to spend Rs80 crore on image makeover
Dutch consumer electronics maker
Philips is planning an image revamp in India and will project itself as a lifestyle
and healthcare firm. The repositioning which will be part of a global such effort
will result in the company spending Rs80 crore in adspend for brand re-positioning
in the Indian market.
part of its strategy, the Dutch company recently introduced the GoGear range of
MP3 players, priced at Rs 2,999 onwards, besides the ambilight and ambisound TVs.
In the next 6-9 months, the company will introduce at least 24 new products that
will strengthen its position as a company in the lifestyle business.
the healthcare segment, Philips already offers a range of clinical devices and
instruments, but would soon make its foray into consumer healthcare as well.
the organised retail market surging, Philips has tied-up with leading large format
stores and aims at 10 per cent of revenues from this segment this year from 7-8
per cent at present.
Walker launches limited edition pack
Johnnie Walker, which claims to be
the world''s number one whisky brand, has unveiled a collector''s edition of Black
Label Scotch whisky to celebrate the third year of its sponsorship of Vodafone
McLaren Mercedes, among the world''s leading Formula One teams.
available at select Duty Free outlets across Asia from 1st July 2007, the new
collector''s edition of Black Label comes in a contemporary silver and black carrying
practical and sporting a stylish and innovative design, the unique and eye-catching
polished outer casing draws inspiration from the revolutionary aerodynamics of
a Formula One car itself. Elegant lines and colouring mirror the shape of the
nose of this season''s Vodafone McLaren MP4-22 race car and the carrying handle,
that of the rear spoiler.
whisky in the Johnnie Walker Black Label Limited Edition is Johnnie Walker''s award-winning
Black Label Scotch blend also called ''the Savoy, the Everest of deluxe whiskies'',
is blended from over 40 whiskies, each of which has been matured for a minimum
of 12 years, some for considerably longer.
Walker is the world''s No.1 whisky brand, founded by John Walker in 1820 and is
now enjoyed around the world.
Lever to use different retail formats to expand reach
Lakme Lever is looking
at new retail formats like express salons and corporate centres to reach out to
more consumers. The company has pegged the organised beauty services segment at
Rs200 crore and sees the business growing at 31 per cent.
company plans to expand its presence in Pune, Mumbai, Delhi, Hyderabad, Kolkota,
Kochi and Coimbatore. Of the 93 salons in existence, Lakme Lever owns five and
has franchised the rest.
biggest challenge facing the Rs1,600-crore beauty services industry in the country
is `good retail space'' and `trained personnel. To overcome the HR challenges,
Lakme Lever has set up a training centre in Mumbai where staff is trained in both
technical and soft skills aspects of the job.
begins servicing drive
Mumbai: Ford India has started a marketing programme
to ensure a trouble-free servicing experience for Ford vehicle owners. The programme
includes expansion of its Brand@Retail dealerships in key markets and implementation
of Ford''s global `Qualitycare'' and Body Shop Quality Care certification programme
at Ford dealerships and service centres.
company plans to launch 20 new dealerships across India by end-2007 taking the
total number of dealerships to 136 in 75 cities. The company will inaugurate new
dealerships in Ahmedabad, Vadodara, Kota, Bangalore and Navi Mumbai.
plans to extend its global QualityCare certification to 20 more service facilities
in key cities and the Body Shop Quality Care certification to eight more facilities.
Retail opens consumer durable outlet in NCR
The Mukesh Ambani controlled
Reliance Retail has marked its foray into speciality retail with the launch of
its first consumer durable outlet, Reliance Digital, in the NCR region. Officials
said the company would open a total of 150 Reliance Digital stores across 70 cities
over the next three to four years.
stores would typically be spread over 15,000-30,000 sq. ft and would function
as one-stop shops for all technological solutions in the consumer durables and
telecommunications segment to cater to the tastes and requirement of customers.
stores would sell TV sets, home theatre systems, refrigerators, cooking ranges,
dishwashers to computers and mobile phones across brands.
stores would stock more than 4,000 products from over 150 brands. As part of its
overall business strategy Reliance Retail would also have its own consumer durable
private labels in future though not immediately.
its own labels in the consumer durables segment, Reliance Retail will be fighting
for a share of the $5.6-billion domestic market, dominated by South Korean brands
LG and Samsung and Japan''s Sony.
officials said the products offered in the store would be most competitively priced
and they went so far as to say that should any consumer find a cheaper product
in the market within 30 days the store will not hesitate to match the offer.
the stores will also provide pre- and post sales services through its in-house
RelianceresQ vertical and will also have finance schemes for consumers for which
the company is in talks for tie ups with several financial institutions, Citi
Financial being one of them.
Digital will also offer customers RelianceOne, a common membership and loyalty
programme across all its formats, which means users would be able to redeem points
earned on purchases. Other formats of Reliance Retail such as supermarkets and
hypermarkets are due for launch in the April-June quarter.
Brands to revamp private labels
Kishore Biyani''s Future Group with retail
chains like Big Bazaar and Pantaloon is setting up a wholly owned subsidiary,
Future Brands, which will recreate and revamp its private labels as conventional
brands and also provide brand consultancy services.
Desai, managing director and CEO, Future Brands said the Future Brands is currently
looking at revamping seven to eight of its private labels across categories like
apparels, consumer durables and FMCG.
this Future Brands will provide brand consultancy services for other players across
segments like FMCG, consumer electronics and lifestyle amongst others both
at the consumer and brand definition level he said.
company is talking to three `blue chip'' companies at present and expects the consultancy
services to start contributing significant revenues to the Group after six months.
plans to invest about Rs 4,000 crore over the next year for the expansion of its
different retail formats. The Group will increase the number of Big Bazaars from
50 to 100 by next year and add eight more outlets of its home solution format,
HomeTown. It has also planned to build 12 new malls under its Central and Brand
to offer PCO services in MSRTC buses
Bharti Airtel has tied up with the
Maharashtra State Road Transport Corporation (MSRTC) to launch its GSM-based Airtel
PCO services in over 4,000 MSRTC buses.
will offer the pre-paid PCO service in over 4,500 MSRTC long distance buses and
medium-long distances buses. This facility will enable MSRTC bus commuters to
make calls to any destination in India for Re1; local calls will be charged at
Re1 for 60 seconds and STD calls at Re1 per 20 seconds.
PCO facility will be installed for a period of two years and depending upon the
response of the passengers, this facility will be extended to other buses on other
routes as well.
will be responsible for cash management for the PCO operation in their buses,
while Airtel will be responsible for the maintenance cost. Currently over 1,000
PCOs have been installed in MSRTC buses. All installations would be completed
by last week of May.
Private companies beat PSUs in PCO market share
operators Reliance Communications and Tata Teleservices have beaten Bharat Sanchar
Nigam and Mahanagar Telephone Nigam in grabbing a major portion of the lucrative
PCO market in the country.
two companies now account for over 50 per cent market share in the PCO segment
leaving behind the PSUs with just 41 per cent share of the 5.3 million booths
in the country.
December 2004, BSNL and MTNL controlled 90 per cent of the PCO market with over
20 lakh booths but a year later by December 2005, the market share of the two
telecom PSUs had fallen to 69 per cent. For December 2006 BSNL and MTNL have had
negative growth by losing 11,000 PCO booths during the three-month period October-December
2006. The two companies had closed 10,000 PCOs in the previous quarter.
this period Reliance added 1.2 lakh PCOs while Tata Teleservices added 81,239.
Over the last
one-year the BSNL''s PCO booths have remained static at around the 20 lakh booths
even as the overall market size has almost doubled. At the same time Reliance
has moved from having 5.3 lakh booths in December 2005 to 14.5 lakh PCOs by December
2006. Tata Tele also increased from 3.2 lakh booths to 11.7 lakh in one-year time.
BSNL remains the single largest PCO operator, going by the current growth rates
Reliance Communication is expected to overtake the PSU in the next six months.
are also offering better terms to booth owners.
counter the private operators'' strategies, BSNL recently revamped its PCO business.
It decreased the tariffs for local calls made from PCOs even as it matched it
by lowering the pulse rate significantly. The company also increased the commission
for PCO booth owners up to 10 per cent
to stop advertising on Star channels
Mumbai: India''s largest advertiser
Hindustan Lever (HLL) has decided to pull its advertising off the Star TV network.
For the past two months the two companies have been engaged in negotiations to
come to a mutually acceptable billing rate.
had been demanding a 35 pc discount on the existing ad rates post the January
launch of the conditional access system (CAS) in Mumbai, Delhi and Kolkata.
Star was believed to be not budging beyond a 25 per cent discount, said sources
close to the development.
upshot has been that HLL has stopped advertising on the Star network.
is among the biggest advertisers spending around Rs 300-350 crore on television
advertising annually, out of which Rs 100 crore goes to Star.
are demanding discounted ad rates on Star Network after the drop in channel viewership
after CAS was made mandatory. Star India has witnessed 1-1.5 per cent dip in the
overall viewership post the CAS rollout.
creams are biggest advertisers
Mumbai: The fastest growing skincare category,
Fairness creams, are also the biggest advertisers within the skincare category
to AdEx India data, skincare advertising on TV increased by 42 per cent in 2006,
with 40 per cent of the ads catering to fairness creams. The volume of fairness
creams advertising saw a significant jump, in 2006-07 doubling from the previous
year in terms of number of ads per day.
Paras Pharma with skincare brands like Recova and Afterbath was the biggest spender
contributing 19 per cent to the total spend, followed by Hindustan Lever with
17 per cent. However, Ponds, an HLL brand has been accounted for separately in
the study but if the two are taken together HLL comes out as the top spender at
25 per cent of the total skincare advertising on TV.
overall skincare market is valued at about Rs 1,800 crore, of which fairness creams
have 40 per cent share.
the skincare segment the products that are driving growth are suncare, anti-ageing
and fairness creams.
higher ad spend in skincare is due to the huge number of new product launches
in 2006 which include the Ponds Age Solutions range as well as its international
range of face washes.
Further the company has expanded the Fair & Lovely
range to introduce a sun block, skin clarity and men''s cream.
big advertisers of skincare products include Emami and L''Oreal.
sites expanding role
After restricting themselves to fixing marriages
matrimonial websites are expanding their ambit to include wedding planning and
management, roughly a Rs70,000 crore market.
year, shaadi.com launched a pilot wedding planning service in Mumbai and now has
plans to launch it across the country within 12 months. The company also recently
launched its Shaadi Service directory, which provides details on vendors, catering,
venues, rental services, etc.
matrimonial site bharatmatrimony.com is planning to offer pre-marriage services
such as booking marriage halls, catering and decorations.
and bharatmatrimony.com have also announced offline centres. Shaadi.com has 140
offline centres called Shaadi Point, which it plans to increase to 500 over 18
months while bharatmatrimony.com has over 80 centres, which it plans to increase
to 300 by March 2008
websites have seen an increase in registrations from tier-II and tier-III cities.
The number has increased from 30 per cent of the total registrations in 2002-03
to 50 per cent of the total database in 2006-07.
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