A US law, brought into force after 15 years, has banned the display of tobacco advertising to non adults. But the tobacco companies are not going to give ground so easily.

In the history of advertising, the first known advertisement in USA was for snuff and tobacco products of P. Lorillard and Company appearing in the New York daily newspaper in 1789. But, the first real name to become to become what we can call a brand was “Bull Durham” which was launched in newspapers in 1868, with the advertising sending the message across that how easy it was “to roll your own”. With the development of color lithography in the late 1870s cigarette and other tobacco product makers began to create attractive images to bring more visibility to their products. thus began the era of picture driven tobacco advertising. But if a recent law that took 15 years in the making is implemented with all its provisions, juveniles and coming generations of American children will only get to even see Marlboro Man or the upright ‘Camel’ post attaining adulthood.

In June 2009, the Family Smoking Prevention and Tobacco Control Act was signed into law by US President Barack Obama. The law, being hailed a “sweeping anti-smoking” bill, amongst other restrictions, virtually bans the advertising or promotions of tobacco products to non adults (people aged below 18) in the USA. The US Food and Drug Administration (USFDA) came up with a set of rules to restrict tobacco advertising to teenagers in 1995. The proposed set of rules generated a massive controversy when first proposed in 1995 by the FDA and was never adopted by the agency. Post scores of heated debates and controversies, a Supreme Court ruling came in 1998 that a separate law was required to empower the F.D.A. to regulate tobacco products.

The current law establishes consistent enforcement mechanisms across the country. Under its provisions, store managers/employees will be required to check photo IDs to verify that customers are old enough to buy tobacco goods. It prohibits the sale of cigarettes in packs having less than 20, eliminating the so-called “kiddie packs” that make cigarettes more affordable to teenagers with small pocket allowances. On the promotional front, the law bans sponsorship of sporting or entertainment events by tobacco companies, even for smokeless tobacco products. It also restricts tobacco products in vending machines and self-service displays to adult-only facilities, and requires stores to place them behind the counter.

Interestingly, non-tobacco products cannot have the same names as those of tobacco brands (sometimes called surrogate ads tactic) to circumvent the ironclad law.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
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Will the Sony Ericsson brand stage a comeback in the Indian market and regain lost glory of yesteryears? Or will it go down in the books as yet another Titanic?

Sony Ericsson is clearly confused. Allow us this statement, for it is one handset brand that on one hand does not have an operating system of its own (which is not a problem area), while on the other, has never been sure of which operating system it should (and shouldn’t) rely on. Initially, it started by using the Symbian platform (which is housed in Nokia handsets). In the year 2009, it launched its flagship mobile handsets – the Xperia X1 and X2, that were based on Windows Mobile platform. And today, after just a few months of betting on the Windows technology, it has planned to experiment with the Android with its Xperia X10. Thus, Sony Ericsson, as of date, is actively involved with three ‘unrelated’ smartphone platforms! And here’s the motherlode of all confusions – Bert Norberg, Global CEO of Sony Ericsson has even hinted that his company would be glad to take on a fourth platform (or more) in due course of time. This will leave the brand with a confused product line and a hazed-out positioning strategy, something which will definitely not help the cause of a company, which is struggling to reconnect with its customers not only in India, but across the world.

Ask any of the emerging local players about which Ps of marketing are most critical when it comes to a competitive and price-sensitive market like India? The answer would be – Price & Place. And those are areas where Sony Ericsson has to improve. Even its most recent launches have been in the price range of Rs.25,000 to Rs.35,000. Though this helps its premium positioning strategy, it surely will not get its sales register ticking in the Indian market. Even Hirokazu Ishizuka, Sony Ericsson Corporate VP & Head of APAC region says, “The key would be a portfolio with a minimum price of Rs.3,000, because that is where we think our phones can add value in a customer’s life.” “The reason why Xperia X1 could not do well was because of its pricing. It was launched at Rs.42,000,” avers a leading telecom analyst. Therefore the trick is to launch lower-priced products, for the mass market. There are also concerns regarding its distribution, as Rajiv Seth, Regional Head of Sales, APAC Region, says, “We already have 40 exclusive stores in the country and would be looking at opening more.” Certainly, there is no harm for the company to be selling products that fall in the premium category, but for that, it would have to work towards building an improved product portfolio, pay greater attention to its distributor/dealership network, focus on a uniform OS platform and revamp its communication strategy. Our take: though the odds are high, if Sony Ericsson works on these, it might just strike back!
Surbhi Chawla

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website


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Remember the evangelist insurance ads that hollered at you to either buy the insurance products or die, be maimed, suffer unimaginable ill-health, misfortune and the worst doomsday scenarios possible? Well, there are two, perhaps three, firms which are beating the status quo, churning out ads that talk about everything positive, but disaster! Great start, but are customers buying the spin?

True, insurance as a product is highly intangible, and a customer has very limited ways to experience the brand or the product and hence a greater need for the brand to stay relevant and go with the tide. But it’s also true that MNYL was quick to learn this facet and went ahead with clutter breaking advertisements coupled with on-ground communication. As a matter of fact, the thought behind the ad campaign of the insurer has been so strong that it never felt the need for a celebrity endorsement. Not only ad campaigns, the insurer, which claims to have more than 6% market share (in terms of FYP growth), is following the footsteps of leading firms in sectors such as telecom, consumer durables, banks et al when it comes to in-serial (on the lines of in-film) placement. So be it Big Boss Season 2 or Balika Badhu (both on Colors), the insurance brand is taking up multiple spots to make the brand visible.

But why in-serial placement? Anisha Motwani, CMO, MNYL, explains the logic to us, “While in-film integrations have been attempted by many a brand, the objective behind in-serial integrations was to create differentiation in a much cluttered environment,” further adding that identified “Content Integration” in chosen properties also helps MNYL’s brands ride on the strong emotional connect that the property enjoys with the audience. But with so many serials on air, why did MNYL zero in on Balika Badhu? Says Anisha, “Balika Badhu was an apt choice given its consistent performance and content – addressing the fate of main protagonist (Anandi) who gets married at an early age and gives up her ‘education’ because of child marriage, highlighting the feudality of child marriage as a custom and therefore importance of education in every child’s life. Through content integration here, Max New York Life’s objective was to bring alive the need to ensure security of the child’s future which every parent strives for.” The integration of MNYL was first done by Colors on a fiction show. The serial Balika Badhu, as of March 25, 2010 has garnered a TVR of 6.5 – ranked #2 – in the list of most watched programmes on Hindi GEC.

Sensing the dynamics of the market as well as the changing demands and expectations of consumers, other insurance players too are falling in line. HDFC Standard Life (the associate sponsor of Rajasthan Royals in IPL 2010), which toes the doomsday profile line in most of its ads, has gone the other way with a new commercial which blends the common value (to both HDFC Standard life and Rajasthan Royals) – self respect or living life with pride – with each of the success stories of the players is a point in case. Sanjay Tripathy, Executive Vice President and Head, Marketing, HDFC Standard tells us, “The campaign is a natural outcome of our effort in propagating the values of self pride, confidence and self belief.”

On a concluding note, it’s quite evident that insurance firms have realised Indians are stoically refusing to buy insurance products only for the insurance cover. They’re demanding adequate interests on their investments – sometimes comparing insurance products with savings schemes. Given this iron clad mentality, the current move away from Nostradamus’ shadow is brilliant – but for it to become a standard, would take much more time.
Gyanendra Kumar Kashyap


For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website


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The Reliance-ADA Group promoted BigAdda.com has made its mark in the Indian social networking industry and is now searching for additional revenue streams, one of them being reality shows on its portal. Mandar Natekar, Head, Marketing and Revenue, BigAdda.com argues on these strategies, and others to 4Ps B&M
 
Reality shows have been the talk of the town on the idiot box for many years now. Be it the longest-running MTV Roadies, the much-hyped Big Boss or the popular Indian Idol, all of them have created enough buzz in the marketplace to take the segment to a new level. And the latest trend attempting to make its mark is the launch of reality shows in the social networking arena. As Yamaha’s India Bike Rally created a lot of noise on the BigAdda platform last year, the social networking portal has followed it up with the launch of Get Fit India. Mandar Natekar, Head, Marketing and Revenue, BigAdda.com shares his thoughts on the future of the social networking and the scope for growth in the reality shows arena in the industry with 4Ps B&M.

The India Bike Rally was good. But an online fitness reality show on BigAdda? Will it work?
The program is called Get Fit India and it is the first ever fitness reality show on the internet space. It’s an 8-week long reality show on BigAdda.com where auditions will be held across select Gold’s Gym outlets in five cities – Mumbai, Delhi, Bangalore, Kolkata and Mohali. Such programs have clearly opened new revenue streams for the company as Revital and Equal are the main sponsors and co-sponsors respectively along with Gold Gym as the main sponsor. We love to surprise our users constantly with such initiatives and will continue to do so in various innovative ways to enhance user engagement.

So, basically it is something similar to what you did with Yamaha India Bike Rally.
Yes, we did the rally last year and the response that it got was overwhelming. In fact, we would like to do it again this year as IBR2. We received stupendous response to India Bike Rally and here we are with our second reality show Get Fit India which is aiming to tap the young and enthusiastic India. With fitness being one of the most popular thing today among the youth of the country and social media being the fastest growing internet networking platform, we are confident that this show will not only entertain the participants of the show, but also ensure high engagement for all our users right from day one of the show. Moreover, our offline partner Gold’s Gym will also play a major role in its success.

So you’re saying that you’ll launch more such initiatives?
From now on, we will keep on launching such initiatives on different platforms in the coming time. In fact, we have already short listed the upcoming platforms and we are working on that keeping in mind the response the first one has got. But I would still refrain from divulging any further details on the same.

Is it because of the fact that the competition in the Indian social networking sphere copies formats really fast? Yes, because of the segment that we operate in, it will not take much time for the competition to copy us as an original idea takes a lot of time before it turns into reality.
 
There is immense competition in social networking industry. Where do you believe BigAdda stands in front of counterparts like Facebook and Orkut?
If you ask me frankly, we don’t consider Orkut as our competitor. Orkut is more of a dead brand in the country and it is only Facebook which is getting much of an action from the users. It was during a couple of years back that Orkut created a lot of buzz in the Indian market but that has settled now and we only consider Facebook as our competition as far as the players in the Indian social networking industry are concerned.

Does the fact that Facebook is now getting more serious about the Indian market and is opening an office in Hyderabad worry you?
The office that Facebook will be opening will be focusing more or less on supporting their back-end and hence will not be a point of worry for us.

What are your thoughts on other small social networking players in the Indian market?
There are a handful of social networking players operating in the Indian market but frankly, they haven’t been able to get anywhere so far. We don’t consider them in our league as we at BigAdda are aiming for the top slot in the Indian social networking industry.

But does BigAdda really have the potential to reach the top slot in the Indian social networking industry?
We are very much confident that we have what it takes to become the number one social networking portal. In fact, that’s what has been ingrained in the DNA of the ADAG that whichever segment it operates in, it always aims for the top slot.

Do you believe that localised content is the USP that many Indian social networking websites have vis-à-vis the globally established players?
Localised content is what BigAdda banks heavily on as it makes the platform more closer to the user and that’s what a Facebook or an Orkut can’t do. For that matter, we keep on organising such activities for our users where they can chat with Bollywood stars giving them an opportunity to interact with them on the BigAdda platform.

Pawan Chabra

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website


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Campaigns that are integrated across several media channels aim at increasing the number of ears and eyes that are exposed to the campaign
 
Every advertising medium has its own unique characteristics, and advertisers invest significant resources learning how to adapt their message to derive maximum benefit from each medium’s distinctive advantages. Mobile phones becoming the most widespread digital device combined with the communication space becoming more crowded, creating pressure on advertisers to look for ways to be innovative and different, it was only a matter of time until the attention of advertisers would turn to mobile. The y-o-y growth of mobile digital advertising market is expected to be 55%. Digital advertising is still in a nascent stage in India and brands are in the experimental stage with a focus to reach remote areas. Digital advertising space has grown by about 74% in 2008-09 to reach Rs.680 crore and is expected to be Rs.5,390 crore by 2011. Of Rs.680 crore, wireless application protocol based advertising was about 30%, while opt-in SMS contributed 10% of the market share. One of the most important lessons to be learned is that the mobile medium is different in many ways from other advertising mediums.

The lines between mobile marketing & advertising are blurred. Some advertisers have been including the mobile as one more element in a mass-market approach for several years now. But examination of many of today’s mobile marketing campaigns reveal that they largely use formats borrowed from other advertising platforms (TV, Internet, gaming, etc.) and that they rarely leverage the unique characteristics & capabilities of the mobile medium. Take WAP banners, for example. With more people surfing the Web through their mobile, many advertisers simply extend their Internet banners to be WAP banners as well. If you ask these advertisers, they’ll probably proudly tell you that they are engaged in mobile advertising. But are they really?

Over time savvy advertisers will learn to leverage and take better advantage of the unique characteristics of mobile advertising, which is in many ways still in its infancy. Those making the effort to get to know the mobile medium a little better are discovering a broad range of innovative possibilities enabled by mobile advertising. Business news, specifically stocks, cricket updates, generic news and entertainment such as music download, movies and Bollywood updates are amongst the big ones. The mobile medium is used for many types of communications and entertainment. This variety puts many communication channels at the advertiser’s disposal, creating a rich, multi-channel inventory that can bring advertising to the user through voice, messaging, browsing and video platforms. Different channels can vary in their level of effectiveness with different audiences. Just like one person hardly watches TV and can more effectively be reached through a highway billboard on his way to work, another may hardly watch video on his mobile but is a heavy voice applications user, and may better be reached through voice channels.
 
These unique attributes give the advertiser new levels of precision in terms of targeting and reach. The ads are no longer served in a relatively random way; they can now be fully targeted, personalised & delivered to an individual and precisely defined user segment. Surely some consumer privacy issues come to mind but those issues can be addressed through user incentives. In order to encourage users to opt in and agree to receive ads, operators can offer consumers persuasive incentives — free SMS, free airtime, etc. This creates a whole new relationship between the advertiser and the consumer; no longer are the ads viewed as disruptive & annoying. The fact that the ads are highly targeted and tailored to user interests can make the “being advertised to” experience a welcome one (users actually want to provide information on themselves!), which mitigates many privacy concerns. The mobile is an innovative advertising platform that can really make a difference to the advertiser. In order to rise above the clutter, it is important to take into account the medium’s distinctive attributes and use them to take the relationship with your end-user to a whole new level.
Neha Saraiya

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website

 
 
Picture
It is not necessarily the strongest of the species that survives, but the one most responsive to change. Taking liberty to rewrite Darwin’s theory, Goafest – with its tagline ‘survival of the freshest’ – is back with a bang. The Mecca of Indian advertising is scheduled to be held at Cavvelosim beach from April 8-10, 2010. The theme for this year’s event would focus on the fast changing technological trends where advertisers are challenged to use clutter breaking ideas. The winners would be judged on parameters based on innovation and also on their efforts towards greater brand building in the country. Despite the fact that the advertising market has shrunk by 10% in 2009 in India, the organizers look confident about a successful event in 2010. Goafest, which is expecting more than 3,000 delegates from around the world, will provide them a perfect platform to interact with advertising stalwarts and also provide them an opportunity to recognise creative talent. The first day of the event would focus on delegates defining how to regain growth after a downfall in 2009. The second and the third day would feature Media Abby awards and Creative Abby awards respectively. And if you thought that the remaining days you could chill out no the famed Goa beaches, perish the thought in an instant, as day temperatures are expected to cross 40 degree celsius.
 
Ashutosh Harbola

For more articles, Click on IIPM Article.

Source :IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website


 
 
With every player in the Indian FMCG arena battling to stay a step ahead of others, one can see a lot of new (and not so new) weapons in their marketing strategies. 4Ps B&M sums up four such strategies, which have now emerged as top competitive tools
 
IT’S THE BOX, HONEY, THE BOX

It has been there for quite some time, but only recently has it emerged as a new trend in India with many FMCG players resorting to the allure of using ‘Packaging’ as a competence and market building tactic

Considering that packaging was more or less the fifth P since long, it’s quite surprising that it took this much time for Indian companies to realise that this factor could also be tactically utilised to gain sustainable competitive advantage. While MNCs like Nestle (Re.1 Nescafe sachets) and HLL (Sunsilk shampoo throw-and-use satchets) have used this P to cut across to the lower levels of the pyramid, upstart Indian quick service retailers (like Haldiram, Bikanerwala) have used packaging to the hilt in the festival season by introducing the Indian variant of the bundling strategy – selling many different varieties of sweets and salted items together in one gift wrapped package. Packaging has also ensured usage increasing because of a huge perception change. While Dettol – through its push dispenser hand wash package – entered the psyche of middle income households in a big way, Dabur Honey expanded its market simply by printing multiple uses for honey on the packaging. Amit Burman, Vice Chairman, Dabur, tells us, “Our research showed that honey in India is perceived as a medicine. To break this myth, we suggested alternative usage of honey in our packets and it helped us to become the market leader.” Clearly, the wine is immaterial, as long as the bottle is new.
 
IN ALL FAIRNESS, THE FAIRNESS WAR IS BACK

It’s all about black, white and various shades of gray of the male species – ads, products promoting fairness to men are back!

Remember how some years back the government had moved against ads and products promoting fairness to women? That was the Paleolithic age for you, which gave that critical push where companies started marketing these products to men. The male fairness war is the biggest war in consumer beauty products currently in India. If Emami’s Fair & Handsome and Nivea’s men’s line were the leaders for male products in the fairness creams market, two new brands have the ante by joining the fray – HUL’s Vaseline and L’Oréal’s Garnier. Emami too would soon be rolling out more products under the brand Fair & Handsome. And why is all this becoming so important? Well, the fairness creams market is estimated to be a mind numbing Rs.800 crores this year!

Read More....


 
 
With due apologies to the Klein fraternity, the logo is not only important, it is mission critical to ensure tactical superiority over competition! An Indian FMCG primer...
 
The Indian FMCG sector is perhaps among those few sectors that remained buoyant even during the slowdown. Of course, that’s a tad too old to discuss, but what really needs a mention is the way the players in the sector have paved their own growth paths despite the turmoil. A closer look at the sector and one can clearly figure out the changing dynamics.

From M&A activity to back-end investment, the Rs.450 billion FMCG industry has resorted to some brilliant strategies over the last few years. Those strategies have not only shown good results, but have also initiated some new trends in the industry. In fact, according to SSKI Research, it was investments in back-end operations by FMCG players that helped the sector to achieve an average annual growth of 17% till 2007. However, later their focus shifted to front-end activities. In fact, retailing was the buzz word among big daddies of FMCG industry until the slowdown fever gripped India Inc. in the year 2008. Though they remained focused on enhancing front-end operations, FMCG corporations were now resorting to value added services. Result: From domestic giants to global MNCs, almost all FMCG players in India integrated forward, either by venturing into the retail business or by entering the services arena.

Seven years ago when Harsh Mariwala, the CMD of the $250 million Marico, forayed into the services industry with Kaya, analysts couldn’t figure out the correlation between services and the FMCG sector. But through a well-designed service encounter process supported by innovative positioning, the brand not only reached a break-even within five years, it has also recently crossed the 100 stores mark across India and Middle-East. The company has started the year 2010 by entering Bangladesh too. Similarly, Lakmé Salon from the stable of HUL is an initiative to revamp the brand image of Lakme by stepping into the world of services. So, if Marico has positioned itself as a skin clinic, Lakme Salon’s USP rotated around cosmetics for woman.
 
No doubt, when it comes to the utilisation of brand equity, this foray into the services sector sounds like an interesting strategy, but then challenges are galore. With KSA Technopak claiming the ‘well-being’ FMCG sub-sector market fetching an extensive business of $24 billion in 2009, service providers in the beauty business too have now started entering into the high-growth FMCG arena. One example being the Rs.4 billion VLCC. “We have been always known for providing the best service and to make that happen we need a lot of trusted FMCG products. Thus, if we can create our own FMCG products why not brand them,” reasons VLCC’s mentor Vandhana Luthra. But while Luthra and several similarly placed entrepreneurs are busy expanding their FMCG footprints, the original FMCG players too are leaving no stone unturned in adding more services to their business portfolio. (Lakme, for example, has even set up the Lakmé Training Academy to tap the potential of the beauty & hair-styling industry in India. To add credibility to the programme, it has tied up with global brands like TIGI and Schwarzkopf).

This growth mantra is not limited to just beauty & saloon business. An FMCG major like Dabur is going full blast with its ‘newu’ stores. This retail venture from Dabur stocks international brands at present. “We are not providing any direct services at present as our core focus is to provide a complete range of brands for beauty and wellness solutions to consumer,” Amit Burman, Vice Chairman, Dabur India tells 4Ps B&M. Godrej Group, which has three FMCG companies, also suddenly seems to be excited about retail expansions – their venture Nature’s Basket being evidence. While nothing happened to this slow starter venture between 2005 and 2009, in 2010 Godrej has already opened two new Nature’s Basket stores and is planning to open six more very soon. Raison d’être: Entering the services and retail arena definitely helps FMCG companies to promote their brand. But then, two crucial challenges remains. First, the role of human resources in maintaining the consistency of services (something that’s stopping FMCG behemoths like Emami from joining the bandwagon) and second, the problem of over-promises (many service providers fail to meet the commitments they make).

And then there are others who historically took a different path focusing on niche markets. As would be already very well known, FMCG giants like HUL and ITC entered into the retail and service industry through Project Shakti and e-Choupal respectively, by opening retail stores catering to a specific target group (rural India)!

Evidently, the Indian FMCG industry is only going to grow by leaps and bounds in the future. And with entry restrictions in the retail sector bound to become less in the future, there’s a bated breath expectation of things to come. Given the fact that most FMCG purchases are impulse decisions, the importance and the power of the brand name cannot be emphasized less. For once, truly Indian brands are standing their space even when the competition is from Fortune 500 companies and other ruthless rivals. To that, and to the gumption that has been displayed in fighting competition, is dedicated this particular ICMR-4Ps B&M survey of India’s most loved brands.
Angshuman Paul
 
 
The success of a product and subsequently its brand is predominantly measured by the market share it garners. However, if a non-leader is able to achieve the status of a preferred and most recalled brand, it has already won the battle

4Ps B&M in association with ICMR (Indian Council for Market Research) conducted a survey on India’s Most Loved FMCG Brands amongst 950 respondents across five Indian cities – Delhi, Mumbai, Bangalore, Kolkata and Chennai – using a structured questionnaire and a random sampling technique. The FMCG segment was further sub-categorised and brands under them were mentioned. Most sub-categories have been considered but due to time constraint, certain sub-categories have not been covered under the purview of the survey like home utility products such as home foils, tissues, match boxes, et al.

The survey in these cities was conducted with SEC-A and B segments. The respondents were asked their top of the mind recalled brand under different FMCG product categories. They were also asked to name their preferred brands. The respondent profiling was done based on the segment being interviewed for. Take for instance the category of shaving creams/after shave lotions, where the survey was conducted amongst males only. The age-group of the respondents was also kept in mind considering that the respondent is preferably a user and buyer of the different products. 7% respondents were below 21 years of age, 12% between 21-30 years, 39% between 31-40 years and 42% above 40 years of age.

It is important to note that since the survey was based on two parameters – recall and preference – therefore, in certain categories, the responses may be surprising considering the fact that the respondents have mentioned their preferred brand and not necessarily the brand they actually use. For instance, in the segment of hair oils, it was surprising to note that though Dabur Amla was a highly preferred brand as per the ICMR survey, as per statistics, Parachute Hair Oil has the largest market share of 48% while Dabur Hair Oil (which has Dabur Vatika and Dabur Amla in its portfolio) has the second largest market share of 18%. It is still interesting to note that Dabur Amla Hair Oil commands 72% in the amla-based hair oil category, and hence is a preferred brand.

Head-ICMR Team: Shivalee K. Sharma
Coordinators: T. Shankar Rao, Ankit Srivastava, Somanjan Bandyopadhyay