DTDC's filmy package: Reserves 10% of its annual marketing budget for SRK's 'Jawan'

Utkarsh Narain, head of strategy & marketing, shares insights on the objectives of the marketing budget allocation, outcomes, ad routes, & more.

In a brief scene in Shah Rukh Khan's Jawan, a DTDC poster in the background reveals a collaboration with the logistics company. For this integration, the company spent 10% of its annual marketing budget.

A logistics company integrating with a Bollywood blockbuster? Strange, isn't it?

Utkarsh Narain, head of strategy and marketing, DTDC thinks not, likening it to similar associations practised by FMCG or telecom brands. 

Narain asserts, “DTDC is a mass brand and we are selling a service to our customers.”

While DTDC previously collaborated with sports events, including the World Test Championship, the Women’s World Cup, the association with Jawan marks its first foray into Bollywood. 

The association not only included the brand’s integration in the film but also included promo ads featuring their app, MyDTDC, alongside Khan. Narain says the campaign boosted the app’s installation by 13%.

Business-wise, the app’s business doubled during the period. Narain explains, “Along with integration in film, we hosted a meet and greet for fans, ads running on cinema, TV, digital with channel partners putting OOH ad on the outlets. Combining all, we got all 130-140 million impressions. The festive season also boosted that.”

For the media mix, 20% was allocated to digital, cinema around 30-40%, remaining was allotted to TV and OOH.

The company anticipates a 20% business growth for the current fiscal year, bolstered by growth in its e-commerce business, DTDC provides its logistics services to e-commerce players like Meesho, Amazon, Shopify, ONDC etc.

Code category 

Externally, one might assume that the revenue structure of DTDC leans heavily towards the B2B (business-to-business) model. However, the reality for DTDC is distinct, with 70% of its revenue originating from the B2C (business-to-consumer) sector, while the remaining 30% is attributed to B2B transactions. The company boasts a robust network of 15,000 channel partners.

In light of this revenue distribution, DTDC has strategically crafted its advertising themes to resonate with a broad audience right from the outset. Notably, the company's first campaign featuring Saurav Ganguly, aimed at establishing a connection with the masses and its most recent campaign, preceding Jawan, sought to evoke human emotions. 

The company leveraged Disney+Hotstar’s free mobile offering during the India vs Australia series, just prior to the World Cup. “We capitalised on free offerings and got the advantage as during Ind vs Aus, it was announced during that period,” he highlights. 

For the festive season, the company followed a targeted ad route. Most of the business during the season comes from the West and South of India. “We’re targeting that market through local newspapers,” he states. 

DTDC witnessed that the Maharashtra market sent a lot of packages to the US, and the UK during the period, and Karnataka sent a lot to Middle East.

From a business perspective, Rakhi, Diwali, and  Sankranti are the key festivals. 

While the prevailing sentiment often echoes the notion that ‘print is dead,' aligning with the widespread advertising shift towards digital media, DTDC stands out as an exception. The company recognises the enduring value of print media, particularly for hyperlocal reach.

“Due to widespread reach, the medium allows it to reach corners of the country. The local newspapers have a massive reach. I believe that all traditional mediums will continue.”

For the entire year, the company is spending 7% of its budget on the medium. 

Rival landscape 

As DTDC only offers intercity delivery services, it is not looking to compete with intra-city delivery apps like Dunzo, Xpressbees and more.

The company directly competes with Blue Dart, Delhivery. “Our scale has arrived due to our massive network of 15,000+ channel partners who enable us to reach the remotest corners of the country. A lot of consumers are based in the North East, and delivering in the area itself has many challenges. But with our widespread network, we are able to serve such customers giving us a competitive advantage," he states.

Rebranding 

In 2022 DTDC underwent a major makeover, marked by the introduction of a new logo. 

“This effort was a conscious effort to inform customers about the transformation happening. The journey is to create scale, it was a way to achieve that. Now, the brand is more international, and modern. With the rebranding, communication has moulded in a way to talk about scale, growth and partnership.” 

The rebranding exercise effort signals the commencement of a transformative journey for the organisation.