Presentation on strategy of mudra and omnicom group. a leading advertisement agency with creative spark

1. Vikash Kumar verma
Vijay bala chandran

2. Vision
We want to be the leading marketing communication group in the country by 2020.
Madhukar Kamath
Group CEO & MD, Mudra Group
In the days of Doordarshan, newly-available color TVs religiously
played a handful of tele-serials and entertainment programs that
were intermittently interrupted by advertisements. Not many can
forget ‘I love you Rasna’, Dhara, Dhara, Shudh Dhara and Only Vimal.
These home-grown brands became household names, thanks to the
Mudra Group.
Mudra also brought international brands like McDonalds and Samsung
to India. In no time, Mudra rose to join the ranks of the top five
companies in the advertising industry. Brand Mudra quickly became a
force to reckon with.

3. Milestone
25th March - A G Krishnamurthy founded Mudra Mudra Ahmadabad was born with 15 employees, 500 sq.ft space, Rs 40,000 .
25th March is still celebrated across all Mudra offices as Mudra Day.
Vimal as its first client. This is the brand that launched Mudra on its tryst with destiny. What began with sarees, moved
towards suiting's, shirting's and dress materials.
Rasna launched a soft drink concentrate with a range of nine flavours on a platform that offered both taste and economy. In
1986, Rasna became India's largest selling soft drink concentrate.
Handled the Reliance Cup, which was the 1987 Cricket World Cup. Mudra's relationship with Paras Pharmaceuticals began this
year, going on to build brands like Moov, Itch guard, Dermicool, Livon and Recova.
Mudra spread its wings - Delhi, Bangalore, Chennai and Hyderabad operations commenced. In 1990, Nestle walked in as the
first MNC client. In 1990, Mudra signed a collaboration agreement with DDB Needham Worldwide.
MICA is the first residential academic institution in the Asia-Pacific region, dedicated to meet the needs of the integrated
Marketing Communications industry. Since it inception, MICA has produced nearly 1000 professionals in the field of
advertising, communications & marketing and is the country's best communications school.
McDonald's has taken a big leap in the consumer's mind. The change of perception was made possible through a carefully
executed communication plan that also complemented the strategic changes in pricing and menu.; leading to an almost perfect
example of a successfully executed campaign.
Launch of reliance infocomm "Make a phone call cheaper than a postcard and you will usher in a revolutionary transformation
in the lives of millions of Indians." - Dhirubhai Ambani
Mudra wins Big Bazaar (Is se sasta aur accha kahin nahin!)
On 31 October 2011, Omnicom announced that it had acquired a majority stake (51 %) in Mudra Communications. This
represented a natural culmination of a partnership process that began in an informal way in 1988 with DDB Worldwide and
led to Omnicom acquiring a 10% stake in Mudra in 1993.

4. Strategic design unit
DDB Mudra: The influence and behavioral change agency with a pan-
India presence across Ahmadabad, Bangalore, Chennai, Delhi, Kochi,
Kolkata and Mumbai.
DDB MudraMax: The experiential and engagement agency which
offers media, out-of-home, retail and experiential.
Mudra: The partnership for entrepreneurs agency with a pan-India
presence across Ahmadabad, Bangalore, Chennai, Delhi, Kochi,
Kolkata and Mumbai.
DDB Health & Lifestyle: Health and lifestyle solutions practice.
RAPP: Data driven marketing services agency.
Tribal DDB India: Interactive and new media agency.
Water: Brand and design consultancy
Maatra: Localization and pre-media services agency.

5. Design Thinking
Kamath on reinventing the brand image
From the consumer’s point of view we were able to identify the touch points and build businesses at all these touch points. Then we
looked at it from the client's point of view, to understand where he is investing to reach the customer, and ensured that we were
present at every single customer touch point with our specialist business solutions. This is how we built a true marketing services
group.
But I think I would have still done a few things differently. Perhaps, in hindsight, we could have taken one or two strategic decisions
slightly faster. For example, we acquired Kidstuff (a promotional marketing company) but spent four to five years integrating it.
Perhaps we could have done that faster and better. Nevertheless, Kidstuff is a very good experiential and engagement agency today
Reinventing the Brand Image : an interview with cio.in, ceo interview

6. Swot analysis of DDBmudra group
Strength Weakness
Satisfying the need of the customers.
Meeting up the client requirements in time.
Innovative & creative in advertisement segment.
Global exposure with higher rewards &
appreciation.
Efficient team working environment
Strong network in India
Strong workforce of 1100 employees
High reputation for quality work to corporate
 High number of mergers and acquisitions for
expansion
 Expertise and experienced workforce
Pricing strategy.
Lack in promotional strategies towards increasing
the brand name.
Market share is limited due to many competitors.
Geographic penetration is also limited.
They do have low budget marketing plans for small
entrepreneurs.
They lack in service design concept.
They are not utilizing their potential as a company
to the fullest.
They are not putting requisite amount of efforts to
take advantage of Internet boom.
Their website is not attractive.
(they have made so many brands renown, but did not
brand themselves)

7. Opportunities Threats
Entering in global market to attract global clients.
They have good client base.
Strong brand Image.
Online advertisement is a new source of revenue.
Growing population and industrialization.
Rising costumers parity and aspirations.
Social media boom.
Potential market in services.
Youngest country with skilled labor force.
Government incentives on the establishment of IT
and other companies.
Use high end film technologies to make events more
interactive and appealing such as motion capture,
lidar scanning etc. Focus more on technology for
interactive designs.
Increased taxation.
Inflation rates.
High labor costs.
Increasing lawsuits due to sheer negligence in
preparation of ads.
Recession may hit the industry as cut is primarily on
marketing budget of corporate.
Lack of creative minds & also too expensive in
overall management.
Cut-throat competition offered by other players in
the industry.
Changes in the taste & preferences of clients.
Technology based interactive events and artificial
intelligence advertisements to make ads more live
and connecting.

8. “It is not the strongest of the species that
survive, nor the most intelligent, but the one
most responsive to change.” – Charles Darwin

9. The External Factor Evaluation Matrix
EFE Matrix for Marketing Agency: DDBmudra Group
KEY EXTERNAL FACTORS RATING WEIGHT WEIGHTED SCORE
Opportunities
Entering in global market to attract global clients. 2 0.04 0.08
They have strong client base (Brand Image) 4 0.08 0.32
Proliferation of new media channels. 2 0.05 0.10
Growing population and industrialization. 3 0.07 0.21
Rising costumers parity and aspirations. 3 0.06 0.18
Youngest country with skilled labor force. 2 0.06 0.12
Government incentives on the establishment of IT and other
companies.
2 0.05 0.10
Rapid growth in e-commerce and m-commerce 3 0.07 0.21
Potential market in services. 2 0.05 0.10

10. EFE Matrix for Marketing Agency: DDBmudra group
KEY EXTERNAL FACTORS RAING WEIGHT WEIGHTED SCORE
THREATS
Increased taxation. 3 0.04 0.12
High labor costs 2 0.04 0.08
High Inflation rates 3 0.05 0.15
Consumer entrenchment 2 0.06 0.12
Changes in the taste & preferences of clients 2 0.04 0.08
Cut-throat competition offered by other players in
the industry.
4 0.08 0.32
Lack of creative minds & also too expensive in overall
management.
2 0.05 0.10
Recession may hit the industry as cut is primarily on
marketing budget of corporate.
3 0.06 0.18
Increasing lawsuits due to sheer negligence in
preparation of ads
2 0.05 0.10
Total 1.00 2.67

11. The Internal Factor Evaluation Matrix
IFE Matrix for Marketing Agency: DDBmudra Group
KEY INTERNAL FACTORS RATING WEIGHT WEIGHTED SCORE
Strengths
Satisfying the need of the customers. 4 0.08 0.32
Meeting up the client requirements in time. 3 0.07 0.21
Global exposure with higher rewards & appreciation. 4 0.07 0.28
Efficient team working environment. 3 0.06 0.18
Strong workforce of 1100 employees. 3 0.07 0.21
High reputation for quality work to corporate.
(Innovation)
4 0.07 0.28
High number of mergers and acquisitions for expansion. 3 0.07 0.21
The largest pool of highly recognized and awarded talent
across five continents.
4 0.07 0.28
Strong network in India. 3 0.06 0.18

12. IFE Matrix for Marketing Agency: DDBmudra Group
KEY INTERNAL FACTORS RATING WEIGHT WEIGHTED SCORE
Pricing strategy. 2 0.04 0.08
Lack in promotional strategies towards increasing the
brand name.
2 0.03 0.06
Market share is limited due to many competitors. 3 0.06 0.18
Geographic penetration is also limited. 2 0.04 0.08
They don’t have low budget marketing plans for small
entrepreneurs.
3 0.06 0.18
They lack in service design concept. 2 0.04 0.08
They are not utilizing their potential as a company to
the fullest.
1 0.03 0.03
They are not putting requisite amount of efforts to take
the advantage of Internet boom.
2 0.05 0.10
Online presence is not attractive. 1 0.03 0.03
Total 1.00 3.00

13. The Competitive Profile Matrix
MudraCommunications Ogilvy & Mather JWT
CSF’S Wt Rating Wt’d Score Rating Wt’d Score Rating Wt’dScore
Market share 0.14 4 0.56 3.5 0.49 3 0.42
Fin. position 0.11 3 0.33 3.5 0.385 3.3 0.363
Service quality 0.10 4 0.40 4 0.40 4 0.40
Client. Loyalty 0.8 4 0.32 3 0.24 3 0.24
Global Exposure 0.10 3 0.30 4 0.40 4 0.40
Org. Structure 0.8 3 0.24 4 0.32 4 0.32
Price
competitive
0.5 2 0.10 3 0.15 3 0.15
Mgt.
experience
0.3 2 0.6 4 0.8 3 0.6

14. The Competitive Profile Matrix
MudraCommunications Ogilvy & Mather JWT
CSF’S Wt Rating Wt’d Score Rating Wt’d Score Rating Wt’dScore
Market
penetration
0.10 3 0.30 3.2 0.32 3.3 0.33
Customer service 0.8 3 0.24 4 0.32 3 0.24
R & D 0.6 3 0.18 3 0.18 3 0.18
Network 0.7 3 0.21 4 0.28 4 0.28
Total 1.00 3.78 3.885 3.883

15. FINANCIAL STATEMENT ANALYSIS OF OMNICOM
DuPont Analysis
…… $ in Million …
Fiscal
Year
Fiscal
Year
Fiscal
Year
Fiscal
Year
Fiscal
Year
Ending
2008
Ending
2009
Ending
2010
Ending
2011
Ending
2012
Net Income (NI) 1B 783.9M 819.7M 941.9M 975.8M
1,000
Net Income (NI) in million 1,000 784 820 942 976
Equity 3.75B 4.67B 4.09B 4.18B 4.15B
Equity in million 3,750 4,670 4,090 4,180 4,150
Sales 13.36B 11.72B 12.54B 13.87B 14.22B
Sales In million 13,360 11,720 12,540 13,870 14,220
Total Assets (TA) 17.32B 17.92B 19.57B 20.51B 22.15B
Total asset (TA) in million 17,320 17,920 19,570 20,510 22,150
Return on Investment (ROI)
ROI = NI / TA 5.77% 4.37% 4.19% 4.59% 4.41%
Return on Equity (ROE)
ROE = Net Income / Equity 26.67% 16.79% 20.04% 22.53% 23.51%
Net Profit Margin (NPM)
NPM = NI/Sales 7.49% 6.69% 6.54% 6.79% 6.86%
Asset Turnover Ratio (ATR)
ATR = Sales / TA 0.771363 0.654018 0.640777 0.676255 0.641986
Equity Multiplier (EM)
EM = TA / Equity 4.618667 3.837259 4.784841 4.906699 5.337349
ROI = NPM * ATR 5.77% 4.37% 4.19% 4.59% 4.41%
ROE = NPM *ATR * EM 26.67% 16.79% 20.04% 22.53% 23.51%

16. Space matrix
Financial position (FP)
• Sales increases by 450M in comparison with last year, i.e. 3.5 % increase from last year revenue.
+2
• Return on equity is on an average 24 %. +3
• P/E ratio is 17.32 is better than average for marketing and communication industry. +5
• Total Asset turnover ratio is .67 , that is not good in comparison with international standard.
+1
Industry position (IP)
• Well known brand in international market place. +3
• Having very good potential to tap opportunity in emerging market. +3
• High number of merger and acquisition to grow exponentially. +5
• Prudent financial leverage & strong balance sheet to meet future requirement. +4

17. Space matrix
Stability position (SP)
• High inflation rate and economy stability leads companies to cut cost of advertisement. - 5
• High competitive pressure from leading firms as Ogilvy & Mather, JWT .
- 3
• As entry barrier is not very high chances of getting competition from new agency. -2
• Technological changes and emerging new media interactive media for campaigns design. -3
Competitive position (IP)
• Company provides wide ranges of product and services. -1
• Having very good customer loyalty and satisfaction . -3
• experienced management team & best creative brain as workforce. -3
• International & Domestic presence -4
Conclusion
Financial position : 11/4 =2.75 Stability position : -13/4 = -3.25
Industry position : 15/4 = 3.75 Competitive position : -11/4 = -2.75
Directional vector co-ordinates :x-axis : -2.75 + 3.75 = 1
: y- axis : -3.25 + 2.75 = -.5 Mudra should pursue competitive strategy.

18. Conclusion

20. References :
www.ddbmudragroup.com
www.omnicomgroup.com
www.marketwatch.com
articles.economictimes.indiatimes.com

21. Thank you 