MAM
SMS and radio dethroned TV in 2002 – Alyque Padamsee
MUMBAI: It’s time for some GodSpeak once again. Former Lintas boss and advertising and marketing guru Alyque Padamsee is gung-ho about the explosion in radio and SMS in 2002. In fact, his view is that the two new media vehicles put television and the Internet in the shade.
He added that the multipurpose interconnectivity-oriented medium of SMS will present multitudinous opportunities for ad agencies in 2003. He lamented the fact that ad agencies didn’t leverage the SMS medium as much as they should have in 2002.
We present some of Padamsee’s views on Indian advertising in 2002:
New phenomenon in 2002:
The advent of radio in a bigger and better avatar was the most defining moment of the year 2002.
However, the big breakthrough that literally changed the name of the game was SMS through mobile telephony. SMS is an amazing, exciting and technologically advanced medium.
Unlike a TV set, mobile phones and WLL (Wireless in local loop) handsets are part and parcel of a person’s life. The beauty of SMS is that a mobile phone or WLL handset accompanies the person at all times.
Within the next three to five years, the penetration will increase and engulf the consumer markets. People from all walks of life will carry mobile phones or WLL handsets.Through SMS, ad agencies can target different target audiences with customised messages.
It is a creative challenge for ad agencies to develop messages for the medium of SMS.
Over dependence and mega spending on celebrities:
In the year 2002, ad agencies took a short cut. Instead of innovating around creatives and media planning, they adopted the easy way of using celebrities.
Agencies sought well-established icons – Big B or Sachin Tendulkar or even the “new-on-the-scene” Virender Sehwag – and tried to piggy back on these celebrities.
It worked to a certain extent as the India is the land of Gods and Goddesses. People love to imitate achievers rather take on the challenge of doing something different on their own.
Television in 2002
In 2002, television was in a rut! A few reality shows here and there and one or two new programming ideas – nothing else!
Instead what one witnessed is the monotony of Kyunki.. and Kahaani… The next in the series might be Kyunki daadi bhi kabhi beti thi.
Sadly, there were no major programming initiatives witnessed on the childrens or kids channels. Marketers didn’t leverage the pester power of the what I call “junior citizens” (not kids)! As far as buying decisions are concerned, it is these junior citizens whose control over the remote is increasing day by day.
There are instances of children suggesting lipstick brands, automobile brands and even mobile phone brands to their parents and relatives who don’t have time to watch television.
What is interesting is that certain TV shows developed around advertising – for instance StoryBoard on CNBC – actually elevated advertising into an entertainment spectacle.
Most memorable thing shown on TV in 2002:
Pepsi’s Sumo wrestler ad was the best thing I saw on TV in the 2002. It was sheer magic and would have given the soaps a run for their money.
Will the consolidation of media buying give it an edge over creative aspects of advertising?
Creativity is the name of game and it will rule over all the other functions of advertising.
Ads are no longer about selling goods. They are about entertaining people through a combination of visual and audio-visual techniques.
I have coined a new word or terminology – “Advertainment”!
In 2003, Long live “cricketainment” and “advertainment”!
Brands
Estée Lauder to shed 10,000 jobs as new boss bets on digital shift
The cosmetics giant raises its profit outlook but stays silent on a possible merger with Spain’s Puig, as job cuts deepen and a three-year sales slump weighs on the turnaround
NEW YORK: Stéphane de La Faverie is not done cutting. Estée Lauder announced on Friday that it plans to eliminate as many as 3,000 additional jobs, taking its total redundancy programme to as many as 10,000 roles, up from a previous target of 7,000 announced a year ago. The company, which owns La Mer, The Ordinary, Tom Ford, and Aveda, employs roughly 57,000 people worldwide. The mathematics of what is now being contemplated is stark.
The fresh round of cuts is expected to generate a further $200 million in savings, bringing the total annual savings from the programme to as much as $1.2 billion before taxes. That money, De La Faverie has made clear, will be ploughed back into the turnaround.
A CEO in a hurry
De La Faverie, who took the helm in January 2025, inherited a company that had endured three consecutive years of annual sales declines. His response has been to move fast and cut deep. A significant portion of the latest redundancies reflects his push to reduce headcount at US department stores, long a cornerstone of Estée Lauder’s distribution model but now a channel in structural decline. In their place, he is accelerating the shift toward faster-growing online platforms, including Amazon.com and TikTok Shop, a pivot that is reshaping not just where Estée Lauder sells but how it thinks about its customers.
The numbers are moving in the right direction
Despite the pain, there are signs the medicine is working. Estée Lauder raised its profit outlook for the remainder of the fiscal year, guiding for adjusted earnings per share in the range of $2.35 to $2.45, above analyst estimates and a notable step up from the $2.05 to $2.25 range it had guided for in February. Organic net sales growth is expected to come in at 3 per cent, the company said, at the high end of the range it set out in February.
The share price tells a mixed story. After De La Faverie took charge, the stock surged nearly 60 per cent, buoyed by investor optimism that a longtime company insider could finally arrest the decline. But 2026 has been rougher: the shares have fallen 27 per cent this year, weighed down by disappointing February results and the overhang of unresolved merger talks with Spanish beauty giant Puig Brands SA. The company gave no additional details about those discussions on Friday, leaving the market to guess.
Silence on Puig
The proposed tie-up with Puig remains the most consequential unknown hanging over Estée Lauder. A deal with the Barcelona-based group, which owns brands including Carolina Herrera and Rabanne, would reshape the global luxury beauty landscape. But with nothing new to say and a turnaround still very much in progress, De La Faverie is asking investors to trust the process.
Three years of sales declines, 10,000 job cuts, and a merger that may or may not happen. At Estée Lauder, the overhaul has barely started.
