Marketing review

26 May 2004

Coke retro campaign moves on
Coca-Cola India is moving on to the second phase of its launch activity for Vanilla Coke in the South.

The second phase involves a roadshow with a float featuring Vanilla Coke. The theme as before will be the look of the '70s. Coke has just concluded a series of roadshows where brand ambassador Vivek Oberoi's look-alikes performed jigs at traffic points and offered samples of the drink.

Its other promotional activities include inviting prominent people in various sectors, such as IT and business, to host Vanilla Coke theme parties for around 100 of their friends, dressed in retro costumes. While Coca-Cola pays for the venue, music and the drinks, the invitees pay for their food.

Rasna announces slogan contest
Rasna has announced the launch of a slogan contest that will entitle 10 lucky children to enjoy a fun-filled plane ride with Hindi film heroine Karisma Kapur. Karisma Kapur is the brand ambassador for Rasna.

According to the contest rules kids between 4-10 years have to complete the slogan "I love Rasna Juc-Up because... ... " and send it along with 10 single-serve sachets of Rasna Juc-Up to the company.

A panel of judges will decide the winners. Those who do not make it to the finals will be entitled to 1,000 early bird prizes.

Rasna is among the most recognized brands in India and is a leader in the soft drink concentrate market with a 93 per cent volume share. Rasna also holds the 1st position in the beverages category in the country according to the Brand Equity Most Trusted Brands Survey, and is the 15th most trusted brand in India across categories.

P&G to enter new segments to strengthen market share
P&G India is foraying into new categories in the FMCG market as part of a worldwide strategy to increase market share in low-income countries. These categories include oral care and beauty products to obtain economies of scale and become the 'most-preferred supplier' in trade channels.

The long-term aim of the company is to be the number one or number two player in the major FMCG categories in India. P&G's products have a premium image attached to them in India but through value corrections, it has now made them affordable to the Indian consumer. The company now intends to forge ahead mainly on the basis of pricing.

Amul to focus on Amul Taaza
Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), maker of Amul brand of products plans to focus on marketing Amul Taaza, the long-life milk in both domestic and export markets after the impressive response received by the product in the domestic market.

The long-life milk market segment in India has grown from 1.4-lakh litres a day to 1.9-lakh litres a day during March, 2003, to February 2004.

Amul Taaza has increased its market share in this segment from 40 per cent in March 2003 to over 65 per cent by end of February 2004.

Officials in the company say long-life milk is among the safest and healthiest milk options available to consumers all over the world as it is bacteria-free and packed in tamper-proof packs. Amul Taaza milk can be stored at room temperatures for over 180 days and does not need refrigeration till cut open.

In spite of this consumption of long-life milk has not been commensurate with its attributes. Now the federation is making all-out efforts to promote this healthy alternative through its Amul Taaza brand. Through a sustained mass-based campaign, the federation is conveying to the consumers the benefits of long-life milk according to a press release from the company.

Amul Taaza has already assumed the market leader position in West Asia, Hong Kong, Singapore and Sri Lanka according to the company.

Ajanta Pharma restrained from using IDA's `seal of acceptance'
The Bombay High Court has restrained Ajanta Ltd from using the 'seal of acceptance' of the Indian Dental Association (IDA), on its toothpastes including Ajanta Dento White toothpaste.

This follows a suit filed by the Indian Dental Association before the High Court, objecting to the use of the IDA seal of acceptance by the company for its toothpastes. At the time of IDA's application, the company had consented to the order being passed.

IDA claimed in its suit that Ajanta was misleading the general public and dental practitioners into believing that the IDA has approved the product claims made by it regarding its toothpastes when the IDA central council had neither granted its seal nor approved the company's product claims.

The IDA is a professional association of dentists dedicated to serving the public and the profession of dentistry. The IDA grants its Seal of Acceptance after an extensive evaluation of the product concerned in accordance with IDA's rigorous protocol, after satisfying itself among other things, about the veracity of the claims made about the product.

Crocodile brand goes places
Crocodile, the Singapore-based $2-billion international lifestyle brand, is entering Saarc and Middle East nations through licensee arrangements. The expansion is aimed at bringing in additional revenues of S$5 million, this fiscal.

Crocodile Products is a 60:40 joint venture between the Coimbatore-based Shivram Associates and Singapore-based Crocodile International.

For its expansion, the company has tied up with Irfan Textiles in Pakistan, Milton in Bangladesh and is in talks with Groline in Sri Lanka and a few garment companies in Middle East and Cyprus.

However, the contracted franchisees would be direct licensees of Crocodile International. Crocodile has a bouquet of 20 labels and has taken the licensee route to expand globally. At present 35 per cent of the company's turnover comes from China.

Royal Challenge Premium Lager gets a youthful look
Shaw Wallace Breweries Ltd has introduced Royal Challenge Premium Lager in a new avatar to strengthen its market share. The brand now sports a new look with international packaging and promises a 'refreshingly smoother taste'. The initiative is part of Shaw Wallace's new brand marketing strategy.

Company officials say extensive research has led to the new look Royal Challenge Premium Lager, which is now imbued with a stylish, distinct, modern and youthful personality in tune with international packaging trends and increasing consumer expectations.

The new look uses shades of royal blue, green and gold with bolder motif and design that highlights the brand. The new packaging is also complimented by the addition of a distinctive neck foil.

Pantaloon plans `Footwear Bazaar'
After the phenomenal success of garment and food outlets, Pantaloons and Big Bazaar, respectively Pantaloon Retail (India) Ltd is introducing another retail store brand under the name `Footwear Bazaar'.

To start with, Footwear Bazaar will be housed in the same premises as the Big Bazaar outlets but will soon become an independent chain of retail stores in future.

Carrying the baseline sunder, sasta, tikayu, the new brand is expected to add to the list of existing retail store brands such as Big Bazaar, Gold Bazaar and Food Bazaar.

The shoes to be displayed at the Footwear Bazaar are being sourced from Bata and Pantaloon Retail is also looking at inking deals with other retail footwear brands such as Action and Liberty. It has also forged an alliance with a sports retail footwear company — Royal Sports House, which sources footwear from brands such as Nike and Reebok.

HLL to launch 'Pure It'
Hindustan Lever Ltd (HLL) is foraying into the drinking water business. However, HLL's drinking water is not about bottled water but a more comprehensive solution.

The company will introduce a small device called 'Pure It' which will purify potable water at an affordable price. The accent is on affordability since the company aims to make the product within reach all income groups.

Industry sources said if HLL manages to come up with an affordable product, companies selling 20-litre water jars to the residential segment may face tough competition. HLL plans to take the purifiers to the smaller metros, towns and cities.

HLL is staying away from the already crowded bottled water segment, which faces intense competition and operates on wafer-thin margins. Moreover, this category requires a distribution network of a different kind. Very few bottled water manufacturers are making money, while Nestle abandoned this market completely two years ago.

The water purifier market, which is a residential segment, is growing at a healthy 22-25 per cent annually.

Edible oil firms led FMCG sector in 2003
Edible oil companies are the fastest-growing in India's consumer goods sector. Among the top ten fastest-growing companies last fiscal, with a turnover of more than Rs100 crore, five are edible oil companies.

The leading company is Ahmedabad based Adani Wilmar, which recorded a 133 per cent jump in turnover while Parakh Foods of Gemini brand registered an 84 per cent increase in turnover. New FMCG entrants in the ranking include Agro Tech Foods — maker of Sundrop — Frito Lay India, Surya Foods and Agro and Shree Govind Udyog.

Companies, which noted a fall in ranking, include Cadbury's, Anchor Health, Cavin Kare, Marico Industries — maker of Saffola brand — Godrej Hi Care, and Dhara Vegetable Oils.

— Compiled by Mohini Bhatnagar