ties up with Posterscope
Advertising has entered into a strategic tie-up with
the world's largest out-of-home media planning and buying
company, Posterscope of the Aegis Group. This is Percept's
second alliance with the Aegis Group, the first being
with Carat, a media buying agency. Percept will have
managerial control of Posterscope.
per the tie-up, Aegis Group has picked up a 49 per cent
stake in Percept Out of Home (POOH). The company has
been renamed as Posterscope India.
part of its plan to become an integrated communications
company, Percept group is also setting up a market research
the second time the company is getting into market research.
Its first, and unsuccessful, attempt was 10 years ago.
Air fare price war in Eastern sector
number of airlines are enticing passengers to fly eastern
skies with discounts and freebies. Malaysia Airlines
is offering passengers enticing promotional offers on
the Kuala Lumpur-Kolkata while Singapore Airlines (SIA)
has reduced its fares up to Kuala Lumpur to around Rs13,000
while the usual fare on the stretch is about Rs17,000.
Airlines, which runs 10 flights per week to Bangkok
and back has reduced its fares on the Kolkata-Bangkok-Kolkata
sector by almost 20 per cent to around Rs10,900 three
weeks ago from the previous Rs13,655.
Airways recently has introduced two more Kolkata-Bangkok
flights and, around 23 Kolkata-Bangkok flights are being
shared between Thai Airways, Indian Airlines, Druk Air
and Biman Bangladesh.
carrier likely to change the rules of the game is the
Singapore-based no-frills airline, Jetstar Asia, slated
to start flights by end-March or early April. Jetstar
has announced a fare of Rs10,000 between Kolkata-Kuala
to expand Club HP outlets
Petroleum Corporation (HPCL) is adding 400 more 'Club
HP' brand outlets to reach 2,000 in Andhra Pradesh.
These outlets offer a host of facilities besides selling
petrol, diesel and other products.
According to company officials, the retail business
of HPCL has been growing steadily and the company is
gearing up for future competition not only from Indian
players but also from international ones.
HPCL currently has 6,000 retail outlets across the country
and a market share of around 23 per cent in the retail
segment. The company also plans to increase the number
of new-look visual outlets in the country from 200 to
around 500 in the next five months.
media grows faster than TV in advertising
to a study by AdEx, a division of TAM media, print media
advertising grew faster than television advertising
in 2004 at 14.7 per cent to Rs5,450 crore higher
than TV's 13 per cent growth to Rs4,860 crore.
This is despite the fact that the FMCG sector slashed
print budgets by over 13 per cent to Rs275 crore this
year while increasing its TV spends marginally.
2001-02, print grew at 4 per cent, nearly one third
of the size of growth of advertising on TV during that
period. In 2002-03, TV was just a little ahead of print.
AdEx India, TAM Media Research's division has estimated
the total advertising budget for 2004 at Rs12,000 crore.
The figure is much above last year's total over Rs1,500
crore more than what the industry achieved last year.
Educational institutions, independent retailers, coaching
centers, display retail shops, fueled print media's
growth, as these prefer to advertise on print than on
Volvo hires law firms to go after imitators
commercial vehicle maker Volvo, whose buses are increasingly
becoming popular in India has found itself the target
of unscrupulous brand pirates.
Volvo with its long distance luxury buses that have
proved extremely popular with bus travellers, has found
that unscrupulous bus operators are passing-off ordinary
buses as Volvo buses by fitting Volvo lookalike bodies
on a conventional HCV chassis.
reason for this is that passengers are willing to pay
a premium of at least 30 per cent for travelling on
counter it, the company has appointed two law firms
to investigate the piracy.
The company is surveying operators across the country
and legally countering the offenders. Volvo says its
survey could eventually throw up some definitive number
and type of offenders. But it appears Volvo's survey
is in its early days still.
Hindustan Lever opts out of biscuits
Lever (HLL) has decided to exit the Rs3,000 crore biscuits
market. HLL sells its biscuits under the Modern and
HLL entered the biscuits market by extending the Modern
brand of bread to glucose biscuits and Kissan Greedy
Bistix biscuit sticks with fruit dips.
Lever's exit from this category is probably due to the
price elastic nature of the market. Parle and Britannia
increased prices of Parle G and Tiger brands by 50p
to Rs1 for small and large packs each in July last year
only to roll them in the face of stiff resistance put
up by consumers.
Parle and Britannia are the leaders in the popular biscuits
mart comprising Glucose biscuits and Marie biscuits
launches DTH-ready TV range
LG Electronics has launched Digi Direct TV LG's
direct-to-home (DTH) ready flat TV. The company expects
the DTH range to contribute 10 per cent of its total
CTV sales in 2005 and is targeting to sell 3.5 million
CTVs this year.
LG is looking at a growth of 40 per cent in turnover
this calendar year to Rs9,000 crore against Rs6,500
crore in the last calendar year (2004).
to the company, IT products and GSM mobile phone segments
will drive sales in 2005. The company plans to start
production of the economy models of its GSM mobile handsets
in India and expect the category to grow at 10 per cent
While the contribution of IT peripherals and GSM phones
to the total sales stood at 11 per cent and 3 per cent
respectively in 2003, the company expects to increase
it to 14 per cent and 11 per cent in 2005.
Ariel now available in two variants
Procter & Gamble is now offering Ariel detergent
in two new variants keeping prices at the same levels.
two variants are: Ariel Spring Clean (floral fragrance)
and Ariel Fresh Clean (refreshing fragrance).
P&G decided to combine the cleaning function of
a detergent with fragrance after in house research found
that fragrance in detergents is an important factor
of delight for the housewife in her daily laundry chore.
The company claims a market share of almost 10 per cent
of the Rs5,000-crore detergent market by value during
2004 with each of its brands Ariel and Tide
being around Rs250 crore.
relaunch of Ariel is expected to grow its market share
significantly this year.
India claims a turnover of over Rs1,000 crore.
Compiled by Mohini Bhatnagar
also see : List
of reports on marketing review