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Tag: Gillette India

  • Gillette India glides into luxury with Gillette Labs

    Gillette India glides into luxury with Gillette Labs

    Mumbai: Gillette India, the country’s leading grooming brand has ventured into a new segment of super premium category of razors with Gillette Labs. Driven by advanced technology, this razor is set to elevate the shaving experience from routine to sensational.

    The latest innovation combines shaving and gentle exfoliation technology into one efficient stroke and offers a unique gadget-like unboxing experience. The razor crafted with design in mind, features:

    . Gillette’s most advanced five anti-friction blades for less tug and pull.

    . 2D FlexDisc™ technology that contours to the face for optimal contact with each stroke. This precision allows for evenly distributed pressure from the exfoliating bar and blades promising a smooth shave.

    . A first of its kind lifetime warranty on razor handle

    . Combining style and functionality, the metallic handle provides a better grip so you can best shave yourself.

    . A magnetic stand that securely holds the razor standing tall, keeping it dry and clean.

    Commenting on the new launch, P&G India VP – Marketing Operations and Category Lead- Grooming Abhishek Desai said, ‘At Gillette India, we believe in consistently pushing the boundaries of innovation. Reflecting on our journey spanning over a decade with iconic products like Mach 3 and Fusion, we have been persistent in our endeavor to create and innovate to offer the best to our consumers. The launch of Gillette Labs represents a leap into a new era of premium shaving experience. For over 115 years, we have constantly challenged ourselves to advance shaving technology and provide men with the best shave they deserve, and this new launch is a step forward towards this commitment.”

  • Gillette India latest ad film narrates story of social entrepreneur Prashant Gade

    Gillette India latest ad film narrates story of social entrepreneur Prashant Gade

    Mumbai: Gillette India’s latest ad film narrates the true story of social entrepreneur Prashant Gade, whose real-life journey is an encouraging example for young Indians to go beyond the expectations of society and redefine our truest possibilities.

    In 2018, Prashant opted out of a high-paying engineering job to create the world’s most affordable bionic arm.

    The thought-provoking commentary on societal notions limiting our potential is a theme of its ongoing campaign #ShavingStereotypes.

    The newest edition of the shaving stereotypes campaign, titled #EngineeringChange urges young Indian students to introspect and rethink how education can be a stepping stone for changing more than just their own lives. In line with its global mission of inspiring ‘The Best a Man Can Be’, the film authentically portrays the one-dimensional perspective with which many people treat their education and degrees.

    The featured true story serves as an example to convey the brand’s message: every one of us can meaningfully contribute to our communities, we just need to be aware of our true potential.

    Today, he has changed the lives of several people with disabilities, by inventing and manufacturing a low-cost prosthetic limb that’s accessible to all. In doing so, he has redefined his purpose and taken the unconventional road to bring to life his true potential, shaving stereotypes and challenging norms to inspire future generations to follow.

    Conceptualised by Grey India, the film reflects on Prashant’s real-life journey, showing how he faced the harsh realities of disability when he spotted an amputee struggling to shave his face. This made him question the purpose of his education, and very soon, that doubt was replaced with a burning passion to use his knowledge and qualification to make a difference. After a lot of hard work and ingenuity, he created a bionic prosthetic and founded his ‘Inali Foundation’ to contribute to the lives of thousands of amputees.

    Narrated through Prashant’s lens, the story encourages younger generations to adopt new and fresh perspectives on how they can truly unlock their full potential and break out of the limits set by traditional norms. Gillette hopes to inspire them to be ‘The Best They Can Be,’ and help others do the same.

    Gillette India senior director and country category leader Saurabh Bajpai said, “Since the beginning, Gillette has been committed to helping men look, feel and be their best. This commitment is brought to life through our brand purpose that inspires everything we do which is, ‘Grooming the Next Generation of Men.’ We are thrilled to partner with Prashant to support his endeavour in helping thousands of amputees. Through #ShavingStereotypes, we want to inspire young men and women around the world to be bold in defining their purpose and contribute to the communities around them in their own unique ways.”

    Grey Group managing director & chief creative officer Sandipan Bhattacharyya said, “We all know that education is a career-builder, but we often ignore how it can equip us to make a difference to the world at large. It has the power to inspire us to go beyond society’s pre-defined benchmarks. Prashant’s story acts as a reminder for all of us to look deeper and discover the true potential of education. The courage and conviction he had to bring about a change in the lives of so many, is what makes him such an inspiration.”

  • Gillette India commences marketing and selling of Braun in India

    Gillette India commences marketing and selling of Braun in India

    Mumbai: Gillette India announced on Thursday that it has commenced marketing and selling of Braun® in India.

    With this latest addition, Gillette India (GIL) now has a holistic portfolio of grooming brands including Gillette®, Venus®, Braun®, and King C Gillette®. A subsidiary of Procter & Gamble, Braun was founded in Germany in 1921 and is a known brand in the field of electric grooming appliances across the world.

    The addition of Braun adds an extensive range of both male and female grooming products like electric shavers, trimmers, epilators, Intense Pulse Light (IPL) hair removal devices, and hair care devices to the company’s existing portfolio.

    “Our continued focus has been to understand and meet the evolving needs of our consumers with superior and newer propositions. The latest addition of Braun, world-renowned for incredible precision, good design, and innovative technology, will enable us to better serve the Indian consumers with devices that help in creating a perfect look,” GIL managing director Madhusudan Gopalan said.

  • Gillette severs ties with cricketer Hardik Pandya

    Gillette severs ties with cricketer Hardik Pandya

    MUMBAI: The controversial remarks made by cricketer Hardik Pandya and KL Rahul have cost them a lot. While BCCI has suspended the duo from playing any form of cricket until final adjudication of the matter, the brands associated with them have also started reviewing their associations.

    Gillette India has already suspended its association with Hardik Pandya, who was appointed as the brand ambassador for men’s shaving razor Gillette Mach3 just a few months back. In an official statement, a Gillette spokesperson stated, “Hardik Pandya’s recent comments do not reflect the values of Gillette. We have suspended our association with Hardik until we decide on further course of action.”

    As per certain other media reports, other brands associated with the cricketers are also in the process of reviewing their terms. While Hardik Pandya endorses brands such as Gillette and D:FY, Puma’s sportswear brand, KL Rahul is associated with names like Puma and Curefit.

    Meanwhile, online streaming platform Hotstar has taken down the controversial episode from its site.

  • ASCI upholds complaints against 134 advertisements

    ASCI upholds complaints against 134 advertisements

    MUMBAI: ASCI has upheld complaints against 134 advertisements. In July 2016, ASCI’s Consumer Complaints Council (CCC) upheld complaints against 134 out of 183 advertisements. Out of which, 44 belonged to the Healthcare category, 44 to the Education category, followed by 24 in the Food & Beverages category, 8 in Personal Care Category and 14 advertisements from other categories.

    Here is the complete list:

    Food & Beverages:

    Bonn Nutrients (Bonn Nu Health Bread):  The advertisement’s claim (in Hindi) as translated into English, “With calories low as 40 cal/slice” was not substantiated and was misleading by implication.

    Sonia Honey:  The claims in the advertisement “Sonia Honey scored the highest on the main parameters of honey purity in a recent analysis of all Indian branded and unbranded honey” and “Sonia Honey The perfect natural Sweetner is: Anti-Aging, Anti- Cancer”, were not substantiated and are misleading.

    KP Group (Kamla Pasand Pan Masala): The advertisement features Rajneesh Duggal – a celebrity from the field of entertainment for a product which has a health warning “Pan Masala is injurious to health” and which cannot be purchased or used by minors. Minors are very likely to be exposed to the advertisement. The celebrity in the advertisement would have a significant influence on minors who are likely to emulate the celebrity in using the product. The advertisement contravened Chapter III.2 (e) of the ASCI Code, which specifically states that Advertisements “Should not feature personalities from the field of sports and entertainment for products which, by law, require a health warning such as “Panmasala is injurious to health” in their advertising or packaging.”

    G. K. Tobacco Co. Pvt. Ltd. (Zafri Pan Masala): The visual of a “women pillion rider without a helmet” as depicted in the advertisement of Zafri Pan Masala shows violation of traffic rules and also is an unsafe practice.

    Health care:

    American Instrument: The Advertisement’s claims (in Hindi), as translated into English, “Are you disappointed with a small penis.  American penis enlarger free.  Get rid of small, thin crooked penis and make it thick, hard and firm.  Improve your sperm count, infertility, premature ejaculation, firmness, nightfall, childlessness can be cured and increase your sex time by 30-45 minutes with energetic oil, excitement capsule, 16GB memory card free.  Money back guarantee”, were not substantiated and are misleading by gross exaggeration.  Also, the claims related to the product benefit read in conjunction with the advertisement visual implies that the product is meant for enhancement of sexual pleasure and the claims related to treatment of infertility, childlessness’. This is in breach of the law as it violated The Drugs & Magic Remedies Act. 

    Japani Instrument: The advertisement’s claims (in Hindi), as translated into English, “Are you disappointed with a small penis?  Get Japanese penis enlargement instrument free.  As soon as you use Japanese penis enlargement instrument you can make your penis longer, thicker, weak topo firm and stronger. Increase your sex time from 30 to 45 minutes. Nightfall, premature ejaculation, infertility, impotency, low sperm count and childlessness can be cured.  45 days course for an artificial vagina and artificial penis.  100% guarantee.  No side effects”, were not substantiated and are misleading by gross exaggeration.  Also, the claims related to the product benefit read in conjunction with the advertisement visual implies that the product is meant for enhancement of sexual pleasure and the claims related to treatment of childlessness. This is in breach of the law as it violated The Drugs & Magic Remedies Act.

    Nurture Healthcare (Ayurex-S Vitality Capsules): The advertisement’s claim (in Hindi) as translated into English, “It’s the right of every Man, to lead a happy married life”,  “For Men only”,  “Vitality Capsule”,  “If you are worried about low, excessive weakness, then consume AYUREX-S capsule and with its help, do the work successfully with the capacity and power”,  “My Wife says I am more energetic than Before”,  “In some days my married life has become exciting and happy, thanks to Ayurex-S”,  were not substantiated with product efficacy data,  and are misleading by exaggeration. Also, these claims when read in conjunction with the advertisement visual implies that the product is meant for enhancement of sexual pleasure, which is in breach of the law as it violated The Drugs & Magic Remedies Act.

    Personal care:

    Himalaya Company (Himalaya Facewash): The advertisement’s claim in Hindi, “Isme hai neem aur haldi ki kudrati achchai Jo aapko har tarah ki skin problems se suraksha de” (“This has the goodness of neem and haldi that gives you protection from every skin problems”) was not substantiated with product efficacy data, and the claim is misleading by exaggeration.

    Gillette India Ltd. (Gillette Vector): The advertisement’s claim offers, “Save Rs. 30/- in comparison to Vector 2s pack”, is misleading by omission of a disclaimer to mention the exact price comparison with the post price increase of the product.

    Hindustan Unilever Ltd. (Axe Deodorants): The advertisement’s claim, “When it gets hot, the fragrance is boosted”, was not adequately substantiated with consumer perception data, and is misleading by implication. 

    Glaxosmithkline Consumer Healthcare Ltd. (Sensodyne Toothpaste): It was noted that the source and date of research and criteria for assessment for the claim, “Worlds No. 1 sensitivity toothpaste”, was not indicated in the TVC. In addition, the supers in the Hindi TVC were not in the same language as the audio of the TVC, they were not legible, and the hold duration of the supers was short. The TVC also contravened the ASCI Guidelines for Supers.

    Education:

    Guru Nanak Institute of Management: The advertisement’s claims, “Highest Salary Package: 8 Lakhs” and “Average Salary Package: 4.5 lakhs”, were not substantiated with evidence to prove that the students have availed the claimed salary packages, and the claims are considered to be misleading by exaggeration.

    Dhruva College of Management: The claims in the advertisement, “Highest Salary Package: 8 Lakhs” and “Average Salary Package: 4.5 lakhs”, were not substantiated and was misleading.

    Biju Patnaik Institute of Information Technology & Management Studies: The claims in the advertisement, “Placement Percentage- 2013: 95%, 2014: 96%, 2015: 97%”, were not substantiated with authentic supporting data (such as detailed list of students who have been placed through their Institute, contact details of students for verification, enrolment forms and appointment letters received by the students).  Also, the claims are considered to be misleading by omission of the details of batch size for which the claim would hold.

  • ASCI upholds complaints against 134 advertisements

    ASCI upholds complaints against 134 advertisements

    MUMBAI: ASCI has upheld complaints against 134 advertisements. In July 2016, ASCI’s Consumer Complaints Council (CCC) upheld complaints against 134 out of 183 advertisements. Out of which, 44 belonged to the Healthcare category, 44 to the Education category, followed by 24 in the Food & Beverages category, 8 in Personal Care Category and 14 advertisements from other categories.

    Here is the complete list:

    Food & Beverages:

    Bonn Nutrients (Bonn Nu Health Bread):  The advertisement’s claim (in Hindi) as translated into English, “With calories low as 40 cal/slice” was not substantiated and was misleading by implication.

    Sonia Honey:  The claims in the advertisement “Sonia Honey scored the highest on the main parameters of honey purity in a recent analysis of all Indian branded and unbranded honey” and “Sonia Honey The perfect natural Sweetner is: Anti-Aging, Anti- Cancer”, were not substantiated and are misleading.

    KP Group (Kamla Pasand Pan Masala): The advertisement features Rajneesh Duggal – a celebrity from the field of entertainment for a product which has a health warning “Pan Masala is injurious to health” and which cannot be purchased or used by minors. Minors are very likely to be exposed to the advertisement. The celebrity in the advertisement would have a significant influence on minors who are likely to emulate the celebrity in using the product. The advertisement contravened Chapter III.2 (e) of the ASCI Code, which specifically states that Advertisements “Should not feature personalities from the field of sports and entertainment for products which, by law, require a health warning such as “Panmasala is injurious to health” in their advertising or packaging.”

    G. K. Tobacco Co. Pvt. Ltd. (Zafri Pan Masala): The visual of a “women pillion rider without a helmet” as depicted in the advertisement of Zafri Pan Masala shows violation of traffic rules and also is an unsafe practice.

    Health care:

    American Instrument: The Advertisement’s claims (in Hindi), as translated into English, “Are you disappointed with a small penis.  American penis enlarger free.  Get rid of small, thin crooked penis and make it thick, hard and firm.  Improve your sperm count, infertility, premature ejaculation, firmness, nightfall, childlessness can be cured and increase your sex time by 30-45 minutes with energetic oil, excitement capsule, 16GB memory card free.  Money back guarantee”, were not substantiated and are misleading by gross exaggeration.  Also, the claims related to the product benefit read in conjunction with the advertisement visual implies that the product is meant for enhancement of sexual pleasure and the claims related to treatment of infertility, childlessness’. This is in breach of the law as it violated The Drugs & Magic Remedies Act. 

    Japani Instrument: The advertisement’s claims (in Hindi), as translated into English, “Are you disappointed with a small penis?  Get Japanese penis enlargement instrument free.  As soon as you use Japanese penis enlargement instrument you can make your penis longer, thicker, weak topo firm and stronger. Increase your sex time from 30 to 45 minutes. Nightfall, premature ejaculation, infertility, impotency, low sperm count and childlessness can be cured.  45 days course for an artificial vagina and artificial penis.  100% guarantee.  No side effects”, were not substantiated and are misleading by gross exaggeration.  Also, the claims related to the product benefit read in conjunction with the advertisement visual implies that the product is meant for enhancement of sexual pleasure and the claims related to treatment of childlessness. This is in breach of the law as it violated The Drugs & Magic Remedies Act.

    Nurture Healthcare (Ayurex-S Vitality Capsules): The advertisement’s claim (in Hindi) as translated into English, “It’s the right of every Man, to lead a happy married life”,  “For Men only”,  “Vitality Capsule”,  “If you are worried about low, excessive weakness, then consume AYUREX-S capsule and with its help, do the work successfully with the capacity and power”,  “My Wife says I am more energetic than Before”,  “In some days my married life has become exciting and happy, thanks to Ayurex-S”,  were not substantiated with product efficacy data,  and are misleading by exaggeration. Also, these claims when read in conjunction with the advertisement visual implies that the product is meant for enhancement of sexual pleasure, which is in breach of the law as it violated The Drugs & Magic Remedies Act.

    Personal care:

    Himalaya Company (Himalaya Facewash): The advertisement’s claim in Hindi, “Isme hai neem aur haldi ki kudrati achchai Jo aapko har tarah ki skin problems se suraksha de” (“This has the goodness of neem and haldi that gives you protection from every skin problems”) was not substantiated with product efficacy data, and the claim is misleading by exaggeration.

    Gillette India Ltd. (Gillette Vector): The advertisement’s claim offers, “Save Rs. 30/- in comparison to Vector 2s pack”, is misleading by omission of a disclaimer to mention the exact price comparison with the post price increase of the product.

    Hindustan Unilever Ltd. (Axe Deodorants): The advertisement’s claim, “When it gets hot, the fragrance is boosted”, was not adequately substantiated with consumer perception data, and is misleading by implication. 

    Glaxosmithkline Consumer Healthcare Ltd. (Sensodyne Toothpaste): It was noted that the source and date of research and criteria for assessment for the claim, “Worlds No. 1 sensitivity toothpaste”, was not indicated in the TVC. In addition, the supers in the Hindi TVC were not in the same language as the audio of the TVC, they were not legible, and the hold duration of the supers was short. The TVC also contravened the ASCI Guidelines for Supers.

    Education:

    Guru Nanak Institute of Management: The advertisement’s claims, “Highest Salary Package: 8 Lakhs” and “Average Salary Package: 4.5 lakhs”, were not substantiated with evidence to prove that the students have availed the claimed salary packages, and the claims are considered to be misleading by exaggeration.

    Dhruva College of Management: The claims in the advertisement, “Highest Salary Package: 8 Lakhs” and “Average Salary Package: 4.5 lakhs”, were not substantiated and was misleading.

    Biju Patnaik Institute of Information Technology & Management Studies: The claims in the advertisement, “Placement Percentage- 2013: 95%, 2014: 96%, 2015: 97%”, were not substantiated with authentic supporting data (such as detailed list of students who have been placed through their Institute, contact details of students for verification, enrolment forms and appointment letters received by the students).  Also, the claims are considered to be misleading by omission of the details of batch size for which the claim would hold.

  • Q3-2015: Gillette India y-o-y marketing spends down 5.8%

    Q3-2015: Gillette India y-o-y marketing spends down 5.8%

    BENGALURU: Gillette India Limited reported a 5.8 per cent drop in advertisement and sales promotion (ASP) spends in Q3-2015 (quarter ended 31 March, 2015, current quarter) to Rs 116.71 crore (23.6 per cent of Total Income from Operations or TIO) as compared to the Rs 123.84 crore (27.2 per cent of TIO) in the corresponding year ago quarter (Q3-2014), but was 1.3 per cent more than the Rs 115.25 crore (23.1 per cent of TIO) in the immediate trailing quarter (Q2-2015).

    During the nine month period ended 31 March, 2015 (9M-2015), Gillette ASP at Rs 323.46 crore (22.6 per cent of TIO) was 4.7 per cent more than the Rs 308.84 crore (24.3 per cent of TIO) in 9M-2014.

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

    (2) Gillette Financial year closes of June 30, hence, the quarter ended June 30 is Q1, while the quarter ended September 30 is Q2; quarter ended December 31 is Q2 and quarter ended March 31 is Q3.

    Three businesses contribute to the company’s TIO – grooming, portable power and oral care. Grooming segment includes blades, razors and toiletries, portable power includes batteries and oral care 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 TIO in Q3-2015 at Rs 494.14 crore was 8.5 per cent more than the Rs 455.50 crore in Q3-2015, but was 0.9 per cent lower than the Rs 498.47 crore in Q2-2015. Across 13 quarters starting Q3-2012 (quarter ended 31 March, 2014) until Q3-2015 (quarter ended 31 March, 2015), the company’s TIO shows a linear increasing trend as represented by the broken blue line. In 9M-2015, Gillette’s TIO at Rs 1432.59 crore was 12.8 per cent more than the Rs 1270.07 crore in 9M-2014.

    During the 13 quarter period under consideration in this report, Gillette’s ASP shows an upward linear trend both in terms of absolute value as well as percentage of TIO as is indicated by the broken green trend line and the broken maroon trend line respectively. The highest ASP in absolute rupees and in terms of percentage of TIO spent by the company in these 13 quarters was in Q3-2014 (quarter ended June 30, 2014), at Rs 123.84 crore and 27.2 per cent of TIO while the lowest in both parameters was in Q3-2013 at Rs 66.61 crore and 18.7 per cent of TIO respectively.

    Gillette’s ASP is made up of two components – advertisement and trade incentives. Please refer to figure 1A below for the breakup and the ratio across five years starting FY-2010 until FY-2014. As is evident, the company’s ad spend ratio has increased to 1.558 times, 1.424 and 1.412 times as compared to trade incentives in FY-2014, FY-2013 and FY-2014 respectively. In FY-2010 and FY-2011 ratio of advertisement to Trade Incentives was 1.199 and 1.2013 respectively. Based on the past trends, it is likely that the ratio in FY-2015 will be skewed towards ad spends, and consequently during the three completed quarters and the balance single quarter of the current Financial Year as well.

    Gillette PAT had been steadily going down until Q1-2015 both in terms of absolute rupees and in terms of percentage of TIO. Also, in FY-2014, Gillette reported PAT of Rs 51.42 crore (2.9 per cent of TIO) as compared to the Rs 87.16 crore (6.1 per cent of TIO) in FY-2013. However, during the 13 quarter period under consideration, a reversal happened in Q2-2015. Further, the company’s 9M-2015 PAT at Rs 85.30 crore (six per cent of TIO) was more than double (2.47 times) the PAT of Rs 34.56 crore (2.7 per cent of TIO) in 9M-2014. This 9M-2015 PAT is already more than the PAT reported by the company for FY-2012, FY-2013 and FY-2014, and is almost at par with PAT in FY-2011.The company is a profitable company, and should earn profit after taxes in the remaining quarter – Q4-2015. Hence, it should report much better, if not record numbers for FY-2015.

    As mentioned above, post Q2-2015, at least in terms of absolute rupees, Gillette PAT shows a linear increasing trend, as is evident from the broken orange trend line. In Q3-2015, the company’s PAT at Rs 30.76 crore more than tripled (3.63 times) the PAT of Rs 8.68 crore in Q3-2014, but was 16.5 per cent lower than the Rs 36.86 crore in Q2-2015. In terms of percentage of TIO, the broken brown trend line indicates a downward linear trend, which may yet change.

    In its earnings release for Q3-2015, Gillette India says that grooming business sales were up nine percent, portable power business sales were up four per cent and oral care business sales were up six per cent as compared to the corresponding year ago quarter.

  • Gillette India ups Ad exp 40 per cent in FY-2014

    Gillette India ups Ad exp 40 per cent in FY-2014

    BENGALURU: Gillette India Limited (Gillette) reported a 40.2 per cent higher advertisement and sales promotion (ASP) spend for its year ended 30 June 2014 (FY-2014) at Rs 419.40 crore (24 per cent of net Total Income from Operations or TIO) as compared to the Rs 299.16 crore (20.8 per cent of TIO) in the year ended 30 June 2013 (FY-2013).

    ASP in the quarter ended 30 June 2014 (Q4-2014) was 10.7 per cent lower at Rs 110.56 crore (23 per cent of TIO) versus Rs 123.84 crore (27.2 per cent of TIO) in the immediate trailing quarter (Q3-2014) and was 39.8 per cent more than the Rs 79.06 crore(20.1 per cent of TIO) in the year ago quarter Q4-2013.

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

    (2) Gillette financial year closes of 30 June, hence, the quarter ended30  June is Q1, while the quarter ended 30  September is Q2; quarter ended31  December is Q2 and quarter ended 31 March is Q3.

    Across 10 quarters starting Q3-2012 (quarter ended 31 March 2014) until Q4-2014 (quarter ended 30 June 2014), the company ASP shows an upward linear trend both in terms of absolute value as well as percentage of TIO.

    The company’s TIO has also been moving steadily upwards. In FY-2014, TIO at Rs 1749.49 crore was 21.7 per cent more than the Rs 1437.72 crore in FY-2013. TIO in Q4-2014 at Rs 479.72 crore was 5.3 per cent more q-o-q and 22.1 per cent more y-o-y.

    Please refer to Fig 1 below.

    Gillette’s ASP is made up of two components – advertisement and trade incentives. Please refer to figure 1A below for the breakup and the ratio. As is evident, the company’s ad spend ratio has gone to 1.41 and 1.42 times as compared to trade incentives in FY-2012 and FY-2013 respectively. In both FY-2010 and FY-2011 ratio of advertisement to Trade Incentives was 1.2.

    Gillette PAT has been steadily going down. In FY-2014, Gillette reported PAT of Rs 51.42 crore (2.9 per cent of TIO) as compared to the Rs 87.16 crore in FY-2013, though  in Q4-2014, the company’s PAT at Rs 16.76 crore (3.5 per cent of TIO) was almost double (1.98 times) the PAT of Rs 8.48 crore (1.9 per cent if TIO) in Q3-2014 and was 1.8 per cent more than the Rs 16.47 crore (4.2 per cent of TIO) in Q4-2013. PAT has been showing a downward linear trend across five years starting FY-2010 to FY-2014 and across the 10 quarters under consideration, both in terms of absolute value as well as in terms of percentage of TIO. Please refer to Fig 2 below.

    Three segments contribute to the company’s Income from operations (TIO) – grooming, portable power and oral care. Grooming segment includes blades, razors and toiletries, portable power includes batteries and oral care 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.

    The company says that sale of the grooming segment was up 19 per cent in FY-2014 versus FY-2013, oral care saw a growth of 31 per cent in FY-2014 as compared to last year and portable power saw a growth of 21 per cent in the current year as compared to previous year.

    Click here to read the unaudited financial statement

  • Philips India adds celebrity quotient to its male grooming category

    Philips India adds celebrity quotient to its male grooming category

    MUMBAI: Macho man is passé; metrosexual is the current breed of men who with a high disposable income is the most promising consumer today.

     

    They don’t mind filling their shopping carts with make-me-look-good goodies. And this is the reason why a bunch of male grooming products have sprung up in the last few years.

     

    The male grooming segment which was projected to be Rs 1,500 crore market in 2012 is expected to reach Rs 5,300 crore by 2016.

     

    According to a Nielsen study on the Indian male grooming segment, there is a rising aspiration among Indian men to look groomed, which has led to the Indian men’s grooming market’s rapid growth of more than 34 per cent.

     

    The Nielsen study further stated that this growth is faster than the growth rate of the total personal care and beauty industry in India. The research company believes time is ripe for beauty and grooming brands to make the most of this growing male attention.

     

    The segment can be divided into sub categories: beauty range of products and grooming gadgets (manual and electronic).

     

    As per a report by Euromonitor International on male grooming sector in India, Gillette India lead men’s grooming with a value share of 28 per cent in 2012. The company has a strong horizontally diversified portfolio of razors and blades, with brands such as Mach, Vector, 7’O clock and many more, enhancing its long term sustainability. Hindustan Unilever was second, accounting for a 15 per cent share. These products fall in to the manual sub category.

     

    On the other hand, in the electronic sub-category, Philips with a range of grooming gadgets for men including trimmers, shavers and stylers, is ruling the market share, claims the company.

     

    To take a step further, the brand is set to roll out an extensive marketing campaign.

     

    The brand has decided to add celebrity quotient to its communication and has roped in actor Arjun Kapoor to be its face in the country. It can be noted that earlier John Abraham was its brand ambassador.

     

    The TVC which went on air on 10 July has been conceptualised and created by Ogilvy & Mather. The brand will also splash its communication on other media platforms. About 15-20 per cent of its marketing budget is expected to be invested on digital.

     

    The business of electronic brands of this segment is growing at 30-40 per cent year on year, mentions Philips India director marketing-personal care Anurita Chopra.

     

     “The Indian market is fast adopting this particular category. The reason to bring Arjun on board is mainly because he brings in positivity which we as a brand are trying to promote through our communication,” says Philips India president consumer lifestyle ADA Ratnam.

     

    However, the pricing strategy of the brand is to make it affordable.

  • Gillette India q-o-q ad spend up 28 per cent in Q4-2014; PAT down 23 per cent

    Gillette India q-o-q ad spend up 28 per cent in Q4-2014; PAT down 23 per cent

    BENGALURU: Procter & Gamble Hygiene and Health Care Limited (P&G) subsidiary Gillette India Limited (Gillette) advertising and sales promotion spend (Ad & SP)in Q4-2014 at Rs 123.84 crore (27.19 per cent of Total Income from Operations of Op Rev) was 27.8 per cent more than the Rs 96.9 crore (22.69 per cent of Op Rev) in the immediate trailing quarter and a whopping 85.92 per cent more than the Rs 66.61 crore (18.66 per cent of Op Rev) during last year’s quarter Q4-2014.

    Note: Gillette’s financial year ends on 30 June. 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.

    Gillette’s ad & SP trends upwards both in terms of absolute rupee value as well as percentage of Op Rev across nine quarters starting Q4-2012 until Q4-2014. Please refer to Fig 1 below for Gillette’s Ad & SP Exp. Over 4 quarters starting Q1-204 to Q4-2014, Gillette’s ad & SP Exp was Rs 387.90 crore or 23.34 per cent of Op Rev.

    Gillette’s PAT has nose-dived (-23.19) per cent to Rs 8.48 crore (1.86 per cent of Op Rev) in Q4-2014 from Rs 11.04 crore (2.59 per cent of Op Rev) in the immediate trailing quarter Q3-2014 and was less than a third (down by -68.78 per cent) of the Rs 27.16 crore (7.16 per cent of Op Rev) of the year ago quarter Q4-2013. Overall, during the nine quarters under consideration, Gillette’s PAT has shown a falling trend in terms of absolute rupee value as well as in terms of percentage of Op Rev. The company’s PAT over four quarters starting Q1-2014 until Q4-2014 was Rs 51.13 crore or 3.08 per cent of Op Rev.

    The company’s Op Rev shows an upward trend. During Q4-2014, Op Rev at Rs 455.50 crore was 6.68 per cent more than the Rs 426.97 crore in Q3-2014 and 27.62 per cent more than the Rs 356.92 crore in Q4-2013. During the last four quarters starting Q1-2014 until Q4-2014, Gillette’s Op Rev was Rs 1662.13 crore. Please refer to Fig 2 below.

    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 includes batteries and oral care 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.