ITV

Category: Brands

  • Disclaimer ends the PepsiCo vs. MSM dispute

    Disclaimer ends the PepsiCo vs. MSM dispute

    MUMBAI: The case filed by cola giant PepsiCo against MSM Motion Pictures and Vashu Bhagnani-owned Pooja Pictures over use of the title ‘Youngistaan’ for their upcoming movie starring Jackky Bhagnani, Neha Sharma, Boman Irani and late Farooq Sheikh, has been dissolved with both parties agreeing to a settlement.

     

    Following a hearing at the Delhi High Court by Justice A K Pathak, it was agreed upon by both parties that a disclaimer will be displayed not only at the beginning of the movie when it releases in theatres on 28 March but also in non-theatrical trailers, the official website of the film, the official twitter account, official facebook account and the official YouTube page. The disclaimer reads: “This movie is not related to or associated with, sponsored or promoted in any manner by Pepsi or Pepsi’s Youngistaan Campaign” and will be effective 15 March onwards.

     

    Apparently, there was talk of the disclaimer even yesterday but PepsiCo finally relented only today. Asked about the same, a spokesperson for Singh & Singh, the law firm representing the cola company, simply said, “The defendants (MSM Motion Pictures and Pooja Pictures) worded the disclaimer the way we wanted it to be. Hence, we agreed to it.”

     

     It was in January this year that Singh & Singh sent legal notice to MSM Motion Pictures and Pooja Pictures, alleging that the title of their upcoming film, Youngistaan, was an infringement of their client’s (PepsiCo’s) registered trademark.  

     

    The objections raised by PepsiCo notwithstanding, MSM Motion Pictures and Pooja Pictures went ahead and announced the launch of their film on 6 February. PepsiCo then moved the Delhi High Court on 12 February, and its plea said, “Restraining them (the producers) from launching their movie under the impugned title ‘Youngistaan’ which is nothing but a blatant imitation of the plaintiff’s (PepsiCo) registered trademark.”

     

    The hearing was earlier slated for 24 February however, it was postponed to 3 March as the judge was on leave. On 3 March, the case was adjourned as MSM Motion Pictures and Pooja Pictures had sought more time.

  • Britannia’s brand support exercise on track (Q3-2014)

    Britannia’s brand support exercise on track (Q3-2014)

    BENGALURU: An analysts’ meet presentation in August 2013 said that Britannia Industries Limited (Britannia) had been supporting its brands to leverage their strengths with higher percentage of ad and sales promotion spends (Ad & SP Spend) vis-?-vis Nett Sales Value, considering the fact that consumers had started rolling back spending.

    Please note that the term ‘Operating revenue’ in this article/these Graphs, figures refer to ‘income from operations (net of excise duty)’.

    Figure A

    Britannia says that Food is a Rs.12,50,000 crores opportunity with branded food growing faster than overall food and non food with ‘Biscuit’ being the largest category in branded foods at about Rs. 25,000 crores.

    The strategy seems to be on course, with the company registering an improvement in operating revenue and higher PAT, with the only blip being Q1-2014, when the company’s Operating revenue and total expense dipped (Figure B), while its ad spends in relation to income from operations (net of excise duty) peaked as (Figure D) below indicates. However, despite lower revenue in Q1-2014 and a slight dip in PAT q-o-q as compared to Q4-2013 in terms of money, the company’s PAT in percentage terms in relation to its Operating revenue and Total Expense also peaked at 5.82 per cent and 6.25 per cent respectively (Figure B).

    Figure B

    Operating revenue and Total expense down in Q1-2014 as Figure B above indicates, while PAT percentage peaks as indicated in Figure C below

    Figure C

    Figure D indicates Ad and SP spend percentage in relation to Operating revenue and Total expense peaked in Q1-2014.

    Figure D

    Figure E below indicates figures reported over six month and nine month periods of 2013 and 2014 ending September 30 and December 31 of the respective years.

    Figure E

     

     

    While FigureF indicates the overall picture of the six quarters starting Q2-2013 and ending Q3-2014.

    FigureF

     

     

     

  • Walk the ramp with Deepika Padukone

    Walk the ramp with Deepika Padukone

    MUMBAI: Have you always dreamed of being in the spotlight? Does style come naturally to you?

     

    Well here’s a chance for you to make it to the limelight. If you think you have the style quotient and the Limited Edition look, then we have the perfect opportunity for you. Take part in ‘Walk the Ramp with Deepika’ contest and accompany the ultimate style diva, Deepika Padukone in most the glitzy fashion event of the year! All you have to do is assemble a look from the Van Heusen Limited Edition collection, upload a picture and tell Van Heusen why this look is limited edition for you. Deepika will hand pick 10 glamorous winners to walk the ramp with her at the launch of the new collection.

     

    Hurry up! Last date for entries is March 31st.

  • AICL to transform annual reports from boring vanilla to interactive

    AICL to transform annual reports from boring vanilla to interactive

    MUMBAI: Annual Reports is just more than numbers, it’s a piece of handiwork through which a company can promote itself, its prospects to its various stakeholders.  It is no longer just a compilation of statistics.

     

    And to make them more interactive rather than just plain vanilla, AICL Communications, a full-service strategic communications consultancy, has taken upon itself to change the way one looks at the boring text running over pages and pages.

     

    A recent survey by Burson-Marsteller found that 95 per cent of chief executives in the US believe corporate reporting plays a critical role in achieving key business objectives. To bring that thought and change in India as well, AICL is assisting several Indian corporates in giving shape and character to their annual reports, paving the way for stakeholder groups to understand them better.

     

    The company has big daddies of various categories as its clients. Reliance Industries, Zee, Hindustan Unilever, Kotak Mahindra Bank, IDBI Bank, Maruti Suzuki, Tata Group, Hero MotorCorp, to name a few.

     

    AICL Communications CEO Arvind Agrawal says, “Many companies now recognise the significant role an annual report plays in providing a road map of key messages and strategic direction. The role of annual reports has been largely changed by innovations in technology that have broadened access to information. At AICL, we are partnering the best Indian brands to help them create a corporate image among the investor community that is commensurate with their business potential.”

     

    The thought is to add spunk and interactivity in addition to containing relevant information, visuals and imagery. Today, good annual reports are as essential as good advertising for any company. The best practices to create a good annual report according to Agrawal are: data visualization, use of imagery to highlight company’s scale, highlight company’s contribution to people and the planet through its CSR.

     

    “Internet too has changed the way people look at things. We believe that if one can access the annual report online then it becomes very interactive,” says Agrawal while stating the example of HUL, Zee on how such companies have created micro-sites for their annual reports.

     

     “We have immense respect for the work and effort AICL invests to make our reports an interesting read. These reports not only help us gain a leadership position in the minds of current and prospective stakeholders, but also allows us to clearly state our goals and pioneering initiatives in the space we operate in,” added Zeel global head brands Ronald Landers for the company which is in its fifth year of association with the consultancy.

     

    AICL operates in the specialised domain of corporate reporting, with services spanning annual and sustainability reports, internal communication, digital and moving image solutions.

     

    When asked if the company is looking at raising funds from the market, Agarwal pointed out that since it operates in a niche space and has a high profile clientele, the company doesn’t need funds from the market and are self-sufficient at present.

     

    The company’s quest to underscore the importance of reporting has driven it to continuously strive towards innovation in the domain. In doing so, it has built a portfolio of clients which comprise nearly 40 per cent of the BSE Sensex, 30 per cent of the Nifty 50 and three of the eight Indian Fortune 500 companies, besides multiple MNCs and PSUs.

  • Bajaj Corp posts highest percentage spend toward ASP in Q3-2014

    Bajaj Corp posts highest percentage spend toward ASP in Q3-2014

    BENGALURU: In the last seven quarters starting Q1-2013 till Q3-2014, Bajaj Corp Limited (Bajaj Corp) reported the highest ever spend in percentage terms towards Advertisement and Sales Promotion (ASP) in Q3-2014 at 17.85 per cent of Income from Operations (Op Inc).
    It may be noted that Bajaj Corp’s ASP spend comprises both Advertisement (Ad Exp) and Sales Promotion (SP). While ASP figures have been obtained from presentations over various quarters to company investors, Ad Exp has been taken from the firm’s financial results. Consequently, SP has been derived by deducting Ad Exp from ASP. All figures are taken as approximate. Significantly, Rs 100 lakh = Rs 100,00,000 = Rs 1 crore = Rs 10 million.
     On 22 August, 2013, Bajaj Corp acquired the ‘Nomarks’ brand and entered a non-compete agreement with the seller for a period of three years. The management inter alia considered the non-compete period and estimated the useful life of the brand as three years. As per Accounting Standards (AS) 26 – Intangible Assets, the acquisition cost of the brand and non-compete needs to be amortized over the estimated useful life of three years. Accordingly, a pro-rata (for Q3) amount of Rs 11.75 crore has been amortized during the quarter ended December 31, 2013. The same has been shown under exceptional items. Whereas in Q2-2014, a pro-rata (for 40 days) amount of Rs 5.10 crore had been amortized and shown under exceptional items.
    Here’s looking at the figures reported by Bajaj Corp from Q1-2013 to Q3-2014.
    As mentioned earlier, in percentage terms, the company’s ASP spend was the highest at 17.85 per cent of Op Inc or Rs 28.31 crore in Q3-2014. However in value terms, it was the highest at 16.42 per cent of Op Inc or Rs 30.24 crore in Q4-2013. Also, ASP spend in Q1-2014 was slightly higher in value terms at Rs 28.53 crore but at 16.76 per cent of Op Inc. Over the last seven quarters, Bajaj Corp’s ASP has increased both in value and percentage of Op Inc terms.
     Its Ad Exp trend is almost flat while SP is trending upward. Fact is, in Q3-2014, the company spent the lowest amount toward Ad Exp at 5.43 per cent of Op Inc or Rs 8.611 crore as compared to Q1-2014, when it spend the highest amount toward Ad Exp at 8.8 per cent of Op Inc or Rs 14.9847 crore.
    Correspondingly, the company’s SP spend has been increasing steadily from an all-time low of 5.45 per cent of Op Inc or Rs 7.5308 crore in Q1-2013, to the highest across seven quarters in terms of percentage and value at 12.42 per cent of Op Inc or Rs 19.6989 crore in Q3-2014.
    Trends for ASP, Ad Exp, and SP in terms of percentage of Total Expense and percentage of Op Inc are almost similar. The company’s Ad Exp proportion has been going down while its SP has been increasing progressively.
     Overall, ASP has been going up with the share of SP growing. From a high of 56.62 per cent of ASP or Rs 9.8282 crore in Q1-2013, Ad Exp in Q3-2014 has been the lowest at 30.42 per cent of ASP or Rs 8.6111 crore.

    Please refer to figures A, A-1 and B below.

    Figures B  and C indicate that Bajaj Corp’s Ad Exp proportion has been going down, while its SP has been increasing progressively. Overall, ASP has been going up with the share of SP growing. From a high of 56.62 per cent of ASP, (Rs 9.8282 crores) in Q1-2013, Ad Exp in Q3-2014 has been the lowest at 30.42 per cent of ASP (Rs 8.6111 crores).

    Over the seven quarters under consideration, both Op Inc and Total Expense show an upward trend while PAT shows a downward trend. PAT peaked in Q4-2013 at Rs 47.014 crore and was the lowest at Rs 29.1003 crore in Q3-2014. PAT has been affected on account of Bajaj Corp having amortized its ‘Nomarks’ acquisition, as mentioned earlier. Also, in Q1-2014 and Q3-2014, ‘change in inventories of finished goods, work-in-progress and stock in trade’ added to expense as compared to the reduction in expense in Q2-2014 and Q4-2013. Further, the company purchased 44.85 per cent higher stock-in-trade in Q3-2014 at Rs 16.27 crore vis-a-vis Rs 11.23 crore in Q2-2014 and 53.31 per cent more than Rs 10.61 crore in Q3-2013. In the event Bajaj Corp repeats its Q4-2013 performance in the last quarter of this year, the PAT trend is likely to swing upward.
     
    Op Inc too peaked in Q4-2013 at Rs 184.182 crore, moving up from Rs 136.017 crore in Q2-2013, later falling over Q1-2014 and Q2-2014 to reach a low of Rs 158.4016 crore in Q2-2014. Q3-2014 has seen a slight improvement in Op Rev at Rs 158.5762 crore. If it duplicates or improves upon the performance of Q4-2013, the Op Inc upward trend would be even steeper.

    About Bajaj Corp
    Bajaj Corp’s mother brand is Bajaj with sub-brands or products such as Bajaj Almond Drops Hair Oil, Bajaj Kailash Parbhat Cooling Oil, Bajaj Brahmi Amla Hair Oil, Bajaj Amla Shikakai, Bajaj Jasmine Hair Oil, Bajaj Kala Dant Manjan and creams, soaps, face washes and face scrubs under the brand name, ‘Nomarks’.

  • Gillette India Ad & Sales Promotion spends at Rs 97 crore in Q3-2014

    Gillette India Ad & Sales Promotion spends at Rs 97 crore in Q3-2014

    BENGALURU: Procter & Gamble Hygiene and Health Care Limited (P&G) subsidiary Gillette India Limited (Gillette India) spent the highest amount towards Advertisement and Sales Promotion (Ad & SP spend or expense) over the last seven quarters in Q3-2014 at Rs 96.90 crore as compared to the Rs 88.10 crore in the immediate trailing quarter and the Rs 68.39 crore in the year ago quarter. (Rs 100 Lakh = Rs 1 Crore). However in terms of Ad & SP as percentage of Income from Operations, the highest spend at 25.36 per cent was in the corresponding quarter of last year (Q3-2013).

    Three segments contribute to the company’s Income from operations – grooming, portable power and oral care. Grooming segment includes blades, razors and toiletries, portable power segment includes batteries and oral care segment includes toothbrushes, toothpaste and oral care products. Gillette India’s products are sold under the brand Gillette with sub-brands like Fusion and Mach 3. Gillette India caters to Men’s personal care products such as razors, blades, shaving creams, gels, men’s skincare products, among others in India.

    Note: Gillette India’s financial year ends on June 30. However, in keeping with convention in India, its June ended quarter has been termed as Q1 (instead of Q4 of the previous year), Its September ended quarter has been termed as Q2 (instead of Q1 of Gillette India’s new fiscal), the December ending quarter has been indicated as Q3 (instead of Q2 of Gillette’s fiscal), and the March ended quarter as Q4 (instead of Q3 of Gillette’s fiscal) in this article and figures/graphs.

    Let us look at the quarterly numbers reported by Gillette India from Q1-2013 to Q3-2014

    While in value or money terms as well as the q-o-q percentage change, Ad and SP expense has trended upwards as shown in Figure A and Figure B, Gillette India’s Ad and SP expense in terms of percentage of Income from Operations and Total Expense has shown a downward trend as Figure C shows.

    Figure A shows the Ad and SP expense by value in Lakh of Rupees with an upward trend.

    Figure B shows the q-o-q percentage change in Ad & SP expense also showing an upward trend.

    Figure C shows that the Ad and SP expense trend is downwards in terms of percentage of Income from Operations and Total Expense. Basically the two curved lines almost run side by side with 20.79 per cent being the average Ad & SP as the percentage of Income from Operations and 22.81 per cent being the average Ad & SP as percentage of Total Expense over the seven quarters under consideration.  The lowest corresponding figures are 18.66  per cent and 20.64 per cent in Q4-2013 and the highest corresponding numbers are 25.36 per cent and 27.55 per cent (Q2-2013 ) Ad & SP spend as percentage of Income from operations and Total expense.

    The company’s Income from Operations and Total Expense has shown an increasing trend as is evident from Figure D

    Despite increase in Income from Operations, the company’s PAT has been the lowest in Q3-2014 at Rs 11.04 crore as compared to the highest amount in the last seven quarters of Rs 27.16 crore in Q4-2013. One of the major contributors to this fall in PAT is the change in inventories of finished goods, work in progress, and stock-in-trade which has added to expenses by Rs 0.51 crore as against reduction of expenses by Rs 11.55 crore in Q2-2013 and Rs 14.33 crore in Q32013. The company has also incurred a net foreign exchange loss of Rs (2.75) crore in Q3-2014 as against a net forex gain of Rs 4.43 crore in Q2-2014, a net forex loss of Rs (10.36) crore in Q3-2013.

    Figure E indicates that the PAT has trended downwards in the past seven quarters starting from Q1-2013 until Q3-2014. Maybe the company may repeat or better its Q4-2013 performance which may reduce or reverse the downward slide in PAT.

    In summary, the company’s PAT and Ad & SP expense are both trending downward as percentage of Operating Income as indicated in Figure F, but as mentioned above, Q4-2014 may see all that turn around considering the effect of forex loss and the change in inventories on Q3-2014 numbers overall. It may be noted that if one were to neglect the PAT and the AD & SP figures ofQ3-2014, the fall in PAT would not be as steep, while the fall in the case of Ad & SP expense as percentage of Income from operations would be steeper than across the seven months in consideration.

     

  • Design jewellery, express yourself!

    Design jewellery, express yourself!

    MUMBAI: Hardly, if ever, will you find a woman who does not like ornaments.

     

     And so, the Tata Group’s jewellery brand, Tanishq, has launched a digital campaign ‘My Expression’ which not only taps this feminine attribute but also gives members of the fairer sex an opportunity to explore their creativity.

     

     Essentially an online jewellery designing contest, ‘My Expression’ seeks to give concrete shape to individual ideas in the form of the Mia collection or jewellery for working women by Tanishq. To participate in the competition – currently in its second season – simply upload your inspiration/idea for Mia in the form of photographs, videos, Do it yourself, audio and plain words on the microsite http://mia.tanishq.co.in/myexpression.

     

    Speaking of ‘My Expression’, Titan Company Jewellery division head marketing and general manager Deepika Tewari says: “With the aim to encourage participants to source inspiration from the smallest thing and turn it into beautiful pieces of jewellery, ‘My Expression’ is a one of its kind jewellery designing contest.”

     

     While the first season saw just over 3200 entries from across the country, this season, there have been a staggering 10,000 entries from both India and abroad. “The second season of ‘My Expression’ is bigger, better and has gone international too. While the aim remains the same – encouraging women to express their ideas and give it shape in the form of a piece of jewellery,” says Tewari.

     

     The contest is a medium for Tanishq to get closer to its fans and customers. “My Expression is a perfect example of activity through which a brand can grow closer to its customers. Digital initiatives like this help us gain great consumer insights on the product and service front. With the digital medium playing an indispensible role in our lives, engaging activity on this platform is always a bonus for a brand to get a better understanding of the consumer, decoding the styling required and a deep dive to decipher a jewellery category never before addressed in the market,” explains Tewari.

     

    With Maxus handling promotion of the activity, only emails, facebook ads, banner ads and smses are being deployed to spread awareness about the contest.

  • GD Foods to expand its presence in the Eastern markets

    GD Foods to expand its presence in the Eastern markets

    KOLKATA: The fast-moving consumer goods (FMGC) company, GD Foods Manufacturing (India) that has two brands – Tops and Royal Taste – under it, plans to expand in the eastern region.

     

    In the present fiscal (2013-14), the company has earmarked four per cent of the turnover on the marketing spend that would include on-air and on-ground activities. However, in the next fiscal the spends would increase marginally, going up to five per cent.

     

    The company wants to expand its presence further in the eastern region by increasing the spends as well as by entering with the Royal Taste products beginning with Kolkata market in the next five-six months.

     

    The company has no plans to set up its manufacturing base in the eastern region but in order to capture the markets of Bihar, Odisha, Jaharkhand, it is looking at the best distribution possibilities.

     

    In the current fiscal, the company spent around Rs 8 crore on marketing and advertising initiative.

     

    Also, GD Foods which witnessed a turnover of Rs 153 crore in the last fiscal (2012-13), is confident to cross sales of Rs 200 crore in the current fiscal 2013-14. “Our turnover is likely to be higher than Rs 200 crore in FY14,” said GD Foods VP, Marketing Monika Solanki.

     

    Before foraying in the Kolkata market, the company is looking at hitting 360 degree marketing campaigns including outdoor media, regional television and newspapers papers. “Our own team is working on below-the-line activities that also include on-shop activities,” she added.

     

    The flagship company of the group – Tops – with key consumer products categories like jam, tomato ketchup, pickles, instant mixes, custard powder, culinary sauces, vermicelli, jelly among others has crossed 167 stock keeping units. “Tops pickles and culinary sauces are the main categories of products that largely drive GD Foods,” said Solanki.

     

    A media and brand expert from the eastern region says that because of Tops’ popularity, the company will have to be really innovative to make a mark with Royal Taste. “If the company is looking to enter the eastern region with ‘Royal Taste’, it has to do innovative campaigns to win over the existing national and regional players in Kolkata and eastern region,” said the expert.

  • Grab your paint! Grab your glue! Get ready to watch Pidilite spread it’s magic on worldoo!

    Grab your paint! Grab your glue! Get ready to watch Pidilite spread it’s magic on worldoo!

    MUMBAI: The super cool Mr. D. is cooking up a storm on worldoo.com by introducing a whole new series of art and crafts in association with Pidilite. Using kids favourite Rangeela student’s range of colors and Fevicol MR, Mr. D. has created exciting crafts such as superhero wristbands and fizzy bubbles.

    Design Yard on worldoo.com is one such place where kids can unleash their creative element. All they have to do is register themselves on worldoo.com and pay a visit to Mr. D. in order to be introduced to a plethora of options including designing a card in ‘Art a Minute’ to conducting some cool science experiments in ‘Sci-Fu’ like creating amazingly cool fizzy bubbles or making a super hero wrist band or grab hold of a parent and take up a bigger challenge in the form of ‘Take Your Time’. In addition to this, kids can also join the Doo Crew in the ‘Do-It-Yourself’ section to bring alive a really happy clown with the Rangeela student’s range of colors – a perfect art project for school!

    Commenting on the partnership, Mr. Harsh Wardhan Dave (Head, Experience and Brand at worldoo.com) says, “With marketers exploring unconventional mediums to reach out to kids, worldoo.com is looking at partnering with relevant brands to create content that would add value to the overall time that kids spend online. Partnering with Pidilite is one step in that direction. Going forward the team is looking forward to working with brands which are effectively willing to collaborate and add to the ethos to create responsible global citizens of tomorrow.”

    Pidilite industries, the largest adhesive manufacturer in India has already received good response from kids and parents alike with their products such as Rangeela Colors and Hobby Ideas. Mr. Rahul Sinha, –President of Sales and Marketing Consumer Products -ASF Division from Pidilte Industries said “Our products are a great resource tool for little artists. Non toxic in nature, these colors are based on the proposition of ‘Colors for Smart Kids’. We wanted to establish a connect with parents and kids and with worldoo.com having over 60,000 users, we have found it to be an optimal place on the internet for kids to see the magic that can be created through the use of our products.” Vanita Keswani, COO of Madison Media Sigma says, “Branded content engages with the consumer in a natural environment … We feel that interesting brand content is an excellent way to reach kids online for craft products and hence saw an obvious fit of Pidilite products with Worldoo.”

    Rangeela has a range of creative products including oil pastels, tempera colours, poster colours and gouache colours under its brand name.

  • Godrej Consumer ad spend rises Q-on-Q in Q3 after a fall in Q2

    Godrej Consumer ad spend rises Q-on-Q in Q3 after a fall in Q2

    BENGALURU: Godrej Consumer Products is one of the large advertisers in the FMCG segment in India. The company says that in Q3-2014, it continued to outperform the FMCG market with an 18 per cent y-o-y growth in net sales. Its India business grew 14 per cent (ex contract manufacturing), while its international business grew 25 per cent in the quarter, while its consolidated net profit after tax and minority interest increased by 16 per cent.

    Advertisement and Sales Promotion (Ad & SP) spends as per the numbers reported by the company in Q3-2014 and earlier periods over six consecutive quarters (starting Q2-2013) show an upward trend in terms of percentage of operating revenue and total expense. However, it may be noted that the company’s Ad & SP spend in Q3-2014 was higher than in Q2-2014. Please refer to figure A below:

     

    Figure A

    In value terms also, Ad and SP spend by the company has trended upwards (Figure B)

     

    Figure B

     

    During the six quarters, Godrej CP’s PAT trend is also upwards, but at a much lower rate as is evident from Figure C below. Q1-2014 saw a 60 plus per cent dip in PAT as compared to the PAT in Q4-2013. PAT across the six quarters under consideration actually peaked in Q4-2013 at Rs.334.14 crores. Even the PAT in the latest quarter, Q3-2014 is just 58.6 per cent at Rs.195.77 crores of the Q4-2013 PAT.

     

    Figure C

    The company’s operating revenue and Total expense during period has moved upwards, there was no dip in Q1-2014, the growth in revenue was just 0.44 per cent as compared to the previous quarter Q4-2013. –Refer Figure D.

     

    Figure D

     

    Figure E represents the q-o-q movement of Operating Revenue, Total expense,  PAT and Ad and SP spend in percentage terms. Please note that the Q2-2013 percentage change below is in relation to Q1-2013.

     

    Figure E

    Figure F represents the overall Picture in terms of Rupees.

    Figure F

    Adi Godrej’s Comments:

    Godrej Group Chairman Adi Godrej said,” “We have done fairly well in a challenging environment. We continue to deliver topline growth that is far ahead of the growth both for the overall FMCG sector and for the home and personal categories that we participate in. We have been consistently gaining share and strengthening our market positions. “

    “However, over the last couple of quarters in particular, the FMCG industry has witnessed a significant slowdown. These trends are evident across India and other emerging markets. The lag effect of multiple quarters of deceleration in GDP growth and high food inflation has negatively impacted consumer sentiment in India.  Consequently, consumption has taken a hit as consumers have been reducing their frequency of purchase. 

    We are confident that this is just a cyclical phenomenon. The fundamentals still remain positive, as there is still a lot of headroom for growth given the low  penetration and consumption rates for many FMCG categories in India. As the  economic environment improves, we are hopeful that consumer sentiment will turn positive and we will see better growth in the industry in the quarters ahead,” added Godrej.

    Category Review as indicated by Godrej CP

     

    Household Insecticides:

    Sales growth at 8 plus per cent; well ahead of the category that witnessed an abnormal seasonal slowdown. Both our key brands HIT and Good knight continue to gain share and strengthen market leadership positions across all formats. Our latest innovation in the category, Good knight Fast Card – a paper based mosquito repellant at a price point of Re 1 is performing ahead of our expectations.

    Soaps:

    Sales value and volume growth at 6 plus per cent, well ahead of the category growth which de-grew on both value and volume terms. Category growth is witnessing pressure with slowdown at the mass premium end of the category. We have also taken calibrated price hikes to counter some of the impact of the recent increase in palm oil prices.

    Hair Colours:

    Strong momentum in hair colours was maintained, delivering sales growth at 37 plus per cent Growth rates were significantly ahead of category growth rates. We also launched new packaging for Nupur. Ongoing initiatives such as salon engagement programs, festival linked promotions, etc. to drive higher consumption and penetration for the

    category continued to deliver healthy results.

    Liquid Detergents:

    Liquid detergents grew 36 per cent. We continue to do well aided by a new TV campaign for Ezee.

     

    Click here for Press release

     

    Click here for Q3-2014 results

     

    Performance Update