Dotcom Marketing in India
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Case Details:
Case Code : ITSY006
Case Length : 08 Pages
Period : 1990-2001
Pub Date : 2002
Teaching Note : Available
Organization : Equus Advertising, Hungama.com
Industry : Information Technology (Electronic Commerce)
Countries : India
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"A ten-minute drive through the city is enough to get feel
of the money that is being pumped into the market.Unfortunately in Delhi,
billboards have been banned and hence, dotcoms have to satisfy themselves with
kiosks."
- Suhel Seth, chief executive officer, Equus Advertising.
"Indians still think that Net is e-mail. Consumers need to
know about other applications of the Net."
- Neeraj Roy, CEO, Hungama.com, commenting on his
unconventional promotional methods.
Advertising Blitz
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In late 1999, Delhi's autorikshaws started sporting dotcom
bumper stickers. During the same time, Mumbai's skyline was changing with dotcom
hoardings. Full-page ads of the dotcoms could be seen in almost every leading
newspaper. From print, to electronic and outdoor media, the dotcom companies
flooded the market with high budget ads, contests, and interactive campaigns.
During 1999-2000, Indiainfo1 spent Rs 44
million2 every month on advertisements in
print and electronic media. Satyam Online3
planned to spend around Rs 200 million by the end of 2000. In early 2000,
Indya.com4 released a front-page ad
campaign in The Sunday Times of India5, in
Delhi. According to market sources, the advertisement cost more than Rs 30
million. |
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During October 1999-January 2000, about Rs 500 million was spent on advertising
by the dotcom companies (Refer Table 1 for the break-up).
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Analysts felt that in the next six months, another Rs
500 million would be spent. While the average retailer spent about 5-8%
of its total revenue on advertising and the average manufacturer 15-18%,
dotcoms were spending more than 25% of its revenues on promotions.
Analysts felt that the huge amount spent on advertising was to make a
mark in the people's minds.
Commented Suman Srivastava, Director, Euro-RSCG, "What most net
companies have been doing so far is concentrating on traffic: their
advertising has been geared towards generating trials." |
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