1

India Strategic Communications Report 2015

A Report by MSLGROUP, a part of Publicis Groupe

INSIDE THE CMO’S MIND

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MSLGROUP in India MSLGROUP is India’s No1 strategic communications and engagement company. We are trusted advisors and storytellers for the conversation age to 220+ clients, offering integrated communications services, through four distinct brands: MSLGROUP, 20:20 MSL, MSLGROUP SOCIAL HIVE and MSLGROUP CREATIVE+. MSLGROUP in India, combined, includes 12 offices in 8 key cities, 550+ professionals and an activation network reaching an additional 125 Indian cities. Our extensive network, backed by our expertise, covers 8 speciality practice areas. Our thorough understanding of these areas, has translated into a proven track record of helping our clients engage with their audiences, 24x7.

MSLGROUP in AsiaFor 25 years, MSLGROUP has counselled global, regional and local clients in Asia, helping them establish, protect and expand their businesses and brands across this fast-growing region. Today, communications and engagement consultancy MSLGROUP has the largest PR, social media and events teams in Greater China (12 offices and 700+ professionals) and India (12 offices and 550+ professionals) and is actively working to lead the development of the industry with the regular publication of whitepapers/reports and innovative Learning & People Development programs to nurture talents. MSLGROUP in Asia includes 35 owned offices and over 1,300 colleagues in Beijing, Shanghai, Guangzhou, Chengdu, Hong Kong, Macau, Taipei, Tokyo, Kuala Lumpur, Seoul, Singapore, Mumbai, Delhi, Ahmedabad, Pune, Bangalore, Chennai, Hyderabad and Kolkata. An activation network

of colleagues reaches an additional 125 Indian and 100 Chinese cities and a strong affiliate partner network adds another 23 Asian cities to our reach. MSLGROUP in Asia is widely recognized as an industry leader and was awarded PR Agency Network of the Year for two consecutive years in 2012 and 2013 by Campaign Asia, as well as Asia Pacific Consultancy of the Year 2013 by the Holmes Report.

The MSLGROUP teams in Asia have also been recognized as leaders by multiple industry groups, including The Holmes Report’s China Consultancy of the Year. (MSLGROUP China, 2012 & 2009), PR Agency of the Year by PRCA in India (2011), recognition as a top Event Agency at Marketing Magazine’s Agency of the Year for four consecutive years (Luminous Experiential MSLGROUP), Forbes China’s Innovative China SMEs (Genedigi MSLGROUP, 2012), Top PR Agency of the Year by CIPRA (Genedigi MSLGROUP, 2012), Taiwan Advertiser Association’s ‘Agency of the Year in Taiwan (2011). The teams have won more than 65 awards in the last two years.

Learn more about us at: asia.mslgroup.com + Twitter + Facebook

MSLGROUPMSLGROUP is PublicisGroupe’s strategic communications and engagement group, advisors in all aspects of communication strategy: from consumer PR to financial communications, from public affairs to reputation management and from crisis communications to experiential marketing and events. With more than 3,500 people across close to 100 offices worldwide, MSLGROUP is also the largest PR network in Europe, fast-growing China and India. The group offers strategic planning and counsel, insight-guided thinking and big, compelling ideas – followed by thorough execution.

www.mslgroup.com | Twitter | Facebook | LinkedIn | YouTube | Slideshare | Pinterest

PublicisGroupePublicisGroupe [Euronext Paris FR0000130577, part of the CAC 40 index] is the third largest communications group in the word, offering a full range of services and skills: digital and traditional advertising, public affairs and events, media buying and specialized communication. Its major networks are Leo Burnett, MSLGROUP, PHCG (Publicis Healthcare Communications Group), Publicis Worldwide, Rosetta and Saatchi & Saatchi. VivaKi, the Groupe’s media and digital accelerator, includes Digitas, Razorfish, StarcomMediaVest Group and ZenithOptimedia. Present in 104 countries, the Groupe employs 53,000 professionals.

www.publicisgroupe.com Twitter:@PublicisGroupe www.facebook.com/publicisgroupe

AuthorsAshraf Engineer,

vice-president, content and insights

Amrita Choudhary, associate director, content

Nirav Khatri, manager, research and insights

Research agency: Leadcap Ventures

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Table of Contents

Executive Summary 04

India strategic communications survey 06

06

07

09

11

13

16

18

22

Methodology

Budgets: Who gets what

Integrated communication

Where PR stands today

The future of PR

Recommendations

The need for a planning model

Towards an industry-academia partnership

4

Executive summary

The 2014 edition of what we refer to as the ‘India public relations (PR) report’ – ‘Public Relations in India: The Impact of the Economic Downturn and the 2014 Outlook’ – focused on the downturn and how agencies are coping with it. The survey – carried out across India – focused on senior PR professionals and their views on how the business was evolving.

One insight emerged loud and clear: PR as we know it is dead. We are in the age of strategic integrated communication and agencies that don’t evolve will die.

Objective

Reach

Interaction

Research data

Alignment withbrand and company

To create brand andproduct awareness

Target large audiencesacross mediums

Majorly one-way throughTV, online, print, etc

Many agencies critically usecustomer data to design creative,campaign, target, etc

Have detailed understandingof brand and company objectives

To increase brand recall and strengthby developing relationships

Effective in engaging withkey customer segments

Two-way due to interaction with customersthrough road shows, events, social media

Very few agencies use data and insightsto develop content. This would be criticalgoing forward

Not completely aligned with overallcompany and brand objectives

ADVERTISING PR

It is only fitting then that, in the midst of this change,

MSLGROUP’s 2015 annual report on the state of the

industry changes too. Over the last three editions, our

research focused on industry persons. However, as

agencies strive to become central to the marketing

function and take the lead on brands, it’s important to

understand how marketing heads see it. Do they believe

‘new PR’ – integrated communication – has a role to

play? If yes, how important do they think it is? What would

they like to see in the strategic communication agencies

they turn to? How much money and time are they willing

to invest in them and how are they tying it in to their

business goals?

Our survey of marketing heads across India has been a

revelation. And full of hope.

While advertising continues to have the biggest share of

the annual marketing budget – 45% – overall marketing

budgets have grown one fourth in the past five years. One

of the reasons for the budgetary increase has been the

adoption of integrated communication by businesses.

With the PR industry making a decisive shift to this

model, the time is right to capitalise on this trend.

In fact, so important has this trend been that two thirds

of the respondents said they have already adopted the

integrated communication approach in order to achieve

higher engagement with audiences and greater visibility.

What’s a concern is that advertising agencies are being

seen as the ones adapting faster to the integrated

communication imperative. Marketers say they trust

advertising agencies to service their needs because

they’ve delivered greater return on investment in the past.

Here’s how PR has stacked up so far in their eyes.

5

For the PR agencies of today to become the partners of choice tomorrow, they need to demonstrate how they can add value and shift quickly to the integrated model. Marketing heads were quick to assert that agencies that did not adopt a holistic approach would fade away.

Marketing heads also emphasised that data and insights would play a bigger role in campaigns and overall communications. It’s no longer a capability to be invested in for the future but a must-have now.

What emerged was a picture of a new age of marketing that demands new answers. Can the PR agencies of this age provide those solutions? The opportunity exists. It’s time to seize it.

6

India strategic communications survey

Needed now: Value-added communications Our world is changing. The media landscape is altering. Communication is evolving. Mediums of communication are mushrooming. And the pace of evolution is staggering.

Recognising this, PR agencies are switching fast from the traditional model to integrated communication. They are investing in the tools and talent required for it and are impressing upon clients why they are better equipped for this age of engagement. The industry is striving hard to become the lead on the overall marketing communication function.

It was in this backdrop that MSLGROUP commissioned a survey of marketing heads across India and across a wide variety of sectors. The objective was to understand what value they have placed so far on PR and whether they see agencies transforming themselves to meet their needs. As the integrated communication model takes root, it is the marketing heads that our industry will have to win over first. Proof of strategic value delivered and the right investments will be the key to the industry’s future. MethodologyMSLGROUP launched its annual PR report in 2012,hoping to create a platform for the industry to converse and debate the challenges before it, and introspect on the way forward. Since then, we have touched upon a host of critical issues: from the changing face of media to the economic slowdown and the talent crunch.

This time around, we focus on the expectations from the industry rather than of the industry. Once again, we partnered with an external agency to carry out a cross-sector survey. Leadcap, a leading market research agency based in Bangalore, surveyed chief marketing officers across India to understand their views.

The sample

Automobile BFSI IT/Telecom/Consulting Consumer goods Healthcare Manufacturing/Textile/Heavy Power others

6

2

12

6

8

3 3

10

7

5%

10%

10%

15% 15%

45%

Events Experiential and activation

PR Digital

Advertising MarketResearch

Budgets: Who gets whatIf budgets are the acid test, then the PR industry seems to be on firm ground. While it is still way behind advertising, a majority of respondents said that their PR budgets had increased over the past five years. However, even now, respondents said PR accounts for only 15% of the marketing budget. With advertising accounting for 45%, PR has a lot of work to do if it intends to gain the lion’s share of the marketing bucks. How much of your marketing budget is allocated for each of these services?

The good news is that 80% of the respondents said that the budget allocation for PR is rising. The industry has evolved and companies are recognising its contribution in their growth. Tina Pawar, assistant vice-president, Everstone Capital Advisors, said: “Our businesses are primarily B2B, and there is a conscious effort to keep updating strategy; for example, getting more involved with the regional media. We’re working hand-in-hand with the business development teams, identifying their needs based on business goals and building those needs into our communication strategy. We’re also using newer tools.” That explains why the company’s budget allocation for PR has grown by around 20%.

Respondents said that, on an average, their budgets have increased by 23%. Considering that businesses have been grappling with the economic slowdown

and they are focusing on downsizing and cost-cutting, 23% is a fair raise. Nandagopal Nair, head of corporate communications at V Guard Industries, said that “they were not into active PR work over the past few years” but now their budget allocation for it “has grown 100%”. He added: “Considering that we are in the midst of the brand’s relaunch, it becomes important to have a dynamic PR agency to drive the build-up to the launch and afterwards. As we have expanded base, it’s important to ensure that local market initiatives get visibility too.” Has the budget allocation for PR grown over the past five years?

If Yes, by how much?

In our report last year, when asked to rank in order of importance ways to grow the business in these times, the respondents (all of them senior PR professionals) had placed integrated communication at the top of the list. Almost one-fourth of the current survey’s respondents shared a similar sentiment; 22% agreed that their budget allocation for PR rose because agencies were evolving from the traditional to the integrated approach.

Not disclosed 0%-10% 10%-20% 20%-30% 30%-40%

40%-50% Above 50%

3%

8%

21%

28%

12%

18%

10%

Yes No

20%

80%

8

Has the budget grown because of the adoption of the integrated communication model?

Everstone’s Pawar said: “As communication becomes more real-time, the need for an integrated approach is rising. These days, I see PR practitioners offering internal communication, digital PR, as well as certain digital marketing services (social media management, for instance) as an overarching strategy. So, the PR and marketing teams are beginning to work together, creating messages and working out effective campaigns. The key word here is ‘together’.” Prasun Aacharyya, head of marketing, Liberty Videocon, believes that the PR industry has reinvented itself from a low-profile tactical tool into a strategic communication aid. Integrated communication, he said, “is a conscious effort to formulate a strategy integrating all the promotional tools so that they work together in harmony. All these tools work better together rather than in isolation.”

Given the evolution from traditional PR to the new model, it’s no wonder that a majority of respondents – 51% – confirmed that they would allocate higher budgets for PR in 2015. Will you allocate a higher budget for PR in 2015?

If yes, by how much?

Not disclosed 0%-10% 10%-20% 20%-30% 40%-50%

More than 50%

52%

16%18%

8%4%

2%

Yes Other reasons

22%

78%

YES No Can't say

51%

39%

10%

9

Integrated communication

It’s now redundant to say that PR as we knew it is dead. Both, industry experts and clients, have been stressing for a while on the need for agencies to re-examine their role. Respondents are clear that they are willing to increase their budgets provided agencies can meet the dynamic needs of the market and work as a partner that understands their business goals.

As many as two-thirds (67%) of the respondents have tried the integrated communication approach in their organisations. Have you ever tried integrated communication?

The benefits are plenty: 47% said that integrated communication provides higher engagement with audiences and 43% said it delivers greater visibility. One respondent said that it gives consumers an opportunity to experience the brand through multiple mediums while

Higherengagement

withaudience

Deliversgreatervisibility

Specialisedor nicheofferings

Innovations

Others

47% 43% 24% 16% 10%

Yes No

67%

33%

another said that it brings together customers, employees as well as top management. When asked what integrated communication meant to him, V Guard’s Nair said: “It is a holistic approach to communication covering various mediums and touchpoints to reach out to the target consumer effectively.”

Why would you choose integrated communication? (Select all that apply.)

10

While everyone recognises its value, it’s still early days for integrated communication in India. Some respondents said that one of the biggest challenges is adoption – it is a long process, it could get expensive and it involves getting multiple stakeholders on board. Also, in a situation where there are multiple businesses, multiple products, multiple consumers and multiple outcomes expected, it could get complex.

About 37% of the respondents said that if PR agencies were to offer integrated communication, it would increase overall productivity, while 25% said it would result in better management; 22% said that it could save costs.

When asked about the disadvantages of PR agencies offering integrated communication, 22% said that there would be difficulty in management, 18% said there would be internal conflicts and 16% believed that there would be a work overload.

“PR agencies have lesser understanding of the brand. They have to prove themselves before offering integrated communication,” said a respondent.

Tough tomanage

Internalconflicts

Overload Not muchdifferenceobserved

Others

22% 18% 16% 14% 10%

Overallincreased

productivity

Bettermanagement

of virtualteams

Greaterinnovation

ability

Others

Savedcosts37%

25%

20%

10%

22%

Seamlessexchange

of data

18%

Lessoverload

18%

If your agency were to offer you integrated communication, what would be the business impact? (Select all that apply.)

What would be the disadvantages if your agency offers integrated communication? (Select all that apply.)

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Where PR stands today

While PR is adopting a fresh approach, it still has a long way to go before it can become part of the marketing DNA. Advertising continues to be the leader on this front. Even digital, which burst onto the scene relatively recently, has moved ahead by its sheer ability to reach a larger audience.

However, it isn’t all bad news. The respondents batting for it said PR continues to be a simple and cost-effective tool, especially when it comes to establishing credibility. In order to retain clients, it is important to build a sustained relationship and PR helps achieve that.

Liberty Videocon’s Aacharyya said: “Both communication disciplines have their advantages and disadvantages. Hence, the determination of the communication objective, the target group and the message dissemination would determine which discipline would work. However, PR is increasingly becoming a key factor in corporate success. It’s being more actively discussed in the boardroom, it aids in communicating the brand differentiators and drives corporate social responsibility. The essential difference it brings to the table is its capability to disseminate complex messages and information, initiate discussions and win endorsements from influential third parties. It is perceived as credible and independent. There have been many instances which have been pure PR successes without the paid advertising intervention.”

Advertising Digital PR Experiential and activation

25%21%

48%

6%

A high 48% of the respondents ranked advertising as their first choice for marketing communication. PR ranked third. Advertising, said respondents, helps establish a direct contact with the target audience. It helps establish the brand, while PR comes in later to reinforce brand recall. Unlike advertising, PR is not a mass medium and therefore its efforts don’t translate into sales, they opined. Which of these is your tool of choice for marketing communication?

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What delivers most return on investment?

About 60% of the respondents felt that more than half of their expectations are met by their PR agency, while 20% said that more than 90% goals are met by their current agency.

But when it comes to return on investment (RoI), clients still believe that advertising is a better bet; 65% said advertising delivers greater RoI, while only 29% said PR delivers greater returns. Sameer Kumar, head of press communication, Volkswagen Passenger Cars India, said: “Opinion is split between the marketing communication and PR teams… The PR team believes PR is as effective as – if not more than – advertising, while the marketing communication team feels advertising is better. The truth probably lies somewhere in between. Something like a full-page ad in a newspaper like ‘The Times of India’ probably creates a bigger impact than, say, an editorial-led story or car review in a smaller newspaper. However, editorial-led content is likely to have a ‘slow burn’ effect and create longer-lasting impact than flashy advertising. Internally, it is a never-ending debate. Most marketing people don’t see the PR effort as an alternative, but as something that supplements the marketing effort.”

Elaborating on PR’s RoI, another respondent said: “For B2B customers, the information needs to be detailed. Advertisements won’t be able to effectively deliver messages.”

Not met 0%-10% 0%-20% 0%-30% 30%-40%

40%- 50% 50%-60% 60%-70% 70%-80% 80%-90%

90%-100%

10% 10%

20% 20%

8%

6%

8%

4% 4%2%

8%

65%

29%

6%

Advertising PR Can’t decide/compare

What percentage of your expectations is met by your PR agency?

13

The future of PR

The singular theme that emerged from the survey was that PR needs to demonstrate more value if it wishes to become the tool of choice for marketers. By value, respondents mean that agencies need to adopt date-driven PR, be strategic and have a long-term perspective that takes into account the dynamic needs of the brand. About 39% said that agencies should demonstrate how they can add value to their businesses. About one-fourth (26%) said PR should shift to the integrated communication model immediately.

When asked what kind of agencies would survive five years from now, Harshvardhen Daga, brand manager, Linc Pens and Plastics, said that for agencies to survive they need to “have a strong digital presence – not just in terms of blogs and e-news but also apps”.

About 58% of the respondents said that agencies that did not offer holistic strategic communication would die. About 43% continued to trust their advertising agency to deliver integrated communication services, while 25% believed their PR agency could do the same. The research and insights function emerged as a clear winner. Almost all respondents (98%) agreed that data and insights would have a greater role in campaigns and overall communication strategies; 88% said data and insights would be a must-have for agencies to be selected by clients. About 43% wanted their agencies to invest in research and insights, followed by digital/social (39%) and content (35%).

What would you like your PR agency to invest in? (Select all that apply.)

Research &insights

Digital/Social

Publicaffairs

Others

Content43%

39%

29%

8%

35%

Creative

14%

CrisisCommunication

12%

14

Can PR agencies that have not evolved into holistic strategic communication firms survive?

Whom do you trust more to provide you integrated communication services?

Are data and insights playing a greater role in the campaigns your communications strategy?

Ad agency Promotion Agency PR Agency Did not specify

20%

25%

43%

12%

42%

58%

Yes No

2%

98%Yes No

What should PR do to become your tool of first choice? (Select all that apply.)

Demonstratehow it

adds value;it has not done

so thus far

Invest morein talent

Shift toan integrated

communicationmodel by

adding moreservices

Lowerfees

Others

39% 33% 26% 16% 14%

12%

88%

Yes No

Going forward, will data and insights become a must-have in your choice of communication agency?

15

The perception seems to be changing. At this time, 49% of the respondents said, they rely on their agencies for media relations. However, 47% said they also expect the agency to manage their overall communication. This is encouraging and a sign that things are moving in the right direction. What are your expectations from a PR agency? (Select all that apply.)

Integrated communication is emerging as the unifier for business goals, products and brands across different mediums. Advertising and PR are the two biggest tools delivering brand messages, each with their unique strengths. While RoI on advertising can be measured through increase in sales, RoI on PR is tougher to measure. A measurement system accepted as the industry standard is the need of the hour.

For the industry, it is important to understand that PR is gaining credence as a strategic tool. The onus is on the industry to make the right investments but, more importantly, to effect a change in mindset that is in keeping with the needs of this new age of connected and empowered stakeholders.

Media relations Managing overallcommunication of

the board

49% 47%

It’s in transit – evolving from very basicservices to talking on more of the brand

communication function (design, insights,crisis communication, public affairs etc)

37%

Basic services such astracking share of voice, coverage,

press release distribution

29%

Others

15%

16

Recommendations

As ‘new PR’ asserts itself in the communications landscape, it finds itself at an inflection point. The survey’s respondents are clear on what their goals are and what they need from their communication consultants.

The survey speaks loud and clear on what the action points should be for the industry.

Marketing would benefit immensely if it allows PR to take

the lead on listening and managing conversations.

Demonstrate strategic valueMarketers need to be convinced that PR agencies truly

understand – and have migrated to – the integrated

communication model. Not only will all the above

capabilities have to be demonstrated, the industry needs

a measurement-centric approach. Only if brands can

analyse business outcomes against PR efforts will they be

interested.

Don’t stop thinking about the futureWe are in the business of managing relationships

between brands and their audiences. Our job is to create

meaningful engagement through and trust.

Today, the traditional model has broken down due to the

changing media landscape, the social media revolution

and an immensely empowered consumer. We have,

consequently, discovered new techniques, such as digital

marketing and content but in time they too might make

way for other tools.

The industry can’t get future-proof without constantly

updating its skills to cope with a changing world.

Marketing and PR CAN work togetherIt’s no longer enough to look at data, understand

the audience and target it with sustained one-way

communication. Marketers need to reach out and have

meaningful conversations on the platforms that their

audiences are on. PR is best placed to achieve this simply

because conversations and engagement are what it

specialises in. If marketing and PR can arrive jointly at

ways to engage audiences, we can find ways to achieve

better RoI, innovate better and, ultimately, impact the

business positively.

But how do marketing and PR synergise? Marketing is rapidly turning into a process of

optimisation based on research and data. This is

an opportunity for the PR industry to showcase its

ability to adjust key messaging, content and delivery

mechanism – often in real time.

The audience needs to connect with the brand at

an emotional level too. You need not only good

messaging but a tremendous grasp of storytelling.

Marketing is unlikely to work without the narrative

ability of PR and its content capability.

Audiences are empowered, which means that they

come armed with knowledge and an understanding of

the brand before they even reach out to it. Marketers

must provide quality content and useful information if

they are to build trust. There is a need to understand

what content, messaging and delivery channels work.

PR consultants can the ones providing this listening

and the insights required.

Invest in data and insights now!Data and insights play a critical role in integrated

communication. Advertising agencies have effectively

used research data for years, which is why they are often

turned to for integrated services. For the PR industry, the

use of insights in developing content and creative will be

make or break. The industry must – immediately – use

research to develop key messaging, content, choose

platforms, etc.

17

Section II

18

The need for a planning model

What emerges strongly from the survey is clients’ need for a planned, ‘scientific’ approach to their account. Advertising agencies have institutionalised such processes for decades; think Saatchi & Saatchi’s Lovemarks and Leo Burnett’s ‘Humankind’ brand strategy framework.

In PR, however, most would admit that there is never any planning. What we have had so far is a combination of learnings from experience and very basic insights based on even more basic research. The excuses are common: there is no time, it’s too costly, our bosses and clients don’t want it. It’s no surprise then that as an industry we are getting commoditised.

However, the most effective communication managers are those who incorporate research and planning into

their routines. It’s clear from the survey – and to industry veterans – that, going forward, effective planning will form the core of strategic integrated communication. It won’t be enough to execute; we will have to understand what to do, why we do it and also be able to measure its impact.

This is why, over the past year and a half, MSLGROUP revisited its processes. We undertook a global perception audit and asked ourselves what we should do next. What are clients looking for?

Only coverage counts

Execute what clients want to do

Journalistsonly

Facebook became the mostpopular social media with

over 200 million users

1.9 billion internetusers; 29% of

global population

3.5 billion active social mediausers on the top 8 social networksworldwide, which includes QZone

and Sina Weibo.

Only 0.4% ofglobal populationaccessed internet

Big Data wasredefined and caught

marketers’ eyes

The first generationiPhone was released

1 billion internet users;5.8% of global populationOne-way

communication

Press is the only channel

ImpActnaVigatioN

i n Sight

diScoverY

stRategY

inTegr aT io nidEatioN

enGag emenT

Big data analytics and micro-targeting

Gear towards impact

Make choicesBig ideas

Creative content

Focus group

Real impact on business and brands

Help clients to re-calibrate business

strategy based on results and feedback Review feedback

from measurementClient workshop

MSLGROUP Purpose Matrix

Sociallistening

Quantitative vs. Qualitative

Analysis

Study and report

SWOT analysis

Desktop research

Various influencers

involved

Two-way communication

Unboundchannels

Creative storytelling

Conversation driver

Evaluation & re-calibration

1.

2.

3 .

4.

5.

6 . meAsureMent

LEADING THE CHANGE

19

From the audit results and the conviction that it was time to change, MSLGROUP developed the I3 [IQube] methodology. While there are other agencies that have a planning model, I3 combines insights, integration and impact to create a true framework of strategic intent. Apart from the three ‘I’s, the process incorporates the complexity and multi-dimensional approach to marketing, communication and human connections – making it a complete go-to-market methodology.

It achieves this through a six-step process: Navigation Discovery Strategy Ideation Engagement Measurement

The lack of such planning is one of the primary reasons marketers choose advertising agencies even for their integrated needs.

“One of the key reasons the PR industry has not been able to attract healthier fees is because of its limited or orthodox ways to justify ‘why we are doing PR’,” said Siddhartha Mukherjee, senior VP, Eikona PR Measurement. “What is the tangible or measurable benefit that the client will receive? With planning becoming a default function, the communication and business functions will work in tandem. Expectations and what is measurable will become clear. Remunerations too will be healthier.”

Strategic communication, by definition, is concerned with long-term business objectives, brand evolution, audience understanding, the business environment, policies, etc. It necessitates an understanding of how the market and the corporation will evolve. What crises should the brand be prepared for? What digital strategy should be adopted and what training would client CXOs require?

As Everstone’s Tina Pawar said: “There is a dire need for planning processes. One needs to plan in order to stay ahead of the curve. With digital media and PR, firms need to plan for all sorts of scenarios. One way to plan is to build the messaging based on the client’s business goals. It’s important to ensure that all communication – whether marketing, sales, stakeholder or internal – is built into the framework.”

For this, the following skills become mandatory: Planning Research Analytics The ability to identify and make strategic choices Measuring effectiveness and effecting course corrections when needed

That’s why, the introduction of any such model is being complemented by the hiring of people with the right skills: research, content, planning, etc. That’s precisely what MSLGROUP, too, is doing.

PR needs a planning model that enables it to make decisions based on hard data and market intelligence that combines learnings gained over time. Good planning can ensure mindspace for the brand’s message and provide business solutions.

Any planning model begins with an understanding of the client objectives and the underlying business issues our work will support, as well as the key areas affecting the ability to meet these objectives. This will then be used as inputs for making strategic choices. Areas we need to understand include the client industry, competitors, perceptions among target groups, industry trends and projections.

Only coverage counts

Execute what clients want to do

Journalistsonly

Facebook became the mostpopular social media with

over 200 million users

1.9 billion internetusers; 29% of

global population

3.5 billion active social mediausers on the top 8 social networksworldwide, which includes QZone

and Sina Weibo.

Only 0.4% ofglobal populationaccessed internet

Big Data wasredefined and caught

marketers’ eyes

The first generationiPhone was released

1 billion internet users;5.8% of global populationOne-way

communication

Press is the only channel

ImpActnaVigatioN

i n Sight

diScoverY

stRategY

inTegr aT io nidEatioN

enGag emenT

Big data analytics and micro-targeting

Gear towards impact

Make choicesBig ideas

Creative content

Focus group

Real impact on business and brands

Help clients to re-calibrate business

strategy based on results and feedback Review feedback

from measurementClient workshop

MSLGROUP Purpose Matrix

Sociallistening

Quantitative vs. Qualitative

Analysis

Study and report

SWOT analysis

Desktop research

Various influencers

involved

Two-way communication

Unboundchannels

Creative storytelling

Conversation driver

Evaluation & re-calibration

1.

2.

3 .

4.

5.

6 . meAsureMent

LEADING THE CHANGE

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As MSLGROUP’s I3 model points out, to create real impact we need to engage holistically with stakeholders in today’s complex environment where change is the only constant. The process needs to constantly measure, fine-tune and re-calibrate to make sure results are being delivered.

“Brand communication is supposed to aid the organisations’ business objectives across corporate, human resources, product, finance and other functions. This automatically means that the communication function has to be part of the business plan. Which further means that as Step 1, the organisation is supposed to create a holistic business plan. Step 2: In discussion with the communication function, clearly lay down its expectations. Step 3: The communications function prepares and formalises its plan with clearly-stated objectives and outcomes,” said Mukherjee. “The communication plan must clearly state the input, the output (measurable) and finally the outcome (measurable). This requires advanced and detailed planning.”

The problem so far has been that the PR plan has faced several hurdles. As Mukherjee pointed out, lack of access to the top management means the agency is not involved from the beginning of the business planning. As a result, “the communication plan has no concrete reference to the context, nor does it have a well-defined, measurable objective”, Mukherjee added. This is precisely why, like MSLGROUP, agencies need to invest heavily in data analysis, engagement and measurement. The data analysis methodology in I3

is the most robust one available in the market so far, delivering sharper, more accurate and more insightful recommendations. The engagement methodology is unique to MSLGROUP, emphasising on an integrated and real-time engagement. While all major agencies have some sort of measurement mechanism, I3 connects all actions and outcomes to the business strategy – from the first meeting with the client to the final impact measurement. This includes establishing two centres of excellence for research and insights in Asia. Apart from ensuring that all recommendations are firmly rooted in data and geared towards generating business impact, it enables our teams to create completely integrated campaigns across multiple channels. The economic downturn in India put tremendous strain on communication budgets, as a result of which planning strategy in PR agencies could never take off. However, if integrated agencies are to be viewed as credible, they will have to place planning centrestage.

It’s unlikely that, going forward, integrated programmes will be executed or sold without a clear strategic underpinning. Analytics and measurement will be integral parts of this.

As mentioned earlier, the agencies of yesterday were execution-focused. Which is why they suffered when it came to their share of fees and the ability to retain good talent. That will no longer do. For communication agencies to succeed, they will have to embed planning into their DNA. Else, they will fail.

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Section III

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Towards industry-academia partnership

MSLGROUP’s 2014 report on the state of the Indian PR industry focused on the impact of the economic downturn. Even amid the gloom, the industry’s optimism on the hiring front was inspiring, with 54% of the respondents surveyed saying they would increase their employee count. But, with an average industry attrition rate north of 30%, the issue of managing talent is anything but simple.

For instance, the Symbiosis Institute of Media and

Communication (SIMC), Pune, altered its PR course

significantly in 2010 to suit the needs of the industry. Over

the years it has added relevant subjects, such as public

affairs and PR research. Raj Patra, assistant professor

at SIMC, explained: “The content structure has been

updated through industry and academic inputs. We try

to strike a balance between conceptual analysis, theory

building and practical application.”

Xavier Institute of Communications, Mumbai, too has

successfully reached out to the industry. It consults

established PR professionals on its syllabus and has

a robust internship programme, followed by campus

placements.

Looking beyond the obviousChanges in the curriculum alone will not help the

industry bridge the talent gap. We need specialised talent

for niche services from other fields. Rana explained:

“There are streams from which we can source good

talent. For example, data analytics is very important for

us to gain actionable insights from the massive amount

of data generated across various platforms. A person

with a research and analytics background from a reputed

research institute would be ideal for us.”

It is, therefore, important to acquire talent and experts

with domain knowledge. More importantly, new and

potential recruits should be given relevant raining in order

to ensure quality.

Many respondents had agreed that the inability to pay

high salaries would remain a concern. While this has been

a perennial worry for the PR industry, respondents felt

that the downturn had exacerbated it.

Industry veterans have long pointed out that talent was a

make-or-break issue and that urgent steps are required to

attract and retain talent. Not surprisingly, more than half

had said in last year’s survey that investment in training

would be in the 2%-5% of revenues range, while 17% said

it would exceed 5%.

However, this investment needs a qualitative shift too.

It needs, alongside training, a true partnership with

educational institutions to ensure that the students are

employable and suited to the needs of the industry.

This ranges from joint formulation of syllabi to

regular participation in classrooms by senior industry

professionals, intensive internship opportunities and

students’ involvement in live projects.

Altering academicsThe industry has been continuously evolving and the

changing role of the PR professional has generated

considerable debate. To keep pace with the changing

dynamics of the market, many educational institutions are

offering full-time post graduate courses and specialised

short-term skill development certifications.

Full-time PR courses are fairly new and unfortunately

tend to be restricted to theory. In fact, in most colleges,

PR is merely one module in a mass communication

course. This undermines the value that PR brings to the

table.

Sushma Rana, talent director at MSLGROUP in India,

said: “From a plain vanilla service provider till a few

years ago, PR is now expected to deliver specialised

offerings such as content, research, digital, social media,

crisis communication and events. There exists a gap in

delivery as communication institutions are not bringing in

commensurate changes to their syllabi fast enough.”

A few institutions have been quick on the uptake, though.

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For more information on what MSLGROUP has to offer, please visit our website: india.mslgroup.com