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Tag: Nestle

  • Nestle Ad spends in FY-2014 at Rs 445.47 crore

    Nestle Ad spends in FY-2014 at Rs 445.47 crore

    BENGALURU:Last September, Indiantelevision.com had estimated that the marketing spends by one of the biggest spenders on advertisement and sales promotion (ASP) in India, nutrition, health and wellness company Nestle India Limited would be about Rs 450 with a variation of +10 per cent.

    Background: Being a part of a multi-national group, the company is generally quite tight lipped about sharing financials unless it has to legally do so. Details about the company’s advertisement spends are not indicated even in the company’s annual reports – what you have is a combination of the Advertisement and Sales Promotion spends declared as a single entry in the notes forming the part of the company’s annual financials. There is really no way that one could pin an exact number for these spends unless one has an inside track on the company’s marketing budgets. The projections and numbers in this report are pure conjecture based statistical tools used on the historical annual numbers revealed by the company in its annual reports. The author has no knowledge about Nestle’s strategy, past or present.

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

    In its FY-2014 annual report for the year ended 31 December, 2015, Nestle has indicated ASP spends at Rs 445.47 crore (4.52 per cent of Total Income from Operations or TIO), or just 1.01 per cent off the Rs 450 crore mark mentioned by us. Please refer to figure 1 below that has been updated until FY-2014.

    CAGR for Nestle’s ASP in absolute rupees in the eleven year period from FY-2004 to FY-2014 has increased slightly to 12.56 per cent as compared to the 12.55 per cent for the ten year period between FY-2004 and FY-2013.

    Indiantelevision.com had also estimated that Nestle would report TIO in the range between Rs 9534.09 crore and Rs 10640 crore for FY-2014. The company has reported TIO of Rs 9854.84 crore, well withinthe range indicated by us, while just missing the Rs 100 billion mark by a small fraction. The company’s TIO CAGR has gone down over the eleven year period starting FY-2004 until FY-2014 to 14.48per centas compared to the CAGR of 16.93 per cent for the ten year period between FY-2004 and FY-2013. Please refer to figure 2 below for actual y-o-y growth in TIO.

     

    In the company’s earnings release for FY-2014, Nestle managing director Etienne Bennet said, “2014 was a challenging year and I am satisfied that in a difficult environment, we have delivered both top and bottomline and our results are broadly in line with the Food and Beverages segment of the FMCG sector. We increased investments behind our brands and maintained healthy profitability despite strong headwinds in milk solids costs that were higher than international markets and were not passed onto the consumer fully. We remain focused on value portfolio management and are continuing to reshape the portfolio and communication to strengthen our leadership as Nutrition, Health and Wellness company.”

    Nestle’sProfit after Tax (PAT) has shown a lower CAGR during the eleven year period from FY-2004 to FY-2014 of 14.5 per cent as compared to a CAGR of 15.54 per cent over the ten year period FY-2004 to FY-2013. Please refer to figure 3 below for PAT performance. PAT for FY-2014 was Rs 1184.69 crore (12 per cent of TIO), sixper cent more than the RS 1117.13 crore (12.3 per cent of TIO) for FY-2013.

    Overall, the company’s PAT, both in terms of absolute rupees and as per centage of TIO shows an upward linear trend for the eleven year period between FY-2004 and FY-2014.

  • Grey India appoints Vishal Ahluwalia as Bangalore head

    Grey India appoints Vishal Ahluwalia as Bangalore head

    MUMBAI: Grey Group India has appointed Vishal Ahluwalia as vice president and office head of its Bangalore ops. He will be reporting to Grey Group India chairman and managing director Sunil Lulla.

     

    Ahluwalia joins Grey with two decades of marketing communications experience, across various geographies and disciplines. In his various avatars, he has headed businesses and has been an entrepreneur. Until recently, he worked as a member of the Board of IRIS Worldwide, in which he spearheaded the digital and retail verticals. Prior to that he was TBWA South India head; JWT -Taipei head for Unilever business and has also had stints with Contract and JWT.

     

    “Vishal brings a great blend of advertising savviness and digital smarts to Grey. His experience across geographies and diverse categories, will strengthen the leadership team at Grey. He will take further our integrated offerings to various clients and enable their brands to be famous and effective,” said Lulla.

     

    Ahluwalia added, “I am very excited about the prospect to bring my skills across various stream to Grey Group’s rich and diverse client roster. I do believe the future requires us to be able to deliver services in a wholesome and integrated fashion. I am delighted to return to Bangalore which has always been a springboard for my learning and my success.”

     

  • E-commerce to be huge spender this World Cup: Experts

    E-commerce to be huge spender this World Cup: Experts

    MUMBAI: As the 10 day countdown to the ICC Cricket World Cup – this year’s biggest sporting marvel – brands are as excited as cricket fans. The ad revenue for this year’s edition of the World Cup is expected to swell up.

     

    The International Cricket Council (ICC) already has on board a set of sponsors namely Castrol, Reliance, LG, Hyundai and MRF amongst others. Castrol came on board in 2011, while MRF is an added sponsor for this year. The deals with the other brands were signed for a period of five years and will come to an end and up for renewal post this edition of the tournament.

     

    Speaking about the brand interest of the World Cup this year, GroupM ESP national director – entertainment, sports and live events Vinit Karnik says, “Apart from the usual suspects and the ICC sponsors, I definitely see the e-commerce segment participating well for this year’s World Cup. In addition to that, automobiles and FMCG will be seen spending well too.”

     

    Some sports experts opine that each of these brands that came on board for the ICC for five years, could be spending close to Rs 25 – 35 crore per year including this season. MRF, which has been signed on board only for this year, could be spending close to Rs 30 – 35 crore for this edition, which will be held in Australia and New Zealand.

     

    With Star Sports signing a slew of deals with brands like Yepme.com, PayTM, Raymonds, Nestle, Pidilite, Marico and Lloyd, media experts are pegging the ad revenue from TV alone to be close to Rs 900 – 1000 crore. A rise in the revenue for this year can be attributed to broadcaster, Star India’s move to broadcast the tournament in six languages and offer special pricing for local and regional brands.

     

    “Star has increased its reach and relevance of the sport by providing local and regional language feeds. Besides just the reach, it will also help garner more viewership numbers and therefore is a brilliant move,” says Karnik.

     

    According to GroupM’s bi-annual report titled ‘This Year Next Year,’ e-commerce is expected to be a huge spender for this year from a relatively smaller base than more established categories. The reason stated for the spending is due to an increased competition in this sector and no dearth of funding. 

     

    Speaking on similar lines is Madison Media COO Karthik Lakshminarayan who is also of the opinion that e-commerce will be a huge spender this World Cup. “Apart from that, the other categories include durables and brands that want to reach out to men will be spending for this year,” he concludes.

     

    With the excitement almost palpable in this cricket crazy nation and no dearth of spending moolah, the World Cup seems all set to lure viewers and advertisers alike.

  • Razorfish brings on board Anushree Ghosh

    Razorfish brings on board Anushree Ghosh

    MUMBAI: Razorfish today announced the appointment of Anushree Ghosh as director, strategic planning who comes with a rich experience of 15 years. She will be operating from the Mumbai office but is mandated to lead strategy across key businesses for Razorfish India. She will be reporting in to Charulata Ravikumar, Chief Executive Officer Razorfish India.  

    Commenting on the appointment Charulata Ravi Kumar, CEO Razorfish India, “We are constantly seeking highly curious people who have the energy and a razorsharp mind to persistently look for lateral solutions for the clients we partner. Her ability to quickly cut through the million possibilities to get to that one clear insight will be a big asset for us.”

    On her appointment Anushree Ghosh – Director, Strategic Planning, Razorfish India, “I have admired Razorfish for long and have been closely following all their work in India and globally. The opportunity to drive Business Transformation for some of the most prestigious brands in India is a fantastic one, and I am really excited to be part of the same.”

    Charulata adds, “A planner who brings the synchronization of brand and digital strategy is unique and Anushree’s experience in both will help our clients to see the brand, not in pieces, but rather as a seamlessly integrated whole.”

    Anushree has worked with eminent agency networks like Law and Kenneth, JWT and SapientNitro. Over the years Anushree has driven strategy for brands such as e-Bay, Nestle, Horlicks, Smirnoff, Lipton, Marks & Spencer, Lux, Magnum Ice Cream, Lifestyle.

     

  • Brands eye live sports events for promotions: Procam International

    Brands eye live sports events for promotions: Procam International

    KOLKATA: With improved sentiments in the economy and companies exploring alternative ways to generate brand recognition, the concept of sponsoring sports events, though at nascent stage, has become popular in Kolkata too. And an example of this is Tata Steel becoming the title sponsor for India’s premiere 25K run event to be held in Kolkata. 

     

    Joining the steel maker, are brands like Oberoi Grand as hospitality partner, Reebok as sportswear and training partner, Himalayan as water partner, Nestle as food and beverage partner and Radio Mirchi 98.3 FM as radio partner among others.

     

    Procam International, a sports management company involved in the promotion of national and international sporting events, sports consultancy and live television programming, which is also organising the first edition of the Tata Steel Kolkata 25K on 28 December 2014, feels that the company has good sponsorship from both sports and non-sports companies.

     

    The city will run as one under the following race categories – the 25K (elite and amateurs), Open 10K (amateurs), Ananda Run (6 km), Sr. Citizens’ Run (4 km), and Champions with Disability (4 km).

     

    “Sports events have become an important element for some businesses to promote their campaigns in other regions of India. It is common to see non-sport brands taking strategic decisions to sponsor sporting events,” said Procam International CEO Dilip Jayaram.

     

    In 1988, with a vision to provide a more holistic spend to the advertising rupee and a burning desire to ameliorate the prevailing professional standards for sportsmen, Anil and Vivek B. Singh created Procam International. The organisation has based its corporate philosophy on an open culture, with an emphasis on values and integrity. Procam International has promoted and conducted over 45 world events, which have elicited player participation of the highest caliber, as well as huge public interest.

     

    The Tata Steel Kolkata 25K event will give thousands of individuals a new opportunity to celebrate the birth of a sporting event that salutes perseverance and self-belief and makes lives brighter and better. “Kolkata’s runners can now lace up and join the running revolution that is not just engulfing India’s towns and cities but attracting the attention of the world’s finest runners,” said Jayaram.

     

    “We aim to ink a number of new sponsorship deals with other brands also. We are looking for a medical partner,” he said adding that for this event, Radio Mirchi will run 18-20 promos every day.

     

    Talking about below-the-line (BTL) activities, he said that Procam International has put up 37 hoardings and 30 bus shelters.

     

    About 15,000 people are expected to participate in the five events to be organised through the day. The route for TSK 25K is in the process of being finalised under the guidelines set by the West Bengal Athletic Association and Kolkata Traffic Police.

     

    Film actor, producer and television presenter Jeet, well known for his passion for fitness, will be TSK 25K’s ‘Face of the Event’.

     

    In its first edition, the event will recognise the efforts of participants by offering total prize money of Rs 21,54,000. The top ten Elite athletes (men and women) in the 25K category stand to win attractive prizes. While the winner will receive Rs 2,50,000, Rs 1,75,000 is up for grabs for second place while third place finishers will receive Rs 1,00,000. Dividing amateur runners into six segments based on their age – 18 to under 30, 30 to under 40, 40 to under 50, 50 to under 60, 60 to under 70, and 70 and above – TSK Kolkata 25K will also award the top three amateur runners (men and women) in each of the above segments with prizes of Rs 12,000, 10,000 and 5,000 respectively.

     

    “We urge people of Kolkata and beyond to come and experience the joy of running this December,” Jayaram said.

     

    According to a city based marketing expert, sports as a property will attract major interest from corporates looking at increasing their marketing spends in Kolkata. “The value of these sponsorship deals is generally high,” the expert concluded.

  • SureWaves Media to expand its operations in south Asian countries

    SureWaves Media to expand its operations in south Asian countries

    KOLKATA:  SureWaves Media Tech, a Bengaluru based digital media-technology company, is looking beyond the Indian shores. The company is planning to expand its presence and operations in the south Asian countries.

    “We are extending the frontiers for growth. Since, we have covered the length and breadth of India, we are setting out to expand our scope and look for additional geographies. Nepal and Sri Lanka are on the radar now,” said SureWaves founder Rajendra Khare exclusively to Indiantelevision.com.

    According to Khare, there are advertisers in India that are looking at consumers in these countries.  And so, through a single gateway, SureWaves is now extending its scope and reach in order to enable the advertisers in these markets with the ease of technology. “We are also looking for additional strategic partners,” added Khare.

    The services will be fully functional in the next quarter. “Many product companies, auto sector, FMCG and e-commerce players have shown a strong interest,” he informed.
    Both Sri Lanka and Nepal markets are not yet digitised and so have a combination of terrestrial, cable and satellite channels. SureWaves is in the process of tying up with around 12-15 top media properties in Sri Lanka and another six to eight media channels in Nepal.

    “Bangladesh is also important for us,” he hinted.  As for Pakistan, Khare said that it would depend on the relationship between India and Pakistan.

    Currently, the company, through its internal team in the south Asian countries, is working on the initial research. “The geography and culture in the south Asian markets is not very different from that of India,” he said.

    SureWaves provides real-time data monitoring of ads, which for the first time, has made cable TV advertising accountable.

    The company, which has penetrated over 100 different markets across India by tying up with close to 250 local channels, plans to approach more satellite channels to extend its solution in the country.

    At present around 150 brands including HUL, Wipro, Dabur, Parle, Aircel, Vodafone, Nestle and Honda among others are using SureWaves services in India. Of these, a few have already shown interest to use the services in the neighbouring countries as well. “We are also targeting national advertisers who want to reach all the markets,” he concluded.

  • Quikr gets a new CMO in Vineet Sehgal

    Quikr gets a new CMO in Vineet Sehgal

    MUMBAI: After receiving Rs 365 crore funding earlier this month, the online classified company Quikr announced the appointment of Vineet Sehgal as the company’s chief marketing officer. He will be responsible for marketing strategy and plan across all areas including brand building, performance marketing, partnership and alliances at the portal.

     

    Quikr founder and CEO Pranay Chulet said, “We are delighted to welcome Vineet to Quikr. Quikr is made in India and for India, and Vineet has built his career scaling consumer businesses in the country so there was natural chemistry here.”

     

    “Vineet also knows the Indian consumer and he knows the Indian consumer on mobile. His arrival was particularly well timed with our own plans, as the fun is just beginning,” he added.

     

    Beginning his career in consumer marketing with Nestle, Sehgal headed Nokia’s programs and planning portfolio before joining Quikr. He also founded the Nokia Money start up team and drove its growth from conception to market roll out and held large scale launches of some of the most used mobile devices in India.

     

    With more than 18 years in marketing and business strategy, Sehgal has worked across diverse industries such as telecommunication, FMCG, banking and management consulting. He has been associated with brands including Nokia, Nestle, Accenture, Cadburys and HSBC.

     

    Sehgal said, “It is a pleasure to have the opportunity to join Quikr which is writing such an interesting chapter of the Indian internet story.  Quikr’s business is growing exponentially and its super exciting for me to be a part of this growth curve. I look forward to further building the company as the Indian internet becomes more and more synonymous with mobile internet.”

     

    Quikr records 30 million users a month across 940 cities in India and so far has received funding of around Rs 1,300 crore since its inception in 2008.

  • JWT celebrates 150 years of Pioneering in Advertising

    JWT celebrates 150 years of Pioneering in Advertising

    MUMBAI: In celebration of the agency’s 150th anniversary, JWT today announced a yearlong program of innovative events and activations to highlight its pioneering spirit and rich history around the world.
     

    “JWT’s 150th is much more than just a birthday. This is a platform to galvanize our employees around our pioneering roots and spirit of inventiveness, and to share our mission with our clients and the world,” said Chairman and CEO Bob Jeffrey.
     

    J. Walter Thompson, the agency’s founder and the original ad man, paved the way for what is now known as modern advertising. Since the agency first opened its doors in 1864, Thompson’s vision as an innovator and pioneer has expanded into a global network of 10,000 employees, spanning 200 offices and 90 countries.
     

    “Every day is an opportunity to reinvent tomorrow, and together with our pioneering clients, we will continue to seize that opportunity for the next 150 years,” said Jeffrey.
     

    Over the decades, JWT has maintained a number of the industry’s longest-standing client relationships including: Unilever (109 years), Kimberly-Clark (84), Nestle (81), Kellogg’s (80), Rolex (68), Ford (67), U.S. Marines (66), Johnson & Johnson (51) and Shell (49).

    In celebrating the agency’s rich history of pioneering, JWT drives forward in its mission and vision for the future to invent pioneering ideas that people want to participate in and spend time with.
     

    “It is an honor to join JWT during such a momentous time. This is an agency with pioneering DNA – the brand, the clients and the people,” said Gustavo Martinez, Global President for JWT Worldwide. He added, “Our strategy for growth in the year ahead as a company will also draw its strength from our spirit of pioneering.”

     
    From hiring the first female creative director and pioneering magazine advertising to being the first agency to expand overseas and the first to send a Kit Kat into space, JWT has pioneered in the world of advertising with groundbreaking ideas that are bold and engaging, and introduced many of the world’s most memorable communications.

     
    In 2013, JWT’s innovative work won a number of accolades at global awards shows including the preeminent Cannes Lions International Festival of Creativity. JWT’s “Fakka” for Vodafone brought home numerous awards, including a gold lion and was also the most awarded piece of strategic work in the industry last year. Additional award-winning campaigns were JWT Beijing’s “Missing Children” app for Baobeihuijia.com and JWT New York’s “Yes, Virginia the Musical” for Macy’s.

     
    And, JWT’s work for Nestlé’s Kit Kat played a significant role in the brand being named one of the most influential candy bars of all time by TIME magazine.  

     
    To kick off the anniversary celebrations, Jeffrey and Martinez unveiled a commemorative logo that revives the original historical mark from JWT’s earliest visual branding: the Owl and the Lamp. The owl, long a symbol of wisdom in many cultures, and the lamp, an emblem of light and clarity of vision, together symbolize that experience and knowledge lead to success.

     
    Additional 150th celebrations underway for the year include:

    •The Commodore Challenge – an internal contest in search of the three most pioneering ideas for the world, with cash prizes

    •Cannes seminar on pioneering and innovation

    •Pioneering Influencer Series with clients, alumni and industry icons

    •Helen Lansdowne Resor Scholarship for female creatives

    •Interactive historical timeline

    •Historical content series highlighting JWT’s first and best stories from around the world

    •JWTIntelligence 150th Initiative

    In 2014, JWT will also continue to reinvent and bolster our digital capabilities. Actively managing digital change, JWT touts more than 2,000 nontraditional specialists dedicated to delivering digital work for clients. The agency will continue to acquire pure-play digital agencies, with a special focus on emerging markets — recent acquisitions include Thomas Idea in Thailand, Post Visual in South Korea, Designercity in Hong Kong and Lemon Sky in Poland — while expanding existing digital networks.
     

    New business growth is an important signal of JWT’s contemporary relevance, as it often involves attracting clients from newer industries. The agency was recently named global agency of record for PUMA, confirming JWT’s credibility in the booming sectors of sport and fashion. Other new business wins included Energizer personal care brands, Air Canada and The Singapore Tourism Board.

  • COCOA-NOMICS: A CNN FREEDOM PROJECT DOCUMENTARY

    COCOA-NOMICS: A CNN FREEDOM PROJECT DOCUMENTARY

    MUMBAI: Two years ago, CNN Freedom Project documentary ‘Chocolate’s Child Slaves’ exposed the plight of young Africans forced to harvest the beans that make the chocolate we eat around the world. Many of the children made to work in the cocoa plantations in countries like Ivory Coast are forced to work long hours in appalling conditions, most have never even tasted chocolate. Cocoa-Nomics: A CNN Freedom Project Documentary premieres on CNN International on Saturday March 1 at 1930 IST.

     

    Now CNN host Richard Quest has returned to the plantations, with José Lopez, the Executive Vice President of Nestle, to find out if anything has changed and to see if chocolate producers are willing and able to eradicate slavery from their industry. Quest follows the supply chain, from bean to bar, examining the collective efforts to reform the cocoa industry – the fundamental socio-economic solutions needed to secure a sustainable future for cocoa farming and the chocolate industry.

     

    As the global demand for chocolate rises, so does the threat to the supply of cocoa; this is a pivotal time in the development of the cocoa economy in West Africa – for the industry, the next generation of cocoa farmers and for chocolate lovers.

     

    Premieres on CNN International on Saturday March 1 at 1930 IST