Category: Brands

TOPSGRUP recognized as India’s Most Trusted Brand for 2015 in the Security Category

Mumbai – November 30, 2015: TOPSGRUP, India’s largest security group, received the unique recognition of being recognized as INDIA’S MOST TRUSTED BRAND for 2015 in the Security Category. The brand was selected amongst more than 2,000 short listed brands related to various categories based on a consumer survey conducted in India by Media Research Group (MRG), a company with close to 15 years’ experience in conducting exhaustive research of this nature.

Being the 3^rd such award for the company this year, the global security service provider has been recognized as INDIA’S NO. 1 BRAND IN THE SECURITY CATEGORY by the Indian Brand Leadership Awards in association with IBC Infomedia (International Brands Consultants). Furthermore, according to the BRAND TRUST REPORT INDIA, TOPSGRUP has significantly risen to 171^th position from 800^th position in 2014 across all segments and brands in India.

Ramesh Iyer, Vice Chairman & CEO – India, TOPSGRUP said, “INDIA’S MOST TRUSTED BRAND Award is a true recognition of excellence and appreciation of our brand. As trust is the very basis of security solutions, all the three awards are a source of great pride to our firm. They reassure and show our dedication towards creating the most secure environment for our clients.”

At the awards ceremony, organized by IBC Infomedia Corp, USA, TOPSGRUP proudly finds itself in the company of other leading and established brands like as Airtel, Samsung, Dabur, Air Asia, Asian Paints, HDFC Bank, Croma, Lodha and Aquaguard among others.

The grand awards ceremony which felicitated and honoured more than 50 successful brands saw more than 200 delegates including CEOs, Managing Directors, Vice Presidents and Directors in attendance.

December 2, 2015
Asian Paints Ezycolour urges people to live in harmony with its new campaign

MUMBAI: Asian Paints Ezycolour Home Solutions unveiled a new campaign to create awareness about its newly launched Green Painting Service (GPS), an eco-friendly water based paints range for all surfaces.

The campaign conceived by digital advertising agency FoxyMoron, spreads the message of living in harmony with nature and encourages people to ‘Think Different’.

To bring the message to life, the campaign was planned and executed in two phases. In the first phase, three locations in Mumbai with high visibility were shortlisted to create one-of-a-kind murals that had nature as part of the street art.

The second leg of the campaign took the offline initiative online with a film that captures the stories of the three artists and why they chose art as a way of life.

Speaking more about the campaign, Asian Paints, group brand manager- services Aupam Kumar said, “Asian Paints has been a pioneer in the paint industry in developing better and safer products for consumers. Eco-friendly and water- based paints have long been considered the future of paint technology. The day has come where this future has definitely arrived with the launch of Green Painting Service by Asian Paints Ezycolour Home Solutions.”

“For the first time, customers will get the opportunity to have water-based paints applied on all surfaces in their homes. This makes home painting a great experience and helps our customers live in harmony with nature, as well. With an aim to give back to nature, we have taken up an initiative to paint the Mumbai streets green with our products and communicate the message of migrating towards a “Green world” to everyone. This is just the beginning and we would like to do more on this front in the future.”

FoxyMoron co-founder Suveer Bajaj said, “Ezycolour Home Solutions treats each home as a piece of art, so we thought why not use that to spread the message of living in harmony with nature! Our idea was to take the message to the streets through murals that evolved and revolved around nature and then further leverage this online through a heartfelt film. The film adds another dimension to the campaign with its captivating storytelling and aesthetics. We hope that the concept of nature and art resonates with the consumers and helps Asian Paints amplify the message that all beauty comes from our planet and what we do to spread this beauty can now be given back to nature.”

November 30, 2015
Microsoft’s plans targeted marketing of new Lumia 950 series in India

MUMBAI: Microsoft announced the launch of the first Windows 10 pre-loaded phones. The phones are not branded Nokia, they come under the brand Lumia – and the new launches are the Lumia 950 and the larger and more expensive variant Lumia 950 XL. Delivery of the phones will commence December 11 onwards. The launch happened simultaneously in NCR, Mumbai and Bengaluru today.

“With the launch of Windows 10, we have ushered in an era of more personal computing which is all about interacting more easily, more naturally and more securely in a mobile-first, cloud-first world. Now, with Windows 10 on Lumia we take innovation to the next level and build upon the unique experiences of Windows 10 for phone users,” said Microsoft India, chairman, Bhaskar Pramanik.

“Designed for Windows fans and mobile professionals who desire a premium phone that takes full advantage of Windows 10, the new flagship devices are powerful, performance-driven, unique and innovative” Pramanik added.

“The Lumia 950 and the Lumia 950 XL deliver a seamless experience that extends across ones Windows devices, including innovative features like Cortana, Windows Hello beta for Lumia and Continuum for phones, ushering in the next level of innovation,” said Microsoft Mobile Devices India director of channel sales Ravi Kunwar at the Bengaluru launch. The Lumia 950 and Lumia 950 XL also shoot 4k videos and captures photos with its 20 megapixel camera.

The Windows 10 preloaded phones allow people to use the phone like a PC by connecting it to a monitor and transforming it for larger-screen entertainment, or adding a keyboard and mouse to work like a PC with Windows 10 apps like Microsoft Office 365, while simultaneously taking calls or performing other tasks. A Microsoft Display Dock, which comes free if the phone has been pre-booked enables the PC like functionality.

Windows Insiders, or beta testers for Microsoft Windows played a major role in profiling and planning the features of Lumia 950 series, and therefore much of the features are targeted to loyal Microsoft users and business professionals.

Hnece, in terms of marketing as well, Microsoft has planned for a more targeted approach towards potential consumers of the new series. “As these models have been designed keeping our fans in mind, there are a number of ways in which we are trying to locate them,” said, Microsoft Mobile Devices India director of marketing, Raghuvesh Sarup, adding that it will be a first for the brand to do a targeted marketing with such focus. Sarup was at the Mumbai launch.

“Usually we go with a machine gun approach, what you would call a 360 degree touch point plan where you go with mass media, with digital and outdoor, etc. But for Lumia 950 and 950 XL, we are doing more pin pointing and individual marketing,” said Sarup, adding, “ We have observed that Windows fans are working in certain corporate houses, and are mobile professionals. A huge amount of curiosity and anticipation also comes from the IT professionals.” Microsoft is specifically targeting the IT professionals who form a major chunk of their working professional consumer base.

“Luckily for us, Microsoft already had a penetration in this target group. We are pinpointing our marketing strategies to CIOs CTOs. The other group we are concentrating on are mobile professionals from the financial space. They have a need for greater security than an average person. Something which this new Lumia series can boast of – the highest level of security, further protected by Windows Hello beta,” shared Sarup.

Microsoft is also targeting users of the older Lumia models Sarup informed. “Based on their experience and feedback, we understand that they aim for high productivity when buying a phone like Lumia. Since we know what they are looking for primarily, it’s easier for us to market this series for them.”

The prospective consumers of the product that the brand has shortlisted have been sent mailers for pre-ordering. For those who haven’t pre-ordered yet, Microsoft is taking a more experiential route and asking them to check the product out at their Microsoft Priority Resellers. “They can just walk in there and get a Continuum experience, which is a PC like experience on a secondary screen that works independently of the phone, while being powered by its processor,” informed Sarup.

In terms of digital as well, the brand has some big plans including brand integration with Amazon. “Our third touchpoint is digital, with an exclusive tie up with Amazon.com. They are going to be exclusively offering 950 XL for pre orders. There are a lot of experiential elements that Amazon and Microsoft have built jointly, on our Facebook, and Microsoft.com portal, as well as Amazon.in. We have a special site at Amazon called Microsoft at Amazon, that works on a shop in shop concept. Also, we have a Microsoft store within Amazon which offers a large number of extras in terms of experiences and deals. Consumers can hope for a steady stream of engagements on the portal, which I cannot divulge right now,” Sarup explained. Sarup added that that the brand is soon going to release a TVC for the new product.

Starting 29 November until December 11, the Lumia 950 and 950 XL smartphones have been available for pre-booking at Microsoft Priority resellers across the country, the Microsoft Store on Amazon.in and retail chains of Croma, Reliance and Sangeetha. Aimed at a niche consumer base – the Microsoft fan base, the phones are priced Rs 43,699 and Rs 49,399 for Lumia 950 and Lumia 950 XL respectively.

November 30, 2015
#SnapdealForIndia faces #AppWapsi after recent Aamir Khan controversy

‘A celebrity endorsement can make or break a brand.’

Quoted from Countering Brandjacking in the Digital Age by Christopher Hofman and Simeon Keates, the statement strikes a key note with the eCommerce giant Snapdeal’s current situation with its brand ambassador, actor Aamir Khan.

In a recent interview at the Ramnath Goenka Awards 2015, the actor had spoken about “growing disquiet” in India and had also remarked that his wife had once asked him whether they should move out of the country! Though Khan has come out with an official statement defending his stand on the matter, the damage has already been done.

An excerpt from Khan’s official statement reads: “Neither I, nor my wife Kiran, have any intention of leaving the country. We never did, and nor would we like to in the future. Anyone implying the opposite has either not seen my interview or is deliberately trying to distort what I have said. India is my country, I love it, I feel fortunate for being born here, and this is where I am staying. To all those people who are calling me anti-national, I would like to say that I am proud to be Indian, and I do not need anyone’s permission nor endorsement for that.”

The angry netizens however took to Twitter, Facebook and other social media platforms to protest against actor Aamir Khan’s controversial comment on India’s growing intolerance. Snapdeal, a brand that the actor endorses was also dragged into this by the netizens and the brand has since been facing the brunt of their anger.

Lately, Snapdeal has come out with an official statement dissociating the brand’s association of any kind with Khan’s comments.

“Snapdeal is neither connected nor plays a role in comments made by Aamir Khan in his personal capacity. Snapdeal is a proud Indian company built by passionate young Indians focused on building an inclusive digital India. Everyday we are positively impacting thousands of small businesses and millions of consumers in India. We will continue towards our mission of creating one million successful online entrepreneurs in India,” said a spokesperson from Snapdeal.

With an all encompassing growth of social media, the common man’s access to celebrities and brands have enhanced, and so did the threats to corporations and brands in both number and variety. Celebrity endorsements doesn’t escape the purview of this double edged sword that the digital platform brings along with its many benefits. Within hours of #AppWapsi going viral on Twitter and Facebook, Snapdeal saw over 70,000 one star ratings being hurled at their app on Google’s Play Store.

Some even took to the review space to write negative messages to the online shopping platform, explaining their reasons to pull out of the brand’s services.

Whether the brand will take the threats seriously and snap the deal with Aamir Khan is a question that remains to be answered.

A veteran media planner told indiantelevision.com under conditions of anonymity, that it is unlikely that Snapdeal will walk that route. Moreover, “a major part of the contract tenure has run its course and there is no discussion on reevaluating the endorsement contract or talks of ceasing it,” he says, adding, “Diwali is the main season when it comes to sales, and even for marketing and promotions in this quarter. With Diwali over, we don’t see major changes in Snapdeal’s endorsement contract with Aamir Khan

Question of the hour is-, has the #AppWapsi campaign brought down Snapdeal’s brand value by any significant score?

“Snapdeal is a major brand with a huge customer base. I don’t think this campaign will affect the brand that easily. This is a passing phase. Before it affects Snapdeal, it will effect Aamir Khan at the box office, which I feel is less likely a chance,” points out an expert under promise of anonymity.

Seconding that opinion is another expert from the industry. “It may influence the brand’s image only temporarily but will fade away as fickle minded mass will move on to another controversy and forget Snapdeal. So yes, there will definitely be an impact on Snapdeal, but I don’t see it last longer. At the end of the day consumers’ relation with Snapdeal is the product and this controversy won’t come in the way of the sales. We aren’t even sure if those angry comments have come from consumers who make a difference in the brand’s sales at all”

While most market analyst and planners feel that the situation doesn’t call for a knee jerk reaction, Snapdeal’s official statement dissociating themselves from Aamir Khan’s comment shows that the brand isn’t completely unaffected.

“If the ratings affects the performance of the app, then it will definitely be detrimental to the brand. It may also affect the brand value. The brand needs to communicate their perspective to the consumers. “shares a veteran media analyst and planner.

Meanwhile, counter argument in favour of Snapdeal has also gained ground over the net, with some supporters belonging to Khan’s fan base. The uncanny of all was the tweet from Snapdeal’s rival, Flipkart’s Sachin Bhansal, who earlier tweeted defending Snapdeal.

Sachin Bansal @_sachinbansal This is a flawed logic. Brands don’t buy into brand ambassadors personal opinions. @snapdeal shouldn’t face this SnapdealForIndia is the campaign used to counter #AppWapsi, where happy Snapdeal consumers are taking to social media to share how the brand has helped the country in the past. Snapdeal’s official handle on Twitter immediately jumped to retweet posts that spoke well of the brand.

Infact, the page is running a contest asking consumers to give ‘honest reviews and rankings’ of their app on Google Play to win prizes.

Whether these efforts will save Snapdeal from being dragged+AKA-further+AKA-into its brand ambassador’s mess, only time will tell.

November 25, 2015
Q2-2016: Godrej Consumer Products marketing spend up 20 percent

BENGALURU: Godrej Consumer Products Limited (GCPL) reported 20 percent year on year (YoY) growth in advertisement and publicity expenses (Ad) in Q2-2016 (quarter ended September 30, 2015, current quarter) at Rs 253.99 crore (11.3 percent of net Total Income from Operations or TIO) as compared to Rs 211.69 crore (10.3 percent of TIO). The current quarter’s Ad spend was 1.1 percent higher QoQ as compared to Rs 251.12 crore (12 percent of TIO). In Q4-2015, the company in its earnings release had said that its household insecticides brand ‘Good Knight’ crossed the Rs 1500 crore mark and amongst GPCL’s soap brands, Godrej No. 1 crossed the Rs 1,000 crore and Cinthol, the Rs 500 crore milestone.

Note: 100,00,000 = 100 lakhs = 10 million = 1 crore

Godrej group chairman Adi Godrej said, “We have grown ahead of the market and gained share in our core categories, aided by our continued focus on innovations, competitive marketing investments and strong on-ground execution. Our India business branded net sales grew by 10 percent, driven by a healthy volume growth of 9 percent. This competitive performance was delivered despite the softness in rural demand and a deficient monsoon.”

“We remain optimistic that as the economy improves, the FMCG sector should see a gradual uptick in demand. We are launching exciting new products and investing in several distribution initiatives. We will also continue to manage our costs prudently in the near term, while investing for the future,” added Godrej.

Trends

Please refer to Fig A below. GCPL’s Q2-2016 Ad spends mentioned above was the highest in absolute rupees during the 14 quarter period starting Q1-2013 until Q2-2016 in this report. Its highest Ad spend in terms of percentage of TIO was in Q1-2014 at 13.8 percent (Rs 239.06 crore). During the period under consideration in this report, its lowest Ad spends both in absolute rupees and in terms of percentage of TIO was in Q2-2014 at Rs 145.78 crore and 7.5 percent.

During the period under consideration in this report, Ad spends in terms of absolute rupees and percentage of TIO shows a linear increasing trend as indicated by the broken blue and maroon trend lines in Fig A below.

GCPL reported 9 percent YoY growth in TIO in Q2-2016 at Rs 2244.94 crore as compared to Rs 2060.12 crore and 7 percent QoQ growth as compared to Rs 2097.66 crore. During the fourteen quarter period under consideration in this report, TIO shows a linear increasing trend as indicated by the broken green trend line.

Profit after tax (PAT) in Q2-2016 at Rs 287.16 crore was 22.4 percent higher YoY as compared to Rs 234.53 crore (11.4 percent of TIO) and was 44.1 percent higher QoQ as compared to Rs 199.23 crore (9.5 percent of TIO). During the fourteen quarter period in this report, PAT shows a linear increasing trend both in terms of absolute rupees and percentage of TIO as in obvious from the broken red and black trend lines in Fig B below.

Category review by GPCL

Household Insecticides

GPCL says that its Household Insecticides maintained its strong performance despite the deficient monsoon, with a double-digit volume-led sales growth of 13 percent. The company says that Good knight has significantly improved the overall category penetration, especially in rural areas. This has been led by superior on-ground execution, effective communication and the success of innovative launches such Good knight Fast Card, Good knight Xpress and Neem Low Smoke Coil. GPCL claims to have consistently gained market share across formats and ended the quarter with our highest ever market share. GPCL launched an innovative ‘Subah Bolo Good knight’ campaign to create awareness on dengue, and to increase daytime usage and consumption. The company says that gross margins continue to benefit from lower crude oil prices and have improved significantly.

Soaps

The company says its Soaps business delivered a competitive performance with robust mid-single digit volume growth. This was partially offset by deflationary pressures, resulting in a value growth of 3 percent. GPCL says that it continues to remain competitive on sales promotion investments to gain market share. GPCL’s premium soaps brand, Cinthol, continued to lead overall value and volume growth, driven by distribution expansion and effective communication.

Hair Colours

The growth momentum in Hair Colours accelerated with a sales growth of 17 percent, aided by a double-digit volume growth. The company says that Godrej Expert Rich Cr?me sustained its strong growth, led by continued initiatives such as festival linked campaigns, large scale activations, salon engagement programmes, etc. The initial consumer response to the launch of Godrej Nupur Coconut Henna Cr?me has been encouraging.

Air Fresheners

Godrej aer, GPCL’s air freshener brand, continued its strong sales and distribution ramp up. This has been aided by the company’s innovative gel format technology and various consumer engagement initiatives. Godrej aer is now the number three player in the Air Care market, says GPCL.

Health and Wellness

GPCL’s says that its Health and Wellness portfolio of hand washes and hand sanitiser, under Godrej Protekt, continued to be well received in modern trade. Buoyed by its success in modern trade, GPCL says that it is introducing Godrej Protekt portfolio in general trade on a pan-India basis.

Premium Hair Care

GPCL has launched BBlunt range of premium hair care products in modern trade and premium general trade outlets.

November 22, 2015
Q2-2016: Dabur marketing spends up 9.9 percent

BENGALURU: Dabur India Limited (Dabur) spent 9.9 percent more year on year (YoY) towards advertising and publicity expenses (ASP) in the quarter ended September 30, 2015 (Q2-2016, current quarter) at Rs 278.42 crore (13.3 percent of Consolidated Net Sales or Total Income from Operations or TIO) as compared to Rs 253.35 crore (13.1 percent of TIO), but 15.8 percent lower quarter on quarter (QoQ) than the Rs 330.61 crore (16 percent of TIO).

Note: 100,00,000 = 100 lakh = 10 million = 1 crore

All numbers are consolidated unless stated otherwise

Dabur’s products

Among the products that Dabur has include health supplements like Chyawanprash, Ratnaprash, Honey, Glucose; digestives like Hamjola – Hajmola Chuzkara and Natkhat Amrud, Pudin Hara Fizz; OTC and Ethicals such as Lal Tail, Honitus Syrup; Haircare products like Vatika, Vatika Brave and Beautiful digital, Anmol Jasmine Marks; Toothpaste brands like Dabur Red, Babool and Meswak; skincare products like Fem Natural Fairness, Gold Bleach, Gulabari; Homecare brands such as Odomos, Odonil and Sanifresh; Food brands such as Real and Real Active.

“In a low growth and challenging business environment where growth rates in most consumer products segments remained under pressure, Dabur remains committed to delivering profitable growth. Even in these uncertain times, we have continued to report good growth across key categories and grow ahead of the market. We continue to invest behind our brands and are confident of our ability to report sustainable and profitable growth, going forward,” Dabur India Ltd Chief Executive Officer Sunil Duggal said.

Trends

The company’s ASP in Q1-2016 at Rs 330.61 crore (16 percent of TIO) was the highest in terms of actual rupee spends as well as in terms of percentage of TIO during the 12 quarter period starting Q3-2013 until Q2-2016. Over the 12 quarter period under consideration, Dabur’s ASP in absolute rupees and ASP in terms of percentage of TIO both show a linear increasing trend. Please refer to Fig 1 below.

Fig 1 below indicates that ASP in terms of percentage of TIO follows a linearly increasing zigzag line, with peaks in Q1 and Q3 and valleys in Q2 and Q4 of a financial year. Based on this, it is quite likely that the company’s ASP in Q3-2016 (next quarter) which is also a festival quarter in India, may be higher in terms of percentage of TIO.

Dabur’s TIO for the current quarter marked an 8.7 percent YoY growth at Rs 2,092.09 crore, up from Rs 1,924.09 crore and up 1.1 percent QoQ from Rs 2069.49. The company’s TIO shows a linear increasing trend during the twelve quarter period under consideration in this report.

Consolidated Net Profit for Q2 2016 reported an 18.7 percent YoY jump to Rs 341.1 crore (16.3 percent margin) as compared to Rs 287.48 crore (14.9 percent margin) and was 30.2 percent higher QoQ as compared to 262.10 crore (12.7 percent of TIO) .PAT in abslute rupees as well as in terms of percentage of TIO show linear increasing trends during the period under consideration in this report.

Category Growths

Dabur says thatits oral care business led by Dabur Red Paste and Meswak, continued to move forward on its strong growth trajectory and ended the quarter with a near 19 percent growth. The hair oils business also reported an over 14 percentgrowth during the quarter. The home care business ended the quarter with an over 12 percent growth, while the OTC & Ethicals business ended the period with a near 11 percent growth.

The quarter saw Dabur launch a number of new products and variants across geographies, all of which have received good response, the company says. During the quarter, Dabur extended the Hajmola brand to the beverage market with the launch of Hajmola Yoodley and also strengthened its presence in the professional skin care market with the launch of two new products under the OxyLife brand. In addition, the hair oil portfolio was expanded with the launch of Vatika Jasmine.

Dabur’s International Business recorded good growth during the second quarter, despite disturbances in key geographies.

Tags: Chyawanprash, Ratnaprash, Honey, Glucose; Hamjola ,Hajmola Chuzkara , Natkhat Amrud, Pudin Hara Fizz, Lal Tail, Honitus Syrup;,Vatika, Vatika Brave, Beautiful digital, Anmol Jasmine Marks; Dabur Red, Babool, Meswak,Fem Natural Fairness, Gold Bleach, Gulabari, Odomos, Odonil , Sanifresh; Real, Real Active.Hajmola Yoodley

November 19, 2015
Amul, LIC matter to Indians most: Havas Global Top Meaningful Brands 2015 study

Amul has emerged as India’s Most Meaningful Brand. In India, Indians have the highest attachment towards Life Insurance Corporation of India (LIC), the iconic state-owned insurance group, are some of the findings of the India Study Findings of Havas’ Meaningful Brands 2015 study.

Havas Media India & South Asia CEO Anita Nayyar, CEO explained, “This is our largest India study to date in size and scope. Marketers will be encouraged to know that India once again stands out as the No.1 country, globally, where consumers have the closest relationship with brands. India is also the most ‘grateful’ country, rewarding meaningful brands, in business terms. We are seeing that in a developing economy like India, unlike the West and more developed economies, people are more trusting of brands. People here believe brands can play a meaningful role in their lives and that brands are working hard towards improving our quality of life and wellbeing. This creates tremendous opportunities for brands in India to communicate and connect with their customers, in our organic world – which is at the core of the Meaningful Brands Project.”

‘Food’ is one of the most meaningful sectors, attaining strong attachment and trust. Food brands are especially meaningful for making peoples’ daily lives better with their rational benefits of savings, convenience, health and better nutritional habits.

Local brands like Amul take the lead with multinational corporations like Cadbury who introduce local brands to resonate with consumer context and tastes, locally. The study says that 86 percent of people would care if LIC disappeared tomorrow as compared to globally where most people do not care if 74 percent of brands disappeared the next day.

In India, brands have a high level of meaningfulness and are seen as providers of personal and collective wellbeing; they are viewed as much more than functional products. Brands in India are also seen to be meeting consumers’ expectations more than in any other region.

75 percent of Indians believe brands should play a role in improving our quality of life and wellbeing; the Asia Pacific the average being 69 percent and the globally average 67 percent. More than half i.e. 67 percent of Indian’s feel that brands are working hard at improving our quality of life and wellbeing, very impressive, compared to an Asia Pacific average of 55 percent and Global average of 38 percent.

The top 10 Meaningful Brands in India are Amul, Cadbury, Google, Britannia, Life Insurance Corporation (LIC), Microsoft, Intel, HP, Parle, and Samsung, as compared to the Global top 10 Meaning Brands that include Samsung, Google, Nestlé, Bimbo, Sony, Microsoft, Nivea, Visa, IKEA, Intel.

Havas Media Group India Managing Director Mohit Joshi summarised, “People in India are happy to have brands as partners and as enablers to help them improve their quality of life and wellbeing. While in the West there is a high commoditisation of brands, people in India, have ‘high expectations’ and ‘reward’ those brands that contribute to their wellbeing – this is the second time in a row that LIC has scored as the brand with the highest attachment. The study throws open exciting possibilities for marketers and brands to interact with their customers.”

Meaningful Brands is Havas’ metric of brand strength. It is a global study in its sixth year globally and in its third year in India, to show how our quality of life and wellbeing connects with brands at both a human and business level. On a global scale, the study covers 1,000 brands, 300,000 people, 34 countries across 12 industries. The research covers aspects of people’s lives that include the impact on their collective wellbeing, in personal wellbeing, and marketplace factors, which relate to product performance such as quality and price.

November 17, 2015
Q2-2016: Ad exp down 30.5 percent; watches sales grow, jewellery pulls down Titan’s numbers

BENGALURU: Last quarter (Q1-2016) Titan Company Limited (Titan) spent the highest amount towards advertisement (Ad spend) both in terms of absolute rupees and percentage of Total Income from Operations (TIO) at Rs 128.84 crore and 4.8 percent of TIO. This quarter (quarter ended September 30, 2015, Q2-2016, current quarter), Titan reduced its Ad Exp by 15.4 percent YoY to Rs 89.52 crore (3.3 percent of TIO as compared to Rs 105.83 crore (2.9 percent of TIO) and reduced Ad exp QoQ by 30.5 percent from the figures mentioned above for Q1-2016.

Note: 100,00,000 = 100 lakh = 10 million = 1 crore

Segment Performance

Titan has 4 revenue segments – watches having the brands –Titan, Xylus, Nebula, Sonata, Fastrack and Zoop; Jewellery with Tanishq, Zoya, Gold Plus from Tata, Mia and Fq teen diamonds; Eyewear under the Titan EYE+ brand and ‘Other’ such as precision engineering among others.

Titan’s Jewellery business is its major revenue generating stream that contributes more than 70 percent to the company’s revenue. In the current quarter, jewellery business revenue reduced 32.9 percent (declined by Rs 1,000 crore) YoY to Rs 1,929 crore (72.7 percent net sales) from Rs 2,929 crore (82.2 percent of net sales). The company’s Watches division is the next major division in terms of revenue contribution. Revenues from watches grew 4.4 percent (increased by Rs 23 crore) YoY to Rs 546 crore (20.6 percent net sales) from Rs 523 crore (14.7 percent net sales). Titan explains the reason for the decline in a release that says that retail sentiment has been extremely poor in this quarter and that the watches division, backed by activations for both Titan and Fastrack brands grew in income by 4.4 percent. A new sub-brand ‘SF’ by Sonata in the adventure sports segment was launched during the current quarter.

Titan’s Eyewear business which contributes just 2 to 3 percent to the company’s revenue, reported 14.3 percent (increased by Rs 11 crore) YoY growth in revenue to Rs 88 crore (3.3 percent of TIO) from Rs 77 crore (2.2 percent of TIO). On a YTD basis, (6 months of the current fiscal), Titan says that the decline in profits from this segment is due to higher Sales promotion and Advertising costs in the first quarter.

As a consequence of the huge decline in revenue from Jewellery sales, Titan’s TIO in the current quarter fell 25.6 percent (reduced by Rs 919.59 crore) YoY to Rs 2,673.48 crore from Rs 3,593.07 crore. Net Sales fell 25.5 percent (reduced by Rs 910 crore) YoY to Rs 2655 crore from Rs 3565 crore. Qoq, the TIO decline was much lower at 1.3 percent from Rs 2708.59 crore. QoQ, net sales in the current quarter reduced by 1.2 percent (reduced by Rs 32 crore) as compared to Rs 2,687 crore.

Advertisement spend trends

Please refer to fig A below for Titan’s Ad expenses over a fifteen month period starting Q4-2012 (quarter ended March 31, 2012) until the current quarter.

As mentioned above, during the fifteen quarter period under consideration in this report, Titan’s Ad spends were the highest in the previous quarter (Q1-2016), both in absolute rupees and in terms of percentage of TIO. Lowest Ad spends during the same period in absolute rupees and in terms of percentage of TIO were in Q4-2103 at Rs 66.63 crore and 2.5 percent of TIO respectively.

During the fifteen quarter period under consideration in this report, Titan’s ad spends show a linear increasing trend in terms of absolute rupees as indicated by the broken blue trend line, while ad spends in terms of percentage of TIO show a slow linear decline as indicated by the broken maroon line in Fig A.

Please refer to Figure B below. As mentioned above, the company’s TIO in Q2-2016 fell 25.2 percent YoY and reduced 1.3 percent QoQ. During the fifteen quarter period under consideration in this report, TIO shows a linear increasing trend as indicated by the broken orange trend line in the figure below.

PAT in Q2-2016 at Rs 145.39 crore (5.8 percent margin) reduced 39.4 percent YoY from Rs 239.98 crore (7.3 percent margin) and reduced 3.8 percent QoQ from Rs 151.06 crore (6 percent margin). PAT in absolute rupees and in terms of percentage of TIO (margin) show a linear increasing trend as indicated by the broken military green and broken grey trend lines in the figure below during the fifteen month period under consideration in this report.

Company Speak

Titan Managing Director Bhaskar Bhat said, “This was an extremely challenging quarter for the company and we witnessed an income decline of 25 percent. While our watches business witnessed a growth of low single digit at 4.4 percent the jewellery business had a difficult quarter with a decline over last year. The industry saw a tough period with gold imports declining significantly. The decline in jewellery sales was also on account of discontinuation of our Golden Harvest Scheme. The Eyewear business continues to register double digit growth. All our brands are working on new product and marketing campaigns for the festive season ahead.”

November 14, 2015
Q2-2016: Britannia Industries ad and sales promo spends up 11.9 percent

BENGALURU: Britannia Industries Limited (Britannia) spent 11.9 percent more YoY towards Advertisement and Sales Promotion (ASP) in Q2-2016 (quarter ended September 30, 2015, current quarter) at Rs 184.68 crore (8.4 percent of TIO) as compared to Rs 143.48 crore (7.3 percent of TIO) and 15.1 percent more QoQ than Rs 160.52 crore (8 per cent of Net total Income from Operations or TIO). Please refer to Fig 1 below.

Note: 100,00,000 = 100 Lakhs = 10 million = 1 crore

Company speak

Britannia managing director Varun Berry said,“We have been able to make reasonable in-roads in our weak states in the Northern region and have strengthened our position which has helped us bolster the growth. While the prices of key commodities remained benign, we expect that our initiatives of offering more value to consumers along with re-stage of our key brands like Goodday and Milkbikkis with enhanced organoleptic delivery, would help drive consumer off-take and accelerate the growth for the company.”

TIO and Ad & Sales Promotion spends

In Q2-2015, Britannia’s TIO increased 11.9 percent YoY to Rs 2208.65 crore as compared to Rs 1974.51 crore and was 9.4 percent more QoQ as compared to Rs 2018.60 crore. TIO in the current quarter was the highest during the 14 quarter period starting Q1-2013 until the current quarter. The broken grey trend line indicates that the company’s TIO has a linear increasing trend during the period under consideration.

Also, during the period under consideration in this report, Britannia’s ASP in Q4-2015 was the highest, both in terms of absolute rupees as well as in terms of percentage of TIO at Rs 202.89 crore and 9.8 percent of TIO. The lowest ASP in absolute rupees was in Q1-2013 at Rs 112.96 crore (8.3 percent of TIO), while in terms of percentage of TIO, it was 7.3 percent (Rs 143.48 crore) in Q2-2015. The maroon broken line shows a slight decline in ASP in terms of percentage of TIO, while the blue broken trend line indicates a linear increasing trend for ASP in absolute rupees.

The broken blue trend line in Fig 1 below indicates that ASP in terms of absolute rupees is increasing, while the broken maroon trend line indicates that it is declining in terms of percentage of TIO)

Please refer to Fig 2 below. In Q2-2016, Britannia reported PAT of Rs 218.63 crore (9.9 percent margin) which was 19.2 percent lower YoY as compared to Rs 270.46 crore (13.7 percent margin), but was 15.3 percent higher QoQ as compared to Rs 189.66 crore (9.4 percent margin).

During the period under consideration in this report, the company’s PAT shows a linear increasing trend both in absolute rupees as was well as in terms of percentage of TIO.

During the fourteen quarter period under consideration, the company’s ,PAT in Q2-2015 was the highest recorded by the company, both in terms of absolute rupees as well as in terms of PAT as percentage of TIO at Rs 270.46 crore and 13.7 percent of TIO respectively.The lowest PAT reported by the company in absolute rupees as well as in terms of percentage of TIO was in Q1-2013 at Rs 46.48 crore and 3.4 percent of TIO respectively during the same period.

November 14, 2015
Q2-2016: UFO Moviez revenue up 18%, EBIDTA up 12.3%

BENGALURU: Indian digital cinema distribution network and in-cinema advertising platform, UFO Moviez Limited (UFO) reported a 18 per cent YoY growth in consolidated income from operations (TIO) for the quarter ended 30 September, 2015 (Q2-2016, current quarter) at Rs 148.25 crore as compared to Rs 125.59 crore and 13.8 per cent more than the Rs 130.32 crore in the immediate trailing quarter. The company reported 12.3 per cent higher operating profit or EBIDTA for the current quarter at Rs 44.66 crore (30.1 per cent margin) as compared to the Rs 39.78 crore (31 per cent margin) and grew 10.7 per cent QoQ from Rs 40.34 crore (31 per cent margin).

Note: 100,00,000 = 100 lakh = 10 million = 1 crore.

The company’s PAT in Q2-2016 increased 26.5 per cent to Rs 16.46 crore (11.1 per cent margin) as compared to Rs 13.01 crore (10.4 per cent margin) and increased 24.2 per cent QoQ from Rs 13.25 crore (10.4 per cent margin).

UFO founder and managing director Sanjay Gaikwad said, “I am very pleased with UFO’s operating and financial performance during the first half of fiscal year 2016. We delivered strong growth in revenues driven by E Cinema VPF, sale of products and increase in advertisement volumes. Advertisement revenue growth was aided by increased stability due to repeat business from some of the top corporate clients. The benefits of operating leverage are also evident, combined with higher margins in advertising and strong balance sheet position, which has enhanced the overall profitability of the company.”

“We are confident in our ability to deliver the targets we have set for the full year,” added UFO joint managing director Kapil Agarwal. “A healthy pipeline of movies in the second half offers strong visibility for growth. The prospect of growth in the advertising business looks promising. The expansion of Caravan Talkies is also progressing as per plan and we expect this business to begin contributing meaningfully at an operating level soon. In summary, we have a very well-established platform to leverage on and a strong set of plans to deliver growth.”

Let us look at the other expense reported by the company:

Total Expenses in Q2-2016 at Rs 123.22 crore (83.1 per cent of TIO) increased 17.3 per cent YoY from Rs 105.09 crore (83.7 per cent of TIO) and was 13.8 per cent more QoQ than the Rs 109.16 crore (83.8 per cent of TIO).

The company’s expense towards purchase of digital cinema equipment and lamps in the current year increased 49.1 per cent to Rs 24.55 crore (16.6 per cent of TIO) as compared to the Rs 16.46 crore (13.1 per cent of TIO) in Q2-2015 and was 53.8 per cent higher QoQ as compared to Rs 15.96 crore (12.2 per cent of TIO).

The company paid 7.9 higher amount towards advertisement revenue share in Q2-2016 at Rs 11.29 crore (7.6 per cent of TIO) as compared to the Rs 10.46 crore (8.3 per cent of TIO) in Q2-2015 and 7.6 per cent more QoQ from Rs 11.47 crore (8.8 per cent of TIO).

Further, the company paid 32.1 per cent YoY more towards VPF share at Rs 19.99 crore (13.5 per cent of TIO) from Rs 15.06 crore (12 per cent of TIO) and 13.5 per cent more QoQ from Rs 16.23 crore (12.5 per cent of TIO).

Half year results

In H1-2016 (half- year ended 30 September, 2015), total consolidated revenues rose 20.2 per cent to Rs 280.20 crore from Rs 233.1 crore in H1-2015. EBITDA grew 12.4 per cent to Rs 86.8 in the current half year from Rs 77.3 crore. PBT increased 33.5 per cent to Rs 42.1 crore in H1-2016 from Rs 31.6 crore in the corresponding period of last year.

PAT in H1-2016 grew 41.4 per cent to 29.7 crore from Rs 21 crore in H1-2015. The average number of advertisement minutes sold per show per screen increased to 3.83 in H1-2016 (half- year ended 30 September, 2015) as compared to the 2.92 minutes in HY-2015 and Advertisement revenue grew 37.8 per cent to Rs 70.7 crore in the current half-year as compared to Rs 51.3 crore in H1-2015.

November 13, 2015