Thursday, September 08, 2005

Chyawanprash Survey .. conducted by IIFT students

Hi all,

As a part of MarkStrat, i have prepared an online questionnaire. Visit link to fill the questionnaire:

People interested in FMCG will love to fill it !!

Nitin Kochhar

Monday, September 05, 2005

Future of FMCG stocks ..

We have seen a good performance of the FMCG funds in past few months. The prospects for FMCG funds have improved manifold. The fortunes of the FMCG companies are linked to the overall economy. With the average income levels going up, people are willing to spend more on FMCG goods among other things. This has resulted in incremental revenues for these companies, improving their bottomlines also.

Prudential ICICI FMCG was the best performing sectoral fund in the past 12 months with a return of 128.44 per cent. In fact, FMCG funds have led all other equity fund categories in the past one year with an average category return of 91.85 per cent.

Last few years, consumption levels were not high. That situation is now changing and we are seeing an uptrend in consumption patterns across the country. Volume growth is happening across the FMCG segment, whether it is paints, soaps, shampoo, etc. Penetration levels in India are also low compared to that in developed countries like US and UK. So there is a huge opportunity waiting to be tapped by FMCG companies.

Besides urban consumption patterns, factors like the monsoon are also driving the FMCG growth in India. Major companies derive half of their revenues from the rural segment, which is mainly dependant on the monsoon. Considering all these factors, FMCG companies should be able to grow fast for the next several years.

It is expected them to post a growth of 12-15 per cent going forward.

Which all FMCG stocks are you going to invest?

RETAIL DISPLAY .. It is helping marketers to increase their sales !!

RETAIL DISPLAY .. It realy Helps !!

1. Area right next to the main entrance is the worst place to display anything. People take some time to settle down after entering a store. So, things kept at the entrance generally go unnoticed
2. Lighting and music are also important for a feel-good ambience. A well-lit store invites lots of customers
3. Men are less likely to climb a flight of stairs to pick up a shirt. Men are not patient shoppers. The men’s section in Snowite, accounting for 60% of sales, is on the ground floor.
4. The ladies’ section is along with kids’ clothing because women tend to shop for kids while buying clothes for themselves
5. Apparel in current demand — cottons in summer, for instance — generally occupy the first counter. Jeans would be kept last, though it’s the other way round in winter.
6. Place the possible matches in nearby counters. For example, spaghettis go well with capris. A coordinated colour scheme is important too, and not just for the walls.
7. Think seasonal: Retailers also come up with different themes for different seasons. "This summer, our theme is vibrant colours, and counters stocking such outfits have been lit up a little extra,"says a manager at Wills Lifestyle in CP. Last year, Globus came up with an African safari theme — even the mannequins were dressed up like tribals. The idea, say retailers, is to provide a change of scene to regular shoppers.
8. Cash counters: Believe it or not, a lot of research goes into their positioning. Generally, cash counters are on the right side: it’s supposed to be the least visibile area. Perfect spot for the last stop.

Can you guys on some innovative retail display which can help the marketers?

ITC Potato Chips and Soaps ... What is Frito Lays and HLL doing?

ITC is set to open two new and significant fronts

A) Potato Chips
B) Soaps

ITC's foods division is preparing to enter potato chips market that is dominated by:

1. Frito-Lay India with brands like Lays, Ruffles and Uncle Chips
2. P&G Pringles - Premium
3. Host of local players

ITC’s product is in its final stages and that it may be launched, in about half-a-dozen flavours, by 2005-end or early next year

Present ITC Foods Portfolio
Ready-to-eat foods, biscuits, staples, spices, cooking pastes, conserves and confectionery

ITC Target
The company plans to do about one-sixth of the volumes Frito-Lay does, which for a new player is seen to be extremely aggressive.

Market Trends
Potato chips is estimated to constitute nearly 85% of India’s total salty snack food market of about Rs 2,500 crore

ITC Strengths
e Choupal - distribution network

ITC is opening up is soaps and detergents, a market dominated currently by multinationals like HLL, P&G and Henkel, and domestic brands like Nirma, Godrej and Ghadi.

Sources say that ITC will launch a bathing soap and a detergent powder in the next few months.

Can ITC Potato Chips and Soaps give competition to dominant players - Frito Lays and HLL?

Can Marketers leverage Sports other than Cricket?

Companies are trying pitch in with sport in any form. They are ready to look beyond cricket for the first time:
  • ITC has a Sunfeast Women’s Tennis tourney coming up
  • Nokia is sponsoring Golf
  • Airtel is promoting Motor sports
  • Arisia Diamonds is sponsoring Polo in Jaipur
  • Standard Chartered is sponsoring the Mumbai Marathon

“Sport and sport stars often acquire larger than life image and brands want to leverage that,” says Ravi Naware, CEO, ITC Foods. “We found a clear fit between Sunfeast and the sport.”

No doubt sports has grown tremendously as a advertising medium, the jump in viewership and the resultant large share in the advertising pie clearly establish the fact that its here to stay. According to media tracking firm TAM, in the year 2004, the viewership increased from a low of 2% to 9% in a matter of three years, and simultaneously the sports advertising cornered nearly a tenth of the total ad spend, up from a measly 3% three years ago.

The consumer durable company Samsung spends close to 15 per cent of his advertising spends on sports advertising. “Sports can be used very effectively for brand building, but it all depends on how a brand wants to position itself, says Ravinder Zutshi, deputy MD, Samsung. And the rising interest for sports amongst corporates can be gauged from the fact that, even a niche sports channel like ESPN Star Sports has totted up 145 clients up from 84, the year before last.

And in the past 15 odd years, both have taken turns to be the favourite medium for marketers. In the early 90s, it was Sachin who caught everyone’s imagination. When that novelty wore off, more cricket stars jumped in to cause a clutter, forcing some marketers to look for diiferentiators in Bollywood stars like Shahrukh and Amitabh Bachchan. Life has come a full circle. Sportstars are hot property again.

And leading the newbie tribe is Sania Mirza. “She is the hottest property ruling the imagination of the youngsters of the nation today,” says Anirban Das, VP, Globosport.

Can Marketers leverage Sports other than Cricket? Are marketers prefering Sania over Sachin?

Saturday, September 03, 2005

Healthier Breads .. Can it work in India ?

One of the more recent trends has been the move towards low trans fats. Of the four types of fat commonly found in everyday foods, trans fat is potentially the most damaging to health. Interestingly, US government legislation has recently been passed to make trans fat labelling on food products compulsory by 2006, a trend which is likely to spread internationally as consumers become aware of the dangers of excessive trans fat consumption.

In North America, Bimbo Bakeries’ introduction of a Sugar Free 100% Whole Wheat Bread under the Oroweat brand

In Canada, The Great Atlantic & Pacific of Canada, under its The Baker’s Oven brand, launched Tortilla Wraps, made without hydrogenated oils or trans fat.

For those looking for more intense internal benefits, there are now breads enriched with functional ingredients, such as the Omega group vital for cell formation and metabolising cholesterol, and prebiotics to help improve digestion and boost the immune system.

These product innovations are working in NA, Canada and other developed countries.

Can these product innovation work in India?
Is India ready for brands SugarFree Breads where SugarFree of Cadilla is not picking up?

Human Billboards ... innovative way to increase sales !!

SnoreStop used “human billboards”. The brand decided to take a chance on a 20-year-old guy from Nebraska, who put up his forehead for offer as advertising space. “Take advantage of this radical advertising campaign and become a part of history,” Andrew Fischer said in his sales spiel on eBay.

He explained that he needed the money for college tuition, as he was an aspiring graphic designer. And SnoreStop’s chief branding officer Christian de Rivel couldn’t let the opportunity pass. The brand paid Fischer $57,000 for the deal. In the five months following the promotion:
Recorded a 50% increase in sales
Staggering return on investment of over 100%

All from one student with a branded forehead? Certainly not.

Ever since Fischer Forehead, other brands have taken the idea forward.

Golden Palace has put its logos on the hides of 100 cows,
after experimenting with branding women’s cleavages and pregnant bellies;

Toyota had 40 people walk around Times Square in New York with the Toyota Scion logo on their foreheads

SnoreStop’s latest recruitment ad reads:
Wanted: New Head of Advertising (no experience required!). Salary: $37,375.

Is Human Billboard ethical??
What are the other buzz techniques which marketers are using??

361 degrees .. What does this mean ?

It’s taken a while for agencies who extol the benefits of differentiation to put their own brands where their mouths are, but a new crop of agencies have done just that. Starting with their agency names. Here’s a sample — 1pointsize, 361 degrees, Flaky, Mellow & Grounded, Marching Ants, Tribe 10 or WYSIWYG (What you see is what you get).

Most of these agencies are young, set up on average three years ago. And in the absence of a big-ticket creative director or other founder, they’ve gone with a name that stands out as the best way to ring a bell.

For Amal Sethi, the name 361 Degrees stands for that added extra which he believe his agency delivers. Like many larger competitors, he’s averse to being called just an advertising agency, and Sethi hopes the name will convey the philosophy of the organisation.

Sethi of 361 Degrees agrees, adding that there are some clients who immediately understand the idea behind the name. Then there was the client who thought it meant the agency would work only 361 days out of 365, but on the whole, Sethi agrees with Khona saying that response is usually positive — an interesting name bodes well for interesting ideas.

A different name helps break the ice, but after that it’s the same challenge to get a client as with any other agency. says Iyer. But at least they’ll have the pleasure of baffling those who read their key numbers.

How much does a name play for agencies?

LiveMark .. Inter B School Marketing Case Study competition

LiveMark is a Inter B School Marketing Case Study competition, conducted by Brandwagon, marketing club at IIFT, where cases involving current "hot" concerns in the industry are analysed thread bare. Ground work for conducting this seminar entails lot of interaction with the companys concerned, designing the cases etc.

Present Status
We have got confirmation from Arvind Brands - Flying Machine Case

Target Cases
ITC - Sunfeast Pasta
Reva - Electrical Car
HLL - Kwality Walls
Mc Donalds
Career Launcher

We welcome people for giving inputs for making this event a success.

Future Plan of Action
1. Developement of website for LiveMark
2. Getting the final Cases
3. Informing corporates and B school about this event

LiveMark team

Brandwagon Coordinators
Nitin Kochhar - 9811661872
Vaibhav Chadha - 9891015619
Manveet Singh Hora - 9811756781

Deepak Venugopal
Rahul Biswas

For any clarification, contact any of us.

Thursday, September 01, 2005


Sona Chandi Chyawanprash was launched by Himani in 1999 positioned around the concept of "Surakshit tan, tez dimag"

Product Definition
Based on years of research by Himani Ayurveda Science Foundation, Sona Chandi Chyawanprash is fortified with the super power of Gold & Silver along with 52 rare herbs & minerals.

Brand Ambassadors
Sona Chandi Chyawanprash is endorsed by the Indian cricket team captain Saurav Ganguly & the bollywood hero Sunny Deol.

Product Benefits
Scientific way of herb collection, latest production methods ensure that the natural goodness of the herbs remain preserved. Rich in vitamins A, C, D3, Calcium, Iron, Protein, Carbohydrates, Sona Chandi Chyawanprash is an excellent immunity builder, it fortifies the entire system. Gold, Silver & Saffron the prime components, give Sona Chandi a distinct competitive edge. Other highly effective herbs like Brahmi, Haritaki, Amla, Arjuna, Apple juice, Pippali etc. make this Chyawanprash a true "Elixir of Life".

SCCP has not done well in West of Bengal and Bihar?
To undersand the brand better and to make a marketing plan for SCCP, we want inputs from all of you to comment on the following issues:
  • Brand awareness and recall with the product
  • Impact of advertisement
  • Consumption habits
  • Sales promotion and packaging
  • Solo positioning or complimentary positioning
  • Purchasing Frequency
  • Group vs Individual Influence

Looking forward for your responses, to design the Road Ahead for SCCP!!

RETAIL PRIVATE LABELS.. will they take over Big Brands

Walmart - EQUATE (Health and Beauty)
Shopper Stop - STOP, Kashish, LIFE and Vettorio Frattini

Stats: 80% of Shoppers' Stop's revenues are generated selling these brands and the remaining 20% through Shoppers' Stop-owned private labels.

These private labels can be divided into a number of groups:
Store brands: This is where the retailers name is very evident on the packaging
Store Sub-brands: Products where the retailers name is low-key on the packaging.
Umbrella branding: A generic brand independent from the name of the retailers name. Umbrella brands are used in different product categories.
Individual brands: Name used in one category, this is only used to promote a ‘real’ discount product line.
Exclusive brands: Again a name used in one category, but to promote ‘added value’ products within the category.

Overall private labels are used to provide products with a lower price. In Europe, these prices can be 10-18% cheaper, whilst in the USA some private label products are 25% cheaper than the brand leader.

What is the future for private labels?
Private labelling will continue to grow and in Europe especially, will become international. Discount stores will develop their own private labels at the expense of brand labelled products.

Apart from price driven private labels, the upmarket label will develop. This has already been achieved in the UK with Sainsbury’s wines and Marks & Spencer sandwiches. The private label will continue to compete with brand leaders. The warning is if you have a branded product that is not a market leader then your product could be seriously under threat in the next few years.

For more details visit:

The private label leaders
Aldi: 95% private label
Lidl: 80% private label
Sainsburys: 60% private label
Tesco’s: 40% private label
Wal-Mart: 40% private label
Carrefour: 33% private label

Who will win - Private Labels / Established Brands?
Are there any success stories of private labels?

ITC .. signed contract with O&M

O&M is the fourth agency to be signed on by ITC Foods in Bangalore. The agencies which are currently working on other ITC Foods brands in Bangalore are:
  • McCann-Erickson
  • FCB-Ulka
  • Grey Worldwide

Reasons for getting the contract:

  1. Brand name
  2. Strong Presence in Bangalore
  3. Infrastructure
  4. Right people

Which other FMCG companies have gone for which media companies?

Why FMCG companies sign a particular media companies .. factor responsible?

MARKETING CONCEPTS ... gorgeous girl at a party

A professor at IIM was explaining marketing concepts:

1. You see a gorgeous girl at a party. You go up to her and say: "I am very rich. Marry me!" - That's Direct Marketing

2. You're at a party with a bunch of friends and see a gorgeous girl. One of your friends goes up to her and pointing at you says: "He's very rich. Marry him." - That's Advertising.

3. You see a gorgeous girl at a party. You go up to her and get her telephone number. The next day, you call and say: "Hi, I'm very rich. Marry me." - That's Telemarketing.

4. You're at a party and see gorgeous girl. You get up and straighten your tie, you walk up to her and pour her a drink, you open the door (of the car)for her, pick up her bag after she drops it, offer her ride and then say:"By the way, I'm rich. Will you marry me?" - That's Public Relations

5. You're! at a party and see gorgeous girl. She walks up to you and says:

"You are very rich! Can you marry ! me?" - That's Brand Recognition.

6. You see a gorgeous girl at a party. You go up to her and say: "I am very rich. Marry me!" She gives you a nice hard slap on your face. - That's Customer Feedback.

7. You see a gorgeous girl at a party. You go up to her and say: "I am very rich. Marry me!" And she introduces you to her husband. - That's demand and supply gap.

8. You see a gorgeous girl at a party. You go up to her and before you say anything, another person come and tell her: "I'm rich. Will you marry me?" and she goes with him - That's competition eating into your market share.

9. You see and gorgeous girl at a party. You go up to her and before you say: "I'm rich Marry me!" your wife arrives. - That's restriction for entering new markets.

Any more additions ??