Dabur targeting
Rs100 cr from North India Enthused with the growth that the FMCG sector
has shown in the country''s northern markets, FMCG company Dabur India Ltd is targeting
Rs100 crore (Rs1 billion) of revenue from this region. In
the past year, the company has seen business worth Rs80 crore from North Indian
States comprising Punjab, Haryana, Jammu and Kashmir and Himachal Pradesh. It
now plans to grow this to a revenue of Rs100 crore only from its FMCG segment. Dabur
India Ltd, recently re-launched its Odomos brand in Chandigarh, and is expecting
30-per cent growth from the sales of the Odomos range of mosquito repellants alone. By
itself, the Odomos brand showed revenues of about Rs30 crore for the company last
year. The brand an almost 96 per cent market share in the mosquito repellant segment. The
company is expecting the new format of Odomos to be well received by customers
in the Punjab and Haryana markets, given their importance for the brand as the
two states together account for 17 per cent of all India sales. Yash
Birla to a launch textile brand After making his presence felt on almost
every Page 3, Yash Birla''s style may soon become the fashion statement for the
Indian metrosexual male. Yash
Birla shared his plans of launching a brand of his own, saying that he might even
acquire an international brand and give it his personal touch, rather than developing
one from scratch. Birla
Cotsyn, which formed a 50:50 joint venture with the P B Bhardwaj group to expand
its textile business, has plans to invest over Rs300 crore for expansion, and
is likely to soon hit the primary markets for funding the project, via an IPO. Amazon
forays into selling fresh food Online bookseller Amazon has signalled
its ambitions to challenge supermarkets, by commencing trials of fresh food deliveries
to customers in the 22,000-strong upmarket area of Mercer Island, an affluent
suburb of Seattle. The
pilot project is called AmazonFresh, which began quietly this week. It allows
a select group of invited clients to order eggs, fish, vegetables, meat and other
perishable foods, which are delivered by a fleet of 12 vans. AmazonFresh offers
free daytime deliveries for orders over $50. Shoppers spending at least $25 can
opt for "pre-dawn" deliveries, with goods left in refrigerated containers
at their doorsteps during the night. The company said it was working with local
wholesalers and farmers. The product range includes kosher, organic and wheat-free
goods. This is
the latest in Amazon''s efforts at diversification. It has expanded its offering
from its traditional stronghold in books and DVDs to now include electronic goods,
sports equipment, toys and jewellery. Amazon began deliveries of dried foods across
America last year. According
to an Amazon spokesman, "Our ambition is to be the place on the web where
customers can find whatever they want. This trial is a chance for us to evaluate
[fresh foods] as a business." Delivering
perishable food has a range of challenges, including far faster delivery times,
and the food being kept at a controlled temperature. Though online grocery shopping
is commonplace in Britain, supermarkets across America have struggled to crack
internet ordering. The
highest profile failure was that of San Francisco-based WebVan. WebVan had spent
more than $800 million building a network of warehouses and delivery centres before
winding up in 2001. Similar short-lived ventures included HomeGrocer, ShopLink
and Streamline. AutomartIndia
re-brands itself as First Choice Mumbai: AutomartIndia Ltd, the
used car mart has now got itself a new corporate identity -First Choice. The
new identity beings with it plans of extending used car services to include retail
of spares and offering aftersales service to prospective customers, according
to Andrey Purushottam, executive vice-president, office of strategy management
at Mahindra & Mahindra Ltd. According
to experts, this venture would be a pioneering endeavour in the business of selling
spares under an organised banner across the country, and will help promote the
new brand across different channels of the auto industry. First
Choice''s new superstore would offer services that include a variety of cars, 10
bay repair centres, accessory stores and procurement bays (for the authentication
of vehicle ownership and facilitation of change in ownership). The
company plans to launch 6 outlets in cities like Pune, Hyderabad, Bangalore and
Delhi over the next 18 months. It plans to ramp up to over 200 such retail outlets
over a period of two or three years, according to Mr Vinay Sanghi, CEO, First
Choice. The company has set a goal of selling 25,000 used cars via these outlets
by end 2009. For
brand promotions, First Choice plans to invest Rs10 crore across various media
channels, and is planning a tie up with Indiatimes.com as a preferred partner
for online used car sales over the internet. Talks are also in progress with other
leading used car websites like eBay Motors and carwale.com. Addressing
customer retention for the sale of existing cars and the purchase of new cars,
First Choice has tied up with 150 dealers across India to offer a one-stop solution
to all existing car owners. The company is also setting up a 24-hr call centre
to manage queries on the whole process of buying and selling a car, which is slated
to be commence operations by end September 2007. Casio
India plans brand revamp, sees potential in localising products New Delhi:
Casio India Company Pvt Ltd is set to strengthen its brand positioning in
India via a specific category focus along with an aggressive marketing strategy. The
company has been present in India since 1996. This brand revamp and repositioning
exercise has been undertaken to strengthen its market share in the various product
categories in which the company operates. Outlining its strategy, the company
has plans to launch more products, accompanied by aggressive marketing and promotional
activities. Casio
intends to make musical keyboards, watches and calculators its key focus categories.
The company''s strategy will see timely and regular launches of products that provides
the latest technology at affordable prices. Musical instruments account for a
40 per cent market share, while Casio''s scientific calculators have secured almost
95 per cent of the market. Product
localisation to suite the requirements of Indian customers is another area in
which Casio sees as a huge growth potential. As
part of its marketing strategies, the company will use regular marketing channels
such as the print and Internet medium, with a heightened focus on below-the-line
activities. Casio also intends to leverage modern retail trade to drive growth,
using retail visibility to its advantage. Presently,
the company''s turnover is around Rs60 crore, which the company hopes to grow to
Rs300-crore within the next five years, based on its growth strategy. Casio is
also looking at launching its range of cameras and mobile phones, which are to
be targeted at the premium classes. Himalaya:
Beauty product sales not via the beaten track Mumbai: The stereotype of
a beauty product advertising campaign - a girl in distress, and her saviour beauty
product - resolving all her beauty issues almost instantly while creating the
erstwhile absent "oomph" in her personality. Pick a women''s beauty or
personal care product, and this typical character transformation is the basic
theme of all advertising connected these products, across companies and products. Finally,
ayurvedic herbal healthcare products company Himalaya has decided against treading
the beaten path. In its new ad campaign, which is in the offing, the commercial
moves away from this conventional appeal which focus on glamour or celebrity endorsements.
Instead, product benefits and Himalaya''s USP are interwoven into the advertisement''s
narrative which ensure that the message communicated captures an experience that
a number of young women will be easily be able to identify with. Himalaya,
has around 200 products in the estimated $1 billion domestic ayurvedic and herbal
segments. Worldwide, the herbal healthcare market is valued at $65 billion, with
export potential for the same growing at 15-18 per cent annually. As
a brand, Himalaya established itself though the now famed ''Dadima'' campaigns that
were launched in 1999 and created an awareness around the company''s personal care
portfolio. That campaign had the objective of dispelling commonly prevalent myths
about Ayurveda, and had the additional responsibility to educate potential customers
while securing a youth appeal. The
campaign established Himalaya as a company that backed Ayurveda scientifically.
Following the Dadima campaign, there were several changes to the brand''s identity,
with 2001 seeing television commercials that brought to life the concept of ''Active
Ayurveda'', and 2003 seeing that message change to ''Active Herbals''. Other
than TV commercials, retail is a key growth strategy for the company, for which
it is planning to integrate this concept across its retail presence. With 100
exclusive stores across India, Himalaya plans to double this number in the next
few years. The company has identified eye care as an important focus area in the
personal care segment, and has planned a foray into it shortly. Jet
Airways debuts in continental Europe Brussels: Jet Airways launched its
debut flight from Brussels to India, becoming the first private Indian carrier
to fly to and from continental Europe on Monday. The
Indian ambassador to Belgium and the European Union Dipak Chatterjee flagged off
the flight. Jet Airways launched its first flight from Mumbai to the US with a
two-hour stopover in Brussels on Sunday. The
airline will fly from India via Brussels to Toronto on 5th September, and to Johannesburg
as of November 2007. Jet Airways established its operational hub in Brussels in
May, to service enhanced connectivity between India, Europe, Africa and North
America. Nissan
to launch ''clean diesel'' vehicle in ''08 Tokyo: Nissan Motor Co. has unveiled
plans to launch its first ''clean diesel'' vehicle in Japan in 2008 to close the
gap with rivals in green motoring. Japanese
automakers are fiercely competing to be the first to launch low pollution diesel
engines, which according to some analysts, could eventually supercede the popularity
of petrol-electric hybrids due to their lower production cost. Nissan
announced that its new clean diesel engine, based on technology developed in alliance
with French partner Renault, would be installed in the X-Trail sport utility vehicle,
due to be introduced in Japan in autumn 2008. In
December 2006, Nissan had announced a five-year "green programme," that
included plans to develop its own hybrid as part of a push to narrow the gap with
rivals such as Toyota Motor Corp. and Honda Motor Co. in energy-efficient, low
pollution motoring. Nissan
also announced that a new clean diesel technology it is developing shows good
potential, and may even be able to meet the stringent laws and standards of the
US state of California for so-called super-ultra-low emission vehicles. Wal-Mart
and Bharti launch a 50:50 joint venture in India New Delhi: Telecom
major Bharti jas joined forced with the world''s biggest retailer Wal-Mart Stores
Inc to form a joint venture for their wholesale cash and carry business. The
50:50 joint venture is to be named Bharti Wal-Mart Pvt Ltd, with the first wholesale
facility targeted for opening by end 2008. Over the next seven years, 10-15 wholesale
facilities are part of the plans for expansion. Each
facility would be spread over an area of 50,000-100,000 square feet, and would
sell vegetables, groceries, fruits, staples, footwear, stationary, clothing, consumer
durables and other products, according to Rajan Mittal, managing director of Bharti
Enterprises. The
JV company, plans to set up 10-15 stores in tier-II and tier-III towns over the
next seven years, to cater to B2B customers such as other retailers, hoteliers,
push-cart vendors etc. Retail
formats: Predicted - it''s the hypermarkets which shall rule retail Mumbai:
The retail world is clearly betting on the hypermarket to see growth beyond
all the hoopla surrounding them as of now. Hypermarkets offer customers a destination
shopping experience with everything available under one roof, similar to a mall
in its own right, according to Gibson Vedamani, CEO, Retailers Association of
India. By selling below the MRP, varieties are aplenty and environment conducive
to a great shopping experience, which is the why customers have started to prefer
this retail format in India. This
format has been successful in other emerging markets, and this success is seen
as easily replicable in the Indian scenario given the popularity of organised
retail spreading like wild fire. However, real estate prices are seen as a key
factor in the growth of hypermarkets. For
a retailer, the hypermarket format allows all the benefits of being an anchor,
with occupancy costs driven down drastically, and enabling him to play the volume
game. Given
the availability of real estate in India today, supermarkets are easier to roll
out compared as compared to hypermarkets. Most of the retailers are currently
doing this. Going forward, Vedamani sees a shift in focus to hypermarkets, with
supermarkets becoming today''s equivalent of Kirana stores. This
retail format has seen unparalleled success in Asian markets, according to an
AT Kearney report. Pantaloon Retail''s large-scale success story arises from its
hypermarket format, Big Bazaar. There are currently over 50 such stores in the
country today. As part of the growth strategy, the Pantaloon Retail management
is set to double the number of stores in the coming years. Spencer''s
is another large retailer to have recently restructured its retail business along
the lines of the hypermarket format. Others like K Raheja Corp''s Hypercity also
reportedly have plans to expand their network to primary and secondary cities.
Mukesh Ambani''s Reliance Retail is ostensibly all set to unveil its first hypermarket
which goes by the name ''Reliance Mart'' in Ahmedabad shortly. According
to the A T Kearney 2007 Global Retail Development Index, entitled "Growth
Opportunities for Global Retailers", modern or ''organised'' Indian retail
is a mere 2-3 per cent of the overall retail, but is growing at an astounding
25 per cent annually. It is expected to grow at a compounded annual growth rate
(CAGR) of 40 per cent, from $8 billion to $22 billion by 2010. Overall, India''s
retail sector is expected to grow in size from the current $350 billion to $427
billion by 2010, and further to $635 billion by 2015. Medical
tourism to grow to $2 bn by 2012 New Delhi: Other than organised retail,
another segment that is showing astounding growth rates is India''s medical tourism
market, which is growing by 25 percent annually, and is estimated to become a
$2 billion-a-year business opportunity by 2012, according to sources in the tourism
ministry. A ministry
statement says, "Medical tourism has gained momentum in India over the past
few years, a trend underpinned by India''s low-cost advantage and the emergence
of new high-quality healthcare service providers". 2004
estimates of the medical tourism market in India were $333 million, with some
150,000 patients arriving for treatment from the US, Britain, the Gulf countries,
Africa and South Asia Association for Regional Cooperation (SAARC) nations. In
the past three years, the number of inward bound patients has increased by 20
per cent, while the size of the market has gone up by 25 per cent, the ministry
said. To give medical tourism a boost, the Indian government has introduced a
new category of medical visa for foreigners who come to this country for treatment. The
visa is initially issued to a patient with a companion for a one-year period,
and is extendable up to three years, provided it fulfils certain conditions and
recommendations from accredited medical and visa authorities. As part of the ''Incredible
India'' campaign, the tourism ministry has also developed a medical tourism brochure
and CD detailing speciality facilities available in India. These have been distributed
worldwide. Amongst
other initiatives, the ministry participated at the World Travel Mart in London
in November 2006, and at the International Tourism Bourse (ITB) at Berlin in March
2007. This participation was to promote India as the emerging healthcare destination
and disseminate information on medical value travel. The participation enthused
a good response, according to the ministry, which also participated in the New
York Times Travel show in February 2007. According
to the Indian medical fraternity, the cost of what a medical treatment for a medical
tourist is a fraction of what they would otherwise pay in the West as hospital
bills. An added attraction is convalescing in picturesque locales like Kerala
and Goa. As
an example, according to industry officials, the average price of a heart surgery
in the West is $50,000, while the same costs $10,000 in India. Similarly, a heart
bypass in India costs about $4,000, as compared to about $15,000 in the US; a
liver transplant costs a patient $350,000 in the US, while in India it costs just
$50,000. The
Hot Chocolate Fudge (HCF) comes to town: Nirula''s plans expansion New Delhi:
Delhi based fast food chain Nirula''s is planning a huge expansion, which will
see it investing much more than the Rs100 crore it had earmarked earlier over
the next three years. This
expansion is likely facilitated via a restructuring of Nirula''s ownership pattern.
Navis Partners, a Malaysian private equity fund currently holds the majority stake
in Nirula''s. It is learnt to be in negotiations with New York-based India Hospitality
Corp (IHC) for offloading some of its equity in the chain. IHC is a special purpose
acquisition company, learnt to be interested in buying out a part of Nirula''s
equity in return for funding the chain''s expansion beyond North India. The
ultimate ownership of Nirula''s would remain distributed between Navis, and IHC,
with managing director Sameer Kuckreja continuing as a minority shareholder. A
20 per cent stake is likely to change hands. Nirula''s
runs 52 outlets in five North Indian States. By 2010, the company plans to have
200 outlets across India. Presently, Nirula''s runs two hotels, three bars, four
casual dining and other restaurants. Many new formats, i.e. food courts, and an
express, ready-to-eat format - have been introduced. The
typical Nirula''s restaurant''s menu encompasses pizzas, burgers, popular Indian
dishes such as kebab platters, Punjabi fares like chole bhature, south Indian
palate teasers such as dosas, and an expansive, well stocked ice cream parlour,
with its Sundaes, ice cream sodas, and the ever popular "HCF" or Hot
Chocolate Fudge having endeared itself to the hearts and palettes of Delhites
for generations. From
Raheja''s, here comes Expresscity Mumbai:With the success of its
hypermarket Hypercity in Mumbai, K Raheja Corp is now set to launch another retail
format under Hypercity Retail (India) Pvt Ltd. This new format is modelled around
convenience stores, and the company is all set to launch three such outlets starting
with Jaipur as the first. Hypercity
CEO Andrew Levermore said, "Another four Expresscity outlets will be launched
within this financial year taking the total to seven in Jaipur alone. We will
also have one Hypercity operational in Jaipur by then." The company plans
to follow a hub-and-spoke kind of a model for its roll-out in every city, as it
optimises logistical support for the hypermarket and convenience store format
in these locations. K
Rajeja Corp management is looking at 250 Expresscity stores in 5 years, and is
not restricting itself to any geography in particular. Echoing the popular sentiment
amongst companies setting up their retail chains, Levermore said that the company
will follow this structure in every market where real estate players are a little
more realistic with the lease rentals. Real estate costs are seen as key to the
success of organised retail in India. The
size of an Expresscity store will vary from 2,000 to 4,000 sq ft, which will have
a product mix that different from competitors like Spinach, Foodland Fresh, Reliance
Fresh, Spencer''s etc. Expresscity has been positioned as the convenience neighbourhood
store, offering variety of fresh produce, grocery, meals-to-go, dairy products,
bakery items among others. Expresscity
will offer pre-sorted, graded, freshly cut and hygienically packed fresh produce.
These will be stored in refrigerated equipment that keeps the product fresh for
a longer period of time. The
company is targeting some 68 Hypercity destinations across the country in the
next five years. The company is learnt to have already frozen real estate for
28-odd locations. Lufthansa
launches credit card with Deutsche Bank Bangalore: Germans Deutsche Bank
and Lufthansa German Airlines announced the launch of the Miles & More credit
card in India, in association with Visa International. The
credit card packages all travel benefits needed by international frequent flyers,
bringing the world of travel closer, according to a Deutsche Bank statement. The
Miles & More programme allows members to earn ''award miles'' whenever they
fly Lufthansa or other partner airlines of the Star Alliance, stay at a variety
of partner hotels, rent cars or use products and services of other Miles &
More partners. Bajaj''s
new 125cc `Exceed'' to launch in Sept Pune:
Bajaj Auto will launch a new model Exceed, powered by its new engine in September
2007, announced Bajaj Auto Managing Director Rajeev Bajaj. Exceed is expected
to be priced at Rs40,000 ex-showroom (Pune), with the actual pricing to be decided
later. Bajaj
Auto has launched a new engine for its new two-wheeler range, which according
to company claims gives a mileage of 109 km per litre of fuel under ideal test
conditions. The engine, christened Digital Twin Spark--Swirl induction (DTS-Si)
surpasses mileage offered by all current 100cc motorcycles. The company has applied
for a patent for this engine. The
breakthrough offers Bajaj a huge market opportunity to upgrade existing 100cc
motorcycle customers using the new engine, which offers the best of both worlds--100cc
mileage with a 125cc performance. The DTS-Si engine is superior to conventional
4-stroke engines that presently dominate the 100cc segment. According
to Bajaj Auto general manager, marketing, Amit Nandi, Brand Bajaj has a 47-per
cent market share of the growing and profitable 125cc and 150cc segments, and
has a smaller 24 per cent of the declining but larger 100cc segment. According
to Bajaj, Exceed will bring in both volumes and market share for the company,
along with a high earnings margin of about 15 per cent. He said the company will
be effectively exiting the 100cc segment now, as the money was no longer in that
segment. Bajaj sells the Platina model at Rs33,000, which the company claims does
not make any money for them. The cost structure for 125cc `Exceed'' will be the
same, yet Bajaj gets Rs4,000 more per product. The
company plans to make 20,000 Exceed motorcycles in September at the Aurangabad
plant, later ramping up to 50,000 units in subsequent months. There are also plans
to roll out part of the production from the new Pantanagar plant. According
to Bajaj, the current lull in the market is not solely on account of adverse interest
rates, but also on account of the absence of an exciting product in the market.
Murdoch foresees
better days for Star India; plans channels New York: Media baron Rupert
Murdoch says he is confident of a brighter future for the group''s Star business
in India under a new management. Star would be launching a number of new channels
in the next one year. The
rise in Star''s advertising and subscription revenue was primarily driven by its
India operations. The increased advertising revenues reflect the broadcast on
Star Plus of Kaun Banega Crorepati 3, India''s version of ''Who Wants to Be a Millionaire''.
Subscription revenue growth was mainly driven by an increase in domestic DTH subscribers.
The
company is looking at launching multiple new channels in the current fiscal in
India, which would probably hold back profit growth in FY08, but will lead to
significant increase in profits in the period beyond that. Star is witnessing
robust growth in distribution in India through Tata Sky and cable route.
also see : List
of Marketing Review
|