The potential for Food Channels in India

MANIPAL UNIVERSITY WHISTLING WOODS INTERNATIONAL

Research project submitted to the Manipal University and Whistling Woods in partial completion of

III Semester, MBA in Media and Entertainment

By

Mr. Shashank Aggarwal

Under the guidance of

Mr. Ravi gupta

Faculty

DEPARTMENT OF MEDIA AND ENTERTAINMENT

MANIPAL UNIVERSITY

WHISTLING WOODS INTERNATIONAL

MUMBAI

DECLARATION OF THE STUDENT

I, Shashank Aggarwal, hereby declare that the work, which is being presented in the project entitled “THE

POTENTIAL FOR FOOD CHANNELS IN INDIA” in fulfilment with the project requirement for MBA in Media

and Entertainment during the year 2010-2011, is an authentic record of my own work and carried out under the

supervision of the guide Mr. Ravi gupta, Faculty at Whistling Woods International.

CERTIFICATE FROM THE GUIDE / CO-GUIDE

DEPARTMENT OF MEDIA AND ENTERTAINMENT

MANIPAL UNIVERSITY

WHISTLING WOODS INTERNATIONAL

MANIPAL UNIVERSITY WHISTLING WOODS INTERNATIONAL

This is to certify that Shashank Aggarwal has successfully completed his research project entitled “THE

POTENTIAL FOR FOOD CHANNELS IN INDIA” assigned by the university for MBA in Media and

Entertainment during the year 2010-2011.

Name : Shashank Aggarwal

Register Number : 092516032

Date :

Place :

Signature of the guide

(Mr. Ravi Gupta)

ACKNOWLEDGEMENTS

I am firstly thankful to the faculty of Manipal University, MBA in Media and Entertainment for giving me an

opportunity to carry forward this project work. I am indebted to Mr.Ravi Gupta, my guide in this entire process,

for his constant scrutiny and standards thus ensuring that this project becomes practical and successful.

Had it not been for my industry mentor, Mr. Achin Gupta, Food Food TV and various others from the food

channels fraternity, my project would have been incomplete. Thanks for their interesting insights, opinions and

positive criticism which guided me throughout my research and compilation. There are also scores of well wishers

and friends without whom this project would have remained a ephemeral vision.

Thanks to Google, for helping me throughout the project for important references to previously published works,

interviews of people from the industry, industry reports and opinions and for the user-friendly survey resources.

Being an industry that hasn’t been talked about much in books and journals, the internet gave me a reason to go

ahead with this project, thus instilling in me inspiration and enthusiasm.

Chapter 11.1 PROJECT TOPIC

The Potential for food channels in India

1.2 SUBJECT MATTER

Niche is the way forward for Indian television industry ever since television broadcasters have become serious about promoting their channels on alternative platforms like DTH, CAS, IPTV, Mobile and other interactive media. This has also shown that they are working hard to move away from their dependence on advertisers to subscription revenue.

Moreover, niche and lifestyle channels have seen a sudden increase in viewership coming from the audience that matters to advertisers. According to FICCI-KPMG report 2010, niche channel have a 2 percent market share in the overall viewership pie of the country. In the other Asian countries like Hong Kong and Singapore, the viewership they command is 10 per cent and 16 per cent respectively. “Though the cost per rating point (CPRP) is much lower in specialised channels when compared to GECs, advertisers are still willing to pay a premium for advertising their brand on those channels. For example, an advertiser for stylised mobile phone or a premium brand for watches will not mind paying anything between Rs 7,000-Rs 9,000 per rating point on a youth channel, which is 20 per cent more than the routine episodes of daily soaps on a GEC.”

BACKGROUND

TV is the largest segment of the Indian M&E industry with a size

of INR 257 billion in 2009. The industry has transformed itself in

the last few years with a reach of almost 500 million TV viewers.

The overall penetration of the TV households has

increased from 50 percent five years back to 60 percent now. Hence, TV remains an attractive medium due to its

large reach and potential for increase in penetration. The number of channels has increased from 120 in 2003 to

over 460 in 2009.

The number of genres and niches expanded as well with increased presence in news, kids, infotainment and

lifestyle. The industry also saw significant growth in the number of regional channels. In addition to broadcasting,

TV distribution evolved greatly with the growth of digital mediums and associated offerings to viewers like Digital

cable, DTH and IPTV. The industry added newer target groups beyond the housewives in 2009 as IPL and reality

TV became popular.

Amidst all this, the biggest story of the year was clearly digitization, where DTH led the digital distribution foray

by adding close to 6 million subscriber homes. The total number of TV households grew from 123 million in 2008

to 129 million by the end of 2009, showing an increase of 5 percent. The total number of C&S households grew at

a faster rate of 10 percent from 86 million to 95 million.

AVERAGE TIME SPENT VIEWING TELEVISION

The industry added newer target groups beyond the housewives in

2009 as IPL and reality TV became popular.

Amidst all this, the biggest story of the year was clearly digitization,

where DTH led the digital distribution foray by adding close to 6 million

subscriber homes. The total number of TV households grew from 123 million in 2008 to 129 million by the end of

2009, showing an increase of 5 percent. The total number of C&S households grew at a faster rate of 10 percent

from 86 million 95 million.

PENETRATION

Penetration is increasing with the growth in the number of TV

households. The number of TV households grew at a rate of 5

percent to reach 129 million in 2009 compared to 123 million

in 2008. The penetration of TV in the country grew from 56

percent in 2008 to 58 percent in 2009. Currently TV

penetration in India is much lower as compared to some of the developed markets which are almost fully

penetrated. Hence, the numbers have potential headroom for growth.

The penetration for Cable & Satellite (C&S) households

increased from 70 percent of total TV households in 2008 to

74 percent in 2009. The overall number of C&S

households reached 95 million registering a growth of 10

percent. A large part of this growth came from the digital

homes

TOTAL ACTIVE CHANNELS

There were new channels which were launched in the past two years in both the GEC and non GEC space. Hindi

GEC saw the advent of Colors, NDTV Imagine, 9X and Real

whereas the non GEC genre saw launch of channels like UTV

Action movies in 2009 and Discovery Turbo and Discovery

Science in early 2010. Twenty one new regional channels were

added with comedy as a genre being explored for the first time

in Tamil, Telugu and Kannada with three new comedy channels.

The total number of active channels increased from 389 in 2008 to 461 in 2009.

The New Niche category - Food Channels

India has several niche channels waiting to launch. Several networks have announced their plans to roll in niche channels targeting the growing market segmentation and fresh demands of viewers. Rceently, three networks have announced the launch of their food channels. Zeel has launched their food channel called ‘Khana Khazana’.

With 106 shows across the entire television space, the time is ripe for the country’s first Food Channel. Real Lifestyle Network, belonging to Alva brothers has announced their channel called ‘Food First’. Similarly, celeb chef Sanjeev Kapoor’s Turmeric Vision Pvt. Ltd in association with Malasia based Astro group is slated to roll out their channel ‘Food Food’ in 2011.

In a nation of gourmets, food is an excellent content. Moreover, the culinary experience can be an art, an adventure, a profession, a hobby… the love for food can have innumerable manifestations. And all these make up a perfect ‘recipe’ for some very entertaining broadcast content.

Speaking about the announcement, Nikhil Alva, Group CEO, Alva Brothers Entertainment, said, “The REAL Lifestyle Network will offer Indian consumers a bouquet of clutter breaking, well differentiated channels with incredibly compelling and entertaining content married to world class production values.

With FOOD first and the channels that are to follow, we’re going about building new broadcast categories that will set benchmarks for value, quality, relevance and entertainment for Indian consumers”.

Manisha Tripathi, Business Head, Real Global Broadcasting Pvt. Ltd., added, “Food is universal in appeal and is increasingly becoming an expression of one’s lifestyle, therefore the first launch, FOOD first is dedicated to food. In sync with the times, we are also building strong extensions in the digital media including web and mobile to stay connected with the target group that is wired in to the new media.”

Raghvendra Madhav, Executive Director of India and South Asia for Media, Astro Group, said, “Food is the new entertainment. Over recent times, content has started to reflect this with food playing a central role in game shows, reality shows, travel and lifestyle shows and instructional shows where viewers learn to cook or hone their culinary skills, or just vicariously experience new cultures and cuisines. Capitalising on this development, we are launching FoodFood - 360 degrees of food available across multimedia platforms like TV, web, mobile.”

Food channels and the GEC audience

The core and major target audience for General Entertainment Channels (GEC’s) are women. They are the ones

who have the maximum pester power at homes and also make decisions regarding their homes.

Hence, keeping the target audience as the same is it possible for a new channel to come up that caters to their

needs totally and brings them the best from the world of lifestyle, cuisines, entertainment, accessories, clothing,

fashion and the likes?

Masala TV in Pakistan has done extremely well and has successfully proven that a food channel can compete with

GEC’s. The channel has managed to reach the No. 4 position, behind the top three GEC’s thus capitalizing on the

large female audience that is otherwise presumed to favour GEC’s.

1.3 SIGNIFICANCE OF THE STUDY

The research may be if use to various stakeholders who are associated directly or indirectly to the food channels business.

Broadcast investors- This project may be of significance to broadcast investors who are looking to

capitalize on the opportunity presented by Food channels as a successful proposition for them. Astro group

has already realized this potential and has picked up an 80% stake in Sanjeev Kapoor’s Food channel,

‘Food Food’ that will launch soon.

Broadcasters- Broadcast networks who wish to expand their bouquet of channels and foray into the food

channel space will benefit hugely from this project. Zee has launched its food channel on Dish TV

therefore adding a new channel to its large boquet. Food channels have done extremely well in the US and

Pakistan’s Masala TV that launched a few years back has reached the top 4 players in raitngs competing

with the top 3 GEC’s.

Distributors- Companies that offer DTH services will find the research useful as it may provide them

insights into what viewers want and whether it makes business sense to them to carry such a channel. Zee

has partnered with Dish TV that has 9 million subscribers for their channel ‘Khana Khazana’ and the other

food channels will also be jumping into the bandwagon to stabilize their distribution network.

Advertisers- Marketers and advertisers will find this useful as it will help them to understand the kind of

audience this channel will bring in. Also, FICCI-KPMG report 2010 specifies that advertisers are willing to

pay a premium to lifestyle channels that provide them the right audience mix that these channels provide

them with.

Research houses- Research houses are always on the lookout for possible research work for their clients

and such a research may help them get key insights into the food channel business and its key success

factors. They may find it useful to present this research to potential business houses looking to enter this

domain.

Viewers- Viewers from urban towns and cities have shown a side for lifestyle channels and shows relating

to travel, lifestyle and food have a huge fan following. They would find such food channels interesting and

will patronise them. This can also be supported with the fact that the whole country takes interest in food

which is universal in nature.

1.4 OBJECTIVES OF THE PROJECT

a. To study the potential for such a food channel and whether it makes good business sense

b. To study previous shows that have featured on National Television and how they have fared in terms of television ratings

c. To study channels that are similar in nature and how they are doing, if any in India or countries which are similar in nature

d. To study details of positioning, programming and distribution of the food channels

e. To do SWOT analysis of these channels

1.5 HYPOTHESISFood channels in India will work well as demonstrated abroad and will find viewership once their distribution is strengthened and they are established well.

1.6 LIMITATIONS OF THE STUDY

TIME

The project was carried out in a short span of 1 month thus making it a challenge to conduct comprehensive research.

GEOGRAPHICAL

The Geographical location for this study lies in and around the city of Mumbai, thus making it difficult to go out to

other cities (where certain channels are based) and get relavent information that may be useful to the project.

SENSITIVE NATURE OF INFORMATION

Food channels have just been announced in India and the background work is taking place to launch the channels

successfully. In such a scenario, it becomes difficult to access sensitive information that may rest with the

respective channels.

Chapter 2

LITERATURE REVIEW

1.

India launches three new cooking channels

Relaxnews

Tuesday, 7 December 2010

Indian viewers will have a choice between three new food and cooking channels by early 2011.

Zee Entertainment's Khana Khazana is slated for a December 8 launch, followed by 24-hour channel Food Food in early 2011 and Alva Brothers Entertainment's Food First channel, around the same time.

International partnerships are behind all three channels - Zee Entertainment's Hindi content can be watched in 167 countries - from the US to New Zealand, and Food Food will be launched in collaboration with Malaysia's Astro All Asia Networks. Food First is the product of a joint venture with US-based Turner Broadcasting's Hong Kong leg and will be broadcast in English.

Food Food, which will be launched in partnership with celebrity Chef Sanjeev Kapoor's television company Turmeric Vision, will feature a program dedicated to international cooking and cuisine in Hindi, called Firangi Tadka.

"In India, international cuisine is cooked in a very unique way to suit the Indian palette. This is what Firangi Tadka is about. We will cook all types of cuisines, but in an Indianized manner," Kapoor told the Indian Express in an interview published on December 6.

Kapoor will host his own show, entitled Sanjeev Kapoor's Kitchen, on the channel, which will also carry at least two other cooking shows - Sirf 30 Minute and Ready Steady Cook.

An Indian version of the hit British and Australian cooking reality show MasterChef is currently shown on the STARPlus channel on Saturdays and Sundays at 9 p.m. I.S.T. The show is hosted by Bollywood superstar Akshay Kumar in English.

Prior to these recent announcements, there were few cooking-related entertainment options available on Indian TV. The crop of new channels and presence of high-profile Bollywood actors indicate a growing Indian interest in the culinary arts and in international and non-traditional foods and cuisines.

My View- With 106 food shows on air across the television space in India, the time is right for round-the-clock food channels to capitalize this opportunity that the food space has presented. Also, food and lifestyle channels have seen a huge interest and have successfully managed to grab eyeballs. In such a scenario, the potential for food channels in the lifestyle category does look promising.

2.

Business Standard People: Sanjeev Kapoor “Galloping gourmet”

Gargi Gupta / New Delhi December 2, 2010

Akshay Kumar may be lording it over the idiot box with his culinary skills now, but Sanjeev Kapoor is the real “kitchen king” of Indian TV. His show Khana Khazana has been running on Zee TV for 17 years, and come New Year, Kapoor will have his own 24x7 food & lifestyle channel called FoodFood, in an alliance with Malaysian media group Astro.

The popularity of the Zee show and Kapoor’s marketing savvy have helped this 46-year-old graduate of Delhi Catering College (he also has a management degree in marketing from Narsee Monjee, heeding his father’s advice that “for my calibre, I hadn’t studied enough”) build a variety of businesses. Kapoor today runs some 20 restaurants under three brand names: The Yellow Chilli (medium segment), Khazana (speciality Indian fine-diners in the Middle East) and Hot Rocks (built around the stone grill concept), which have annual revenues of around Rs 50 crore. “We are working on another format called Indii, serving young-age Indian cuisine,” said Kapoor, adding the venture in partnership with Better Value Brands could be located in Europe or the UK.

Kapoor already has a presence in these markets through his Khazana range of pickles and ready-to-cook spices, but it's a small business that he hopes to ramp up to “Rs 100 crore in three years”. What he is keen on, instead, is Wonderchef, where again he has a partner —Ravi Saxena, former head of Sodexho in India. Launched a year ago, it is an innovative direct marketing business that involves training members on how to become good cooks with products endorsed by Kapoor embedded in the programme.

But TV is where it all started and Kapoor has no doubt there is a market for a food channel in India: “We should have started it three years ago.” There are plans also for a reality show, “no, not like MasterChef”, but Kapoor isn’t revealing details yet.

My View: Khana Khazana on Zee has run for 17 years with an episode every week which has shown proven that the time is right for food channels in India. Moreover, the number of cookery shows has increased rapidly and it makes great business sense to have 24 hour food channels.

3. Niche channels, new success mantra for Indian television industry!!

By Ashish Srivastava

Tuesday, October 26, 2010 Revolution and innovations have no end when it comes to the Indian television broadcasting market. Indian audience’s taste is rapidly changing and to cater the diverse viewership, Indian television broadcasters are looking to downpour the airwaves with variety of channels featuring dedicated content. If we believe the industry sources, Indian viewers are going to witness more niche channels right from health to food and lifestyle in the time to come. Digitisation and day-by-day improving technology will play a key role in the growing trend of niche channels.

The Hindi general entertainment channels have been catering the Indian viewers for years with programs customised to varied audiences tastes. In recent days niche programs on food have been very popular. Be it ‘Kitchen Champion’ on Colors or recently launched ‘Master Chef’ on Star Plus. Discovery is also catering to the viewers who want to see wildlife programs. Globally, the culture of niche channels is very popular but if we talk about India, the culture is in a very nascent stage. But, which of the niche sector would catch more eyeballs? This question still remains unanswered.

Well! It would be interesting to see that how far the trend of niche channel will attract the viewers. Keeping all the factors in mind, the big industry players like Sony entertainment, Zee Entertainment Enterprises and Discovery are planning to launch niche channels in India. Now, the question arises that is there a market for niche channels in India and if yes what kind of niche channel would work for Indian viewership?

Though Zee Network Ltd. is already a big and established name in Indian television broadcasting industry and it is catering its viewers with niche channels like Zee Trendz, ETC and Zee Sports but seeing the growth in the niche channels market, the group is planning to launch two to three new niche channels with a focus on lifestyle, sports specifically golf and food.

Talking about the niche channels market in India, Punit Goenka, MD & CEO of Zee Entertainment Enterprises Limited, says, "Yes, there is a market for niche channels in India. We, at Zee are already catering viewers with sports, music and fashion dedicated channels.” Talking about further enhancing the niche channels kitty, Punit says, “Zee has already applied for 6 to 7 new channel licenses. Out of these 7, at least 2 or 3 would be niche in

categories like Golf and food. If everything goes well and in time, we expect these channels to be launched by the end of this fiscal. Zee is also planning to launch a channel dedicated to kids but since we are working on Golf and Lifestyle channels launch, the launch of kids channel will take some time."

Rahul Johri, Senior Vice President & General Manager, Discovery Networks Asia-Pacific says, “There is a wide scope in India, when it comes to niche market. Discovery has already launched niche channels in India such as TCL, Science & Fiction channel etc. These all are doing well and have healthy audience.” Adding the regional point to the niche market, Rahul says, “Discovery Channel has always been committed towards satisfying viewers. Curiosity through its magnetic and entertaining programmes and in a way that most appeals to its viewers. We have recently launched Telugu feed of Discovery. A part of channel's localisation strategy, introduction of these regional language feeds will help to increase channel’s connection with its viewers, who can now watch their favourite shows in the language they most prefer and understand.”

Punit concurs, “We will have to sit and decide a perfect revenue model to generate healthy revenue out of niche channels market.”

Therefore, all I can say is that the Indian television industry has started rolling towards niche market. We have seen daily soaps, we have seen music programs and sports dedicated programs but now with the changing face of Indian television we are going to see a flood of niche channels as well. How far this trend would work and how the channel will get advertisers is still to be seen but I must say that viewers are going to see a vibrant television broadcasting market in the days ahead!!

My View: With the entry of niche channels in India and many channels lined up to surprise the audience with specific-interest programming, the prospects for upcoming channels dealing with sports, automobiles, food and magazines definitely seems great. Moreover, the western trend has already proved that niche content is the future

of developing economies like India. Advertisers too are prepared to pay a premium to display their profducts on these channels as compared to GEC’s.

4. Cookery shows have a large market

Interview with Verite Productions' Rehina Pereira (Ashwin Pinto, HT)

In India, each week the saas-bahu soaps rule the roost. In this kind of an environment what scope do you see for documentaries, travelogues and non-fiction shows which your company specialises in? There are a number of companies who specialise in the saas bahu soaps and do them very, very well. My company's forte lies not only doing non-fiction shows but also out and out fiction/entertainment dramas and family sagas which will sell to a larger diasporic audience and will be more relevant to Indian audiences all over the world.

Indian consumers are becoming increasingly globalised in their tastes. I think there is a large market for travel/cooking shows where the audience (even your afternoon bored housewives) not only get to see different places and cultures but are exposed to cuisines from around the world. Nothing like adding an exotic new Thai salad for the next kitty party, right?

Literature Analysis

From the various data available we can infer that there might be scope for more niche channels in the

country in a crowded space where spectrum space is limited

Also, women are the chief target customers of GEC’s and there can be a potential to tap their viewership

and thus cater to them, making viewers as well as advertisers happy

With the advent of DTH, CAS, IPTV, Mobile and interactive media there is a possibility for niche channels

on TV

There are various cookery shows that have been on air in the HSM market on GEC channels and have

performed well for the channel in the time slot allotted for them

Production houses feel that there is a potential market for cookery shows

Some shows have done extremely well creating a positioning for themselves and have gone on to run for

several years

Positioning of food channels will contribute to their viewership. Mass positioning will benefit some while

others will benefit from their perception as lifestyle channels.

Details of studies done in the subject area of research being carried out

106 cookery shows on TV, 2.8 hours average time spent on cooking

Zee Official Website figures

On an average, a woman spends at least 2.8 hours per day on cooking. The average time a television viewer spends on food shows is 8 minutes. Moreover food is no longer restricted to the female audience only. The emerging food genre has broadened to wider demographics with youngsters and urban metrosexual men too, taking a keen interest in food. The content too has grown from “How to cook” shows to “Food as lifestyle” shows. Niche is the way forward for the Indian Television industry. With 106 shows across the entire television space, the time is ripe for the country’s first Food Channel. In a nation of gourmets, food is an excellent content. Moreover, the culinary experience can be an art, an adventure, a profession, a hobby… the love for food can have innumerable manifestations. And all these make up a perfect ‘recipe’ for some very entertaining broadcast content. Food is the new entertainment and “Zee Khana Khazana” is the new destination for entertainment

8 in 10 US Adults Watch Cooking ShowsEight in 10 US adults watch cooking shows at least rarely, according to a new Harris Poll.

Half of Americans Watch Cooking Shows Occasionally or MoreJust one on five U.S. adults (21%) say they never watch TV shows about cooking while three in 10 (29%) do so rarely, one-third (34%) do so occasionally and 15% watch cooking shows very often.

Certain groups are more likely to watch cooking shows. More than half (55%) of Baby Boomers (those aged 46-64) watch cooking shows very often or occasionally, compared to more than half (57%) of Echo Boomers (those aged 18-33) who say they rarely or never watch these shows.

Dividing potential viewers by gender, women are more likely than men are to watch cooking shows very often or occasionally (54% compared to 46%).

Cooking Shows Inspire PurchasesBesides trying to make the dishes shown on cooking channels, those who watch these shows can be influenced to potentially purchase some of the food they see being prepared, along with the gadgets the chefs use and even the cookbooks the star-chefs have written.

More than half (57%) of those who watch these shows say they have purchased food as a direct result of something they’ve seen on a cooking show. In addition, more than one-third (36%) say they have purchased small kitchen gadgets, 24% have purchased cookbooks and 6% have purchased large appliances as a direct result of something they’ve seen on a cooking show.

Much as they are more likely to watch these shows, Baby Boomers are also more likely to purchase both food (60%) and kitchen gadgets (41%) because of something they’ve seen on a cooking show. Gen Xers (those aged 34-45) are more likely to purchase cookbooks (29%) and large appliances (9%) after seeing them on cooking shows.

Women, Southerners, Reality Dominate Top 10 ShowsAccording to Americans who watch cooking shows, “30 Minute Meals” with Rachael Ray is their favorite cooking program. Tied at number two for favorite cooking show are two Southern cooks - Paula Deen with Paula’s Home Cooking and New Orleans resident (and Fall River, MA native) Emeril Lagasse, with “Emeril Live.”

-

At number four is the reality cooking competition, “Iron Chef,” and number five is “Good Eats.”In at number six is Guy Fieri’s “Diners, Drive-ins and Dives” and number seven is reality contest “Top Chef.” Three females round out the top 10: “Barefoot Contessa” hosted by Ina Garten, “Martha Stewart,” and “Everyday Italian” with Giada de Laurentiis.

Cooking at Home PopularA large percentage of US adults enjoys cooking at home and does it frequently, according to other results of this Harris Poll. About eight in 10 (79%) of Americans 18 and older enjoy cooking, with 14% not enjoying it and 7% not cooking at all. Positive response is virtually the same among men (78%) and women (79%), although it is slightly higher in households with children (81%) than without children (78%).

About the Data: This Harris Poll was conducted online within the US between May 10-17, 2010 among 2,503 adults (aged 18 and older). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online.

Going niche is the future for Indian television

Credit: Reuters/Parth Sanyal/Files

By Shilpa Jamkhandikar

MUMBAI | Wed Oct 20, 2010 3:41pm IST

MUMBAI (Reuters) - Babies, cars, food and fashion -- Indians are now waking up to a plethora of television channels catering to their individual needs.

With more access to direct-to-home services and high-definition television, niche TV channels are finding a place in a market dominated by soap operas and reality series.

Advertisers looking for targeted audiences are helping too.

"Niche channels are part of a coalition strategy for both subscription and advertising revenues," says Rajesh Jain of consultancy firm KPMG.

"Advertising becomes important because of restrictions by government of India in terms of subscription caps per channel, so we will see a mix of both."

India had as many as 461 active channels as of 2009, targeting 129 million television households most of which are single TV homes.

While penetration of niche channels in India is a mere 1.6 percent compared to 16 percent in Singapore, channels with English-language programming are becoming the first choice for many upwardly mobile Indians.

"If you map what is happening to India outside of the television space, you will see that our aspirations and ambitions have grown exponentially," says Rajiv Bakshi, VP, Marketing for Discovery Networks Asia Pacific.

"Channels which have content that match these aspirations, will do well."

CBS Studios International and Reliance Broadcast Network have formed an entertainment venture in India to launch three English-language niche channels by the end of 2010. DEN networks, one of India's largest cable television companies, has announced the launch of the Baby First channel.

Fox International Channels, a subsidiary of the Fox Entertainment Group part of Rupert Murdoch's News Corporation, also announced seven new niche channels in India this year, including Fox Crime, FX and Baby TV.

Discovery recently launched Discovery Turbo, a 24-hour channel dedicated to car enthusiasts and Bakshi says there was a perceived customer demand for that kind of niche channel.

"There are 12 to 14 auto magazines in the market and obviously all of them have consumers," he said. "So isn't that same consumer looking for similar television content?"

Television audience measurement figures show Turbo's channel share in the infotainment space rose to 1 percent in just four months.

Niche channels provide a more cost-effective medium for advertisers looking to target a select group of audiences, says a KPMG report.

Chapter 4

Explanation: Conceptual framework

COOKERY SHOWS

Cookery shows are those shows presented on television wherein food is prepared in the kitchen, studio or outdoor locations. The host is often a celebrity chef who prepares one or several dishes during the show and helps the audience get a sense of the exact process of cooking unique dishes in their kitchens as well.

These shows may be educational, reality shows or even lifestyle shows as they are today at large. These shows are usually a staple day time programming for viewers who are mainly women. However, this myth has been successfully broken by viewership coming from youth and men in urban areas and cities due to an increasing trend to position these shows as lifestyle shows.

FOOD CHANNELS

Food channels are round the clock channels dedicated solely to food from different parts of the world. These channels have a mix of various types of content that targets different kinds of audiences across several categories. These channels bring to you content from the kitchen, reality shows, lifestyle programming, travel and food, world cuisines, wines and everything that comes under the world of food, beverages and lifestyle. There are 106 shows connected with food happening on Indian television thus providing a vast opportunity for food channels to come in.

FOOD CHANNELS ANNOUNCED IN INDIA (DO SWOT ANALYSIS HERE) also try to apply porters 5 forces model here

1. FOOD FOOD TV

Parentage- Malaysia''s Astro All Asia Networks in partnership with celebrity chef Sanjeev Kapoor''s television company Turmeric Vision

Positioning- Mass content that will apetize the interests of everyone according to different day parts

Content-– It will feature Hinglish content that would be “relevant to the Indian audience”. FoodFood will feature shows about food and food lifestyle like ‘Sanjeev Kapoor’s Kitchen’, ‘Firangi Tadka’, ‘Sirf 30 Minute’ and ‘Ready Steady Cook’. Overall, a 360 degree focus on the world of food.

Distribution- A 360 degree approach per se is what Astro and Sanjeev Kapoor promise as well. According to company officials, FoodFood would be available across TV, mobile, web

Target Audience- Urban towns, metros, women

Chief Revenue Streams- Advertising revenues, subscription revenues

Strengths

1. Excellent funding and support from Astro Group which has investments in Sun Direct, NDTV good times and other media conglomerates

2. Great positioning and content3. Target audience is women, urban towns and tier II towns thus providing the possibility of attracting GEC audiences4. The channel enjoys the support of Mr. Sanjeev Kapoor who has excellent experience in food business and has been

the face of Food programming in India5. Astro group has a minority interest in Sun Direct, the distribution arm of Sun TV which can help the channel to pick

up subscribers in the long run when Sun Direct picks up customers in HSM6. Astro group has a significant holding in NDTV good times which gives it a sense of how the food and lifestyle

programming market is. Also, they can tap certain properties that have done well for NDTV good times and use them for Food Food TV.

Weaknesses

1. Doesn’t have a strong distribution partner belonging to the same network like Zee has Dish TV with 9 million subscribers

2. Does not have previous packages on DTH, CAS, IPTV platforms that can integrate this channel 3. Since the channel does not have any other network channel, it wil have to bring in fresh advertisers unlike ZEE

which can bring in advertisers from network channels by providing them special packages to advertise across the network

Opportunities

1. Possibility of generating transparent and assured revenues through subscripton2. Great potential to partner with advertisers3. Food and beverage sector advertising spends have increased

Threats

1. Competitor stations have been launched giving them the first mover advantage2. High carriage fees3. Making a presence across all distribution platforms4. Competitors may buy syndicated properties that have done well abroad thus preventing another channel in the

same space to exploit them.

2. Food First TV

Parentage-Alva Brothers unveils Real Lifestyle Network

Positioning- . Food and Lifestyle

Target Audience- Upwardly mobile English speaking, 18+, male and female audiences.

Distribution- Digital and analogue distribution platforms

Content- Food and lifestyle content, food programmes in HD quality from across the globe

Chief revenue Streams- Subscription revenues, advertisement revenues, new media streams

Strengths

1. Experienced player in the television space 2. Known for breaking the clutter with the launch of Real Channel which is now not in operation3. Experienced people in the industry and have many shows to their credit 4. Have a full fledged production house that can ensure good programming at a low cost for the channel

Weaknesses

4. Doesn’t have a strong distribution partner belonging to the same network like Zee has Dish TV with 9 million subscribers

5. Does not have previous packages on DTH, CAS, IPTV platforms that can integrate this channel 6. Since the channel does not have any other network channel, it wil have to bring in fresh advertisers unlike ZEE

which can bring in advertisers from network channels by providing them special packages to advertise across the network

Opportunities

1. Possibility of generating transparent and assured revenues through subscripton2. Great potential to get advertisers to pay a premium for advertising as the channel is niche and the positioning is

metropolitan and flamboyant3. Food and beverage sector advertising spends have increased over the years and a chunk of the spends can be

diverted to this channel

Threats

1. Competitor stations have been launched giving them the first mover advantage2. High carriage fees3. Making a presence across all distribution platforms4. Competitors may buy syndicated properties that have done well abroad thus preventing another channel in the

same space to exploit them.

5. Zee Khana Khazana

Parentage- Zee Network

Positioning- Niche content

Target Audience-Urban towns, two tier cities, metros, mass audience

Distribution- DTH platform initially

Content- Rich programming mix, shows that define and refine the culinary expertise that has become synonymous with food, Indian favourites, ‘High on Food’, ‘Chef’s special’, ‘A Touch of Turmeric’, and ‘Khana Khazana’, the international content is all about culinary adventure, with shows like ‘The Hairy Bikers Cook Book’, ‘Chefs – Put Your Money Where Your Mouth I’s, ‘Saturday Kitchen’ series, ‘Gino D’acampo – An Italian in Mexico’, and ‘James Martin Favourite Feasts’, among others

Chief Revenue Streams- Subscription revenues, advertising revenues

Strengths

1. Oldest and highly established brand and television network in the country2. Has great distribution network abroad that contributes largely in the subscription revenues 3. Known as a network that caters to advertisers by providing them stability in ratings 4. Has got several licenses and has begun operations of several niche channels 5. Enjoys the support of a large distribution network, Dish TV which has 9 milion subscribers, while the overall DTH

industry has approximately 20 million subscribers

Weaknesses

1. Perceived as a channel that caters to rural audiences 2. Target audience mix does not attract premium category advertisers3. Inability of the network to churn out flagshp programms

Opportunities

1. Has several network channels thus providing an opportunity to rope in existing advertisers by providing them special packages to advertise across the network

2. Ability to provide existing advertisers with a specialized channel thus helping them to cater to a niche target audience

3. Ability to divert a huge chunk of the advertising spends of food and beverage sector 4. Opportunity to capitalize on Dish TV, the networks distribution channel5. Possibility of generating transparent and assured revenues through subscripton6. To exploit Zee networks established distribution muscle for Zee Khana Khazana7.

Threats

1. Competitors have announced the launch of food channels 2. High carriage fees3. Making a presence across all distribution platforms4. Competitors may buy syndicated properties that have done well abroad thus preventing another channel in the

same space to exploit them. 5. Has made several investments recently in acquisition of other channels and has applied for several licenses for

niche channels. This poses a threat of losing focus

Chapter 5

Methodology adopted

Methods of data collection Sampling methods adopted Description of data collection tools Explanation on validity and reliability of data

a. Chapter four: Methodology adopted

a. QUALITATIVE RESEARCH

Qualitative research seeks out the ‘why’, not the ‘how’ of its topic through the analysis of unstructured information – things like interview transcripts, open ended survey responses, emails, notes, feedback forms, photos and videos. It doesn’t just rely on statistics or numbers, which are the domain of quantitative researchers.

Qualitative research is used to gain insight into people's attitudes, behaviours, value systems, concerns, motivations, aspirations, culture or lifestyles. It’s used to inform business decisions, policy formation, communication and research. Focus groups, in-depth interviews, content analysis, ethnography, evaluation and semiotics are among the many formal approaches that are used, but qualitative research also involves the analysis of any unstructured material, including customer feedback forms, reports or media clips.

Collecting and analyzing this unstructured information can be messy and time consuming using manual methods. When faced with volumes of materials, finding themes and extracting meaning can be a daunting task.

In the project, “The potential for food channels in India”-opinions of people connected with the launch of the food channel, media experts, observers from the branded content industry and any relavent people have been contacted to get a sense of what lies ahead for the food channels that are slated to launch in India.

1. INTERVIEWS WITH FOOD CHANNEL PEOPLE

Secondary data

Secondary data is collecting and possibly processing data by people other than the researcher in question. Common sources of secondary data for social science include censuses, large surveys, and organizational records (Mintel). In sociology primary data is data you have collected yourself and secondary data is data you have gathered from primary sources to create new research.

In terms of historical research, these two terms have different meanings. A primary source is a book or set of archival records. A secondary source is a summary of a book or set of records.

Advantages to the secondary data collection method are –

1) It saves time that would otherwise be spent collecting data,

2) Provides a larger database (usually) than what would be possible to collect on ones own

a. REACH OF PREVIOUS COOKERY SHOWS ON INDIAN TELEVISION

b. Bytes of people in articles found

c. TAM DATA on advertising spends of Food and beverage sector

d. Consumer research data done by Food Food TV

e. Data on Masala TV

Validity & Reliability

1. The data has been self collected and interpreted here. Utmost care has been taken to

put in all aspects of the personal interaction.

2. The secondary data collected is from Web & Printed articles from reliable sources.

3. The financial numbers so quoted are from respective websites and articles published.

CHAPTER 6

Data analysisINTERVIEW WITH MR. ACHIN GUPTA- Food Food TV

Hello. So, the time has finally arrived to launch a food channel?

Yes, absolutely! India has always been a food country. At the macro level agricultural sector has been an important contributor to the GDP of the country. Food is universal in nature and several food magazines have existed to cater to the food lovers. Even television has seen a rapid increase in the number of shows revolving around food and lifestyle. The time is therefore right for a round the clock food channel.

Coming from the top face of food programming in the country are you all geared up to launch the channel?

Yes, we have been involved with the launch of FOOD FOOD TV right from the idea stage and efforts are beginning to intensify towards this effort. All the aspects are being kept in mind and the background work is taking place so that the channel goes on air successfully.

.

Two other channels have already been announced and ZEE KHANA KHAZANA has already begun operations?

Yes, that is the challenge facing us. The industry is growing so rapidly that everybody wishes to jump into the bandwagon and capitalize on the big opportunity. However, we believe that we will come out successful in our endeavour once we are launched.

What are the other challenges that pose in front of Food Food TV?

For all channels in the television space, getting hold of a strong distribution network is a huge challenge especially due to the high carriage fees and placement revenues involved. Also, competition from other networks will be a key challenge which will drive us throughout the course, thus ensuring superior programming and branding strategies.

How are you planning to differentiate your channel from the other two food channels?

We re aiming to be a mass channel, mainly catering to the HSM market and GEC audience. That is where we believe the viewership will come from. Our positioning will untimately work for us. A Food First channel may not have to go and target Kanpur. They would cater to the niche audience as they have announced.

What is the kind of programming mix that FOOD FOOD TV will bring with its launch?

It will feature Hinglish content that would be “relevant to the Indian audience”. FoodFood will feature shows about food and food lifestyle like ‘Sanjeev Kapoor’s Kitchen’, ‘Firangi Tadka’, ‘Sirf 30 Minute’ and ‘Ready Steady Cook’. Overall, a 360 degree focus on the world of food. We will do everything to ensure that our programming is fresh and relevant to our viewers.

What are the revenue streams for your channel and when does FOOD FOOD TV intend to break even?

Our channel would be advertisement and subscription driven. Food and beverage sector has seen an increase in total spends of advertisers on television. We will be capitalizing on this opportunity.

Also, there are various opportunities in branded content that can be exploited. We are strengthening our distribution network which will enable us to churn out maximum subscription revenues in the long term. DTH, IPTV, CAS, Mobile and other forms of interactive media have presented a chance for transparency in revenues. Usually a new business breaks even in 3-4 years time.

Food Food TV has spoken of a 360 degree plan.

Yes, we will be working hard to ensure that the channel launches successfully and ropes in awareness in the initial stages of the launch. For this we will be ensuring a 360 degree activation plan that helps the channel communicate with the right target audiences. It will ensure higher sampling.

Also, we are planning a 360 degree distribution plan that will help our channel to launch on DTH, IPTV, CAS, Digital platforms, mobile and interactive media apart from the traditional analog.

Thank you very much Mr. Achin. I wish you good luck for the launch of Food Food TV.

Industry opinions on Food Channels

Neil Chakravarti, Formet EVP strategy and development

"The food genre will see a lot of activity within the niche channel space in India. Food shows have been successful across a variety of channels, and some like Khana Khazana have been around for years with steady viewership. Moreover, the fact that food, and the huge variety of cuisines that India offers, is such an integral part of our cultural fabric is a catalyst for higher levels of television engagement."

Gaurang S. Trivedi, CFA, Ex. Senior research analyst Bloomsberg TV- USA

Food channels in the US are quite popular and have a niche audience. Moreover, shows with celebrity chefs attract a lot of viewing (Rachel Ray, Martha Stewart, etc.). Two channels that come to my mind immediately are Food Network and Cooking Channel. Popularity of these channels rises during the holiday season, as people prepare more meals at home! As with all food channels, it is the how to make a quick meal, get a delicious recipe and make great lunches and dinners that drive viewers. Also, there is a growing movement towards eating healthy at home rather than outside food + singles (both male and female) are due to economic situations trying to eat more at home than in restaurants. They are likely to do well in the Indian scenario that has followed western trends.

Pranjal, Head Non-fiction- Red Chillies Entertainment

I strongly feel that the time is right for a round the clock food channel to enter the market. It’s an untapped market and will surely add in regular TV watching female audience to get hooked on.

The future of Indian television is in content segregation and providing niche platform for target audience. Keeping this in mind the food channels surely stand a strong chance to create a strong viewer base for itself.Taking cooking beyond the realms of kitchen and housewives will be the key propellor of increasing popularity of food channels. The projection of managing kitchen as a Lifestyle attribute and not as a daily household chore would be the key to successful programming.

Pradeep Prabhu, Co-Founder, ZAPP Media and Entertainment (Branded content firm)

Audiences today are looking for specificity. Over the last few years, the audiences have fragmented and migrated to specific niche channels creating a nice audience target market. Lifestyle and niche channels are the way forward for Indian market. Food channels hold a lot of potential. Indians are food-loving people and with such wide variety of cuisines available to experiment within the country, audiences would love to explore more. General entertainment channels will still continue to broadcast food shows. GEC's are like a thali, you will have loads of variety, a bit of this and a bit of that but imagine a person who wants to eat Bengali cuisine, he will go specifically to those restaurants. Similar phenomenon is happening with audiences today. Advertisers, especially FMCG, Food and Beverage companies will bet a significant portion of their spends on food channels given the profile of audiences being women and single people. The success of the channel lies in the programming mix and keeping the cost of production low."

SECONDARY DATA

Interviews Published

Rahul Johri, senior VP and GM, India, Discovery Networks Asia-Pacific

Food has traction. People like to see food shows. On TLC, our food shows are part of lifestyle and travel, not the white apron and cooking stove type. Among the multiple genres our programming covers under travel and lifestyle, our food and grooming shows are the most popular. Our food show, Chew, in the 1-2 pm slot, has seen viewership numbers double over the noon-1 pm slot.

Sanjay Gupta, COO, Star India

If you can build drama around food, make it meaningful and build excitement around it beyond recipes, consumption and tasting, people enjoy it. Forty-eight hours before the India show went on air, we put up a video on the internet. We got 1.4 million unique video views, the highest we’ve got for any show. MasterChef Australia 1, which we showed earlier this year and did a feedback with viewers, had also got us good responses. We’re currently running MasterChef Australia 2 and are happy with the viewership interest.

Most of India’s non-fiction programmes on TV are based on singing and dancing. Yet, only about five per cent of the country’s people sing and dance. In contrast, 60-70 per cent of India’s population enjoys food, can cook it or can talk around cooking. Now that’s a key thought

Manisha Tripathi, business head, Real Global Broadcast, Alva Brother’s broadcasting company

Affluence is rising in India, leading to aspirations for enhanced lifestyles. Food is a definite expression of lifestyle. An overall analysis of TV content reflects that food shows on lifestyle channels attract higher viewership. On the web, food-related searches are amongst the highest.”

Presenting some of the best food-focused programmes shot in high-definition, FOOD first will be featuring the biggest names in the world of food from across the globe. Our programmes will target upwardly mobile, English-speaking, 18-years-plus, male and female audiences.

Raghvendra Madhav, Executive Director of India and South Asia for Media, Astro Group,

Food is the new entertainment. Over recent times, content has started to reflect this with food playing a central role in game shows, reality shows, travel and lifestyle shows and instructional shows where viewers learn to cook or hone their culinary skills, or just vicariously experience new cultures and cuisines. Capitalising on this development, we are launching FoodFood - 360 degrees of food available across multimedia platforms like TV, web, mobile.”

Madison World Chairman Sam Balsara

It is better to have a channel that specialises in a narrow functional area than to add up another general entertainment channel in the already cluttered space of TV broadcast.

Naveen Khemka, Senior Vice-President- Zenith Optimedia

Such channels are also likely to attract advertisers operating in the food and food related space. Advertisers will associate with such channels on a long -term basis such as home appliances companies and food companies. These channels will attract serious audience who will be willing to pay for specific content.

Rajneesh Chaturvedi, National Director, MEC Access

Look at the evolution of advertiser-funded programming (AFP). At one point, we would see FMCG brands and telecom brands attempting AFP, but today we did a show that was only for LG microwaves with the intention of showcasing that microwaves are not just for heating food. And the content association has delivered for LG.

But in a market where ratings rule all, how does one judge the performance of something as niche as a food channel? This is not the kind of a channel one would judge by ratings. In international markets, the subscription driven models are already in place and in India, we are headed in that direction too.

Smeeta Chakrabarti, NDTV Lifestyle CEO

Indians are a passionate lot and few things unite us more than our common passion for food. NDTV Good Times has promoted a wide range of food shows spanning cuisines, social strata and tastes. The aim of our Food Awards is to celebrate this insatiable appetite for food and acknowledge those who delight us with their extraordinary culinary efforts.

Nikhil Alva, Group CEO, Alva Brothers Entertainment

The Real Lifestyle Network will offer Indian consumers a bouquet of clutter breaking, well differentiated channels with compelling and entertaining content married to world class production values. With Food First and the channels that are to follow, we’re going about building new broadcast categories that will set benchmarks for value, quality, relevance and entertainment for Indian consumers

CONSUMER RESEARCH

PREVIOUS COOKERY SHOWS ON TELEVISION AND HOW THEY HAVE DONE

Television channels across the general entertainment and lifestyle categories are also full of food shows. While many have at least one food show — such as Colors’ Kitchen Champion — Discovery’s TLC is currently running at least 17 food shows. NDTV Good Times also has multiple food shows.

Star India network is running two versions of the same food show, MasterChef, on two of its channels —MasterChef Australia on Star World and MasterChef India on Star Plus.

For those TV networks that have launched regional channels, a food show invariably features in some time slot. Mejwani Paripurna Kitchen on ETV Marathi and Ranna Ghar on Zee Bangla are just two examples.

Analysis-

GEC channels that have the name in the industry have managed to ensure a great reach through aggressive marketing

Cookery shows have not been marketed properly Well known celebrities do make a huge difference in bringing out viewership

TAM DATA ON FOOD AND BEVERAGE SECTOR SPENDINGS

Share of F&B categories on TV during H1'2010 1) Top 10 categories share aggregates to 74 per cent of overall advertising share of 'Food & Beverages' sector on TV during Jan-Jun '2010.2) 'Aerated Soft Drink' had the highest share i.e. 22 per cent of 'F&B' TV ad pie followed by 'Milk & Beverages' and 'Chocolates' categories with 11 per cent and 7 per cent share respectively during H1 '2010.

Snapshot of TV advertising during H1 2010-Part 2 (F&B Sector)

1) TV advertising of 'Food & Beverages' sector up by 27 per cent during H1 '2010 compared to H1 '2009.2) 'Aerated Soft Drinks' category had the maximum share of 'Food & Beverages' sector TV ad pie during H1 '2010.3) Coco Cola India Ltd' was the top advertiser under 'Food & Beverages' sector on TV during H1 '2010.

‘Food & Beverages’ sector recorded growth of 27% in its TV ad volumes during Jan-Jun ‘2010 compared to Jan-Jun ‘2009.

Top Advertisers of F&B sector on TV during H1 2010

Top 10 categories share aggregates to 74% of overall advertising share of ‘Food & Beverages’ sector on TV during Jan-Jun ‘2010.

’Aerated Soft Drink’ had the highest share i.e. 22% of ‘F&B’ TV ad pie followed by ‘Milk & Beverages’ and ‘Chocolates’ categories with 11% and 7% share respectively during H1 ‘2010.

During Jan-Jun ‘2010, top 10 advertisers contributed for 69% of overall ‘Food & Beverages’ advertising on TV.

’Coca Cola India Ltd’ ,’Pepsi Co’ and ‘Cadburys India Ltd’ were the top 3 advertisers of ‘Food & Beverages’ sector on TV during H1 ‘2010.

Friday, 17th July, 2010BEVERAGES SECTOR- Jan- May 2010 (Adex analysis trends)

Highlights :

TV advertising of 'Beverages' sector increased by 15% during Jan-May '10 compared to Jan-May '09. ‘Aerated Soft Drink’ category led ‘Beverages’ sector advertising on TV during Jan-May ‘10.

‘Coca Cola India Ltd’ was the top advertiser of ‘Beverages’ sector on TV during Jan-May ’10.

High advertising share of ‘Minute Maid Nimbu Fresh’ among the new brands of ‘Beverages’ sector on TV during Jan-May ’10.

During Jan-May’10, ‘Beverages’ sector has recorded increase of 15% in its TV ad volumes compared to same period in 2009.

‘Aerated Soft Drink’ had the maximum share i.e. 52% of overall advertising share of ‘Beverages’ sector on TV followed by ‘Milk Beverages’ and ‘Non Aerated Soft Drink’ with 29% and 16% share respectively during Jan-May ’10.

Volume growth of Beverages categories on TV

Top advertisers of Beverages sector on TV

Among the categories of ‘Beverages’ sector, ‘Mineral Water’ was the top category to record maximum growth in its TV ad volumes followed by ‘Milk Beverages’ and ‘Non Aerated Soft Drink’ categories during Jan-May ’10 compared to Jan-May ’09.

‘Coca Cola India Ltd’ had the highest share i.e. 43% of ‘Beverages’ sector TV ad pie followed by ’Pepsi Co’ and ‘Smithkline Beecham’ at 2nd and 3rd position with 22% and 15% share respectively during Jan-May ‘10.

New brands of Beverages sector on TV

Share of Beverages sector in National vs. Regional channels

‘Minute Maid Nimbu Fresh’, ‘Signature Natural Mineral Water’ and ‘Danone Choco Milk’ were the top 3 new brands of ‘Beverages’ sector on TV during Jan-May ‘10.

55% of ‘Beverages’ sector advertising on Regional channels and rest 45% share was on National channels during Jan-May ‘10.

‘Tamil Nadu’, ’Andhra Pradesh’ and ‘West Bengal’ were the top 3 states in advertising of ‘Beverages’ sector on Regional channels during Jan-May ’10.

Watch out for forthcoming interesting analyses in future. (Analysis from AdEx India-A Division of TAM Media Research)

Top 10 Sectors on TV during Jan-Sep ‘09 and its Rank in 2000

Contribution of the Top 10 sectors of 2000 on Television was 68% which decreased to 50% in Jan-Sep ‘09. Except for 2008,contribution of the Top 10 sectors of 2000 on TV was more than 48%

Compared to 2000, 4 of the top 10 sectors on TV have moved up to be in the top 10 list of sector of Jan-Sep ’09 i.e. ‘Telecom/Internet Service Providers’, ‘Personal Accessories’, ‘Banking/Finance/Investment’ and ‘Household Products’.

Watch out for forthcoming interesting analyses in future. (Analysis from AdEx India-A Division of TAM Media Research)

Monday, 20th July, 2009

Highlights :

Beverages sector advertising on TV has seen growth of 46% during Jan-May ’09 compared to Jan-May’08 . Maximum advertising of Aerated Soft Drink brands on TV during Jan-May ’09.

‘Coca Cola India Ltd’ had the maximum share of overall advertising share of Beverages sector in TV during Jan-May ’09.

‘7 Up Natural Lemon Flavour’ was the top new brand of Beverages sector on TV during Jan-May ’09 .

This week, AdEx India analyzes the Overview of Beverages sector on TV during Jan-May ‘09

Volume Growth of Beverages sector on TV during Jan-May ‘09

Contribution of Beverages categories in F&B sector advertising on TV

46% growth in TV ad volumes of Beverages sector during Jan-May ’09 compared to Jan-May ’08.

During Jan-May ’09, Beverages sector accounted for 52% share of overall Food & Beverages advertising on TV.

Share of Beverages categories on TV during Jan-May ‘09

Top Advertisers of Beverages sector on TV

 

‘Aerated Soft Drink’ accounted for 45% of the total Beverages sector advertising on TV followed by ‘Milk Beverages’ and ‘Non Aerated Soft Drink’ with 22% and 16% share respectively during Jan-May ‘09.

Top 10 advertisers contributed for 95% share of overall advertising share of Beverages sector in TV during Jan-May ’09.

‘Coca Cola India Ltd’ was the top advertiser of Beverages sector in TV followed by ‘Pepsi Co’ and ‘Smithkline Beecham’ with 23% and 15% share respectively during Jan-May ‘09.

New Brands of Beverages sector advertised on TV during Jan-May ‘09

Share of Beverages sector in National and. Regional channels

 

During Jan-May ’09,2 brands of Pepsi Co viz.‘7 Up Natural Lemon Flavour’ and ‘7 Up Nimbooz’ occupied the 1st and 3rd position respectively in the Top 10 new brands of Beverages sector advertised on TV.

Whereas, ‘Cadburys Bournvita Plus Plus’ belonging to ‘Cadburys India Ltd’ was at 2nd place.

Top 10 list of new brands of Beverages sector advertised on TV, was a mix of 6 brands of ‘Aerated Soft Drink’ and 2 were of ‘Milk Beverages’.

Beverages sector advertising on Regional and National channels was in the ratio of 52:48 during Jan-May ’09.

‘Tamil Nadu’ had the maximum share of overall advertising of Beverages sector on Regional channels followed by ‘Andhra Pradesh’ and ‘West Bengal’ with 17% and 15% share respectively.

Wednesday , 11th June, 2008

Highlights :

40% growth in TV advertising of Beverage Industry during 2007 compared to previous year. Aerated Soft Drinks' lead among all the segments of Beverage Industry on TV during 2007.

More than 50% share of Beverages advertising on National channels during 2007.

‘Coca Cola India Ltd' and 'Pepsi Co' were the top 2 advertisers of Beverage Industry on TV during 2007.

‘Minute Maid Pulpy Orange' topped the chart of new beverage brands launched on TV during 2007.

‘Aamir Khan' topped the Celebrity endorsement chart of Beverages on TV during 2007.

This week, AdEx India analyzes the advertising trends in Beveragel Industry on TV during 2007.

Volume Growth of Beverage Industry on TV

Share of Beverage Industry in overall F&B market on TV during 2007

During 2007, advertising of Beverage Industry has seen a growth of 40% on TV compared to 2006.

Beverage Industry accounted had 41% share of overall Food & Beverages advertising on TV during 2007.

Advertising of Beverage brands (National vs. Regional)

Seasonality of advertising of Beverage brands on TV during 2006 & 2007

During 2007, advertising of Beverage Industry on National and Regional channels in the ratio of 53:47.

Beverages advertising increased by 32% during the 1st half of 2007 compared to the 2nd half of same year.

Categorizations of Beverage Industry on TV during 2007

Top Advertisers of Beverage Industry on TV

During 2007, 77% of overall advertising share of Beverage Industry on TV was contributed by the top 3 categories i.e. 'Aerated Soft Drinks', 'Milk Beverages' and 'Tea'.

During 2007, 'Coca Cola India Ltd' and 'Pepsi Co' had a close competition for the 1st position in the top advertisers list of Beverage Industry on TV.

Whereas 'Brooke Bond Lipton India Ltd' and 'Smithkline Beecham' shared the 3rd rank with marginal difference in their share.

New brands launched under Beverage Industry on TV during 2007

Average Ads/Day of Beverages on TV during 2006 & 2007

Compared to 2006, average ads of beverages aired per day on TV has seen a rise of 37% during 2007.

During 2007, 2 brands of 'Horlicks' made it top 5 brands with maximum advertising frequency of ads per day on TV.

3 of Top 5 brands with maximum ads/day on TV were of 'Milk Beverages' during 2007.

FOOD CHANNELS ABROAD

1. MASALA TV- PAKISTAN

Masala TV Pakistan is a channel owned and operated by the Eye TV network which also has a GEC called Hum

TV. Masala is a pure food channel catering to South East Asia food recipes. This will be a 24 hours channel, a first

of its kind in South East Asia. This channel will help the network get better places with the advertisers, sepcially

those FMCG companies dealing in food and related items and other clients whose main target audience is women.

The 24 hours food channel jas been operational for almost 9 months till the year ended 30th June 2007. The

channel has been very popular amongst the female audience and has made its mark in a very short span of time and

with this addition we have been able to place ourselves as a leader in specialized channels. We have also entered

into some strategic alliances with some of our advertisers for the promotion and positioning of Masala TV.

Masala TV is the only 24 hour food channel from Asia,Masala TV continues to be highly famous amongst the

housewives of Pakistan and its popularity graphs are on the rise continuously. Masala boass the number one

position in the food channel category and the number three position amongst the overall GEC category in terms of

viewership ratings.

A lot of marketing activities including brand building activities were undertaken for Masala TV during the year

which included sponsorship of the food court at “Dawn life style” event in three major cities of Pakistan for the

second consecutive year and Ramadan promotions throughout major restaurants and hotels.

During the year, another channel from food genre was launched by a competitor network. Thus has helped Masala

in further improving its quality and establishing its position as a far better product in the genre in terms of

viewership ratings. During the year another, proff of brand strength was the popularity of Masala TV was

experienced when masala food magazine launched. The three issues pulbished had been totally sold

2. ARY Zauq TV

ARY Zauq

Network ARY Digital Network

Owned by ARY Group

Country Pakistan

Broadcast area Pakistan

Website ARY Zauq

ARY Zauq is a 24-hour cooking channel from Pakistan. It is part of the ARY Digital Network and is owned by ARY Group. It features programming about food and cooking including programmes about Pakistani and international cuisine. ARY Zauq launched in 2009 and is currently available on Paksat 1 satellite at 38.0°E, free to air

RESEARCH FROM ABROAD

Chapter 6b. Research findings and conclusion

Highlighting the findings and the discoveries Draw analogies and conclusions Make recommendations Summarise the overall outcome of the study Summarise the implication of the study Ensure that the project is complete without too many unanswered questions

Key Findings

1. Food is universal in nature and India is a food country.2. There are several cookery shows across Indian Television3. Several magazines in print exist that are dedicated to food but there hasn’t been any television channel

solely dedicated to food4. Food channels have done fairly well abroad as they attract the popular mass audience who are women5. 2010 has seen the launch of several food shows on Indian TV that have a good reach, total of 106 food

shows are currently running across Indian Television6. Sanjeev Kapoor’s show called “Khana Khazana” has been running for 17 years on Zee Tv7. Three food channels have capitalized on this huge opportunity and have been announced8. Food and beverages sector has constantly seen an increase in spending across television and channels

specializing in food can be big gainers 9. Advertisers are ready to pay a premium to showcase their products on niche channels targeting niche

audiences

OBSERVATIONS

FOOD CHANNELS IN INDIA- PORTER’s 5 FORCES MODEL

1. EXISTING COMPETITON Rival food channels, GEC channels, TLC, NDTV Good Times, Regional GEC’s

2. BARGAINING POWER OF SUPPLIERSBargaining power of suppliers is weak. There are several production houses or content creators that will be pitching ideas and quality content to the channels. However, syndicated properties that have done well on other channels may come at a cost to the channel.

3. BARGAINING POWER OF BUYERS

Too many options leading to segmentation and volatile viewership patterns

4. THREAT OF NEW ENTRANTS3 channels already announced together. Others also will try to jump into the bandwagon as it happens in India.

5. THREAT OF SUBSTITUTESFood and lifestyle magazines, multiplexes, malls, outdoor entertainment options

CONCLUSIONS

There is a huge scope for food channels in India. The research data has shown that these channels can prosper as they have a strong backing of successful cookery shows in India that have done well.

International research also shows that food channels from abroad have done well and there is a huge scope in India

Food is universal in India. There are no shows for the same here. However, there are many shows in India on singing and dancingwhen only 6-7 percent of the population dances and sings

Consumer research reports have demonstrated the huge potential for food channels in India

Advertisers are very favourable to food channels as can be inferred from the increasing spends of food and beverage sector which has been rising steadily across the years

RECOMMENDATIONS

1. Food channels that are launching should strengthen their distribution network in order to reach the right target audiences they are intended for. Channels aiming to achieve a niche audience should tap into DTH, IPTV, CAS, mobile and Internet so that the niche audience can get to see them and also pay form the content.

2. The marketing spends of the channels to brand themselves and achieve awareness and high recall in the initital stages should be very high so that they can ensure high sampling and eyeballs

3. Launch of a channel is strongly supported by the kinf of content that the channel offers its viewers. The programming strategy needs to match the viewer’s expectations. Food should be presented as entertainment content that will draw audiences at large towards the channel and make viewership a habit

4. Channels should ensure that once they are launched, Constant innovations take place, new shows are introduced celebrities feature on their channels and high performing syndicated software are put on air. Cutting edge programming will be the key to their success.

5. Advertisers, especially in the food and beverage category should be partnered with for a long term association, providing them with a specialized channel to present their products to the consumers at large. This can be

recommended from the fact that advertising by food and beverage sector has grown significantly at a healthy pace on Indian television since the last 3-4 years.

6. Positioning of the channel will be the key to success for the food channels. A mass positioning will present an opportunity to compete with the GEC giants and successfully lure their audiences, thus enjoying the potential of revenue generation through advertisers as well as all distribution platforms. This has been demonstrated by Masala TV in pakistan which has a homogenous audience when compared with India. However, niche positioning will have its own advantages in terms of subscription revenues and the possibility of advertisers willing to pay a premium for their advertisements.

7. The format presents lots of opportunities to exploit AFP tie-ups through out the programming. Lots of opportunities lie with food channels for product placement s and branded content.

Chapter 11

Bibliography

Ficci kpmg 2010 business standard financial express hindustan times Bloomberg research food food tv research data tam media research