Marketing review

Bajaj Auto revamps portfolio
New Delhi: Pune-based Bajaj Auto is revamping its portfolio. To start with the company is phasing out two of its products, Wind and Calibre, with the launch of the 125cc Discover.

The company does not expect that these bikes will continue to attract customers, as the Discover is available at a lower price point, with more attractive features. The Discover has been positioned in the executive segment with the base version priced around Rs40,000. The motorcycle is a high-powered, fuel-efficient product sporting a DTSi (digital twin spark ignition) engine.

The 125cc Wind, jointly developed by Bajaj and its technical Japanese partner, Kawasaki, was launched last year for the domestic as well as for exports. It is priced at Rs41,000 while the 115cc Calibre is priced at Rs38, 000 close to Discover's price.

Benetton to open chain of megastores
Bangalore: The Benetton Group's brand, United Colours of Benetton, will soon be much more visible in India.

The Italy-based fashion house is planning to open a string of visible high street megastores across the country, of which about six will open in the next one year and 20 by the end of 2007, all through the franchisee route.

Benetton recently acquired the DCM group stake in the 50:50 joint venture company to set up a 100 per cent subsidiary. Benetton currently operates 61 stores across India. The company plans to close down the stores that do not conform to the brand's international image of large, stores for the complete family.

The company does not plan to shift production to India but may export some products that are manufactured here. Its focus will remain on distribution and retailing.

Britain's Costa Coffee to set up shop in India
New Delhi: British leisure company, Whitbread Plc, has announced its intention to set up shop in India. The company has entered into a franchise agreement with the Delhi-based R K Jaipuria Group for opening Costa Coffee outlets across the country.

Costa Coffee would be the first international coffee chain to set foot in India even as several other international brands — including Starbucks — have been eyeing the Indian market for some time.

Apart from setting up the coffee chai,n Whitbread also plans to establish its first roastery outside Britain here over the next 12-18 months, with an investment of £2 million. It will then enter the wholesale coffee business in India.

The roastery will be used to supply coffee not only to the Indian market, but also for exports to neighbouring countries.

Coke adspend down
New Delhi: Coca-Cola India reduced its advertising spending between January and August this year by 20 per cent against the same period last year, according to data by market research agency AdEx.

However Coke refuted this saying that the company's overall marketing spending remained static at last year's levels. He said apart from advertising on television and in the print media, the company undertakes a vast range of marketing activities including below-the-line activities, consumer promotions, internet marketing, point of purchase material among others, and that the combined spends have been maintained at last year's levels.

Contract spins off second agency Core
Mumbai: Contract Advertising has spun-off its consulting division, Core, into a separate agency, offering both consultancy and advertising functions. Core, will now work as an independent agency to take care of conflicting accounts and will offer both consulting and advertising operations with offices in Chennai and Mumbai.

Core's consulting functions will continue to operate out of Mumbai with Rohit Srivastava, national planning director, Contract Advertising, heading it. Its advertising division will be in Chennai with Bimal Nair aat the helm. Nair was earlier the associate vice-president at I-Contract, the direct marketing and customer relationship management division of Contract Advertising.

Meanwhile Core has bagged Hyundai India Telecom's account and will handle the creative work out of Chennai.

Domino's eyes franchisee model to expand in India
New Delhi: Domino's Pizza India (DPIL), promoted by the Bhartias of the Jubilant Organosys Group is recruiting franchisees to expand operations. At present all the Domino's outlets — over 85 outlets spread in 27 cities — are company-owned.

Dominos aims to open around half a dozen franchisee outlets by the end of March 2005. Dominos operates 7,096 stores worldwide through the franchise model.

The company says it achieved break-even last year and each of its outlets is making profits.

With the Pizza industry growing between 20 and 25 per cent per annum, the pizza retailer thinks this is just the right time to expand through franchising. The company plans to charge a fee of Rs10 lakh, and 6 per cent and 5 per cent of sales as royalty and marketing fee respectively from franchisees.

The company is also not ruling out the possibility of converting its corporate stores into franchisee-run stores. Dominos claims to be the market leader with over 65 per cent market share in the pizza delivery business.

Nina Ricci eyes bigger share of high-end fragrance market
New Delhi: For Nina Ricci the $100-million Indian fragrance market growing at a 15 per cent rate is rapidly becoming very attractive.

The company has decided to launch its new perfume Love-in-Paris here even before it has been launched in Japanese or the US markets said Guillaume Nagy, regional marketing manager of Puig Asia Pacific, the regional arm of the parent company of Nina Ricci.

The other Nina Ricci fragrances available in the Indian market include Les Belles, Nina, Deci-Dela, Premier Jour, Love fills L'Air du Temps for women and Ricci Club, Signoricci, Memoir D'Homme for men.

The Love-in-Paris in the 80 ml bottle is priced at Rs3,000, which according to Nagy is the Indian psychological price barrier in the fragrance market.

Star Plus hikes advertising rates
New Delhi: Star Plus has increased its advertising rates by 15-40 percent banking on the continuing popularity of its flagship prime time shows like Kyunki Saas Bhi Kabhi Bahu Thi, Kahaani Ghar Ghar Ki and Kasautii Zindagi Ki.

From now, a 30-seconder on these three serials would be available for Rs20 lakh while ad spots during the afternoon would be available at prices ranging between Rs6 and 17 lakh. The card rate during prime time for channels such as Sony and Zee vary between Rs4.5 lakh and 2.75 lakh for a 30-seconder.

Carl F. Bucherer launches watch range
Kolkata: Carl F. Bucherer, a major watch retailer in Switzerland, has launched a range of select watches in the Indian market priced in the range of 2,000 to12,000 Swiss francs (approximately Rs75,000 to Rs 4.50 lakh). The watches are currently being retailed through three outlets in Kolkata, Delhi and Chandigarh.

According to the company there are plans to augment the points of sale in India to 15 by 2008.

The company hopes to sell 200 units of Carl F. Bucherer watches at the retail level in 2005.

Sales would be driven by advertisements and events, and there are no plans to rope in celebrities to push sales.

— Compiled by Mohini Bhatnagar