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Tag: ITC

  • Despite industry’s closure threats, govt. implements 85 per cent pictorial warning on tobacco packets

    Despite industry’s closure threats, govt. implements 85 per cent pictorial warning on tobacco packets

    New Delhi: Close on the heels of imposing stringent punishments to vendors of tobacco products in the vicinity of educational institutions in January and raising the tax in the budget in February, the Government has implemented its decision asking manufacturers to use 85 per cent space on tobacco packets on health warnings. The decision has come into effect from this month. An affidavit filed by the Health Ministry before the Rajasthan High Court on 28 March said the warning would appear on both sides of tobacco products and come into force from 1 April.

    This follows a decision taken in September last year, after an earlier order for implementation from April 2015 was stayed in June by the Government to allow a parliamentary committee to study the issue further. The Cigarettes and Other Tobacco Product (Prohibition of Advertisement & Regulation of Trade and Commerce, Production, Supply and Distribution) Act also prohibits the sale of cigarettes or other tobacco products to people below 18 years and in areas within a 100- metre radius of educational institutions.

    The Government nailed its latest decision by informing the Rajasthan High Court earlier this week to stick to its decision of 85 per cent pictorial warnings on every packet, thus forcing major tobacco companies to consider shutting shop in India. Interestingly, the Government has bypassed the advice of the Parliamentary Committee which recommended only 40 per cent pictorial warning. Until now, the coverage was forty per cent.

    The Tobacco Institute of India  said a unanimous ‘closure’ decision was  made by the players in the industry in response to the ‘ambiguity’ in the centre’s policy on pictorial warnings on tobacco product packs. Prominent members of the TII including ITC, Godfrey Phillips and VST have already announced their decision in this regard. ITC is already understood to have shut down five of its units. ITC, Godfrey Phillips and VST reportedly account for over 98 per cent of domestic cigarette sales, along with other members of the Institute.

    TII in a press release estimated a daily loss of Rs 350 crore in revenue for the tobacco industry from the production stoppage. It asserted that the revised pictorial warning would promote the trade in illegal cigarettes and affect the livelihood of 45.7 million (4.57 crore) people dependent on the industry.

    The Indian tobacco industry had in mid-March written to the Health Ministry seeking clarification but did not get any reply, leading to the decision for closure ‘fearing, potential violation of rules by continuing production.’
    TII has claimed that illegal cigarettes account for one-fifth of the industry, resulting in an annual revenue loss of Rs 9,000 crore to the exchequer. It even blamed ‘foreign-funded anti tobacco activists’ and ‘vested interests’ for pushing such a policy.

    In fact, many of the tobacco majors in the country have already made inroads in other sectors like hotels, FMCG etc.

  • After Maggi, other fast good products under govt’s scanner

    After Maggi, other fast good products under govt’s scanner

    NEW DELHI: After axing Nestle’s Maggi, the government has ordered quality testing for noodles, pasta and macaroni brands manufactured by seven other companies including Nestle, ITC and GlaxoSmithkline (GSK) amongst others across the country to check for health hazards.

    The 32 such brands listed by the Food Safety and Standards Authority of India (FSSAI) are Maggi, Top Ramen, Wai Wai, Yummy and Foodles.

     

    It has directed immediate recall of all other such instant food products, which did not have any product approval and were being sold in the market in an ‘unauthorised and illegal manner.

    In its order for quality testing by all states and union territories, FSSAI said, “Various test results on Maggi and some other similar products have raised serious health concerns” and therefore it was necessary to test other similar products.

    “It would be advisable to draw regulatory samples for similar products for which product approvals have been granted by FSSAI,” it said, while asking the samples to be sent to the authorised labs for testing.

    “The safety of all other such products in these categories has not been assessed as per the Product Approval procedures. As such, the same are unauthorised and illegal and cannot be intended for human consumption,” the food regulator said.

     

    All states and Union Territories have been asked to submit their reports by 19 June.

     

    “You are advised to ensure that such products are recalled, removed from the market and destroyed,” FSSAI CEO YS Malik said in a circular to the Commissioners of Food Safety of all States and UTs.

    In the circular, the FSSAI has also listed out the detailed parameters on which such tests would need to be conducted for noodles, pastas and macaroni with tastemaker of all makes and brands present in the market.

    Cakes and masala or tastemaker would need to be tested separately, Malik said.

    The circular follows FSSAI order on Friday for recall of all variants of Nestle India’s Maggi noodles terming them as “unsafe and hazardous” for human consumption.

    Nestle India recalled Maggi from the markets after several states banned the famous ‘2-minute’ instant food brand as tests showed that it contained taste enhancer MSG (Monosodium glutamate) and lead in excess of the permissible limits. 

    Companies under the scanner also include Indo Nissin Food Ltd, CG Foods India, Ruchi International and AA Nutrition Ltd.

    The products to be tested include Wai Wai noodles and bhujiya chicken snacks by CG Foods; Koka instant noodles from Ruchi International and Foodles by GSK Consumer Healthcare.

    Nestle’s Maggi instant noodles with nine variants as well as four variants of “Maggi Nutilicious Pazzta with tastemakers” would also be tested.

    Besides general parameters like test for preservatives and synthetic colours, the food regulator has asked all the state food safety commissioners to test for metal contaminants including lead, copper, arsenic and cadmium.

     

    Tests for certain quality parameters and naturally occurring toxic substances would also be conducted by the States/UTs.

  • ITC to acquire J&J’s Savlon, Shower To Shower; expand FMCG portfolio

    ITC to acquire J&J’s Savlon, Shower To Shower; expand FMCG portfolio

    KOLKATA: Kolkata-headquartered cigarettes-to-hotels conglomerate ITC has entered into an agreement with Johnson & Johnson (J&J) to acquire Savlon and Shower To Shower trademarks and other intellectual property (IP) primarily for use in India in order to expand its FMCG portfolio. 

     

    Savlon is an antiseptic brand while Shower To Shower is a personal care product brand. 

    It should be noted that this acquisition, which will be ITC’s first purchase in the personal care segment, is in line with the company’s growing focus on its non-cigarette FMCG business. 

     

    “The company has entered into asset purchase agreements with Johnson & Johnson, India & Johnson & Johnson, Singapore on 12 February for purchase of Savlon and Shower To Shower trademarks and other intellectual property, respectively, primarily for use in India,” ITC said in a BSE filing. 

     

    These agreements are subject to customary closing conditions and regulatory permissions as may be necessary, the filing further reveals.

     

    A senior official on the condition of anonymity said that the company has used inorganic route to expand and strengthen its business earlier. “We acquired juice brand B Natural for our entry into fruit beverages market,” he said.

     

    When being asked to comment on the revenues ITC is looking at, he said that the current acquisition is in line with ITC’s aim for a revenue of approximately Rs 1,00,000 crore from the new FMCG businesses alone by the end of year 2030.

     

    ITC had acquired Bangalore-based Balan Natural Food’s B Natural brand last year to strengthen its portfolio. 

     

    When asked to comment, ITC declined to divulge the size of the deal for purchasing the two brands from Johnson & Johnson.

     

    However when some analysts tracking FMCG firms were contacted to comment on the probabilities of the deal, they assume that the size of the current acquisition would be small compared to ITC’s total size of the business. 

     

    After this acquisition, the company’s topline in FMCG segment may go up by a small amount of about one per cent, said a Kolkata based analyst. 

     

    ITC’s non-cigarette FMCG revenue stood at around Rs 8,122 crore during the financial year 2013-14. 

  • Madison Media Group creates “Wills Rock the Ramp” 360 degree selfie booth

    Madison Media Group creates “Wills Rock the Ramp” 360 degree selfie booth

    MUMBAI: Marrying social and on ground engagement, Wills Lifestyle and Madison Media devised the concept of “Wills Rock the Ramp” a 360 degree Vine booth – a twist to the traditional twirl people do to show off what they’re wearing! Instead of doing the twirl yourself, the cameras and modern technology does the twirling and the same could be shared on social networks.

    Users simply had to step into the booth and the revolving camera shoots a 4-6 second video, showing a 360 view of what they’re wearing to the Wills Lifestyle India Fashion Week. These videos are shared on the Wills Lifestyle Vine page and Wills Lifestyle Facebook and Twitter pages.

     The Technology for the “Wills Rock the Ramp” 360 degree Vine Booth was developed and implemented by Tagglabs.
    Mr. Atul Chand, Divisional Chief Executive, ITC Lifestyle Retailing, said“Wills Lifestyle has always been at the forefront of innovation and driven the business of fashion in India with style. Being at the helm of creativity and novelty, we have integrated modern technology with fashion yet again this season, thereby creating 360 degree brand conversations. In this edition, Wills Lifestyle takes another leap with many firsts on the Indian fashion runway by introducing a 360-degree selfie booth.”

    Basabdatta Chowdhuri, CEO Platinum Media, says “Our Endeavour is to provide the best solutions to our clients irrespective of the platform. We want our brands to leverage new platforms and create high level engagements for consumers.”

    Amit Duggal, Director (Digital) Madison, says “The idea was conceptualized keeping in mind that it should be easy to use and instantly sharable. We wanted to capture the moments which were happening during the event and share it with the world and lead to higher engagement for the brand.”

    Madison Media has won several awards in the Digital and Mobile domain with the latest one being The Festival of Media Global Award and Asia Pacific Award for Parachute Advansed Ayurvedic Hair Oil for convincing consumers to become the brand’s sales force leveraging the power of Mobile.   The agency also won a Yahoo Big Idea Chair for its campaign on Airtel, Har ek Friend Zarori Hai.  At the Emvies Awards held last month, Madison Media also won a Gold for Best Innovation in Digital (Video) for Cadbury Bournville–Tape a Tweet.

     

    Madison Media Group is India’s foremost media agency handling media planning and buying for blue chip clients including Airtel, Godrej, Cadbury/Kraft, ITC, Marico, McDonald’s, Raymond, Piramal Healthcare, TVS, Levis, SpiceJet, Domino’s, BhartiAxa, Max Life Insurance, Asian Paints, Pidilite, Tata Salt, Acer, Lafarge Cement, Crompton Greaves, Times Television Network, Indian Oil, Enamor Lingerie, Gowardhan Dairy, Café Coffee Day and many others.  The gross billing of Madison Media is about Rs. 3000 crores.

  • ITC marketing spend trends – FY-2014

    ITC marketing spend trends – FY-2014

    BENGALURU: Indian fast moving consumer goods (FMCG), hotels, paperboards and specialty papers, packaging, agri-business, and information technology company ITC Limited (ITC) advertisement and sales promotion spend (ASP) in FY-2014 was 1 per cent lower at Rs 825.81 crore (2.28 per cent of Total Revenue or TR) as compared to the Rs 834.23 crore(2.57 per cent of TR) in FY-2013.

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

    The company has a huge brand and sub-brand portfolio and is one of the biggest player in the highly competative FMCG market, that is constantly adding newer and newer product categories and products. Some of the brands and sub-brands under the ITC umbrella across vertials include Sunfeast, Fiama Di Wills, Kitchens of India, ITC Hotels,  John Players, Bingo, Vivels, candyman, Mangaldeep, Aashirvaad, Classmate, Paperkraft, Wills, Aim, Engage and Mint-o.

    ITC’s ASP in terms of percentage of TR in FY-2014 was the lowest at 2.28 per cent over the 11 year period beginning FY-2004 till FY-2014. However, in absolute value terms, FY-2014 ASP at Rs 825.81 crore was the second largest during this period, the largest being in FY-2013 at Rs 834.23 crore. The company’s highest ASP spend in terms of percentage of TR was in 2004 at 3.97 per cent (Rs. 265.72 crore).

    The linear trend in Fig A below indicates that while in absolute rupee terms, the company’s  ASP will be higher in FY-2015 and beyond, ASP in terms of percentage of TR, ASP is likely to be lower or flat.

    ITC’s annual reports indicate some interesting facts. Please refer to Fig B below. The company’s TR has increased by 5.42 times from the Rs 6695.32 crores in FY-2004 to Rs 36288.03 crore in FY-2014, correspondingly, its total expenditure has gone up 5.31 times from Rs 4376.26 crore (65.4 per cent of TR)  to Rs 23236.48 crore (64 per cent of TR); it corresponding PAT too has jumped 5.58 times from Rs 1592.85 crore (23.8 per cent of TR) to Rs 8891.38 crore (24.5 per cent of TR), while its ASP has gone up by only 3.11 times from Rs 265.72 crore (3.97 per cent of TR) to Rs 825.81 crore (2.28 per cent of TR). Even in FY-2013, ASP was just fractionally more at 3.14 times the ASP in 2004. This indicates that the improvement in expenditure has been at the cost of lowering of ASP in terms of percentage of TR.

    Big players like HUL, Britannia and Parle in the foods and FMCG space are vying for the viewers attention and stomach space in the case of food, as ITC Foods division past CEO Ravi Navare once said. Over time, its ASP and specifically its ad spends should grow in absolute rupee terms, and maybe remain flat in terms of ASP as percentage of TR?

  • Emami urges men to be interesting with ‘He’

    Emami urges men to be interesting with ‘He’

    MUMBAI: Metrosexuals have busted what was once a predominantly female bastion – cosmetics. Reason why more and more such companies are entering the Indian market; deodorant manufacturers being one of them.

     

    Joining comparatively new entrants like ITC’s Engage and Vini Cosmetics’ Fogg and veterans including Axe and Park Avenue is the Rs 1821 crore FMCG major Emami’s brand new deodorant ‘He’.  With the pan-India rollout of ‘He’ currently underway, in the initial phase, the deodorant will  be available across all markets with a special focus on 23 top cities including metros, mini metros and tier I and tier II cities in the north, west and east. ‘He’ will be introduced in Hyderabad and Bangalore in the second phase.

     

    So what made Emami enter an already crowded turf? “It is a big and growing category and hence, has the potential for differentiated offerings. We don’t believe in entering any category or launching any product just for being there. We only enter a category when we are able to get the right mix for the launch of any product and have the strategy in place to attain success,” says Emami director Harsha V Agarwal.

     

    Agarwal argues that the deodorant segment has dynamic prospects as the level of penetration is very low. Also, in this category, not too much brand loyalty is exhibited by consumers as there is a multitude of me-too brands to choose from. Importantly, ‘He’ makes a differentiated promise to the customer of ‘being interesting’ as opposed to ‘being normal’ which is ‘boring’. Adding to the appeal is an unique fibre mould packaging which is sure to attract customers’ attention.

     

    ‘He’ will be launched in six variants—Smart, Confident, Extrovert, Recharge, Ruler and Magician. What’s more, actor Hrithik Roshan has been roped in as brand ambassador. “Hrithik is the youth icon, popular amongst the youth and teenagers both.  He is different from the run-of-the mill actors and has never hesitated to take up interesting and challenging roles, resulting in many blockbuster films,” says Agarwal about the choice of ambassador. As for the name ‘He’, he says, “It is short, synonymous to masculine, so an apt name.”

     

    Emami is undertaking an extensive social media marketing campaign #WhoisHe in the pre-launch phase. The launch is supported by 360 degree integrated communication including digital media. The campaign featuring Hrithik has been conceived and developed by Leo Burnett.

     

    According to a brand consultant, there is enough space in the market. Pricing will play a factor if people will pick it up from the shelf.

  • Joy Das joins FCBUlka Interactive as Media Director

    Joy Das joins FCBUlka Interactive as Media Director

    MUMBAI: FCBUlka Interactive recently appointed Joy Das as Media Director – Digital. With the rapid growth that the FCBUlka Interactive arm has been clocking, it was only imperative to make a hire at this level to handle some of its key accounts.

     

    Joy has tremendous experience in the digital space with over 10 years of focused digital media specialization. Being a well-entrenched digital expert, Joy boasts of an enviable twitter following of over 17,000 tweeters and a unique and inspiring blogger network. He also brings with him deep knowledge of Digital Media Mix Modelling Tools which ensure high efficiency and measurable response.

     

    Prior to his stint at FCBUlka Interactive, Joy has worked on a gamut of brands like eBay, ITC, Tata Docomo, MTV,among many others.

     

    FCBUlka Interactive has a long and impressive client list and works with Amul, TCS, Tata Chemicals, Abbott Healthcare, Wipro, ITC, Bausch & Lomb, Nerolac, ICICI Bank, World Vision, FabIndia,  Tata Housing to name a few. Joy will provide leadership to the digital media duties of several of these accounts and will lead a team of over 10 digital media planning and buying professionals.

     

    Joy, commenting on his appointment said “FCBUlka Interactive has some great accounts and has been doing robust work. In fact, a lot of their campaigns have been awarded at the Indian Digital Media Awards, DMAi 2013 etc. I am delighted to join the digital arm of one of the most respected advertising agency groups in the country. I look forward to contributing to this spree of account and award wins.”

     

    Last year, FCBUlka Interactive had made a senior level hire with the recruitment of SudarshanSudevan aka Sudi as Creative Head -Digital. Sudi had an interesting career start as a cartoonist before venturing into the digital space and going on to become a digital specialist.

     

    Commenting on Joy Das’ appointment,Satish Ramachandran, Senior Vice President, FCBUlka Interactive, said, “We are growing at a scorching pace and digital is well poised to become a key medium for many of our Group’s clients. Our Interactive team’s strength is now over 50 members. We have been consistently investing in talent and technology to ensure we are ahead of the curve. Joy’s experience will be of immense value for us to maintain our growth rate”

  • Aimia India ED Ajay Row honoured at DMAi Convention

    Aimia India ED Ajay Row honoured at DMAi Convention

    MUMBAI: Ajay Row, the executive director of Aimia, a loyalty management company, has been honoured with the ‘Hall of Fame Award’ at the annual DMAi Convention. The award recognises the spirit of data-driven/interactive marketing in terms of innovation, creativity and services in collaboration with the right expertise.

     

    The DMAi Hall of Fame recognises scholars, marketers and entrepreneurs who have impacted the direct and the interactive industry in a big way.

     

    Ajay, who leads Aimia India’s proprietary loyalty services line of business, has spent over 25 years working, consulting and creating businesses in database marketing, customer loyalty and CRM globally. An alumnus of IIM (Kolkata), he has spear-headed loyalty, data-driven marketing and customer management programs. He headed the CRM and Loyalty at Taj Hotels and also co-founded Customer Asset BPO/ITES, founding Grey Direct and Rediff /Wunderman.

     

    He was also responsible for launching the first data-driven marketing and loyalty program in 1987 in the Asia Pac Region while working with ITC.

  • Bajaj Electricals signs up Soho Square for creative business

    Bajaj Electricals signs up Soho Square for creative business

    Bajaj Electricals vice president & head, advertising & brand development Beena Koshy

    MUMBAI: Bajaj Electricals, one of the leading consumer durables brand in home appliances, fans and lighting has signed a deal with Soho Square, Mumbai for its creative business.

    This decision has been taken after a multi-agency pitch. The new agency will be handling communication for kitchen and domestic appliances apart from the fan portfolio.
    Soho Square office head Samrat Bedi

    Bajaj Electricals vice president & head, advertising & brand development Beena Koshy said in a press release: “After much deliberation we decided upon Soho Square, Mumbai. In addition to the Ogilvy lineage, what tilted the scale in their favour is the exciting mix of creative and strategy that the agency has displayed on its current clients.”

    The agency, Soho Square Mumbai recently won the Franklin Templeton business. And now with clients like Bajaj Electricals, Bisleri, H&R Johnson, Vespa, Perfetti’s Stop Not, Hockey India League, Oberoi Realty, Pidilite’s Dr. Fixit Raincoat and ITC soaps and shampoos, it boasts of a strong portfolio.
    Soho Square Sr VP Planning Shashank Lanjekar

    Soho Square office head Samrat Bedi said: “This has been a good year, winning H&R Johnson, Franklin Templeton and now Bajaj Electricals. The management at Bajaj has very ambitious plans in terms of brand portfolio and the way forward for their future campaigns. We are excited about partnering them in this journey. It is indeed an honour for Soho Square Mumbai.”

    It was the vision that won them the deal, believes Sr VP Planning Shashank Lanjekar. “The vision resonated well with the Bajaj team,” he added. 

  • Temporary ads to mushroom with KMC waiving tax

    Temporary ads to mushroom with KMC waiving tax

    KOLKATA: Kolkata Municipal Corporation’s (KMC) decision to waive advertisement tax on temporary banners, festoons and hoardings put up on the bamboo structures during the festive season, is likely to see the temporary ads mushrooming across the city during the Durga Puja.

     

    “Though government’s decision to waive corporation tax on advertisements put up by Puja organisers during the festive season will cost the civic exchequer crores, it will benefit the Puja committee. Companies like Parle, Kurlon, Vodafone, Aircel, ITC have started their advertisement campaigns,” said West Bengal Outdoor Advertising Association treasurer and grievance committee convener Ashif Kumar Biswas.

     

    Biswas recalls that last year, the KMC authorities had called for a tender and had mopped up over Rs 1 crore as price for collection of advertisement tax from temporary banners, festoons and hoardings. “However, at the last moment, the tender was cancelled after chief minister Mamata Banerjee suddenly announced the waiver,” he said.

     

    “City based small and medium businesses will be encouraged to put up more outdoor advertising and promote their business further and reach out to a broader mass”, said Let’s Assist Digital Services director Prasit Bhattacharya.

     

    “The advertising agencies should also offer some discounts which will encourage businesses to try out temporary advertising,” he feels.

     

    While Fame Per Second chief dreamer Suman Sen opines: “This was the best opportunity for the state government to mop up funds and later use for some good cause.”
     “So it is cheaper for advertisers now especially when the economy is not doing well and companies are not spending on advertisement. Puja Committees can hope for more advertisers backing them now,” said a city based media buying agency.

     

    The city would be all cluttered with advertisements for next 10 days, states another planner, adding that many advertising companies are likely to make a lot of unaccounted money from such a tax-free venture.