Tag: P&G

  • P&G continues robust spends on ad and promo in Q2 FY13

    MUMBAI: Keeping up with the trend of FMCG companies expanding media spends, Procter & Gamble Hygiene and Health Care Ltd (PGHHCL) upped its advertising expenditure by 35.77 per cent for the second quarter ended 31 December. The company spent Rs 945.8 million in the second quarter compared with Rs 696.6 million a year earlier.

    The ad spends exceeded the company‘s net profit in the second quarter by a wider margin compared with a year earlier. In the second quarter of FY13, the company‘s net profit was Rs 539.9 million, up 5.47 per cent from Rs 511.9 million a year earlier. Its total income in the second quarter grew by 32.68 per cent to Rs 4.71 billion from Rs 3.55 billion a year earlier.

    The company‘s advertising spend to total income ratio was up marginally in Q2 FY13 to 20.09 per cent from 19.61 per cent a year earlier.

    For the half year ended 31 December, P&G spent Rs 1.63 billion on advertising and promotion. This is a 22.56 per cent increase from H1 FY12‘s Rs 1.33 billion. The company‘s total income for the first half rose by 28.77 per cent to Rs 8.46 billion from Rs 6.57 billion a year earlier. The company‘s profit for the first half stood at Rs 992.6 million, up 5.63 per cent from Rs 393.7 million a year earlier.

    P&G managing director Shantanu Khosla said, “Procter & Gamble Hygiene and Health Care Ltd has sustained & improved the past quarter‘s strong growth momentum. We have registered robust sales and volume growth for the quarter ended December 31, 2012, as we implement our proven business model of delivering value to the consumers combined with effective pricing and productivity which is helping deliver consistent top and bottom-line growth.”

  • Sam Ahmed moves to Mumbai as Rediffusion VC and CCO

    MUMBAI: WPP‘s communication agency Rediffusion has appointed Sam Ahmed as vice chairman and chief creative officer. He currently lives in Dubai but will now move to Mumbai from where he will operate in his new role at the agency.

    Ahmed has spent 14 years at Y & R, Dubai where he was credited with making Y&R the No. 1 agency in Dubai in creative rankings and the 3rd most creative agency in the world. He has worked on brands like Ford, Nestle, Pepsi, P&G, Colgate-Palmolive, Citibank, Harvey Nichols, Skoda, Land Rover, Jaguar, Sony Ericsson, Du Telecom, Zain Telecom, HTC, Apple and World Gold Council. He has also been a consultant for the Prime Minister and Vice President of the United Arab Emirates, His Highness Sheikh Mohammed‘s executive office on several Dubai projects including DIFC and Burj Khalifa.

    Rediffusion chairman and managing director Diwan Arun Nanda said, “It is good to have a person of Sam‘s credentials lead the Creative Team at Rediffusion. He is one of the world‘s most awarded creative people. We searched the globe for such a creative talent. Sam is empowered to lead our team to achieve great creative heights with work that helps strengthen our clients‘ brands even further.”

    Ahmed said, “One of the reasons I left advertising is that the focus had shifted, it had become more about making money and less about ideas. I have always believed that only great ideas make a lot of money for your clients and your agency and when the Chairman of a legendary agency offers you a challenge to make Rediffusion the Number 1 creative agency in India, you don‘t ask too many questions, except where do I sign? I have some of the most amazing brands at Rediffusion to work with and I am really excited.”

    Sam joined the advertising and communications industry at the age of 21. He was 24 when he won his first design award and by the time he turned 28, he was creative director of Y&R, Dubai. He was made partner and regional executive creative director of Y&R Brands for the region by age of 31. In 2009, Sam founded the Creative Club of Dubai.

  • LG CMO LK Gupta resigns

    MUMBAI: LG Electronics India chief marketing officer LK Gupta has decided to move on from the company after a stint of five years.

    Gupta is serving notice period at the company, which will end in the last week of December.

    At LG, Gupta’s job was to oversee overall brand and marketing strategy – conceptualisation and implementation at company level and by all business units. His responsibilities also included managing teams and initiatives such as brand campaigns, sports sponsorships, digital marketing, CRM, consumer and business research, media planning and buying, agency relations and ground level marketing activation at branches.

    Gupta said, “My journey at LG was very good. However, I am not in a position to comment on my next venture right now.”

    Gupta has over two decades of experience in the industry. Prior to joining LG in 2007, he has also worked with P&G, Gillette and Indian Market Research Bureau.

  • US ad spend up by a marginal 0.9% in Q2: Kantar Media

    MUMBAI: Total advertisement expenditure in the US in the second quarter of 2012 increased 0.9 per cent from a year ago and finished the period at $34.4 billion, according to data released by Kantar Media a provider of strategic advertising and marketing information. Total spending for the first six months of the year grew 1.9 percent to $67.1 billion. The top 10 advertisers included P&G, Comcast, L‘Oreal, Time Warner and News Corp.

    Kantar Media US chief research officer Jon Swallen said, “Ad spending growth sputtered during the second quarter and was unable to sustain its early year momentum. The advertising market is mirroring the tepid, slow growth performance of the general economy. Third quarter results will get a short-term boost from the Summer Olympics and political advertising but sustained long-term improvement will probably be linked to the health of consumer spending on the goods and services that marketers provide.”

    Television continued to lead the ad market in the second quarter of 2012, with overall growth of 4.4 per cent. Cable TV expenditures rose by 4.2 per cent and growth was driven by sports programming and networks with larger audience ratings. Network TV spending was down 0.4 per cent and comparisons were hurt by a timing shift that moved ad money for NCAA final four games out of April and into the prior quarter.

    Spot TV expenditures increased by 4.6 per cent, lifted by a first wave of political money that began pouring into a handful of swing states crucial to the Presidential race. Double digit growth for spot TV spending in these select geographic areas was a marked contrast to the 2-3 percent growth rate for all other spot TV markets. Spanish language TV budgets jumped 17.8 percent on increases from direct response marketers, consumer package goods and auto manufacturers. Spending on syndication TV rose 10.0 percent, reflecting a combination of audience ratings performance and more hours of programming.

    There were isolated pockets of growth beyond the television sector. Network radio spending rose 20 per cent but comparisons were inflated by the addition of more radio programming to Kantar Media‘s monitoring. Expenditures in outdoor media rose 2.5 percent, the ninth consecutive quarter of year-over-year increases, and were spurred by healthy gains from local retail and service businesses. Internet display advertising fell 5.4 percent in the second quarter. Spending totals, which do not include either video or mobile ad formats, were impacted by a reduced volume of ad impressions with some offset from higher average CPMs.

    Print media continued to lose ground. Ad spending in Sunday magazines declined 7.6 per cent and consumer magazines dropped 2.6 percent due to steep cutbacks from pharmaceutical companies and auto manufacturers. Local newspaper budgets were down 1.9 percent as weaker spending by financial services, travel and telecom marketers erased increases from retailers and auto dealers. National Newspapers suffered spending reductions across key advertising categories as its total expenditures tumbled 10.7 percent during the quarter.

    Spending among the ten largest advertisers in the second quarter of 2012 was $3,578.0 million, a 5.5 percent decrease compared to a year ago. Among the Top 100 marketers, a diversified group accounting for more than two-fifths of all measured ad expenditures, budgets rose 1.1 percent. Lower spending from the top ten group was most pronounced for a trio of advertisers (AT&T, General Motors, Procter & Gamble) that had expensive TV sponsorship positions in the Summer Olympics. Some of their second quarter reductions represent a deferral of spending into July and August to support Olympic marketing programs. Because of this timing phenomenon, the Top Ten advertisers are a less reliable benchmark when analyzing the Q2 ad marketplace.

    Procter & Gamble was the top-ranked advertiser in the period, with measured spending of $577.3 million, down 13.2 percent. It was the sixth consecutive quarterly decline for P&G and is consistent with company announcements that it plans to tighten marketing budgets and shift more money out of traditional media.

    The largest percentage drop among the top ten marketers came from General Motors which slashed its expenditures 30.1 percent, to $291.9million. GM‘s annual rate of measured ad spending is now at its lowest level in over a decade. By contrast, Toyota Motor spent $285.0 million in the second quarter, an increase of 22.7 percent compared to the year ago period when operations were severely curtailed by the Japanese earthquake and tsunami.

    Ad expenditures for the two largest telecom marketers continued to move downward. AT&T expenditures fell 21.0 per cent, to $375.5 million and Verizon cut its media budgets by 14.7 per cent, to $326.9 million.

    Unilever entered the top ten rankings by spending $278.3 million, a 48.6 per cent jump. The company raised marketing support broadly across its brand portfolio. Media expenditures at Comcast increased 12.8 percent and reached $469.7 million on higher budgets from its movie studio division. L‘Oreal investments rose 9.0 percent to $377.8 million as the company continued to aggressively support its core cosmetics and hair care brands.

    Expenditures for the ten largest categories grew 1.3 per cent in the second quarter of 2012 to $21,248.1 million. Retail was the top category with expenditures of $3,837.4 million in the period, up just 0.9 per cent versus a year ago and a sharp slowdown from 8.6 per cent growth in the first quarter of 2012. Higher spending by department store brands was offset by declines from home improvement and home furnishing stores.

    Automotive was the second largest category by dollar volume, with media spending of $3,373.5 million – a 7.7 per cent increase. Dealer ad budgets rose 16.8 percent while manufacturers spent 2.2 per cent more. Category growth was primarily attributable to Toyota and Honda, which could easily demonstrate growth compared to 2011, when their production and marketing activities were at a fraction of normal levels due to the earthquake and tsunami. Apart from Toyota and Honda, aggregate spending by the rest of the auto industry was flat in Q2. Second quarter expenditures for Personal Care Products increased 3.8 percent to $1,897.3 million, paced by competition among leading marketers of cosmetics, hair care and skin care products. Media investments within the Restaurant category were up 2.1 percent to $1,525.7 million, aided by major repositioning campaigns from Burger King and Wendy‘s.

    Telecom ad expenditures were down by 2.4 per cent to $1,990.9 million. Category performance remains divided, with advertising budgets from wireless service providers wilting under the weight of slowing subscriber growth and rising capital investments for upgrading networks while TV service providers continue to raise their media budgets.

    Ad spending in the Financial Services category turned sluggish during the second quarter, falling by 3.4 per cent to $1.9 billion on reductions from credit card issuers and ongoing weakness within the Consumer Banking segment.

    After an extended run-up that began during the 2009 recession, expenditures for Food & Candy are now steadily falling back. Q2 continued the pattern as spending dropped 5.5 percent to $1,538.9 million.

  • P&G ups ad spend in FY12 despite fall in profit

    MUMBAI: FMCG major Procter & Gamble (P&G) increased its ad spend by 25.95 per cent in its financial year ended 30 June 2012. The company spent Rs 2.33 billion in FY12 as compared to Rs 1.85 billion a year earlier on advertising and promotions.

    The ratio of advertising and promotions spend to total sales of P&G was, however, marginally lower at 17.96 per cent against 18.44 per cent a year earlier.

    P&G recorded annual revenue of Rs 12.97 billion, which is 29.31 per cent more than Rs 10.03 billion a year earlier. Its net profit rose 19.87 per cent from Rs 1.51 billion in FY11 to Rs 1.81 billion FY12.

    For the quarter ended 30 June 2012, the FMCG giant spent Rs 482.8 million on ads and promotions; a 6.55 per cent increase from Q4 FY12‘s Rs 453.1 million. The revenue for this period was reported as Rs 3.13 billion having scaled up by 27.76 per cent from the corresponding quarter in 2011 at Rs 2.45 billion.

    The company‘s net profit for the quarter ended 30 June 2012 was 1 per cent less at Rs 352.7 million compared with Rs. 356.3 million a year earlier. The decrease in profit is mainly attributed to increased expenses under change in inventories of finished goods, work-in-progress and stock-in trade. In the last quarter of FY 11, the company actually earned Rs 34.1 million under this category while this year it spent Rs 62.1 million on the same.

    The FMCG giant was one of the sponsors at this year‘s Olympics Games held in London and earned quite a few pats on the back for its global ‘Thank You Mom‘ campaign. In India too, P&G carried out activities and initiatives as part of this campaign. Apart from sponsoring Indian boxer Mary Kom (who went on to win a bronze in the Flyweight (51kg) category), the company also carried out the ‘Fulfill her Wish‘ initiative.

  • JWT makes two senior level appointments in digital

    MUMBAI: JWT has announced two senior level appointments in digital.

    Strengthening its digital team, the agency has brought on board Sushobhan Chowdhury as VP- digital strategy, while Rahul Kaul has joined as VP- digital technology.

    Chowdhury was earlier VP and general manager- strategy with Leo Burnett. He has handled array of clients like Orange, Samsung, P&G, HP, Unicef, Emirates, Consolidated Bank, Brookside and National Oil in Kenya. He has also worked with TBWAINDIA as associate vice president.

    Meanwhile, Kaul moves in from Sulekha.com, where he was serving as director – user experience.

    Prior to Sulekha.com, he has also worked with PayPal, Assigncorpa and Infoedge Ltd (Naukri.com).

  • P&G’s Q3 ad spend up 39% to Rs 526 mn

    MUMBAI: Procter & Gamble Hygiene and Health Care (P&G) has significantly increased its ad and promotion expenses for the fiscal third quarter ended 31 March 2012 compared to the earlier year.

    The FMCG major’s spend on promotions stood at Rs 526 million, up 38.57 per cent from Rs 379.6 million a year ago.

    P&G’s net sales in the quarter under review jumped 39.17 per cent to Rs 3.26 billion, up from Rs 2.34 billion.

    The company’s net profit also saw a jump of 33.67 per cent to Rs 520.5 million.

    P&G MD Shantanu Khosla said, “P&G is committed to delighting its consumers with superior product propositions and innovations such as the New Whisper Maxi and the expansion of the Whisper Ultra product range. In addition, Vicks further consolidated its market position behind new initiatives like the launch of Vicks Vapocool and strengthened its distribution presence. We continue to invest behind out purpose of touching and improving the lives of more consumers, in more parts of India, more completely.”

  • ‘If you are up in the hierarchy, you will get pricing power’ : Star India president ad sales Kevin Vaz

    ‘If you are up in the hierarchy, you will get pricing power’ : Star India president ad sales Kevin Vaz

    Leading broadcasters will continue to post strong ad revenue growth while the long tail will be severely hurt as advertisers tend to consolidate their spends in a cautionary environment.

     

    Genre leaders will benefit as advertising monies get rejigged. It is the weaker performers that will not find support from advertisers; they will degrow.

     

    The television sector will see a 13-15 per cent growth in ad revenue this fiscal while print will be pushed back in a slowing economy.

     

    Star India, which has leader channels in most genres, has done more annual and network deals this year. Its top 10 clients, for instance, have done deals stretching from a minimum of 12 months to three years.

     

    The Hindi general entertainment channel (GEC) genre is on an upswing even as ad monies are moving away from cricket.

     

    The Hindi movie channel genre is set to grow at 15-20 per cent. The news genre will, however, continue to struggle this year.

     

    In an interview with Indiantelevision.com‘s Sibabrata Das, Star India president ad sales Kevin Vaz talks about the changing equations in the television advertising space.

     

    Excerpts:

    Is India‘s leading broadcasting network ready to announce that the advertising economy is slowing down?
    The ad market is not as buoyant as it was in January. The television sector will not see a 20-25 per cent growth in ad revenue this fiscal as was forecasted earlier. But it will still post a 13-15 per cent growth while print will be pushed back in a slowing economy. With print crawling at a 0-3 per cent growth rate, ad monies will move to television.

    Even then it is a slower growth for the TV broadcast segment. Is Star beginning to feel the heat?
    Leading broadcasters will continue to post healthy growth while the long tail will be severely hurt as advertisers tend to consolidate their spends in a cautionary environment.

     

    Genre leaders will benefit as advertising monies get rejigged. It is the weaker performers that will not find support from advertisers; they will degrow.

    Aren‘t Star‘s top advertisers noticing a slowdown?
    We have actually done more annual and network deals this year. Our top 10 clients, who account for 30 per cent of our revenues, have done deals stretching from a minimum of 12 months to 36 months. We will buck the trend and grow much faster than the industry. Having leader channels in most genres has helped us stitch long term deals.

    The fiscal first-quarter is indicating a slowdown for certain listed media companies. So isn‘t there a negative sentiment already prevailing in the market?
    The April-June quarter has been good for us. And the July-September quarter is even better. Of course, the channel performance has also improved. If you are up in the hierarchy, you will get pricing power.

    ‘The hard core press categories are shifting more to TV. The automobiles category is now spending 60 per cent of its ad budgets on
    TV, up from 30 per cent. The consumer durables segment is also
    following this trend‘

    But aren‘t we seeing a small dip in FMCG spending in the first quarter?
    The FMCG category is going to be aggressive this year. Some of them may have issues, but as a whole they will continue to spend more. P&G, Marico and ITC, for instance, will not shrink their promotional budgets. There are variants being launched and competition in the category is fierce. TV is the last thing they will cut down on as it is the most efficient medium for the category. And within TV, they will consolidate their spends.

     

    In a toughening economy, advertisers tend to flirt less; they commit their spends to the bigger players and keep aside a lesser amount for shopping with the rest.

    Are Hindi general entertainment channels going to benefit because cricket is not delivering due to India‘s poor performance?
    Cricket is hit in a big way. GECs are on an upswing even as ad monies are moving away from cricket. The Hindi GEC genre, pegged at Rs 37-40 billion, will grow at 12-15 per cent this year.

     

    It is important to note that cricket is losing out because of India‘s dismal performance; this has nothing to do with a slowdown. In fact, the Indian Premier League (IPL) will be tested next year; as ratings slip, there will be a churn.

     

    So what is working well for us? Cricket and print are on the losing side this fiscal.

    Are tentpole properties bringing in revenue spikes in GECs?
    Advertisers are supporting tentpole properties as they look at buying impact. Brands like Maruti and Cadbury, who are on cricket, are sponsors of Just Dance. Kaun Banega Crorepati has got Idea. If cricket was doing well, we could have come under some pressure. Even in regional language channels, we are seeing tentpole properties being created.

    What about the Hindi movie channel space?
    The ad revenue market for this genre is around Rs 8 billion. It is set to grow this year at 15-20 per cent.

     

    Star Gold will capitalise heavily as the channel is performing very well. We have cut the ad inventory time by 33 per cent with effect from 15 August to give it a Hindi GEC environment (Channel V saw a similar ad cut time from 1 January) and ramped up our investment on movie acquisitions.

    How will the launch of a Hindi movie channel by Viacom18 impact the market?
    We will see a huge erosion in viewership for some channels who have not invested in movies. But from a revenue perspective, we must remember that it is a very efficient genre.

    In the Bengali and Marathi regional markets, it is becoming a three-horse race with Star performing well. So how will this fragmentation impact?
    The successful launch of Star Jalsha has actually grown the market. The Bangla GEC advertising market has grown from Rs 3 billion two years ago to a size of Rs 6 billion. Even in Marathi, there will be a revenue expansion as we start monetising the growth of Star Pravah. In these stand-by-itself markets, advertisers had only limited GRPs to buy. Now that the supply has increased, we expect a 30-40 per cent expansion. National brands are going deeper and deeper and local brands are getting more aggressive.

    Now that Star is also handling ad sales of NDTV, how do you see the growth in the news genre?
    The news genre will continue to struggle this year. Banking, finance and automobile categories are seeing a huge hit; so news television will feel the impact. With the resurgence of GECs, the news genre has actually stagnated for the last few years.

     

    Regarding NDTV, we are selling it along with the network. So we are bringing in a wider range of advertisers.

    Do you see consortium selling growing as a concept?
    Yes, leading broadcasters will become the rallying point. It has happened in the case of distribution (Star and Zee merger) because they sensed value; we will see it in the advertising arena as well.

    Is the English entertainment segment under pressure?
    English general entertainment channels will benefit as the premium segment grows. High-end cars, for instance, will increase their exposure to TV. The English GEC genre will see a 30 per cent growth this fiscal.

    So is TV gaining at the cost of print?
    The hard core press categories are shifting more to TV. The
    automobiles category is now spending 60 per cent of its ad budgets on TV, up from 30 per cent. The consumer durables segment is also following this trend.

  • Posterscope celebrates 3 years in India

    Posterscope celebrates 3 years in India

    MUMBAI: Aegis Media’s OOH company, Posterscope, has completed three years in India.


    To celebrate, Posterscope has planned India’s first celebration party on a billboard in Worli, below the Aegis Media office, to highlight the impact and largeness of the OOH medium. The event will be webcast live on Facebook.


    To commemorate its third anniversary, Posterscope hired the 60ft high hoarding in the office complex and took the party there.


    Aegis Media chairman India and CEO South East Asia Ashish Bhasin said, “Posterscope India is a jewel in the Aegis Media India’s crown and Haresh Nayak and his Team have proven that there is a great demand for a professional and knowledge led OOH operation in India.”


    Posterscope is present across 25 cities in the country with a team of 92 people.


    Posterscope MD Haresh Nayak said, “We have had 3 great years in India and we have successfully ensured diversity in business presence to attain stability and scale in India. Our presence across Traditional OOH, Retail, Digital OOH, Digital Retail, Airports and International campaigns have helped us in scalable and consistent growth. We would like to thank some of our key clients like Philips, P&G, U B Group, ABD, Renault, Blue Star, Essar, Intel, Bharati AXA, Ray Ban, India Bulls, for helping us reach this scale and position of strength.”

  • ‘The pharma industry needs an absolute mind shift. They have to think FMCG and act pharma’ : McCann strategy director Manjunath Hegde

    ‘The pharma industry needs an absolute mind shift. They have to think FMCG and act pharma’ : McCann strategy director Manjunath Hegde

    Manjunath Hegde, masters in marketing management from Jamnalal Bajaj Institute, has over 23 years of experience in 360 brand management and consumer insight based strategy and creative. Over the years he has worked on some of the best brands – P&G, Unilever, Infosys, Taj Hotels, Lakme, ICICI, United Brewries, Marico, Zee TV, CRY. He is also associated with agencies such as Ambience Publicis, Leo Burnett and Bates Clarion.

    Hegde has also spent a couple of years in Dubai as COO, Liwa Advertising, restructuring the agency to global standards and getting business worth millions during the peak of recession. He also co-founded the brand consultancy firm ‘Chlorophyll‘.

    Hegde is presently McCann strategy director, specifically focusing on the pharmaceutical industry.

    In an interview with Indiantelevision.com‘s Anindita Sarkar, Hegde talks about the various advertising and marketing challenges that the pharma industry faces today.

    Excerpts:

    Unlike yesteryears, today there is a lot of brand communication talk happening within the pharma industry. Why this shift? 

    Until now pharma companies had not found a need for real brand management. But they are slowly waking up to the need. And this is because pharma companies have recognised that there is a need for multiple touch points to contact its various stakeholders – patients, chemists, doctors, relatives – for a range of categories as the market in ever expanding and is hugely competitive.

     

    You have been involved in branding at various levels. How similar or different is brand building in the pharma industry?

    The brand building process of a pharma product is very challenging. The principles of brand building will always remain the same; it‘s the manner of executing them that change when it comes to the pharma category.

    Look, for example, it is quite easy for the FMCG advertisers to create brands because they have access to the mass media. But when it comes to the pharma industry, there are media and legal restrictions; you need to take care of your audience and the key influencer, which is the doctor. Because, in this case, you cannot reach out to the consumer directly by foregoing the doctor.

     

    So, what is the communication challenge of an OTC product?

    See, an OTC product can be divided into two categories. The first kind is one which can be purchased across the counter and, therefore, can be advertised like cough syrups. The second category is where by repeat purchase (self medication), the product steadily falls into the OTC bracket again. And in both these categories, it is a must for the products to build an image of their own. The brand communication has to create space in the consumers‘ life; it has to be an experience by itself. It cannot behave indifferently. Only then will the brand be recognized by the consumer. And this is the communication challenge in this category.

     

    How do you deal with the branding strategy of a pharma product as against any other category?

    In the pharma industry, unlike an FMCG product which talks to masses or for that matter any other category, we are dealing with problems that are related to health issues. So, here you are talking to someone who is ill and while your audience is that one affected person, the relatives and family members also become an important audience. Also, here the communication has to be done with the key influencer or the qualified influencer, which is the doctor. And in addition to this, there are also the strict government rules which one needs to adhere to. So the category advertising by itself is extremely challenging and the treatment is very different. Here the product has to go beyond the regular talking about what it will do as a drug and rather become a part of the affected consumer through a new life changing story.

    For example, if it is a product that is made for diabetic patients, then it should talk about the healthy lifestyle approach that one needs to take if affected. It has to show support and concern. Only then will it become a part of the patient‘s life.

     

    What is the primary difference between promoting an OTC brand versus a general brand?

    In an OTC brand, you talk to the consumer directly. But for non-OTC, you cannot use mass media; you are not allowed to. These brands have to be prescribed by a doctor. So in this case, the communication is directed towards the doctor.

    Also, most brands decide not to go OTC (and sometimes they cannot go because its ingredient based) because it is a different ball game altogether. The media spends are higher, the exposure to competition is on a severe basis; it‘s a large market now and totally volume based. So it‘s largely a pull versus push strategy wherein you make the consumers come and ask for it. Whereas, when it comes to non-OTC, it is only a push and push strategy. The companies push it down to the doctors and then the doctors push it to the consumers.  

    ‘A larger trend is moving towards the wellness category – it is a huge market out there. So there is a huge growth opportunity in this segment.‘

     

    So many times is it a conscious decision to go non-OTC? 

    Absolutely. Many times it happens that brands have become OTC by default. And this means that at some point of time they were prescription based, but gradually the consumer has moved to buy the product on his own through repeated purchase. Now, one could take a decision to go OTC but in that case, it may lose out on the prescribed category because the doctor will now stop prescribing that medicine.

    The doctor has to and should refer a non-OTC brand and, therefore, companies who are pharma strong will give a window to the doctors.

     

    In a category like this where you cannot advertise through mass media, what are the primary marketing platforms? 

    In this category there is a need to be present so that you are seen and can touch consumer life in areas where you can meet them. These could be jogging parks, treadmill companies, doctor‘s clinics, conferences and forums. The brands have to talk about their own essence, and say, “I am there.”

    Also, the pharma industry needs an absolute mind shift. They have to think FMCG and act pharma. This means they have to look into the product from the consumer‘s point of view.

     

    Is there alternative medicine market in India (like ayurvedic products, etc.)? Is there a fair consumer tilt towards these?

    Today consumers are becoming more and more health conscious and, thus, there is a trend wherein people are moving towards organic and non-toxic products, courtesy the internet. A larger trend is moving towards the precaution and wellness category – it is a huge market out there. So there is a huge growth opportunity in the wellness category.