BRAND PRESENTATION ON

Balaji Telefilms Ltd.

By- Group VI Ishita Dey Nidhi Bharti Vikram Mahajan

Balaji Telefilms Ltd.

Came into being on November 10, 1994. Headed by Mr. Jeetendra Kapoor who has extensive experience in the media and entertainment industry. Engaged in the development and production of multi lingual and multi genre entertainment softwares for various T.V channels.

Cont.
Strong brand acceptance and recognition amongst industry and consumers. Maintains a program library of over 1,303 hrs of T.V software consisting of various portfolios.

The core objective of Balaji

To act as Producers, Distributors, Exhibitors, Exploiters, Traders, Exporters and Importers of Television Films and Serials, Video Films, Motion Pictures, Feature Films, Documentaries Recording of Programs on any Disc, Tape, perforated media or other

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

Professional management
Production- Mrs. Shobha Kapoor, MD and CEO supported by Chief Operating Officer and General Managers and two Branch Heads for Chennai and Bangalore. Creative- Ms. Ekta Kapoor assisted by 8 Creative Heads and 15 Executive Producers. Finance and Corporate Affairs- Mr. Ajay Patadia, President;

Cont.
Corporate Affairs & Mr. V. Devarajan, Chief Financial Officer supported by Asst. V.P(finance) and managers. Marketing- Mr. Rajesh Pavithran, Chief Operating Officer supported by teams across Delhi, Chennai and Bangalore.

Resources available
Human Resource A team of young and dynamic professionals Total employee strength of 123 Existing Library Over 1,303.50 hours of library content Daily soaps- 1146.50 hours

Cont.
Sitcoms- 53.50 hours Children programs- 45.50 hours Others- 58 hours Technology Cameras, recorders, sound recording equipment, mikes, lights, reflectors, trolleys, cranes, generators. State-of-the-art analog & digital

Cont.
cameras, imported SRGB lights. Special suites for graphics, animation and special effects, content software tapes etc.

The Market-Indian Entertainment Industry

AN OVERVIEW
The televised Media Industry comprising of television broadcasting, cable television and the television software industry will determine the future direction and growth.

Cont.
Television broadcasting Direct-to-home mode through satellite broadcasting services. Cable television Consolidation stage with large cable operators like Siticable, Asianet setting up their integrated networks resulting in;

Cont.
Up gradation of technology, popularity of satellite channels, increase in delivery capabilities and meeting the viewer preference. Increased no. of small cities as potential market for operators.

Cont.
Television software The sheer growth in the no. of channels has resulted in an exponential growth of demand for television software. Increasing focus of the private channels on the vast, latent and untapped potential of viewership.

Cont.
Preferences of Indian audiences for the native language programs have increased the demand for regional programs. Non resident Indian population and popularity of Indian programs overseas.

Balaji Telefilms- Channel driving programs

Star Plus - TRPs 12 10 8

TRPs

10.46 9.53 9.53

11.07

11.25

6 4 2 0 Others 8.00 pm Balaji Show 8.30 pm Others 9.00 pm Others 9.30 pm Balaji Show 10.00 pm Balaji Show 10.30 pm 4.19

Prime Time

Sony TV - TRPs 3 2.5

TRPs

2.79 2.18

2 1.5 1 0.5 0 0.23 Others 8.00 pm 0.46 Others 8.30 pm

0.92 0.55

Balaji Show Balaji Show 9.00 pm Prime Time 9.30 pm

Others 10.00 pm

Others 10.30 pm

Zee TV - TRPs 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0

1.43 0.99 1.04 0.85 0.58 0.55

TRPs

Balaji Show 8.00 pm

Others 8.30 pm

Others 9.00 pm Prime Time

Others 9.30 pm

Others 10.00 pm

Others 10.30 pm

Undisputed Leadership

Aggregate TRPs for Top 100 Shows Shows Prime Time Non-Prime Time Total Balaji Shows 170.26 42.74 213 Others' Shows 93.94 110.49 222.01

Prime Time Ratings

Non-Prime Time Ratings

Others' Show s 36%

Balaji Show s 28%

Balaji Show s 64%

Others' Show s 72%

Diversified channel presence

FY03*

85

1 7

7 0

Year

FY02

65

11

31 7

4 12

FY01

41

12

10

21

7 1 0

20

40 Percentage

60

80

100

Star, Sony & Zee DD Metro

Sahara DD National

Gemini TV Metro Gold

Udaya TV SABe TV

Sun TV Vijay TV

Balaji SWOT Analysis

Strengths
Twelve years experience in producing all genres of TV content. Promoters associated with the media industry for more than 3 decades. Knowledgeable and experienced board. A team of Executive Producers to create quality content.

Cont.
A library of owned programs with rerun value. Skilled in-house airtime marketing expertise. Relationship with broadcasters on different platforms.

Cont.
Relationships with the top advertising spenders in India. Presence in both markets- hindi as well as regional.

Weakness
Yet to develop its presence on regional platforms other than south Indian. Lack of adequate resources for propelling full fledged growth. Not invested much in in-house production equipment and hardware.

Opportunities
Expected growth in TV ad-spend. Cable and satellite channels are proliferating, providing alternative platforms. DTH will provide new opportunities for content providers. Growing international markets for Indian content.

Cont.
Internet provides opportunities for showcasing and distributing content. Value addition will form new digital technology.

Threats
Change in viewing habits of the Indian people. Competition from other content providers. Piracy of creative ideas and concepts. Shift in sponsorships. Policy changes by Doordarshan and Government authorities.

Cont.
Technology shifts which may involve expensive retaining of talent. Emergence of large content corporates through industry consolidation.

The Business Flow

Diversified Business Model

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

Cont.
Languages- Hindi, Tamil, Telugu, Kannada (next, Malayalam). Forms of Content supply- Daily / Weekend (next, Television movies). Time Bands- Programs run across time bands like afternoon and evening prime time (next, morning).

Suggested Future Strategies

Strengthening Sponsored Programming More programs on Udaya T.V and Gemini T.V. Entry into Tamil Nadu, Kerala and West Bengal markets. Further penetration into Doordarshan network.

Cont.
Exploitation of software library
Expanding prime time slots 7:00 p.m. to 8:30 p.m.and 11:30 p.m. to 12:00 on main line channels Tapping overseas media market.

Cont.
Expanding satellite channel presence More programming for Star, Sony, Zee and Sahara T.V.
Small budget movies. A balanced mix of programs in sponsored and commissioned category,

Cont.
to optimize its risk-revenue profile. To diversify further into other regional market. To improve production efficiencies and economies of scale & to improve the operating margins by investing in studios, production and post production equipments.

Cont.
To increase focus on tapping export and remake opportunities. To tap web casting opportunitiesputting software on internet. Investment in R&D along with creative conceptualization.

Balaji Telefilms Financial Year 04 Update

Rs (In Million) Total Revenues Operating Profit Profit Before Tax Profit After Tax EPS (Annualised) (Rs) Key Ratios Operating Profit Margin (%) PAT Margin (%)

Q1FY04 446.0 212.2 221.6 141.5 2.8

Q1FY03 397.8 212.8 203.4 126.8 2.5

% Change YoY 12.1% -0.3% 8.9% 11.6%

Q4FY03 445.3 199.2 202.1 119.7 2.3

% Change YoY 0.1% 6.5% 9.6% 18.2%

47.6% 31.7%

53.5% 31.9%

44.7% 26.9%

The Story So Far

Balaji is the largest fiction based content producer in India. Multi-lingual programming. Presence across premier channels. Content strength: 62 shows of quality viewing per week 14 Balaji shows featuring in Top 20 shows in hindi satellite channels

Cont.
Produced over 52 serials of different genre, translating into over 5200 hrs (around 10400 episodes of hr) of programming. A library of over 3000 hrs of programming.

The Success Strategies

Identification of right concept at right time. Focus on Indian blend and women strata. Focus on daily soaps. Right mix of programs on DD and private channels.

Cont.
Right mix of hindi and regional programs. Restricting core competence to television software production and no dalliances with non core activities.

Mass Media For Balaji

Owing to the nature of services provided, the Balaji communication process is largely restricted to Business to Business. The target audience for this communication is: Primary: Television Channel Heads, Investors etc.

Cont.
Secondary: The viewers; comprising of teenagers, housewives, and a certain category of the male population.
Thus the communication for Balaji would largely comprise of Public Relation activities

Cont.
Events Sponsorships Outdoor Media like hoardings Social Advertisements for television Promotional films/ Documentaries

The Media Plan

Public Relations
Location : Delhi and Mumbai Month : May-June, 2006 Procedure : Articles in production journals and financials

Sponsorships
Event 1 : Abby Awards Location : JW Marriott, Mumbai Month : December 2006 Duration : 2 days Approx. Cost : Rs. 1,00,00,000

Cont.
(Part Sponsorship)
Event 2 : AIDS fund raising event Location : India Gate, Delhi Month : January 2007 Approx. Cost : Rs. 15,00,000

Outdoor- hoardings
(Before launch of a new show) Hoarding size : 1020 Location : Gurgaon and Mumbai (prime locations) Month : February 2007 Duration : 1 month

Cont.
Gurgaon 1 hoarding per week = Rs. 50,000 10 hoardings per month = Rs. 20,000,00 Mumbai 1 hoarding per week = Rs. 2,000,00 10 hoardings per month = Rs. 80,000,00

Social Advertisements
Social ad production Girl Child Welfare Channels : NDTV India, Star Plus, Sony, and Doordarshan Duration of ad : 10 secs Duration of campaign : Twice a week for each channel from June September 2006

Cont.
1 ad once a week, per channel : Rs. 50,000 For twice a week : Rs. 1,00,000 For 1 month : Rs. 4,00,000 For 4 months : Rs. 16,00,000 Thus, for 5 channels : 16,00,000 X 5 = Rs. 80,00,000

Promotional Film For Balaji

In house film covering technical and creative finesse of Balaji Telefilms, to be forwarded to various channel CEOs.
15 mins. film shot with in- house equipment : Rs. 2,00,000

The Sum Total

Thus, total spends from Rs. 3 crores : Sponsorships = 100,00,000 + 15,00,000 Hoardings = 20,00,000 + 80,00,000 Social ad = 80,00,000 Promotional film = 2,00,000

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

Acknowledgements
The Delhi School of Communication Prof. Ramola Kumar; Dean, DSC Ms. Shalini Singh; Business ExecutiveMaxus Mr. Manasvi Rasgotra; Project Director Nestle Mr. Ashish Dutta; Consultant

Cont.
Mr. Pradeep Aeri; Director- Aeri Creatives Team Members

Thank You !

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

Leveraging communication to provide marketing solutions.

Over To You