Conglomerate, Muthoot, puts Eveything in Review!
Steve’s breakdown: The company has called for a multi-agency pitch for corporate account (Muthoot Group) and its gold finance arm Muthoot Finance. The overall size of the business is said to be more than $24 million.
DELHI, India: Muthoot Group, an M George Enterprise, is on the lookout for a creative partner.
The pitch, which is currently underway in Delhi, is in the initial stage. The overall size of the business is said to be more than Rs 120 crore. According to industry estimates, the company spends about Rs 70-80 crore on television, print and online advertising. The rest of the budget is divided among OOH (out of home), BTL (below-the-line), radio and the sponsorship of Indian Premier League’s (IPL) team Delhi Daredevils.
Confirming the news to afaqs!, Avinav Chaubey, chief marketing manager, Muthoot Finance, says, “Over the last five-to-six years, we have witnessed phenomenal growth. This was also due to the fact that we created the category of gold finance, which further helped us establish a leadership position. At the same time, the category has witnessed the entry of several other players, including private banks. Therefore, we thought it is time to create a difference between the leader and followers, and so we are looking for fresh ideas.”
As part of the process, the company has created a list of 10-12 creative agencies, and is currently meeting representatives from each. After the first round of meetings, it will shortlist six-seven creative agencies following which the shortlisted agencies will present their thoughts and ideas in third week of February.
The incumbent on the business is ABM Communication. The agency has been working on the brand for the last five years, from the day the company started marketing its gold finance services. Carat Media is the agency of record.
For the record, the Muthoot Group has 16 companies under its banner, offering 23 different services ranging from plantation, education, information technology (IT), foreign exchange, healthcare, securities, media (which operates the radio station Chennai Live 104.8 FM) and many more. The gold finance arm, Muthoot Finance is said to be one of the oldest businesses of the company. The gold loan business was founded in 1939 by M George Muthoot. It claims to have an operating history of almost 72 years.