ITV

Tag: Parachute

  • Pruned Ad expenses among Marico’s tightening measures bring higher PAT in Q3-2014

    Pruned Ad expenses among Marico’s tightening measures bring higher PAT in Q3-2014

    BENGALURU:  Indian consumer products and services company in the global beauty and wellness space, Marico Limited (Marfico) reported 27.87 per cent growth in PAT to Rs 135.37 crore in Q3-2014 from Rs 105.87 crore in Q2-2014 and 32.33 per cent from the Rs 102.29 crore in Q3-2013. 

     

    The company has been tightening its operations, as seems evident from the figures reported by it for the current quarter. Changes in depreciation and amortization calculation method since FY-2013 that result in a lower figure as compared to the older method, reduction in employee benefit, pruning of advertising and sales promotion expense (Ad and sales promo), lower finance cost, lower percentage of  ‘other expense’ in relation to its revenue are some of the changes that have been reported by Marico.

     

     Let us look as the figures reported by Marico vis-?-vis Ad and sales promo expense during Q3-2014 

     

    Marico spent Rs 134.08 crore towards Ad and sales promo in Q3-2014, (-15.94) per cent lower than the Rs 157.82 crore in the corresponding quarter of last year and (-0.85) per cent lower than the Rs 135.22 crore in Q2-2014. During the nine month period ended 31 December 2013, Marico spent Rs 439.27 crore on this account, which was (-6.99) per cent lower than the Rs 472.26 crore spent during the corresponding nine month period of last year. During FY 2013, Marico spent Rs 597.94 crore towards Ad and sales promo. 

     

    In terms of percentage of operating revenue (national and international), Marico’s Ad and sales promo expense has trended downwards. The figures for Ad and sales promo expense are: 11.19 per cent of Operating revenue of Rs 1198.35 crore in Q3-2014; it was 13.56 per cent of Operating revenue of Rs 1163.99 crore in Q3-2013; it was 12.12 per cent of Operating revenue of Rs 1,115.36 crore in Q2-2014; it was 12.18 per cent of Operating revenue of Rs 3606.37 crore during the nine month period ended 31 December 2013; and 13.17 per cent of Rs 3587.09 crore during the nine month period ended 31 December 2012. For FY 2013, Marico’s Ad and sales promo expense was 13.04 per cent of Operating revenue of Rs 4,584.35 crore. 

     

    In terms of percentage of Total expense, Marico’s Ad and sales promo expense during Q3-2014 was 13.15 per cent of Total expense of Rs 1,019.58 crore;  During Q3-2013, it was 16.33 per cent of total expense of Rs 1,022.89 crore; During Q2-2014, it was 15.44 per cent of Rs 966.69 crore; During the nine month period ended 31 December 2013, Marico’s Ad and sales promo expense was 14.28 per cent of Total expense of Rs 3,076.05 crore as compared to the 14.97 per cent of Total expense of Rs 3,154.56 crore during the corresponding nine month period of FY 2013. During FY 2013, Marico’s Ad and sales promo expense was 14.74 per cent of Total expense of Rs 4,057.02 crore. 

     

    Marico says that its India operations FMCG business, which contributes 76 per cent to group revenue, grew nine per cent in terms of value and three per cent in terms of volume during Q3-2014, indicating a better price realisation during the quarter.  During the nine month period ended 31 December 2013, (YTD) Marico’s Indian FMCG business grew six per cent in both value and volume.  

     

    Marico claims a premier position on key parameters in market share (on basis of 12 month moving average total or MAT) for many of its branded products. It claims a market share of 56 per cent in India for its coconut oil under the brands Parachute and Nihar. For its edible refined oil brand Saffola, the company claims a market share of 57 per cent and no. 1 position.

     

    Marico says that its hair oil brands Parachute Advansed, Nihar, Hair & Care have a market share of 28 per cent and are ranked 1 in India. Its claims the 5th position in India with a market share of five per cent for its deodorant brands Set Wet and Zatak. 

     

    Marico’s largest branded product with 24 per cent contribution to group revenue, Parachute Coconut oil in rigid packs showed growth of six per cent in value and two per cent in volume. YTD, this product showed a decline in value by (-one) per cent, while showing a volume growth of two per cent.  

     

    Marico’s value added Hair Oils portfolio with brands like Parachute Advansed, Nihar, Hair & Care and having  17 per cent contribution to group revenue grew 16 per cent in value and 8 per cent in volume during Q3-2014. YTD, it grew 17 per cent in terms of value and 13 per cent in terms of volume. 

     

    Its refined edible oil brand Saffola with 16 per cent contribution to group revenue grew seven per cent in terms of value and nine per cent in terms of volume. YTD, Saffola grew five per cent in terms of value and nine per cent in terms of volume. 

     

    The company has raised the prices across all products in December 2013.

     

    Marico Group CEO Saugta Gupta said, “We believe that the soft consumption environment has bottomed out and the performance of the Company will pick up steadily going forward. In order to make the Company future ready, we are investing significantly on go-to-market transformation, cost management, innovation and analytics project. The Company will start reaping the benefits of these capability building initiatives from FY15 onwards. We will also experience greater synergies in product portfolio and talent mobility across different geographies in the coming year.” 

     

    Marico Group CFO Milind Sarwate said “Marico’s FMCG Business has managed to grow despite the challenges of the economic slowdown in India and instability in some of our overseas markets. The basics of our business are however robust. The Kaya demerger is now effective with Bombay High Court approval. We now expect shares in Marico Kaya Enterprises Limited to list in April 2014.”

     

    Click below for:-

     

    Information Update – Q3FY14

     

    Media Release – Q3FY14

     

    Statutory Advertisement – Q3FY14

  • 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.

  • Rahul Mathew quits McCann

    Rahul Mathew quits McCann

    MUMBAI: Rahul Mathew, the executive creative director at McCann Erickson has put in his papers.

     

    Speaking about his association with the company, Mathew says, “McCann is more than just another agency for me. My two stints here account for eight years of my advertising career. It has also helped me shape a lot of my craft. It has not been an easy move to make. It became even more difficult because of the fact that I will also have to leave behind a great art partner in Akshay Kapnadak.”

     

    Mathew has been in the advertising industry for about 15 years. He has been a part of many award winning campaigns that have received acclaim at both domestic and international levels. At McCann, he along with his team has won three Cannes Lions, four One Show pencils, over a dozen Adfest metals and many metals and honours at International award shows.

     

    “But the pride of place on the very crowded mantelpiece belongs to the Grand Prix that the Mumbai office won at the recently concluded Spikes. Even at Goafest 2013, McCann Mumbai was one of the most awarded offices, accounting for a lion’s share of McCann’s metals including a Grand Prix. We also tasted similar success at effectiveness awards, both nationally and internationally,” he says proudly.

     

    Talking about his work at the agency, he adds, “We’ve had great fun creating work on brands like Parachute, ACC, Pears, Western Union and many others. And have managed to fill the creative pool with some rare talent. And thus, there is reassurance that I’m leaving after making a positive impact at the place. And that I leave it in a good place.”

     

    Prior to joining McCann, Mathew was with Rediffusion, Young & Rubicam, Ogilvy (Healthcare), Leo Burnett, JWT, Enterprise Nexus. He has been ranked among the top five creative professionals in India in 2009 by Campaign Brief Asia and was ranked the 8th most awarded copywriter in Asia (as per Haymarket Publications and Campaign Asia) in 2012.

     

    Rahul finds the building and reinventing process a lot more exciting and challenging. And thus, he will look for an opportunity that allows him to do that all over again.