Marketing review news
31 March 2005

Entertainment industry to grow by leaps and bounds
The Indian entertainment industry is expected to grow at a scorching growth rate of 18 per cent over the next five years with television contributing 60 per cent of the growth according to a study conducted by consultants KPMG-CII, titled Indian entertainment industry Focus 2010: Dreams to reality.

The study estimates the current entertainment industry size at Rs22,200 crore and predicts that it would grow at 18 per cent to touch Rs58,800 crore by 2010.

Paradoxically, the music industry, a major part of film and television entertainment in India, has shrunk by Rs350 crore to Rs1,000 crore from Rs1,350 crore three years ago.

The entertainment industry as a whole — comprising television, film, music and radio industries — grew from Rs19,600 crore in 2003 to Rs22,200 crore in 2004. The study says that television is growing the fastest amongst all medias and contributed 62 per cent of overall growth in 2004 and will touch Rs32,500 crore by 2009.

And convergence of technologies is the way forward. The study points out that the Indian entertainment industry is experiencing a major shift in the way entertainment is distributed, with new distribution channels, such as broadband, internet access and wireless communications, driving significant growth in the industry.

Sail revamps image
India's largest steel producer SAIL is planning a go in for a complete image makeover in the next few years and plans to recall its earlier campaign, "There is a little bit of SAIL in everybody's life."

The exercise is in tune with Sail's corporate plan to double capacity to 20-million tonnes by 2012 at an investment of Rs25,000 crore.

The brand positioning exercise is expected to be finalised in six to eight months.

Wipro also gets notice for misbranding, mislabelling products
Close on the heels of FDA's action agasinst Johnson & Johnson, the Maharashtra Food and Drug Administration (FDA) has sent a notice to Wipro Consumer Care & Lighting, the FMCG arm of Wipro Ltd, for alleged misbranding and mislabeling its baby oil.

Wipro sells its skin massage oil under the Wipro Baby Soft brand name.

The regulatory authority is also monitoring other `baby' oils in the market, including products from Emami.

Early last week, the FDA had ordered Johnson &Johnson to stop labelling its oil as a `baby' product, since its base was light liquid paraffin oil, believed unfit for babies as there is data available that shows paraffin oil causes reactions in babies.
J&J was given a fortnight to respond.

The domestic baby products market is an estimated at Rs 200 crore, with players such as Dabur, Emami, J&J and Wipro.

Tag Heuer introduces `professional golf watch'
Tag Heuer has launched the world's first `professional golf watch' designed and developed with golf champion Tiger Woods, also the company's brand ambassador.

The Golf watch will be priced at Rs55,000, and will be available in a limited edition of 8,000 pieces with 250 pieces in India.

The brand also announced its association with golf in India with the inaugural Tag Heuer precision golf tournament.

According to the company, the Tag Heuer Professional Golf Watch has shattered the belief that professional golfers can't wear a wristwatch during the game as it can seriously hinder their swing and impact performance.

Blaupunkt opens first brand shop
Auto audio systems company, Blaupunkt has opened its first brand shop to offer customers an exclusive space to experience the sound quality that the company is known for. India is the first country in the Asia-Pacific region to host this approach.

Blaupunkt has a 21 per cent share of the domestic organised market in its segment. Since 1999, the brand has grown here at 14 per cent and the domestic sales turnover has risen five times.

Excluding the mature Japanese automobile market, Blaupunkt's sales turnover elsewhere in Asia has been increasing at the rate of 7 per cent. Its share in other markets in the region is in the 5-10 per cent range. The branded retail experience, which made its debut in India, is being rolled out fast across the Asia-Pacific region.

Blaupunkt sells car radios ranging from Rs7,000 to Rs40,000 and in-car video-DVD systems priced as high as Rs1.25 lakh.

Marico launches Mediker Plus
Marico Industries has launchedn anti-lice shampoo, Mediker Plus, for the southern markets. The company has roped in Malyali actress and danseuse Shobana, to endorse the product. Mediker Plus is coconut-based with neem, camphor and permethrin and is priced at Rs7 for 15ml-pack, Rs10 for a 25ml-pack and Rs19 for a 50ml-pack.

The company not only conducts awareness campaigns through the media but also undertakes contact programmes in slums and schools.

MRPL in alliance with Ashok Leyland for retail outlets
ONGC's subsidiary Mangalore Refineries & Petrochemicals Ltd (MRPL) has formed a joint venture company with Ashok Leyland for setting up retail outlets for petroleum products and servicing facilities for trucks.

MRPL and Ashok Leyland Project Services would have equal equity contribution of 26 per cent each in the proposed venture. The balance 48 per cent equity will be offered to financial institutions and other strategic investors, according to a company release.

MRPL has received the go ahead from the ministry of petroleum & natural gas to set up 500 retail outlets in the country at locations along various National and State highways.

Tourism industry ads spend down
According to an AdEx India report the television ad spend of the tourism industry dipped by 27 per cent in 2004, against the previous year, which saw an all-time high growth of 124 per cent.

While international and private players emerged as the largest spenders in 2004, with 72 per cent share, the states spent around 25 per cent, while the union tourism ministry spent only three per cent.

Philips NV to launch new ad campaign
Philips NV is coming out with a new campaign centered round the theme `sense and simplicity.'

The brand building initiatives will focus on products offerings of Philips and the creative strategy will encompass all businesses of Philips, including healthcare, lifestyle and technology.

Royal Philips Electronics NV will spend 80 million euros in the first quarter of 2005 to bring its message to customers in 11 key markets around the world. In India, the company will invest 2.5 million euros.

The target group of the campaign is the typically affluent class who comprises 80 per cent of the buying population aged between 22-55 years.

The campaign was developed together with DDB, Philip's global advertising agency, and media buyer, Carat.

Compiled by Mohini Bhatnagar

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