Flipkart buying Snapdeal! Logic behind the mega acquisition

Flipkart Buying Snapdeal

With most of the e-commerce players running into losses, its time for the industry to churn out some numbers for the investors and prove that their net worth is not just a number but their real value. For those who can not bring cheer to the investors are set to perish in an over estimated Indian e-commerce market. Few players have already shut shop. PepperTap is one example and its time to witness some further consolidation in the industry with Flipkart buying Snapdeal.

Once among the top 3 e-commerce player of India, Snapdeal, is having a tough time to impress its investors and especially Softbank, its biggest stakeholder. The company which was couple of years ago valued at $6.5 bn is today struggling to prove even one sixth of its valuation. In a latest development, sources state, that Flipkart is buying Snapdeal operations to take on rival Amazon in India.

Why is Flipkart buying Snapdeal?

However, the question arises, why will Flipkart be interested in a venture which has been making losses? Why will a company spend heavily to nurture two brands especially after the failed effort of Snapdeal’s biggest campaign – Unbox Zindagi. If we take a closer look at both the companies we find stark difference which actually complement each other to take on the bigger rival – Amazon. Below are few points which might have excited Flipkart to take over Snapdeal:

  1. Flipkart is holding around $50-60 mn in its kitty in addition to the recent funding of Rs 1.5 bn (Flipkart set to raise up to $1.5 billion amid talks to buy Snapdeal) With Flipkart buying Snapdeal, they not only eradicate one competition but also put their cash to good use.
  2. Flipkart is particularly strong in the the Western and Southern part of India in terms of reach and logistics where as on the other hand North and East India have been a focus market for Snapdeal. To take on a giant like Amazon, Snapdeal acquisition will give Flipkart a uniform Pan India presence.
  3. Unlike Flipkart, Snapdeal has unparalleled reach to tier II and tier III cities supported by a robust logistics arm.
  4. Vulcan Express, Snapdeal’s fully-owned logistics arm that not only functions as the primary delivery mechanism between sellers and customers and vice-versa for the marketplace but has an external client list as well, would most likely be part of the merger.
  5. Snapdeal’s Vulcan Express is about the reach profitability numbers compared to Flipkart’s e-kart which posted a loss of Rs 810 cr. The logistics of the e-commerce giant will certainly pump up.
  6. Snapdeal currently has 300,000 sellers compared to Flipkart’s 100,000 sellers. Additionally a majority of these Snapdeal sellers are in the sale in the unorganised sector where as Flipkart has always been more skewed towards the organised sector.
  7. Last but not the least, Flipkart will get Softbank on board as a stakeholder and chances of further funding coming from Softbank can not be ruled out.

One thing is clear for sure, that the fortune of companies have moved from their founders to the stakeholders (Snapdeal’s co-founders hint firm’s fate not in their hands) and its now time that the investors take charge and aim at getting the right ROI.

All About Netflix India DTH Alliance in the Country

Netflix, one of the largest internet subscription services for television and movies worldwide, recently made a breakthrough announcement in India to reach out to mass market. As the war among OTT (Over-The-Top) content provider heats up, Netflix India decided to take an alternative route in the country by reaching out to consumers via DTH service providers.

Netflix and other OTT Player rankings in India

Off late fierce competition has kept all the OTT players on their toes. Almost all television channels now have an extended reach over their OTT app with exclusive content over the medium. Star’s Hotstar, Viacom 18’s Voot, Sony’s LIV have been striving to get majority share in a very nascent stage backing up with huge investments on the platform as well as marketing. However, few new players have disrupted the plans. Global giants like Amazon Prime and Netflix have joined the bandwagon along with home grown Jio TV and Jio Cinema. Below is how the of the OTT players stack up in rankings. Netflix just manages to make it to the list.

Netflix India - OTT app rankings India

Netflix India Strategy

Netflix has always been a premium player in all the countries wherever it has a presence. With high quality exclusive content curated for a TG skewed towards higher NCCS (New Consumer Classification System) in India, Netflix India pricing too demands a premium. Even the basic pricing, without an access to HD streaming, costs Rs 500/month which is almost double the ARPU (Average Revenue Per User) of DTH subscriptions (ARPU for the biggest player Dish TV stands near Rs 175 as in FY 16). Besides this, there always is a data cost associated whenever you fire the Netflix app.

Netflix India Pricing







Netflix clearly stated during their launch in India that their target is the wealthier lot with high disposable income and an interest towards english entertainment. To be more specific Netflix in India targets people in the age group of 25-35 yrs and preferable holding an international credit card or an iTunes account. Netflix targets wealthy Indian viewers – Warc

Netflix India Issue

Though there has been a multi fold growth for almost all the OTT players including Netflix, but Netflix India numbers active user numbers seems to stagnate over couple of months. Also, the total time spent viewing has almost been stagnant right from the month of launch and is currently on a decline. Other OTT players might afford experimenting as their platform is an extension of a well established channel on television. However, in case of Netflix its imperative to increase reach. Thereby company’s move to provide content over DTH providers is not a surprise.

Netflix India - Market Share of OTT players in India



Netflix India DTH Alliance with Airtel & Videocon

Netflix India has roped in Airtel Digital TV and Videocon D2H for reaching out to the masses. Both Dish TV, the biggest player in the market and Tata Sky with a better TG fitment, have been left out. Though the tie up will definitely enable Netflix to reach Indian household but when considering revenues certainly Tata Sky would have been a better fit. Tata Sky’s ARPU is easily estimated to be in excess of Rs 300 currently (was Rs 270 in 2010). The ARPU of Airtel Digital TV and Videocon D2H stand at Rs 233 and Rs 219 respectively as in Jan 2017. With all premium channels on Tata Sky – Le Plex HD, Star Movies Select etc- it is a no brainer that it would have been a better fitment.

Netflix, on the other hand and very unlikely, might be focusing solely on increasing reach and rake in the moolah from advertisers. Though we do not come across ads on Netflix as on Hotstar or Voot but you never know what may be in store for a price sensitive market like India. Also, there is a possibility that Tata Sky might have not entertained the alliance as they themselves focus on making revenue with their own paid subscriptions – Showcase Movies and Video on Demand Services.

We just hope that Netflix decision makes them stay in India for longer so that we have our uninterrupted dose of entertainment.

Interbrand announces the Best Global Brands 2016

If you are reading this, we assume that you have some interest in the field of Marketing and Brands. Recently, Interbrand has released Interbrand Best Global Brands List for the year 2016. In case you are hearing it for the first time, we are slightly taken by surprise. Anyways, here is everything you need to know about the latest rankings. There has always been questions on how does building brand equity help a business and why should one keep investing on it. For everyone who has had this question, Interbrand Best Global Brand List answers all of it every year with their list of the Best Global Brands.

The Interbrand Best Global Brands 2016 list has brands valued at $178,000 to $4,000. Please note this is not the net worth of the organisation but ONLY the brand value or what marketers very popularly call as Brand Equity of a brand.


Facebook emerged as the fastest growing brand among all. As per Interbrand, among this year’s Best Global Brands, they have found some common hallmarks. Some common characteristics that are helping grow brands and businesses. While every brand’s path is unique, those making the most impressive strides tend to defy sector norms and have a clear sense of self. They know when to build versus borrow. Their brand and business are cohesive and built around people. And they have a clear strategy for growth. That’s what makes them Best Global Brands.

Both HP and Hewlett Packard Enterprise made an appearance for the first time in the list. Tesla too made it to the Interbrand Best Global Brands List for the first time and managed to take the 100th position.

Why Coca Cola dropped Salman Khan from Thums Up?

Coca Cola India has recently confirmed that the company has not renewed superstar Salman Khan’s contract for their brand Thums Up. This move comes at a time when Salman Khan has started hosting the new season of his addictive TV show Bigg Boss Season 10. The company claims that the reason of the move is seeking a better brand fit, as the actor is now too old for the brand which caters to a young energetic audience. Consequently, Coca Cola dropped Salman Khan from Thums Up endorsement. However, if we read between the lines, the real reason of exit could be something else.

Brand Ambassadors of Thums Up in India

Salman Khan was roped in as brand ambassador of Thums Up in October 2012. Prior to Salman Khan, actor Akshay Kumar was the face of Thums Up from early 2000s. The brand also roped in few big names like Mahesh Babu from the southern part of the country. Salman Khan has been widely recognised as the face of Thums Up in India a result of his prolonged relationship with the brand, almost more than 4 years. Also, the actor’s popularity is at a all time high with super hits movies in the multi crore club recently. Both of his recent released – Bajarangi Bhaijan & Sultan broke all records at the box office. Thereby, it quite evident that there is no dearth in the star’s popularity. Still Coca Cola dropped Salman Khan from Thums Up. Then, what might have lead to this move by Coca Cola India?

The real reason why Coca Cola dropped Salman Khan from Thums Up endorsement

Coca Cola dropped Salman KhanCoca Cola India claims that the company is looking for a younger face for the brand and has indicated roping in Ranveer Singh. However, this doesn’t fall in place considering the fact that there is hardly any change in Salman Khan’s aura in the last 4 years when he was signed for the brand. Thereby claiming just the age factor doesn’t sound convincing enough.


Now lets see few finer details the actors latest engagements.

Salman Khan hosts Bigg Boss 10 presented by Appy Fizz

Salman has hosted the premier episode of Bigg Boss Season 10 recently and kick started the season. Season 10 has a different title sponsor this year. The season is presented by Appy Fizz who takes away the title sponsorship. Salman has a mandate to mention the sponsor names during the show as he did it beautifully in the grand premiere stressing on Appy Fizz multiple times. Appy Fizz competes with the product portfolio of Coca Cola India and the official might not have been happy with their brand ambassador talking about a competing product.

Salman Khan’s controversial comment on Pakistani artists in India

Also, the decision comes just 20 days after the Bollywood superstar courted controversy by supporting Pakistani artists on the debate whether they should be allowed to work in Indian movies following the Uri attack. A lot of hue and cry has gone around the matter of Pakistani artists working in India. Major influential groups across the country have boycotted movies, artists etc- form the neighbouring country. Salman Khan’s statement in support of the Pakistani artists must have played a vital role in this move. Coca Cola India must have been apprehensive on any spill over effect of boycott on over Salman Khan and the product he endorses. The brand Thums Up might go for a toss.

No matter what the company claims but we are sure that its not just the age factor which has led to the star’s exit from the brand.

Bigg Boss TRP reveals that season 10 is really crucial

Bigg Boss Season 10 starts airing tonight on Colors. The show has been an addiction for the audience over the years. With celebrity hosts and uninterrupted weeklong entertainment, Bigg Boss TRP is always on the radar of marketers while media planning.

Bigg Boss TRP & Brand Integrations

The ad rates jump multifold on Colors when media is bought on ROS (Run on Schedule) during Bigg Boss timings. However, not all seasons of Bigg Boss have made up there in terms of TRPs. In fact, season 9 of Bigg Boss had the lowest viewership and advertisers might feel cheated paying a premium for ad spots during the show. Not only normal TVC spots, but also brand integrations in the Bigg Boss house are looked upon. CP Plus, Maruti Suzuki, Oppo etc- spent huge on the show. In Season 10, Appy Fizz and Oppo again have bet their monies on the show.

Bigg Boss TRP – All Seasons

Lets have a look on how the previous seasons have performed on the charts:

Season Host Peak TRP Key Members
Season 1 Arshad Warsi 2.72 Rakhi Sawant
Season 2 Shilpa Shetty 3.02 Rahul Mahajan
Season 3 Amitabh Bacchan 3.06 KRK
Season 4 Salman Khan 6.70 Dolly Bindra
Season 5 Salman Khan & Sanjay Dutt 4.30 Sunny Leone
Season 6 Salman Khan 4.40 Imam Siddique
Season 7 Salman Khan 4.32 Ajaz Khan
Season 8 Salman Khan & Farah Khan 3.28 Gautam Gulati
Season 9 Salman Khan 2.90 Prince Narula


Season 4 of Bigg Boss has been the top grosser with a peak TRP of 6.7. This season was the first time when Salman Khan was hosting a show on Indian television. Also, with the plots created in the house coupled with a yelling Dolly Bindra grabbed eyeballs. The advertisers certainly raked in the moolah in this season. However, post this season the show’s TRP has almost been on a decline. Another reason for this is the movement of the show to a 10:30 time slot from Season 5. The last season i.e. season 9 of Bigg Boss had a dismal rating of 2.90 which was almost as good as the first season. The second best season after season 4 is season 6 with TRP of 4.40. Though this season comes to the second spot but the difference in the TRP numbers can not be ignored which is quite significant.

Bigg Boss TRP with change in timings

During the seasons the time of the show has changed. The highest Bigg Boss TRP in season 4 came at a time when the show was being telecasted on prime time. Post this season the show has moved to a 10:30 PM slot on weekdays. For all seasons where the show had been in the late night slot, it will be unfair to benchmark season 4 TRPs. However considering the lowest ever TRP in the last 5 seasons being in season 9 is a matter of concern. For media buyers, Big Boss Season 10 could very well be a risk which can either pay off handsomely or put them in trouble. Another point for concern with media buyers would be the simple fact that whether it is wise to consider the show as prime time with respect to the time slot.