forwarded to various channel CEOs.

15 mins. film shot with in- house equipment : Rs. 2,00,000

The Sum TotalThus, total spends from Rs. 3 crores :

Sponsorships = 100,00,000 + 15,00,000Hoardings = 20,00,000 + 80,00,000Social ad = 80,00,000Promotional film = 2,00,000

Sum Total = Rs. 2,97,00,000Remaining Amount = Rs. 3,00,000

Acknowledgements

The Delhi School of CommunicationProf. Ramola Kumar; Dean, DSCMs. Shalini Singh; Business

Executive- MaxusMr. Manasvi Rasgotra; Project

Director – NestleMr. Ashish Dutta; Consultant

Cont.

Mr. Pradeep Aeri; Director- Aeri Creatives

Team Members

Leveraging communication to provide marketing solutions.

Thank You !

187, DDA SFS, POCKET 1 & 2, SECTOR-3 ,DWARKA, NEW DELHI-110075 (INDIA)TEL:(091-11)-25086201, 25086202 e-mail: dsign4u@vsnl.net

Over To You…