MAM
Martin Sorrell’s 10 marketing commandments
MUMBAI: WPP CEO Sir Martin Sorrell feels that the shift toward the east and south will continue. Apart from China in the East and India in South-East Asia, Sorrell feels that the Germany-Poland-Russian cluster in Eastern Europe will be a force to reckon, along with Russia, as long the price of oil stays above $100 a barrel.
In the southern hemisphere, Latin America and Brazil hold significant opportunity. Other significant areas would be the Middle East and Africa, particularly South Africa.
Sorrell was sharing his perspective on the key global trends facing marketers and agencies at the Association of National Advertiser‘s annual Advertising Financial Management conference in Florida.
Disintermediation would be an important trend as the web will continue to create new business models and an attractive destination for consumers, according to a Forbes report on Sorrell‘s talk at the Association.
Sorrell also pointed out that there will be shrinkage in capacity in human capital. In many categories there continues to be a supply overcapacity because of the growth of South Korean, Chinese, Indian and Brazilian manufacturing. Though there is no shortage in capacity, human capital is becoming scarcer. The main reason attributed to this is aging population which will make it harder for companies to find, incentivise, and motivate talent 20 years from now.
According to the WPP CEO, major retailers like Wal-Mart, Tesco, and Carrefour are likely to lean harder on manufacturers of consumer packaged goods as they face a tough competitive environment. The CPG manufacturers will in turn apply more pressure on their suppliers.
Sorrell predicted that there will be an increase in the importance of internal communications as more CEOs focus on it and make sure that people understand and live ‘the brand‘ as well as the vision and strategy of the company. This will be a key challenge and an opportunity in the coming years.
As companies are centralising power in response to the increase of local influence, he foresees regional management becoming intermediated and this development will be accelerated technology.
Observing the fact that the collapse of Lehman Bros. in 2008 impacted corporate more than consumer behaviour. Sorrell predicts that companies are likely to maintain a cautious financial stance for the foreseeable future as finance and procurement play a more active role than marketing.
In Sorrell‘s opinion, governments will continue to play a bigger role as has been the outcome of the financial crisis.
Also, sustainability is the central issue for every CEO. Lastly, agency consolidations are driven primarily by compensation pressure, and the relationships and the advertising industry‘s structure are determined by that pressure.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI:Â Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
