Marketing review news
18 May 2006

Brand Infosys valued at Rs 23,000 crore
The value of the Infosys brand stood at Rs22,915 crore in fiscal 2006 62 percent higher than what it was at Rs14,153 crore in fiscal 2005. The market capitalisation of Infosys grew by 35 per cent to Rs 82,154 crore during the year from Rs 61,073 crore according to the company's annual report for 2005-06. The value of the Infosys brand was at 27.9 per cent of its market cap during fiscal 2006 against 23.2 per cent in 2005.

According to the company, it has adopted the generic brand earnings-multiple model to value its corporate brand, which is mentioned in the book Valuation of Trademarks and Brand Names by Michael Birkin in Brand Valuation edited by John Murphy.

Using the brand earnings-multiple model, Infosys based its valuation on the following assumptions, among others the total revenues excluding other income after adjusting the cost of earnings, the annual inflation at five per cent and five per cent of the average capital employed used for purposes other than promotion of the brand and a tax rate of 33.66 per cent. Goodwill is a nebulous accounting concept that is defined as the premium paid to tangible assets of a company. It is an umbrella concept that transcends components such as brand equity and human resources.

Berger launches Galaxy-do-it-yourself kit
Berger Paints India has introduced the "Galaxy-do-it-yourself kit". The Galaxy blister pack contains a sachet of magic solution, paper-cuts and brush, such that any one can prepare the paint and actually decorate the ceiling. According to the company, "Galaxy, with its glow in the dark, all-pervasive universe, galaxy of stars, moons, milky ways and comets, will especially appeal to children who are increasingly becoming opinion leaders in brand selection. Galaxy really allows a child to bring to life his imagination of night sky on the ceiling of his room."

A Galaxy pack costs Rs 800 and covers 250 sq ft area. The company has launched Galaxy in the Kolkata market, and has plans to launch it in other parts of the country shortly.

Park Hotels launches Aura spa
Park Hotels launched Aura, a luxury day spa, at its Chennai hotel. Spread over 9,000 sq ft on the ninth floor of the building, the spa has nine rooms, the décor of each of which thematically represents the navaratna gems. The chain of hotels also plans to start Aura spas at Kolkata and Delhi by October this year.

The services in the Chennai spa include traditional ayurvedic therapy, specialised massages such as deep tissue, acupressure, and Swedish and reflexology techniques. The spa also has a gymnasium, a yoga meditation room, steam and sauna chambers, and a salon.

Bausch & Lomb India withdraws MoistureLoc
Contact lens specialist Bausch & Lomb, has decided to withdraw ReNu MoistureLoc contact lens cleaner solution from the Indian market following its withdrawal from other markets in the world. The company has been removing its ReNu MoistureLoc from all markets around the world, saying the solution's formula may increase the risk of a potentially blinding infection.

A press release issued by the company, quoting its chairman and CEO, Ronald L. Zarrella, says that consumers in India can now "exchange their bottles of MoistureLoc formula whether they are imported or locally produced by calling the company's helpline 1800 180 1289 (between 10.00 a.m. and 6.00 p.m.) for another product of the company, `ReNu MultiPlus".

According to the press release, "ReNu MultiPlus has been a consumer favourite in India for more than eight years and has longstanding and unsurpassed records of safety and effectiveness, and has a formula different from that of MoistureLoc".
The company's manufacturing plant in India will also shift production from MoistureLoc to the ReNu MultiPlus formula.

LG makes changes in product portfolio
LG Electronics is effecting changes in its product portfolio in order to stand out among the clutter in the Indian white goods market. The company has phased out 23 frost-free refrigerator models replacing them with eye-catching models that have newer features.

The company expects to increase its share in frost-free refrigerator category to 40 per cent from 33 per cent by the end of this year. As per ORG figures, LG has a 33 per cent share as of March, 2006.

LG has also put in place new practices to handle dealerships across the country. The company is focusing on daily sales instead of monthly sales, which is followed by a few others. The marketing budget of the company is on a "sell and spend" basis, which means that the marketing budget is carved out of the revenue from actual sales and no fresh funds are invested into marketing and advertising.

Suzuki launches executive 125cc bike `Zeus'
Suzuki Motorcycles India has launched its 125cc single-cylinder bike, `Zeus,' at an introductory price of Rs46,084 ex-showroom, here on Tuesday. The company had also recently launched 'Heat' in the Indian market.

Both `Heat' and `Zeus' are 125cc motorcycles. The motorcycle manufacturer plans to have 70 dealerships for its bikes by the end of May this year.

Nestle to focus more on nutrition products
Nestle India is increasing focus on science-based nutrition foods, health and wellness planks across product categories by leveraging know-how from its parent company. This is in line with its global strategy. Science-based nutrition foods are those, which add health benefits to existing food products as a result of scientific research. Meanwhile, new expertise created as a result of this fund could also be accessed by Nestle India as the Indian subsidiary has a General License agreement with the Nestle Group, Switzerland, which enables it to access technical know-how required for these products.

Last year Nestle selected certain products to increase their nutritional content. For instance, Lactogen-1 infant milk food was enhanced in line with ongoing scientific research and paediatric recommendations. Another mail additive product Milo for instance, was re-launched with energy releasing Actigen-E, a team of B-vitamin complex and essential micronutrients to boost optimum performance. Actigen-E helps to optimise the release of energy from the three main food groups — proteins, fats and carbohydrates and is a specific balance of vitamins and minerals, which are the cofactors in energy metabolism. The company also launched Nestle Ceremeal Daliya, which according to the company is a scientifically balanced meal solution for two-plus toddlers, containing essential nutrients.

Nestle SA has recently set up a fund, named `W Health' to complement Nestle's internal R&D. The fund is intended to help Nestle grow new businesses in the area of science-based nutrition and "accelerate its progress to a company delivering nutrition, health and well-being products in food, beverages and pet care", according to the company.

SABMiller launches new-look `Knock Out'
SABMiller India has launched a new look beer brand - `Knock Out' - in Mangalore. The company said the new look `Knock Out' is being unveiled for the first time in the country in Mangalore.

Darshan, the Kannada film star, unveiled the new look of the brand on the occasion.

He will visit markets such as Hassan, Mysore and Chitradurga to promote the new look of the brand. Darshan, who signed the contract as brand ambassador last year, said that his contract with Knock Out has been extended for two more years.

Microsoft Windows Live Messenger available to be downloaded
Microsoft's Windows Live Messenger can be downloaded. This Instant Messenger (IM) is the next generation of MSN Messenger, which has 230 million users worldwide. IM software is used for chatting over internet and also enables PC-to-phone calling with Windows Live Call. With this, users can dial affordable, outbound local as well as domestic or international long-distance voice calls over the internet.

Customers can make calls to the US, the UK, Germany, France and Spain. Soon, the company plans to bring out the IM service in localised languages. Also, cordless phones designed exclusively for Windows Live Messenger will be available from Uniden Corp. and Philips. Users can also now send an IM to their offline contacts who will receive the IM the next time they log in. Microsoft has also introduced video, powered by Logitech International SA.

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