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Tag: Marico

  • ISA elects Marico’s Saugata Gupta as chairman

    ISA elects Marico’s Saugata Gupta as chairman

    MUMBAI: The newly elected executive council of the Indian Society of Advertisers (ISA) met on 11 September and elected Marico’s managing director Saugata Gupta as its new chairman.

     

    He takes over from Hemant Bakshi as he relocates to Unilever Indonesia as the CEO.

     

    Gupta has been lending his support to the ISA for a long time as his colleagues from senior levels in marketing and media have been active in different committees of the ISA.  An MBA from IIM Bangalore, Gupta has rich FMCG experience of over two decades having worked through ascending career rung in Cadbury (India & UK), ICICI Prudential & Marico. Currently, MD of Marico, he believes in an empowering work culture that would create ownership and make a difference in to the entire business ecosystem.

     

    Gupta said, “Our focus would be on making industry partnership stronger and in particular to extend all support that is needed to help BARC come up as soon as possible with industry wide accepted and accurate TV audience research data representing viewers across the country. I am looking forward to the exciting times ahead for Advertisers, industry partners and fraternity associations to work as a stronger team to harness overall growth of advertising which in turn will help grow businesses and the Indian economy.”

     

    The ISA has advertiser members from across industries who contribute to over two-thirds of the country’s national non-governmental ad spends.  ISA, which is member of the World Federation of Advertisers (WFA), continues to partner with other industry bodies that connect to the advertisers such as initiating the formation of BARC.

     

    Other members of the Executive Council are:

     

    Tata Services Group Corporate Communications Corporate Affairs VP Atul Agrawal

     

    Thomas Cook (India) Marketing and Service Quality head and chief innovation officer Abraham Alapatt

     

    Agro Tech Foods director Narendra Ambwani

     

    Bajaj Corp Business Development director Jimmy R Anklesaria

     

    Infogain India director JC Chopra

     

    Raymond strategic advisor Paulomi Dhawan

     

    Procter & Gamble Hygiene and Health Care brand director Sonali Dhawan

     

    Aditya Birla Management Corporation Group Corporate Services and Strategy director Rajiv Dube

     

    Godrej Consumer Products chief operating officer – Sales, Marketing & SAARC Sunil Kataria

     

    Bajaj Electricals vice president & head advertising and brand development Beena Leji Koshy

     

    Tata Global Beverages managing director and CEO Ajoy K Misra

     

    Anisha Motwani, Director & Chief Marketing Officer, Max Life Insurance Co. Ltd.

     

    Mondelez India Foods Chocolate Category and Media director Siddhartha Mukherjee

     

    Birla Sun Life Asset Management independent director Bharat V Patel

     

    ITC divisional chief executive Sanjiv Puri

     

    Nestle India Communication head Chandrasekar Radhakrishnan

     

    Polycab Wires vice chairman, joint MD and group CEO R Ramakrishnan

     

    Hindustan Unilever Personal Care Products executive director Samir Singh

     

    Hawkins Cookers chairman Brahm Vasudeva

  • Marico Q4-2014 Ad spends down 9 per cent; 6 per cent down in FY-2014

    Marico Q4-2014 Ad spends down 9 per cent; 6 per cent down in FY-2014

    BENGALURU:  Indian consumer products in beauty and wellness space company Marico spent (-9.08) per cent less at Rs 121.91 crore (11.38 per cent of Operating Income or Op Inc) in Q4-2014 towards advertisement and sales promotion (Ad & SP Exp) as compared to the Rs 134.08 crore (11.17 per cent of Op Inc)  in Q3-2014. Further, Marico’s Ad & SP Exp in Q4-2014 was also lower by (-3.0) per cent as compared to the Rs 125.68 crore (12.59 per cent of Op Inc) in the year ago quarter Q4-2013.

    During FY-2014, the company’s Ad & SP Exp was down (-6.15) per cent at Rs 561.17 crore (11.97 per cent of Op Inc) as compared to the Rs 597.94 crore (13.01 per cent of Op Inc) in FY-2013. The company’s average Ad & Sp Exp as percentage of Op Inc over nine quarters starting Q4-2012 until Q4-2014 is 12.48 per cent, and the current year’s Ad & SP Exp throughout the year as well in Q4-2014 are lower than that average.

    Notes: 100,00,000=100 Lakhs = 1 crore

    Marico’s Op Inc for Q4-2014 was (-10.71) per cent lower at Rs 1072.06 crore as compared to the Rs 1200.69 crore in Q3-2014. Y-o-y, Op Inc for Q4-2014 was 7.36 per cent more than the Rs 998.59 crore in Q4-2014.

    Please refer to Fig 1 and Fig 1A below:

    In line with the consumer goods industry trends, the company’s PAT in Q4-2014 has dropped by (-34.42) per cent to Rs 88.77 crore from Rs 135.37 crore in Q3-2014. However, y-o-y, Marico’s PAT in Q4-2014 was 5.85 per cent more than the Rs 83.86 crore in Q4-2013.

    Across the nine quarters in question, PAT trend is upwards, both in terms of absolute rupee value and as percentage of Op Inc.  PAT as per cent of Op Rev also trends upwards between three financial years staring FY-2012 to FY-2014. Please refer to Fig 2 and Fig 2A below.

    Marico says that its business has shown steady recovery in volume growths with sustained improvements in market shares. In India, due to the weak demand environment, the growth rates of various segments have come down. This has impacted the company’s growth rates as well.

    The company entered the Hair Colour category by introducing Livon Conditioning Cream Colour. The initial retailer and consumer feedback across the board has been positive.

    To commemorate 25 years since incorporation, the company has declared a one-time Silver Jubilee Third Interim Dividend of 175 per cent (Rs 1.75 per share) on the equity share capital of Rs 64.48 crore at the meeting of its Board of Directors held in March 2014.

    Marico Managing Director & CEO Saugata Gupta said, “Despite the challenges in the environment during FY1-2014, it has been a satisfying year with Marico’s brands gaining shares across most of the portfolio. In Q4 we have been able to get back to healthy levels of growth in key categories and expect to see a gradual increase in momentum in the coming quarters.

    Here is what the company has to say about its various products and brands:

    Parachute coconut oil in rigid packs (the focus part of the Parachute portfolio) recorded a volume growth of about 10 per cent during the quarter. Q4FY14 has shown a recovery in volume growth from an abnormally low growth in Q3FY14. During the 12 month period ended March 2014, Parachute along with Nihar maintained its market share at 56 per cent.

    The Saffola refined edible oils franchise grew by about 11 per cent in volume terms during Q4FY14 as compared to Q4FY13, reporting a continuous improvement in performance. The brand has been able to reverse a softer performance in 2012-13 and accelerate in the second half of the year based on its effective equity building communication. The brand maintained its leadership position in the super premium refined edible oils segment with a market share of about 55 per cent during the 12 months ended March 2014.

    In the breakfast cereals, Saffola Oats has increased its market share by 24 bps to 14 per cent and has retained its no two position. Saffola Oats crossed Rs 50 crore ($ 8 million) landmark in top line during the year under review. The company expects to continue the robust growth in Oats.

    Marico’s hair oil brands (Parachute Advansed, Nihar Naturals and Hair & Care) grew by 5 per cent in volume terms during Q4FY14 over Q4-2013. Nihar Shanti Amla continues to gain market share and achieved a volume market share of about 30 per cent for the 12 months ended March 2014 in the Amla hair oils category (MAT FY13: 25 per cent). Niha Shanti Amla is now a Rs 250 crore ($ 40 million) brand.

    Due to the challenging environment, the body lotion category growth rate has fallen to single digit. Parachure Advansed Body Lotion has maintained its no three position with a market share of six per cent. The company expects the brand to be back on track next year.

    The Company says that it launched India’s first unique multi-dimensional ‘spray-on’ body lotion during the quarter. The variant has been launched in a 100ml SKU with an introductory price ofRs. 99.

    The acquired portfolio of youth brands grew by 16 per cent during the year over FY13. Due to inflationary trend and restricted spends on discretionary products, the category growth rates of Post Wash Serums, Hair Gels/Creams and Deodorants have come off considerably. This coupled with a high base in Q4FY13 (due to re-launch of Zatak) has led to a flat performance of the portfolio in Q4-2014.

    Set Wet and Zatak increased its market share marginally in the deodorants segment to five per cent for the 12 months ended March 2014, in this crowded category. In February, Set Wet launched a new variant Set Wet Infinity, a non-aerosol perfume spray with ‘no-gas’ formulation. The launch will be supported by an extensive media campaign during IPL7. Set Wet (Deodorants and Gels) is now a Rs 100 crore ($ 17 million) brand with a strong equity and growing consumer franchise.

    This youth portfolio will also witness a much higher interaction with overseas portfolio thereby leveraging scale and innovation synergies.

    Sales in Modern Trade (nine per cent of the domestic turnover) continued its good run and grew by 16 per cent in

    Q4-2014 led by Saffola and coconut oil.

    Marico’s rural sales continue to clock a faster pace of growth than its urban sales. The continued focus on distribution expansion in rural markets has pushed FY-2014 rural sales to more than 30 per cent of total Indian FMCG sales.

  • Madison Media still holds the digital mandate for Airtel brand and media

    Madison Media still holds the digital mandate for Airtel brand and media

    MUMBAI: Contrary to reports that appeared in the media yesterday, Madison Media continues to handle the digital mandate for Airtel brand and media. The agency however does not handle “search marketing” for airtel.in.

     

    Madison Media Group CEO Gautam Kiyawat in a statement says: “Digital is a very important element within Madison Media and our attempt has been to offer clients a holistic media strategy encompassing all media to achieve their brand’s business objectives”.

     

    Madison Media today works with many marquee clients in the digital space including Airtel, Mondelez/Cadbury, Marico, Levis, Budweiser, Asian Paints, BJP, Raymond, Yatra.com, Fiama diWills, and many other clients. The agency has a strong 60 member digital team most of them embedded in large teams that handle the media accounts of large marquee clients.

     

    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 year, Madison Media also won a Gold for Best Innovation in Digital (Video) for Cadbury Celebrations – Lonely Maa.

     

    Madison Media Group handles media planning and buying for blue chip clients including Airtel, Godrej, Mondelez/Cadbury, ITC, General Motors, Marico, McDonald’s, Raymond, Piramal Healthcare, TVS, Levis, SpiceJet, Domino’s, Bharti Axa, Max Life Insurance, Asian Paints, Pidilite, Tata Salt, Acer, Lafarge Cement, Dish TV, Times Television Network, Indian Oil, Cafe Coffee Day and many others.  The agency claims to have gross billings of over Rs 3000 crore.

  • Germin8 raises $3 million venture funding from Kalaari Capital

    Germin8 raises $3 million venture funding from Kalaari Capital

    MUMBAI: Germin8, a Big Data analytics company, has raised USD 3 million in Series-A funding from Kalaari Capital. The funds will be used to strengthen Germin8’s position in India through increased sales and marketing, and fuel its foray into international markets. A significant portion of the funds will also be deployed for R&D and new product development.

     

    Since the launch of its first product in 2012, Germin8 has leveraged its proprietary technology platform and algorithms to build and reinforce its position as a leading Big Data analytics firm. Germin8, through its proprietary tools, helps companies make more informed decisions in real time, based on what their stakeholders are saying in the public domain including social media and news, and in company-owned sources like emails and chats.

     

    Germin8’s technology platform is, today, used across marketing, corporate communications, customer care and sales functions at over 100 leading brands such as MTV, Marico, ICICI Prudential, Godrej Industries, Johnson & Johnson and Asian Paints. Germin8’s technology is also being used by several national and international media and advertising agencies including GroupM, Publicis, Dentsu Aegis, Rediffusion and Ormax Media.

     

    According to Kumar Shiralagi, Managing Director, Kalaari Capital, “We believe that in a competitive, evolving landscape, Germin8 has all the ingredients to be a global player especially because of the strength and flexibility of its technology platform, and its strong focus on innovation and customer satisfaction”.  Underscoring the importance of this investment, Kumar added, “Today no company can afford to underestimate the impact of social media on its business and Germin8 allows companies to monitor, analyse and take the right business decisions in a timely way.”

     

    Germin8 was founded by Dr. Ranjit Nair, a PhD in Computer Science from University of Southern California, and Raj Nair, a strategy consultant and alumnus of IIT-B and IIM-A. Germin8 now has a team of over 50 experienced professionals from top engineering and management institutes.

     

    “This is an important milestone for Germin8. Since our launch in 2012, we’ve been adding value to our customers in India by delivering actionable insights and analytics. With this investment by Kalaari Capital, we hope to make our technology available to companies outside India as well, even as we aim to consolidate our position as a significant analytics player in the Indian market,” says Ranjit Nair, CEO of Germin8.

     

    Kalaari Capital invests in early-stage technology-oriented companies in India. Their focus is on companies which are capturing new markets, providing innovative solutions, and creating wealth for entrepreneurs and investors. Mosaic Capital acted as the exclusive advisor to the company. Mosaic Capital (www.mosaiccap.com ) is a boutique investment bank specialised in M&A and Private Equity, with offices in Mumbai and Bengaluru.

  • ASCI upholds complaints against 57 out of 65 advertisements

    ASCI upholds complaints against 57 out of 65 advertisements

    MUMBAI: For the month of November 2013, the Advertising Standards Council of India (ASCI) upheld complaints against 57 out of 65 advertisers.

     

    As usual, the health & personal care category continued to lead with the highest number of complaints received.  A number of complaints were upheld for online advertisements as well.

     

    The ASCI’s Consumer Complaints Council (CCC) concluded that the Facebook advertisement of Stayzilla.com of Inasra Technologies shows an indecent depiction of a woman and objectifies women, which is likely in the light of generally prevailing standards of decency and propriety, to cause grave or widespread offence.  The ad contravened Chapter II of the ASCI Code and hence the complaint was upheld.

     

    The advertisement of website of 99acres.com clearly states ‘no Muslim is allowed’. The CCC concluded that the website advertisement promotes discrimination based on religion and contravened Chapter III.1 (b) of the Code.  The complaint was upheld.

     

    The CCC found the claims in health and personal care product or service ads of 44 advertisers, released in the press to be either misleading or false or not adequately/scientifically substantiated and hence violating ASCI’s Code. Some of the health care products or services ads also contravened provisions of the Drug & Magic Remedies Act.

     

    The Himalaya Drug Company’s Himalaya Sparkling White Toothpaste claims that it is ‘India’s first toothpaste with no chemical bleach’. Pack claims that they guarantee ‘whiter teeth in just 2 weeks.’ The complaint was upheld.

     

    Similarly, complaints were upheld for Marico’s Nihar Shanti Amla Hair Oil claims to ‘keep hair black for a long time’, HUL’s new Close Up Deep Action Toothpaste claim was not substantiated ‘Confidence of Fresh breath till 12 hours, presenting new Close-up Deep Action’ and Ranbaxy Laboratories’ Revital claim of ‘21 day money back guarantee challenge’, amongst others.

     

    The CCC concluded that the claims mentioned in advertisements in the food and beverage category were not substantiated.  The complaints were upheld for Pizza Hut wherein the hoardings state that ‘Rs 99 on any meal any day.’ This is not factually true.

     

    United Biscuits Mcvitie’s Digestive Biscuit claims that ‘Every biscuit has ‘Maida’ (Wheat Flour), whereas their biscuits have ‘Atta’ (whole wheat flour). The content of the biscuits says that it also contains 36 per cent ‘maida’ (wheat flour) and only 23 per cent ‘Atta’ (whole wheat flour). Hence their claim is totally misleading that their biscuit is made of ‘Atta’ (whole wheat flour).’

     

    In the auto category, the CCC found following claims in TVC by two different advertisers violated Chapter III.3 of the ASCI guidelines on advertisements for automotive vehicles and hence the complaints against the ads were upheld: Maruti Suzuki India’s Maruti Alto 800 TVC shows ‘a couple celebrating Diwali and when asked about the extra diya, the wife says it is for her parents who stay far away. And they travel with the diya in the car and reach the house. The wife says surprisingly the oil in the diya is intact and the husband agrees whilst looking at the dashboard’. The advertisement sends a dangerous message of carrying an oil lamp in the car. It flouts the safety rules and spreads a dangerous message. Also, a TVS Star City commercial shows a woman pillion riding without a helmet.

     

    Click here for full report

  • DY Works repackages Marico’s Parachute Advanced

    DY Works repackages Marico’s Parachute Advanced

    MUMBAI: DY Works, a brand strategy and brand design firm, has created a new identity for Marico’s Parachute Advanced- Tender Coconut Hair Oil.

    Over the years, the blue bottle has been synonymous with the Parachute brand. In view of the changing mindsets of the Indian consumer, and increasing competition, Parachute has changed. While reaffirming its strong trusted brand heritage, it sought to break away from the stigma of “stickiness” and “old fashioned” associated with coconut oil.

    To address this concern and strengthen its hold in the market, Marico added Parachute Advanced to its product portfolio-modern hair oil based on the concept of ‘refreshing nourishment’. The aim was to introduce “Green Coconut” as a new ingredient in the category, and, at the same time, maintain and leverage the brand equity of the parent brand.

    Speaking about the assignment, DY Works president Alpana Parida remarked, “Moving away from traditional paradigms of a protagonist posing in long thick hair to an ingredient led product that is non-sticky for the evolved consumer”

    The brief stressed on crafting a delightful sensorial association to minimise the dissonance with oiling. It also sought design and imagery that would be differentiated, premium and modern. The reassurance of nourishment and efficacy was pivotal.
    Based on this, DY Works researched through competitive analysis and a semiotic study to decode relevant and changing discourses for the category, thereby leading to the establishment of a unique shaped packaging.
    The new, improved bottle structure was established to have a unisex appeal along with a shape that helps create a premium space by breaking clutter and separating it from other brands in the category. The structure allows enough space for the label to establish effective brand identity and an effective shelf throw.

  • Dentsu acquires digital agency Webchutney from Network18

    Dentsu acquires digital agency Webchutney from Network18

    MUMBAI: It‘s cashing out on its investment. Media conglomerate Network18 today announced that it was finally divesting its equity holding in digital marketing agency Webchutney to Japanese ad giant, Dentsu. The latter had been circling Webchutney, ogling it as an acquisition for nearly a year. Founded in 1999, Webchutney will reportedly be Dentsu‘s first local acquisition in the digital agency space.

    Network18 had acquired a majority stake in Webchutney through its venture capital arm Capital18 in November 2007 and it says it has managed to get a 300 per cent return on its investment through the current transaction.

    Webchutney, a leading interactive marketing and technology services agency, reported a net profit of Rs 6.35 crore in the financial year 2011-2012 on revenues of Rs 21.55 crore, according to media reports. It boasts a healthy clientele including Airtel, Microsoft, Unilever, Marico, Titan, MasterCard, Barclay‘s, Procter & Gamble among many others, and ranks among the top digital agencies in India.

    Its full suite of digital offerings includes online advertising, web designing and development, search engine marketing and social media consulting. Its award winning teams are spread across Delhi, Mumbai and Bangalore and consists of over 200 professionals.

    Network18‘s 80 per cent Webchutney stake is bifurcated between Capital18 Mauritius which holds 49.42 per cent and Capital18 Fincap which has a 20.64 per cent.

    Commenting on the transaction, Network18 MD Raghav Bahl says: “The divestiture of Webchutney, is a reflection of our commitment to profitably monetise our investment portfolio for the benefit of our shareholders and to also facilitate the growth of these businesses to the next level. We would like to convey our best wishes to the Webchutney team as they embark on the next phase of their journey.”

    Webchutney co-founder and CEO Sidharth Rao says: “I am personally grateful to Sarbvir Singh who has been my mentor for the past five years and his team at Capital18 for ensuring that we shared a wonderful journey together. In Dentsu and Rohit Ohri, we have found a partner who is willing to invest in and cultivate our passion to provide path breaking digital creative services to our clients.”

     

    Dentsu India group executive chairman Rohit Ohri along with Webchutney co-founders Sidharth Rao (L) and Sudesh Samaria (R)

     

    Dentsu India group executive chairman Rohit Ohri opined that he is delighted to have India‘s No 1 digital agency as a part of the Dentsu India group. He explains: “We’re now going to be able to put world-class digital solutions in the centre of our offering to our clients.”

    Now that could be music to anyone‘s ears.

  • BBH to design creative communications and digital solutions for CRY

    MUMBAI: Child rights organisation CRY – Child Rights and You – has appointed BBH to develop their creative communications and digital media solutions.

    The agency has been brought on-board at a time when CRY is embarking on its own mission to engage with a younger audience, especially through the digital space. The mandate spans the spectrum of communication solutions – from overall communications strategy to digital initiatives and engagement strategy for CRY’s operations in India as well as overseas.

    CRY Director – Resource Mobilisation and Volunteer Action Yogita Verma said, “Creating brand awareness and mobilising people for the cause of child rights is a challenge, particularly when limited resources need maximum impact. The digital space is one such area where CRY can engage with its target audience, and BBH’s specialisation in digital media and creative tools in the digital space will help CRY reach out to a wider audience.”

    She added that CRY’s communication mandate is to raise awareness and thereby action for children in India for whom a happy, healthy childhood is not a natural consequence and the NGO felt that BBH is not only extremely skilled at what it does, but is also truly passionate about children and committed to ensuring the children a future filled with hope.

    BBH India Managing Partner Subhash Kamath said, “It is not often in advertising that one gets a chance to use one‘s skills and talent for a real cause; something that directly impacts society, especially children. We are proud to partner CRY on their journey and we have tremendous respect for what they do. All of us at BBH are looking forward to working on some groundbreaking strategies for them.”

    BBH Communications, part of the Publicis Groupe, was launched in India in 2009 and has grown to be a 65-people strong organisation with a portfolio of clients like Unilever, Marico, Diageo, Skoda, Red Bull, Google, World Gold Council, Times Group and Acer.

    Established in 1979 in Mumbai, CRY was among the first indigenous Indian NGOs working for the rights of children in India. Since then, the organisation has grown to a national institution, present in over 23 states and reaching out to almost a million children every year. For over three decades, CRY has been committed to making a lasting change in the lives of Indian children by ensuring their right to live, learn, grow and play – in short, every child’s right to a happy childhood.

  • Madison to handle CCD’s media account

    Mumbai: Café Coffee Day (CCD) has awarded its media mandate to Madison Media for its chain of coffee Cafés.

    The account size is estimated to be around Rs 400 million and will be handled by Madison Media Omega in Bangalore.

    Madison Media Group CEO Gautam Kiyawat said, “We are delighted to have India’s premier and leading café chain, Café Coffee Day, to our roster of clients and are confident of helping it grow and gain further market share in the country.”

    CCD president marketing K. Ramakrishnan said, “Café Coffee Day being a brand for the young and the young at heart, we needed a partner who would be passionate about the brand, to be able to understand the category in depth and the varying dynamics to enable us to move along at a fast pace. We are confident of Madison Media’s thought leadership and competence in executing the campaigns. We are delighted to have them on board”.

    Café Coffee Day as a brand has never advertised in mass media in the last 16 years of its existence. It has been built on different marketing initiatives, coffee category building activities, public relations and social media.

    The brand has just launched its first ever television commercial titled ‘Sit Down’ that has been created by Creativeland Asia.

    For the record, Madison Media Group handles media mandate for clients including Airtel, Godrej, Cadbury/Kraft, ITC, General Motors, Marico and McDonald’s.