to revamp distribution
Adidas India is revamping its distribution set-up and
re-evaluating its distributors. According to the company,
the reassessment will help identify distributors who
don't fit in with the company's requirements.
Adidas currently sells its footwear, apparel and accessories
through 74 exclusive stores run by franchisees, as well
as in about 1,000 multi-brand outlets, which are kept
stocked by around 40 of its distributors.
The company feels that the creation of a department
with a managerial position to take care of distribution
would provide a much-needed focus to the function. The
department will organise specific programmes in terms
of product and marketing support for distributors.
The company is planning to open between 20 and 40 exclusive
shops this year, establishing its presence in some of
the smaller cities and towns.
primarily caters the higher-end sportswear market estimated
at Rs500 crore.
lowers ADC charge; cellular tariffs to fall
TRAI has reduced Access Deficit Charge (ADC), a levy
private operators pay BSNL to carry out operations in
TRAI has removed the distance slab from three slabs
of 30 paise, 50 paise and 80 paise per minute and imposed
a flat rate of 30 paise per minute for all types of
calls across the nation.
TRAI has reduced the ADC component on ISD calls by over
41 per cent lowering the charge on incoming international
calls to Rs3.25 per minute from existing Rs4.25 while
the ADC on outgoing calls have been slashed to Rs2.50
a minute from Rs4.25 now.
According to Trai the new rates would not change the
total ADC amount of Rs5,000 crore annually going to
Bharat Sanchar Nigam.
of local calls, cell-to-cell, cell-to-fixed line or
fixed line-to -cell, are unlikely to change as the structure
for ADC component for these has remained unchanged.
also said that fixed line operators like Bharti, Reliance
and Tatas (other than BSNL) would retain ADC only on
their outgoing calls. ADC on all other calls will be
provided to BSNL.
now only one operator Airtel has said
that it would pass on the benefit of the entire cut
on Access Deficit Charge (ADC) to customers from February
Foods to launch breakfast cereal
Godrej Foods is entering the Rs 400 crore breakfast
cereals market with its soy based health food brand
Sofit. Till now the company has been marketing soy milk
under the Sofit brand.
Godrej plans to price the product in an affordable price
range to make a dent in the largely unexplored market.
The breakfast cereals market is growing in India at
about 10 per cent per annum and is dominated by Kellogg's.
HLL to use the franchisee route for Modern bread
Hindustan Lever (HLL) has decided to focus on the franchisee
route and get out of direct bread manufacturing operations
for its `Modern' bread brand.
A HLL acquired company, Modern Foods India (MFIL), has
11 own bread manufacturing plants, of which four are
at present operationally viable. Three units at Silchar,
Bhagalpur and Ujjain were already closed before HLL
had acquired 74 per cent control in the company in February
2000. MFIL's. The units at Delhi, Faridabad and Kanpur
are believed to have become operationally unviable.
the unviable units, the cost of making bread has become
100 per cent higher than competition and HLL does not
anymore see direct manufacturing of bread as a viable
activity. Hence, HLL is looking to grow the business
nationally through franchisees, taking advantage of
the high recall that the Modern brand still enjoys among
BPCL launches high-octane petrol
BPCL has launched Speed 97, its new brand of high-octane
petrol mixed with lubricant additives, to improve vehicle
Speed 97 is aimed at high-performance cars and will
help by removing harmful deposits from all fuel metering
systems and components, according to a press release
from the company.
has already launched branded diesels, `Hi-Speed' and
another high-octane petrol brand, `Speed 93'.
Lintas to restructure Delhi arm
SSC&B Lintas, the creative arm of Lintas India group,
is overhauling its operations in Delhi and is adopting
a new corporate identity.
agency is also putting an experienced team in charge
of the division and is also upgrading its proprietary
Suresh Tewari, who was till recently the head of Grey
Worldwide, Mauritius has been chosen to head the Delhi
business while Srinivisan Krishnan, an experienced SSC&B
Lintas hand, is being brought back to head the client
Avijit Sen, earlier the chief executive and head of
iB&W Delhi branch, is being appointed as the creative
head of the agency and Rishab Mehrotra will be heading
the account planning function.
Maruti launches Bharat stage III variants
Maruti Udyog (MUL) has introduced Bharat stage III (BS-III)
variants of the Zen, WagonR and Baleno with a price
increase in the range of Rs 0,000 and Rs15,000 per unit.
and WagonR are more expensive by Rs15,000 each while
the Baleno's price has been hiked by Rs 10,000 a unit
From January 7, MUL's showroom in the 11 designated
cities will sell both BS-II and BS-III version of the
From April 1, 2005, only BS-III versions of all models
will be available in the National Capital Region, Chennai,
Mumbai, Kolkata, Ahmedabad, Bangalore, Hyderabad, Secunderabad,
Kanpur, Pune, Agra and Surat.
Bharat Stage III emission norms are expected to bring
down the sulphur content in petrol and diesel to 350ppm
(particulate per million) from the present 500ppm.
A company release from MUL said that BS-III norms are
more stringent than BS-II norms in terms of emission,
as the emission limit has been reduced for hydrocarbons
and nitrogen oxides.
Welspun expands retail network
Welspun India, part of the Rs 2,000-crore Welspun Group,
is planning to begin retailing its products and will
open its first concept store in Mumbai in February this
company is investing heavily in opening exclusive 'Spaces'
stores across the country and is aiming at opening of
20 such concept stores during next one year.
stores would be owned and run by Welspun domestic retail
division and would function as independent profit centres.
Compiled by Mohini Bhatnagar
also see : List
of reports on marketing review