Full Articles

01. Virgin Atlantic campaign brings backbenchers to the forefront

March 21, 2008

Virgin Atlantic Airways has unveiled its latest advertising campaign aimed at showcasing the Economy class as a fun and exciting way to travel. Through this campaign, Virgin Atlantic Airways re-creates the fun of the backbench culture from the classroom and makes Economy the ‘cool class’ to fly.

Neha Lidder Ganju, Marketing Manager, Virgin Atlantic Airways India, said, “Our new campaign brilliantly annotates the years that were the best days of one’s life and flying Economy with us, you will have all the fun. With award winning in-flight entertainment, complimentary drinks and many other offerings, we want our passengers to know that they will have a whole lot of fun while traveling in the back of the plane. After all, back benchers get all the attention.”

Sohni Pani, Client Servicing Director, O&M, said, “The brief given to us by the client was that Virgin Atlantic was not ‘just another’ airline. It is not just about flying. Virgin is an experience by itself, an experience of fun and care. The brand enjoys a certain ‘aspirational’ place in the minds of consumers, which at times makes it seem out of reach, especially for Economy travelers. Although Virgin Atlantic is very competitive in its domain, they are a value for money brand. Thus, the airline wanted to bring alive the fun filled core of the brand and bring it closer to Economy travelers. The brief was – re-establish Economy class in the true Virgin way.”

Pani further said, “The Virgin Atlantic Economy campaign is about taking consumers on a fun-filled nostalgic trip to make them smile. The lead in thought of “your back bench in the sky” has been crafted to remind people of all the fun things they did when they sat in the back benches of their schools or colleges. The launch ad establishes the concept with ‘Reclaim your favourite place in the class’.”

The ads are appearing in print in HT Brunch, TOI Delhi, Mumbai, and Pune editions, and magazines like Femina, India Today, Marie Claire. The campaign will continue till May 2008.

02. Wine consumption to triple by 2011

March 15, 2008

Indians drank 66,000 hectolitres or 8 million bottles of grape-based wines in 2006. And the consumption is expected to triple by 2011 to reach 1,88,000 hectolitres, according to a study released by Bordeaux-based (France) Vinexpo and Broitish consultancy firm, the International Wines and Spirits Record (IWSR). The wine market at the same time is expected to display a growth rate of 30% per annum. The study also pointed out that domestic wines contributed three-fourths of all the wine consumed in India in 2006 while imported wines made for the rest.

According to IWSR, in 2006, the consumption of other spirits in India increased by 24.5% to reach 111.68 million 9-litre cases. The market for the same is expected to grow to 148.15 million cases between 2006-2011. The bulk of spirit consumption is still accounted for by scotch and whisky that represented 58.3% in 2006. They are expected to contribute 60% of the total by 2011.

 
"As investments come in to improve the distribution network, the tax rates come down and the retail structure improves with supermarkets and hypermarkets, I expect the wine and liquor consumption in India to pick even faster," said Vinexpo chief cxecutive Robert Beynat. He was in India to promote the 2008 Vinexpo to be held in Hong Kong and meet Indian companies and distributors. This is the sixth consecutive year of the study that looks at changes in production across 28 countries and consumption in 114 markets over a 10-year period.

03. United Spirits enters into modern liquor retail format

March 22, 2008

United Spirits, the world's 3rd largest spirits company, has opened a first-of-its-kind retail outlet for liquor in Bangalore called "Spiritz & More" The store will make the experience of buying liquor more pleasurable.

The unique initiative by the company is primarily to leverage emerging trends. These include demand explosion at the premium end of the market where browsing is a key consumer requirement. Categories such as wines and scotches need to stand out to meet the growing consumer expectation in a modern retailing environment. In the pipeline, about 15 additional outlets are to be launched in Bangalore at various locations apart from rolling out another 50 stores this year.

"This first-of-its-kind outlet is designed to offer consumers a new experience through accessibility, ambience and personalised service. We, being one of the fastest growing brands in the world of spirits, are planning to partner with several other traditional stores in this region and introduce them to the advantages of staying connected with the consumers through modern retailing," informed Philip AB Sargunar, COO (South), United Spirits Limited.

Spiritz & More enhances the shopping experience with a guide who assists shoppers to choose what they want from the array of liquor displayed on the shelves. It helps in showcasing the brand value of different products.

The store is spread across a floor area of 600 sq. ft and is designed by Michael Foley, a reputed interior designer, who developed an aesthetic environment to encourage the customer for repeated visits. The store will have attractive accessories for different brands, a touch screen which provides up-to-date information on the products, and exciting events to liven-up the entire experience of liquor buying.

"We have extended our innovative approach to the business of spirits with the retailing format in India. Given our knowledge of the spirits consumer, the launch of Spiritz & More is a huge step forward in partnership with the trade channel to offer a great shopping experience and consistency across the country. These outlets are core to the distribution strategy henceforth at United Spirits, stated Anant Iyer, Head-Luxury Brand, Trade Marketing & Institutional Sales, United Spirits Limited.

Traditional stand-alone stores located in premium localities or those catering to a premium clientele are beginning to respond to the change in environment by seeking to upgrade store ambience, services and enhance the stocked range of spirits. "Standardisation of branding, brand displays and other operational details will build a loyal customer base and attract other synergistic categories for collaboration. Spiritz & More will be the pivot for creating an ecosystem for meaningful consumer engagements," added Anant.

04. Maruti Mar Sales Declines Marginally; Hero Honda Sales Up
April 03, 2008
 

(RTTNews) - Maruti Suzuki India Ltd. reported a 2% dip in sales during March 2008, which clearly indicates that the excise duty cut of 4% announced in the Budget 2008 have had little impact on sales. On the other hand, Tata Motors sales during the month improved, mainly driven by sales of commercial vehicles during the month.

During the fiscal year 2008, both Maruti and Tata Motors have registered the highest ever sales in the history of auto industry.

In two-wheeler segment, Hero Honda witnessed a growth, while Bajaj and TVS Motors reported lower sales during the month. However, TVS Motors registered a significant growth in the export front.

Maruti Suzuki

Maruti Suzuki India Ltd., announced that its total sales in March 2008, including exports, was 70,296 vehicles, down 2% from 71,772 units in March last year.

March domestic car sales declined marginally to 64,421 vehicles from 64,556 vehicles for the same month last year. However, sales of flagship Maruti 800 picked up during the month with a sale of 6,353 vehicles, up 4% from 6,141 vehicles sold in March 2007. Exports plunged 19% to 5,875 units from 7,216 units in March 2007.

For fiscal year 2008, the company's sales, including exports, were 764,842 vehicles, up 13% from 674,924 units in 2007.

Domestic car sales during the twelve-month period were 711,818 units, 12% higher than 635,629 units sold during the same period last year. Exports during the twelve months period were higher by 35% at 53,024 units, compared to 39,295 units for the comparable period last year.

In line with its ambitious export plan for the medium term, the company tied up with the Adani Group for a mega car terminal at Mundra port, which would commence operation by year-end. The highlight in March has been the early success of the company's latest model, Dzire, which was launched on March 26, 2008. The company sold 5,658 units of Dzire during the month.

Tata Motors

On the other hand, Tata Motors reported total sales, including exports, of 66,495 vehicles for the month of March 2008, the company's highest ever monthly sales and an increase of 6% from 62,779 vehicles sold in March last year. Sales for the twelve-month period were 582,401 vehicles, its highest ever and a growth of 1% over 578,862 vehicles sold in 2006-07.

Commercial Vehicles

The company's sales of commercial vehicles in March 2008 in the domestic market were 35,993 units, up 17% from 30,720 vehicles sold in March 2007. Cumulative sales for the April-March period were 313,371 vehicles, a growth of 5% over March last year, also the highest ever.

During the year, Tata Motors launched the Magic and Winger, creating new segments in urban and rural passenger transportation. It also introduced a new M&HCV range of multi-axle trucks, heavy-duty trucks, tractor-trailers and tippers and fully built solutions like tip-trailers and load bodies.

Passenger Vehicles

The passenger vehicle sales in the domestic market in March were 24,737 vehicles, though highest in this fiscal year, but a decline of 4% over 25,760 vehicles sold in March 2007. Cumulative sales of passenger vehicles for the twelve-month period in the domestic market were 214,758 units, down 5% over the same period last year.

Exports

The Company's export sales in March 2008 plummeted 8% to 5,765 units from 6,299 vehicles in March 2007. The cumulative sales from exports for the period April-March were 54,272, an increase of 3% over 52,796 vehicles sold last year.

Bajaj Auto

Bajaj Auto's total two and three wheeler sales in March 2008, including exports, declined 10% to 176,101 units from 196,592 units during March last year.

Bajaj Auto reported March total two-wheeler sales of 155,336 units, down 10% from 171,984 units reported in March 2007. Sales of three-wheeler vehicles dipped 16% to 20,765 units from 24,608 units a year earlier.

For the fiscal year 2008, the company's total two and three wheeler sales, including exports, plunged 10% to 2,451,228 units from 2,721,824 units in the corresponding period last year.

The total two-wheelers sales during the first twelve months declined 10% to 2,160,927 units from 2,399,996 units for the comparable period a year-ago, while three wheelers sales declined 10% to 290,301 units from 321,828 units for the corresponding period last year.

The Managing Director, Rajiv Bajaj, said that the company would launch 125cc motorcycle in the fiscal year 2009, considering the consumer trend in favor of these bikes and also the company wants to maintain its profitability in a tough market. He added that the market share for 125cc motorbikes accounts for 36%, and contributes higher share to the profitability.

Hero Honda

Hero Honda Motors clocked two-wheeler sales at 320,594 units during March 2008, an increase of 15% from 277,915 units for the same month in the previous year.

The company's cumulative sales during the fiscal year 2008 marginally rose to 3,337,142 units from 3,336,756 units in the previous fiscal year.

The company said that its premium segment 'Hunk' is expected to register sales volume of at least 10,000 units/month in fiscal 2009. To consolidate its position in premium segment, Hero Honda has launched Hunk in October 2007. Hence the product mix strategy would play a crucial role in earnings generation.

The company is opening its third manufacturing plant in Haridwar on April 8 with an installed capacity of half a million bike per annum and with an investment of Rs.450 crores . However, in the first year of operation, the company will be manufacturing seven lakh bikes, the company said.

The company stated that the rising commodity prices and interest rates would have a strong bearing on profitability. The 450-500 bps rise in rates over the past quarters has contributed to the 16% fall in domestic motorcycle sales to 1.34 million units.

TVS Motor

The Chennai-based TVS Motor Co's total two-wheeler sales during March dropped 9% to 117,045 units from 128,207 units sold in the same month last year.

During the month, the company's motorcycle sales dropped 17% to 60,908 units from 73,229 units sold in March 2007. In the scooter segment, TVS Scooty recorded a sale of 15,942 units, down 21% from 20,297 units sold in March 2007.

However, exports in March rose 54% to 13,070 units from 8,508 units in the corresponding month a year-ago.

TVS had strengthened its presence in the executive segment with the launch of the TVS Flame 125cc motorcycle powered by three-valve, dual induction system, CCVTi engine. The company plans to launch fuel injection upgrade of the Apache RTR across the country in April.

The company plans launch the fuel injection upgrade of Apache RTR across the country by April. With these, the company hopes to reverse the current trend in sales, the company said.

At the BSE sectoral indices, BSEAUTO is down 1.07% at the closing hours on Thursday.

05. India's Tata Motors Acquires Ford's Jaguar, Land Rover For $2.3 Billion

March 26, 2008

New Delhi, India (AHN) - India's leading carmaker, Tata Motors, has bought ailing Ford Motor Co.'s Jaguar and Land Rover luxury car brands for $2.3 billion.

The Indian firm announced the deal Wednesday after months of negotiations with the American automaker. Ford sold both British car brands at less than half the price it paid for them. The firm bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.7 billion in 2000.

Tata will use cash reserves and new loans to pay the purchase. The acquisition gives Tata access to British car technology and instantly joins the ranks of expensive carmakers.

Tata, which manufactures cars priced at $2,500 for the domestic market, will be selling such brand as the Jaguar XK priced at $80,000.

Industry Trend Analysis - UK Automotive Output Benefits From Tata Deal

March 31, 2008

Tata's acquisition of the British brands Jaguar and Land Rover is set to have a positive impact on automotive production in the UK. According to industry sources, the plant at Halewood, Merseyside is set to double output by 2012. Land Rover itself is expected to add two new models, which will involve boosting production by 140,000 units. Output at the plant currently reaches 100,000 units. The addition of new models from 2011 will ensure this level rises to at least 210,000 units.

The deal between Ford (US) and Tata Motors (India) was announced on 26 March 2008. The Indian carmaker will purchase the two brands for US$2.3bn. A deal had been in the offing for some months, which is likely to have led to a certain degree of uncertainty in the UK's automotive industry. However, stepping up production at the plant in Halewood will entail a significant investment and the decision underlines Tata's commitment to producing vehicles in the UK.

The deal also reflects the growing amount of foreign interest in the UK market. Since the demise of MG Rover, the strength of vehicle production in the UK has come to rely on this foreign influence. Recent investment announcements include Toyota Motor Europe (Toyota), which in March 2008 unveiled investment of EUR115mn (GBP88mn) for the UK. The capital will be used by the manufacturer to produce a new 4-cylinder, 1.3-litre petrol engine at its plant in Deeside, north Wales. The other significant announcement of investment this year came from Honda, which in February 2008 unveiled investment of GBP80mn for its plant in Swindon. That manufacturers are still looking to the UK as a key production base is a boon for the sector, particularly in light of the challenging operating climate in Western Europe. BMI is forecasting total vehicle output of 2mn units for 2008.

06. Maruti not to raise prices for now; launches Swift DZire

Mar 27, 2008

New Delhi, March 26 Despite the rising steel prices, Maruti Suzuki may not be able to revise its prices considering the present sluggishness in the automobile market, the company said on Wednesday.

“Why only steel? The prices of other raw materials are also increasing. Margins are definitely under pressure. But market sentiment is so bad…. How can you increase the prices? We will see till when we can absorb the increasing costs,” said Mr Mayank Pareek Executive Officer, Marketing and Sales, at the launch of its entry level sedan Swift DZire.

The company did not give any exact forecast on the growth of the passenger car industry for the fiscal 2008-09. “We are yet to calculate the growth for the next fiscal. But usually the excise duty cut benefits are reflected in sales only after five-six months,” added Mr Pareek.

Maruti which had launched its premium sedan SX4 last year, on Wednesday launched its entry level sedan to capture a dominate share in the segment.

“Many of our customers are not able to get an entry level sedan. The year 2007-08 will be the best year as Maruti will become a leader in the A3 segment ,” said Mr Shinzo Nakanishi, Managing Director, Maruti Suzuki at the launch of DZire. The A3 segment, that consists of premium brands, is estimated to be growing at a pace of 14-15 per cent, but the company estimates that the growth in the entry level sedan has remained stagnant.

Based on the Swift platform, Maruti has priced this entry level sedan from Rs 4.49 lakh onwards to Rs 5.90 lakh in the petrol variant and Rs 5.39 lakh to Rs 6.70 lakh in the diesel variant. The company said that the above prices are entry level and that it would revise them later. The DZire would compete with Tata Motor’s Indigo CS recently launched at Rs 3.66 lakh up to Rs 4.34 lakh and Mahindra- Renaults’ Logan in the range of Rs 3.89 lakh to Rs 5.02 lakh.

The DZire offers features like integrated stereo, steering mounted audio controls, automatic climate control and power windows. It also has dual Airbags, ABS with EDB, collapsible steering column and an i-CATS anti-theft facility.

Maruti will produce DZire from its Manesar plant which also produces Swift. The company said that to meet the increasing demand for its diesel cars, the company would increase its capacity to 1.7 lakh units from one lakh units by the end of the month. Maruti would raise capacity at Manesar to 3 lakh units by 2010. The company also said that it had no plans to export DZire.

07. Household segment pushes PC sales up 26% in Q3

April 11, 2008

New Delhi, April 10 Led by buoyancy in household consumption and a whopping 158 per cent rise in laptop sales, the total personal computer (PC) sales (desktops and notebooks combined) surged 26 per cent year-on-year, to touch 1.75 million units in the third quarter ended December, 2007.

“The third quarter was driven by increased consumption in the household segment while industry verticals and corporate sectors such as telecom, banking and financial services, manufacturing, e-governance and IT-enabled services, experienced steady growth. The growth in these verticals is expected to continue in the fourth quarter,” the Quarterly Industry Performance Review released by hardware association MAIT said today.

SME sector

Apart from the traditional sectors, consumption was also witnessed in small and medium enterprises (SMEs), education, retail and other computer-centric small enterprises. Aggressive pricing by PC vendors has also helped improve the penetration, especially in the households and the SME segments.

With this, the cumulative PC sales for the first three quarters of the fiscal stood at 5.04 million units and are expected touch 7.25 million units at the close of the fiscal.

During October-December, the desktop market grossed 1.25 million units, up four per cent over the same period previous year. However, sales were seven per cent lower than the sales in the second quarter of the fiscal (sequentially). “Sales are expected to be steady in the quarter January-March as IT sales peak in the last quarter of the financial year,” it said.

As per the MAIT-IMRB study, the assembled desktops – the smaller lesser known regional brands and unbranded systems, accounted for 32 per cent of the PC sales in the third quarter, while the proportion of the branded desktops was 68 per cent. MNC brands accounted for 51 per cent of the market while the Indian brands accounted for the rest 17 per cent.

Notebook sales crossed 5 lakh units, recording 158 per cent growth over the third quarter in 2006-07. The high growth in notebook consumption can be attributed to the drop in notebook prices and the additional benefit of mobility and space management.

Notebooks are increasingly finding their way into the homes, SMEs and the education sector. Several first-time PC buyers are now opting for notebooks rather than desktop. High consumption in corporates, IT companies, financial institutes and the government, however, continues to drive the notebook consumption, it added.

Printers market

The performance of the printers market remained mixed. Compared to the same period last year, consumption of laser printers grew by 36 per cent; however that of inkjet and dot-matrix printer declined by 17 per cent and 7 per cent, respectively. Consumption of UPS witnessed an increase of 30 per cent on an annual basis.

08. LG India Rolls Out New Entertainment Notebooks

March 17, 2008

LG Electronics India (LGEIL) has launched its new range of wide screen entertainment notebooks - the E200 and the E300. Powered by Intel Core 2 Duo processor technology, the notebooks have curl-fit design with Fine Bright LCD Technology.

The new range of entertainment notebooks come with a 12.1" (E200) and 13.3" (E300) wide screen, along with power-saving modules which offer extended battery life.

The notebooks have a glossy look and are currently available in black color. The High Definition Multimedia Interface (HDMI) technology provides crystal-clear digital video & audio via a single cable. The user needs to connect a HDMI cable to digital TV or LCD monitor to experience the digital entertainment contents on notebook PC with improved quality.

With this new range of notebooks the company is targeting both the business and home users.

The E200 and E300 are available in the market at an MRP of Rs.51,500 and Rs.57,000, respectively.

09. HCL’s day out

April 18, 2008

India’s first computer company, HCL, wants to shed its low profile image and create more awareness about its technology prowess. HCL Enterprise, a $4.8 billion (around Rs 18,535 crore) company, has unleashed an extension of its earlier “touching lives” campaign.

In 2007, HCL had come up with an advertising campaign that talked about the reach and importance of HCL technology in everyday life. The 60 second TV commercial told the story of a hitchhiker, who is an HCL employee. The same HCL employee features in the new TVC, but the plot takes a leap from its previous communication and brings in the stories of various people and sectors that have benefited in one way or the other from HCL. The commercial focuses on the width and depth of HCL’s technology, products and solutions and its ability to touch lives across the globe.

Says M Sundararajan, associate vice-president, marketing, HCL Technologies, “On performing a brand track to measure the effectiveness of our earlier campaign, the score was found to be high. From the survey carried out in major cities with a sample size of 1,400 each, we discovered that awareness of HCL has grown.”

The core target group for the TVC are potential employers, decision makers and entrepreneurs in the IT space. Adds Saurav Adhikari, corporate vice-president, strategy, HCL Technologies, “The creative challenge for this TVC was to package so many areas of HCL’s presence and show them in a humorous and impactful manner, yet retaining the emotional connect. Through the new commercial, we wanted to reinforce the fact that HCL, via its innovative approach and creative edge, has always fashioned technology that improves the quality of people’s lives.”

In the new TVC, the story begins when an investment banker accidentally swaps his jacket with that of an HCL employee at an airport. From being just one in the crowd to becoming ‘The One’, the investment banker runs into people from diverse backgrounds, discovering new facets of HCL and the way it has empowered their lives. (Submit your opinion on this ad.)

The TVC has been conceptualised and developed by Draft-FCB-Ulka. Says Sanjeev Bhargava, chief operating officer, Draft-FCB-Ulka, “The tone of the ad highlights HCL’s core strength: the combination of more than three decades of pioneering technology and the freshness of its outlook personified by the young HCL employee. The look and feel of the ad is youthful and vibrant, thus reiterating the spirit of the organisation.”

10. LG, Samsung tying up with retail biggies like eZone

April 6, 2008

NEW DELHI: Modern retail, which is growing rapidly in India, is redefining the way business is done. Large format retail stores (LFRS) are an additional sales channel, and consumer durables companies are quick to realise this. Most companies in this segment expect a higher proportion of their sales to come through the organised retail chains. Consumer durables biggies including LG, Samsung, Whirlpool, Usha Lexus, Videocon and Lenovo, are tying up with retail chains such as Croma, Reliance Digital, HyperCity, eZone and Next, which have a pan-India presence.

"The sudden growth in the large format retail sector has taken everyone by surprise. The vendors believe that the market could be big, running into hundreds of millions of dollars. We have received overwhelming response from the consumers and partners on this initiative. LG's nationwide presence and strong service network has a critical role to play to achieve success," says V Ramachandran, director, sales and marketing, LG Electronics India. Though the company is present across all categories in modern retail, right now it is focusing mainly on the PC segment.

LG has tied up with Croma, Reliance Digital, Metro Cash and Carry, Jumbo Electronics, Hypercity, Next, E zone and More for all segments. "About 6% of the sales revenue across all categories is generated from these large format retail stores and we expect it to grow to about 20-25% in another three to four years," adds Ramachandran. LG has specifically set up a group that focuses on modern retail and the opportunities it provides.

"Large format retail stores give enough space to companies to display the entire range of their products that is not possible in a small multi band outlet. Also there are trained and informed people assisting customers, so that they can make an informed choice," says Sukhpreet Singh, general manager-brand marketing, Whirlpool Electronics. Another advantage, apart from ambience and space, that these chains offer is the opportunity to engage in promotional activities. These chains join hands with consumer durable companies to woo consumers.

"These chains are marketing savvy and come up with good marketing activation ideas. Also it is easier to run a marketing campaign as it is replicated across all the stores irrespective of geography. With stand alone showrooms we can cover only a particular market," adds Singh. Whirlpool, which started working closely with these national retail chains in 2007 says that about 5% of its total sales are from them. "The figure is bound to go up and we are expecting it to touch about 20% in the next three to four years," says Mr Singh.

But, can modern retail become a substantial threat to standalone showrooms? That might not be the case right now, but the threat remains, especially for small resellers who normally do not have flashy interiors to display their products. Retailers are claiming that these pan India chains are very aggressive and run various discount sales schemes, making it tough for them to survive. Industry experts believe that large format retail chains will have substantial market share 10 years from now.

So what is it that the traditional channel community could do to combat this threat? Standalone showrooms need to reinvent themselves. "Small showroom owners can look at alternative categories that require small footprint.

Personal computing, digital photography are some of the areas that they can focus on," says Arvind K Singhal, chairman, KSA-Technopak. Small showroom owners, he believes, are better placed to offer discounts as the operating expense for LFRS are very high and margins are very low. LFRS can, however, provide bundled offers as they operate in multi-product and multi-brand settings.

"Small showroom can provide personalised service and can network well with their customer base. They are generally closer to customer's homes and can provide better after sales service, creating a dedicated customer base," adds Singhal. Ajit Joshi, CEO, Infiniti Retail, a 100% subsidiary of Tata Sons that promotes Croma, believes that modern and traditional retail can co-exist. Croma has decided to focus on metros and a few other major cities.

"These cities do not constitute the whole of India. There is enough space for everyone. One has to create a niche and work with a set of client. They will have to re -orient themselves to survive in this competitive retail environment," he says.

11. TCL launches new ACs, to bring mobiles soon

April 2, 2008

NEW DELHI: Chinese consumer durables maker TCL has introduced a new range of air conditioners in the Indian market and plans to launch IT products and mobile phones in near future.

"Our new air conditioners are available with Air Vitamin Energizer(AVE), which emits recharging vitamin radicals when the air passes through its vitamin mesh," TCL India Managing Director Warren Wang said in a statement.

The statement also said, "Digital IT products and mobile phones are slated to be launched shortly."

TCL is an emerging global major with a brand valuation of over 4.7 billion dollars and has presence in more than 100 countries worldwide. It has four Research and Development centers. TCL India Holdings already has 24 branch offices spread across the country and a dealer network of over 5,000, supported by 127 service franchisees.

12. LG’s new refrigerators range

March 24, 2008

LG Electronics India has launched a new line up of frost-free and direct cool refrigerators and aims to increase its market share to 28 per cent. Mr Moon B. Shin, Managing Director, LGEIL, said: “This new product range would increase the division’s market share in both the product categories.” He said LG enjoys 26 per cent share in the Indian refrigerator market and the division hopes to sell around 1.5 million refrigerators this year and increase its market share to 28 per cent. Mr Amitabh Tiwari, Business Group Head, Consumer Appliances and Kitchen Appliances, said, “This new line up comes with a host of new features that have been introduced as a result of the company’s sharp focus on bringing ‘consumer relevant innovation’ to Indian homes. It has a host of unique benefits aimed at enhancing performance.”

13. Weston launches new range of colour TV

March 19, 2008

NEW DELHI: Consumer electronics company Weston on Wednesday said it has launched a new range of colour televisions, which will be priced Rs 3,790 onwards.

The new television sets, launched under the brand name 'Smile', would be available in four different models in sizes of 14 and 21 inches. It has features like noise reducer and sleep timer and has 250 channels, the company said in a statement.

"The company has drawn a Chinese model of marketing by mass producing low priced quality products. The product is available through 2,400-strong channel network of Weston in all parts of the country," company's Vice President (Marketing) Sunil Sethi said.

To increase its share in the domestic and global markets, Weston has ramped up its production in nine units, including two each in Uttarakhand, Mohali, Punjab, Noida and one in Jammu, he said.

14. SBI Life premium collections top Bajaj tally in Feb

March 29, 2008

KOLKATA: It has always been a close game of numbers between the private sector insurance players. SBI Life, which would complete seven years in business on March 29, 2008, has pipped Bajaj Allianz in terms of first year premium collections in February. It raked in Rs 674 crore in the month as against Bajaj Allianz’ Rs 668.28 crore.

ICICI Prudential continued to top the private sector life insurance market, with first year premium income of Rs 972.32 crore in February.

Uday Shankar Roy, managing director and CEO, SBI Life, told DNA Money, “We have grown at a brisk pace of over 100% and received tremendous support from our branch network. Currently, almost 44% of our business comes from bancassurance - we are working on further State Bank of India linkages to take the share to 50%”.

While readying itself for an initial public offer in 2008-09, SBI Life is also planning to offer a basket of health insurance plans in the new fiscal.

“We are preparing for the public float, but the timing will have to be decided going by the recent upheavals in the market. We are progressing with an internal exercise to assess valuation benchmarks for ourselves,” Roy said.

The proposal of a holding company with the Reserve Bank of India seems to be on the backburner.

On growth and new plans in the new fiscal, Roy said, “We would like to continue with the same growth, although it may slow down a bit given the present economic scenario. Our recent products include Unit Plus Elite (a unit linked insurance plan), a high networth plan, a child plan and a micro insurance product. We plan to devise health insurance plans since we are one of the few big companies which is not present in this segment”, the CEO added.

“With the low cost operating model of SBI and hence low upfront booking of operating expenses, the capital requirement of SBI Life will be relatively low when compared to other players in the industry,” analysts at Batlivala and Karani pointed out.

Kotak Institutional Securities, in a recent report, pointed out, “We see differences between Bajaj Allianz and SBI Life and other players reducing as their product portfolio becomes increasingly similar”.

Analysts at ICICI Securities said, “Similar to Bajaj Allianz, SBI Life has shifted its focus from credit and group insurance to unit- linked plans, where it has notched up a four-fold increase in premiums”.

15. Realty tops savings tool for Indian households

March 27, 2008

Indian households are increasingly opting for physical assets as instruments of savings compared with their earlier emphasis on financial tools. 

According to data released by the government, the household sector’s savings in physical assets increased by 16.12 per cent to Rs 5,17,837 crore in 2006-07 compared to Rs 4,45,915 crore in 2005-06. The savings in financial assets have gone up by 11.20 per cent to Rs 4,67,985 crore in 2006-07 compared with Rs 4,20,841 crore in 2005-06. 

“As the stock market and real estate market witnessed a boom, a section of the population diverted its investments into physical assets. The investment in small savings has also seen come contraction. On account of increased intermediation, incrementally semi-urban areas are becoming aware of alternate investment options. The rural people are holding their savings in gold,” said Shubda Rao, chief economist, Yes Bank. 

The Reserve Bank of India’s March 2008 bulletin shows that household savings constituted 23.8 per cent of the gross domestic product (GDP) between 2003-04 and 2006-07, as against 20.8 per cent from 1997-98 to 2002-03. In contrast, the share of physical assets has gone up and accounted for 12.7 per cent of the GDP between 2003-04 and 2006-07 compared with 10.5 per cent from 1997-98 to 2002-03.

“Rising consumerism and availability of bank credit has led to an increase in households’ financial expenses. The booming stock markets and real estate last year led many investors to park their funds in shares and debentures, while others opted for real estate. Incomes have gone and so has affordability. Despite a rise in the interest rates, consumers are buying houses. Savings are been diverted into these purchases,” said an economist with a foreign bank. 

The bank household sector advances went up by 55 per cent to Rs 2,72,136 crore in 2006-07 as against Rs 1,75,010 crore in the previous financial year. Households’ savings in shares and debentures, including mutual funds, increased 62.31 per cent to Rs 48,228 crore in 2006-07 compared with Rs 29,712 crore in 2005-06. The bank deposits grew at 53.64 per cent, life insurance funds rose by 36.34 per cent and pension funds increased by 10.95 per cent during the period. 

The net mobilisation of resources by mutual funds was 55.6 per cent higher at Rs 1,23,993 crore in April-December 2007. 

“Indian youth want fast results and are willing to take risks if the returns are high. To minimise risks, individuals invest through mutual funds. Bank deposits and postal saving schemes are losing out to mutual funds, thanks to the stock markets. The stock market returns, even in case of under-performance, are anywhere in the region of 13 to 14 per cent,” said a public sector bank executive. 

16. Centurion forex services through India Post network

March 18, 2008

New Delhi, March 17 The ubiquitous post office is now expanding its role to offer a wide range of foreign exchange services including money changing, travellers’ cheques, pre-paid cards and wire transfer services to the public.

India Post and the Centurion Bank of Punjab (CBoP) on Monday entered into a strategic alliance to offer the latter’s foreign exchange services through the post office network. A pilot project will now be launched in 31 Head Post offices in 11 States as part of this strategic alliance.

CBoP, a dominant player in foreign exchange services market, would provide training to the staff of the postal department. India Post has a full fledged money changing (FFMC) license that authorises post offices to undertake money changing business.

“This alliance is a win-win situation. It is one more step in our path to getting into partnerships to leverage on the strong distribution network that we hold,” Mr I.M.G. Khan, Secretary, Department of Posts, said. He highlighted that India Post had entered into tie-ups with State Bank of India, Tata AIG and Western Union for offering various products and services through its post offices network. The current agreement with Centurion Bank of Punjab would be valid for six months in respect of 31 Head Post Offices in 11 States. After gaining experience from the pilot project, both partners may agree to enhance the scope of collaboration to cover rural areas also.

Mr Khan said that India Post is also looking at a tie-up with a housing finance company for providing housing loans through the postal network.

“We believe this is a major step. We are very hopeful that this alliance would be expanded to cover 100 post offices and potentially 1000s in the coming days. India Post has outstanding distribution network. People in India have a feeling of comfort in dealing with post offices as against informal channels. There is lot of faith and trust in postal system,” Mr Anil Jaggia, Chief Operating Officer, CBoP, said.

Under this alliance, the post office would provide full service offering of CBoP except that of inward remittance. “We will not be doing inward remittance. It will be a full service except inward remittance. Our focus will be on outbound market,” Mr Sudarshan Motwani, Head-Foreign Exchange Services, CBoP, told Business Line.

17. Citibank package for expats

April 3, 2008

Mumbai, April 2 Citibank has launched a package of financial solutions and other services for the expatriate community in India.

Apart from offering expatriates an orientation on living in India, the bank will also offer them investment options globally in familiar international currencies. The expats will be assigned relationship managers and will also be offered an international debit and credit card, advice on forex hedging and globe deposits in eight currencies.  They can also avail of personal and home loans and remittance facilities

Mr P.S. Jayakumar, Country Business Manger, Global Consumer Group, Citi India, said that there were estimated to be around 1 lakh expats in the country and around 25,000 were coming to India every year. “We hope to have around 25-40 per cent of this community as our clients. Since, we are a global bank, we can also serve them in their home country.” he said.

According to a survey conducted by Citibank, the expatriate community was being offered routine banking products and services, which were more suitable for Indian citizens. Mr T.R. Ramachandran, Head, Retail Banking, Citibank, India said that most expats were salaried individuals who would be interested in such a package of solutions.

Meanwhile, Citibank has received three branch licences, which would take its total branch network to 42.

18. Citibank Launches Citigold Select for High Net Worth Clients

March 26, 2008

Citibank today announced the launch of its super premium offering Citigold Select, which provides high net worth affluent customers a holistic suite of both retail banking and wealth management products and solutions that include investments, insurance, mortgage, business banking, retirement planning, succession planning and wealth transfer.

Citigold Select builds further on Citibank’s existing successful and leading proposition for high net worth customers, ‘Citigold’, which is extremely popular with the HNI customers. With Citigold Select, the Bank will specially cater to its top Citigold clients whose needs are increasingly getting more complex and specific, requiring a higher degree of specialization.

The needs of each client are taken care of by a dedicated and experienced Relationship Manager who is supported by Service Relationship Managers and the Citigold Select advisory team consists of Portfolio Counselors and a team of Investment, Insurance and Treasury Specialists. All of them work in partnership with the client to derive financial strategies that are customised to the client’s financial goals.

Launching Citigold Select, Mr. T R Ramachandran, Head, Retail Banking, Citibank N. A., India said, “The launch of Citigold Select is in accordance with Citibank’s strategy to offer superior products and services to meet the increasing aspirations of its sophisticated client segment. Our unique proposition stems not only from the depth of our expertise and our global capabilities, but also the breadth of our product range which is unrivalled in the affluent high net worth segment. We bring the best of retail banking and wealth management advisory to our clients, with products ranging from transactional accounts, mortgages, car loans, insurance, credit cards and investments, all the way through to trusts, managed accounts and private investment tranches unique to each individual client’s requirements. The launch of Citigold Select is our latest initiative to add enhanced value to our clients.”

According to Mr. Sameer Kaul, Head, Branch Banking, Citibank N. A., India, “The Citigold Select offering represents Citibank at its absolute best, bringing together unique global capabilities of Citi in products and services, and harnessing the best of technological innovation for every individual client. Our emphasis on the HNI segment demonstrates the growing sophistication of the Indian market and the increasingly complex needs and expectations of these individuals. The Citigold Select banking experience would ensure that clients’ day-to-day banking and transactional needs are well taken care of - with seamless precision, within time, every time.”

Citigold Select highlights:

·          Experienced and Senior Citigold Select Relationship Manager

·          Team of experts including portfolio counselors and expert research analysts

·          Quarterly investment research report “Standpoint”

·          Business Specialist to help create solutions that suit the financial needs of your business

·          Equity Brokerage and Advisory Services, brought to you by Citi Smith Barney

·          Citibank Ultima card

·          Jet Platinum credit card

·          Trust services

·          Art Advisory services

·          Exclusive meets and events across genres - business, financial and lifestyle

19. Retire in peace – for the children

March 17, 2008

‘Don’t be a burden – retire with pride’ or even ‘Prepare for retirement early’ are fast becoming stereotypical positioning statements in the financial space. Around a decade ago, ICICI Prudential was among the first players to nudge young people into enrolling for retirement plans early on, while HDFC Standard Life set up the ‘Retire with pride’ mode of thinking.

Years later, one sees the retirement plans category flooded with such adverts. In an attempt to say the same thing differently, Bharti AXA Life Insurance has come up with a new campaign for its retirement plans.

The ad, created by Grey Worldwide, has a man bringing home a big television set. When his wife asks him why, he promptly says it is for their children (“bachchon ke liye”). Next, he is seen admiring a car at a showroom, and his wife questions him again, to which he gives the same answer – for the children. In another sequence, he is seen checking out a Malaysian holiday package in a newspaper; his wife notices and asks him why. He says, “For the children.”

Finally, the woman spots a Bharti AXA Retirement Plans brochure at home and, once again, asks why. The husband, who is playing with the children, promptly replies, “Bachchon ke liye.” The voiceover explains that with this plan, the parents will not be a burden on their children when they retire. (Submit your opinion on this ad.)

Brijesh Jacob, executive creative director, Grey, admits that the category is suffused with ‘planning early for retirement’ ads. “But then again, general public behaviour has indeed changed to this effect,” he says.

The insight for Grey was simple: Parents always tend to put the interest of their children first – everything they do is centred on their offspring. “We have tried to show that even retirement planning is something that they are doing for their children – they don’t want to be a burden on them in their old age,” Jacob explains.

Therefore, the creative shows situations in which a parent does things for his kids that are understandable, and then attributes even his decision to enrol for a retirement plan to his children – something unexpected.

The target group for this communication includes adults in the age band of 25-45 years. Shivendra Singh of Dungarpur Films has directed the ad, while Mangesh Someshwar and Sunil Drego of Grey Worldwide have worked on the creative idea, along with Jacob.

20. Britannia inks agreement with Mirchi Movies for Treat

April 1, 2008

NEW DELHI: In a unique film marketing tie-up, Britannia’s biscuit brand Treat has entered into an agreement with Mirchi Movies. As per the pact, the FMCG brand would launch its mascot, Funtoon, through the movie ‘Hari Puttar — A Comedy of Terrors’. The mascot would be seen in the animation portion of the film slated to be released after May.

Mirchi Movies chief operating officer Manish Purii said: “This is the first time globally that a FMCG brand is launching a brand mascot through a movie. Since the movie is targeted at kids and families, so it’s a natural blend for the movie and the brand mascot.” Mr Purii added that Funtoon would be seen with the animated character Hari Puttar, who would be the sutradhaar for the film, and would take the audience through Hari Puttar’s adventures in London.

The movie is being made with a budget of Rs 10-11 crore and the starcast include Jackie Shroff, Zain Khan, Sweeny Khara. As part of the marketing campaign, Britannia is looking to market the movie through points of sale and labelling of Treat. “We would invest significant amounts on marketing and looking at other extensions like merchandise,” he added.

Britannia’s group product manager (marketing) Akila Chandrasekar said that the movie and the brand have a synergy since the brand Treat stands for fun & masti.

In the past, Mirchi Movies has inked deals with film producer-director Satish Kaushik and Anupam Kher’s Karol Bagh Films. Mr Kaushik will direct a film for Mirchi Movies, tentatively titled Mujhe Zinda Karo, based on a real life incident. The company has earlier marketed Homi Adajania’s niche film Being Cyrus, which had garnered appreciation at the box office. The company is also aggressively working on projects in the regional cinema space.

21. Soft drink makers change ad strategy

March 25, 2008

Soft drink makers have changed their advertising strategies this summer. 

The unusually cold winter just past has led meteorologists to predict a scorching summer ahead. The rest of us may groan aloud at the prospect, but for some people, at least, this is great news. 

About 60 per cent of all soft drink sales in India happen during these four-five months, so an extended and intense summer — which means more sweaty, thirsty people reaching for something cold to drink — is obviously welcomed by the folks at PepsiCo and Coca-Cola India. 

And it is easy to see why television channels are already clogged with new campaigns from soft drink makers. In the past few weeks, Pepsi, Coca-Cola, 7UP, Sprite, Thums Up and Fanta have all broken new campaigns that they plan to run throughout this summer. And it isn’t just the ads that are different. New brand ambassadors, new themes, new media and even new formulations… the summer of ‘08 is quite different from last year. 

Cola conundrums

Consider Pepsi, which has moved away from cricket for the first time in many years. Pepsi’s last campaign was the “Blue Billion” one, which focused on Indians’ love for cricket. Released in time for the World Cup last summer, the company even launched a special, blue Pepsi for the occasion. 

This year, though, Pepsi has roped in two new celebrities to accompany brand ambassador Shah Rukh Khan — Ranbir Kapoor and Deepika Padukone, who acted in the two most-talked about Hindi films in 2007. The new theme, “Youngistan”, hopes to cash in on the buzz surrounding today’s youngsters. 

“This time we wanted an all-encompassing theme. ‘Youngistan’ reflects the mood of India’s youth, which is today keen to take the ropes and drive India,” says Punita Lal, executive director, marketing, PepsiCo. 

Coincidentally, Coca-Cola’s ad also focuses on youth and features a new celebrity. Moving away from Aamir Khan and the immensely popular “Thanda Matlab Coca-Cola” series, which ran over the past couple of years, Coke’s new “Jashn Mana Le” campaign features Hrithik Roshan. 

The ad shows a deserted place coming alive when a bottle of the cola is opened and how the magic stops once the last drop of Coke is drunk — neatly tying in with Coca-Cola’s 2007 corporate brand campaign. 

“With this campaign we are trying to establish Coke as a drink that refreshes and brings joy to its consumers. It also resonates with our corporate campaign on drops of joy,” confirms Venkatesh Kini, vice-president marketing, Coca-Cola India. And by showing the cola as an accompaniment to different foods, there’s another subtle message at play in the ad: Coca-Cola goes well with food. 

They may be archrivals in the Rs 7,000-crore Indian soft drink market (and across the globe), but when it comes to advertising strategies, Pepsi and Coca-Cola are remarkably alike. Both believe in celebrity pull-power and in 360-degree campaigns that will help them reach their target consumers at various levels. 

“Celebrities bring both eyeballs and attention,” declares Ashish Chakravarty, creative chief, McCann-Erickson, Delhi, which handles Coca-Cola. Soumitra Karnik, vice president and executive creative director, JWT — Pepsi’s agency — adds that not only do celebrities help break clutter, companies also need to use them because consumers expect them. 

“Cola advertisements are like making a 70-mm film. Consumers expect that we use celebrities and showcase a story,” he declares. 

Both colas are targeting their communication at young adults: Coke is looking at the 16- to 24-year age group, while Pepsi is aiming for 18- to 21-year-olds. Not surprising, then, that the Internet is an important medium. 

While Coca-Cola is using gaming and internet content to build on its joy and fun theme, Pepsi has launched a website for Youngistan inside the Pepsi Cool Zone and is planning to make it a responsive peer group site where youngsters can visit and make comments on any topic. 

If it ain’t broke, don’t fix it

The only cola conspicuous by its absence online is Thums Up. But that is easily explained. Coca-Cola India has clearly differentiated its two cola brands. 

While Coke is the youth-focused, fun-loving brand, Thums Up is targeted at a more mature (20- to 29-year-olds) consumer and has a macho image. Its advertising, therefore, continues to be about fast-paced stunts featuring brand ambassador Akshay Kumar. 

Last year’s ads showed Kumar engaging in Yamakasi (an extreme sport); this time, it is a car chase. “Thums Up has a strong, macho male image and Akshay resonates this perfectly to excite consumers,” says Kini. 

Thums Up isn’t the only Coca-Cola brand to stick with last year’s advertising theme. Clear lime drink Sprite is sticking with its honest drink image this summer, too. The new “seedhi baat, no bakwaas” ad continues its irreverent take on honesty being the best policy: it shows a young man telling his girlfriend so frankly he is going out on a date with his other girlfriend that she refuses to believe him. 

Change is good

Sprite’s competitor 7Up, meanwhile, has adopted a complete change in advertising. Starting from the advertising agency itself. About a year ago PepsiCo called for a pitch and BBDO replaced JWT as creative agency for 7Up. BBDO’s brief was to look beyond the drink’s mascot, Fido Dido. 

Although Fido had been the face of 7Up in India for some years, research had shown that consumers did not relate to these ads. The new 7Up campaign, therefore, relegates Fido to the tagline: instead, the ad — BBDO India’s first offering — shows a young man in a vexing, “bheja fry” situation, offering the clear drink as a mind and mood “freshener”. 

What’s happening with the orange drinks, in the meantime? Mirinda is yet to unveil its Summer ‘08 ad, but Fanta is already out with a — surprise — product-based campaign. Based on research by Coca-Cola India, which revealed that consumers like tangier orange drinks, Fanta’s formulation was tweaked to better suit Indian palates. The new campaign, therefore, emphasises Fanta’s “more orangey” taste. 

All campaigns are multimedia, leaning heavily towards television — it is, after all, the simplest way to build brand recall. Some slight differences in strategy are apparent, however: Fanta advertising incorporates a lot of radio, while Coca-Cola spends on in-store advertising. 

According to industry estimates, Coca-Cola India and PepsiCo are likely to spend anywhere Rs 50-70 crore on each brand this season. That should turn the heat on in the soft drink market, regardless of the temperature outside. 

22. HUL new launch (introduces Amaze Brainfood for children)

April 15, 2008

Hindustan Unilever Ltd (HUL) has introduced Amaze Brainfood, which is designed to give school-going children about 33 percent of the required daily dosage of nutrients for mental development. Amaze Brainfood has been designed based on the international dietary recommendations for children.

The company has launched the product under the Kissan brand.

23. Mother Dairy launches Nutrifit

April 2, 2008

Mother Dairy is expanding its probiotic portfolio with the launch of Nutrifit, a fermented probiotic milk.

The company, which is eyeing a slice of the wellness market, said its manufacturing facility at Pilkhua, in Uttar Pradesh, will achieve 100 per cent capacity utilisation in two years’ time. The facility can produce up to five million bottles a day. “The successful launch of our b-Activ probiotic curd and lassi showed that Indians are open to healthier eating options. With the launch of Nutrifit we strengthen our association with kids as this drink enables kids to boost their immunity levels by strengthening them from within,” Mr Paul Thachil, CEO, Mother Dairy Fruit and Vegetables, told reporters.

The product will be available in two flavours, mango and strawberry, and is priced at Rs 10 for 100 ml bottle. Initially, Mother Dairy’s Nutrifit will be available in Delhi and NCR. It will be expanded to other cities by the end of the year. Under its retail strategy, the company has tied up with leading modern retail formats stores such as Spencer, Big Bazaar, Reliance Fresh and Big Apple to sell its probiotic range.

24. Back Nestle unveils 2 new products under Kit Kat

March 25, 2008

New Delhi, March 24 The steadily growing rate of penetration of chocolates in Indian households, currently only under seven per cent, is promising huge opportunities to companies such as Nestle India. The Swiss food and beverage major says it is “innovating and renovating” core brands to outgrow the market.

“There is great potential given the low penetration in the category. The growth of chocolates category last year, according to industry estimates, was at 23 per cent. We grew ahead of that figure and are pleased that we have gained market share,” said Mr Stewart Dryburgh, General Manager (Chocolate and Confectionery).

The company, on Monday, launched two new products under its Kit Kat brand. While the Kit Kat Mini, priced at Rs 2, follows the similarly priced Munch version into rural markets, Kit Kat Chunky will allow customers controlled indulgence. The chocolate comes in three portions of 64 calories each, in line with Nestle’s focus on nutrition, wellness and fitness and the increasing health consciousness amongst the urban population. When asked if the company was planning to introduce energy bars in India, Mr Dryburgh said, “We are not seeking to add an energy bar to our portfolio currently. However, we are always reviewing our opportunities.”

Globally, the company owns the more than 20-years-old sports nutrition brand PowerBar. The company is focussed on growing its market share through renovation and innovation of its existing brands in India. Last year, it launched Munch Choc Pop, wafer cubes covered in chocolate. “Our distribution reach is the largest in the category and we are building on that. The Munch brand alone reaches over a million retail outlets,” said Mr Dryburgh.

25. Britannia launches Treat Game Pack and Masteez games

March 2008
 

Britannia has introduced Treat Twistee Game Pack and Treat Masteez games. The Game Pack is an, cylindrical game that can be twisted and turned around. It contains 50 gm packs of Treat Jim Jam, Treat Choco Gelo and Treat Bourbon.

Priced at Rs 60, the pack comes with a game booklet, a free gift and will be available at all supermarkets and hypermarkets. A Masteez Game is being given with every purchase of a 100 gm Britannia Treat pack available in six flavours.

Priced at Rs 10 for 100 gm, Treat Masteez packs are available all over the country in major retail outlets.

26. Rasna to set up new facilities abroad

March 20, 2008

MUMABI: Soft-drink maker Rasna plans to scale up its manufacturing capacities in the overseas locations as it seeks to better the 15 per cent growth in business achieved last year.

Rasna's two new manufacturing facilities will get operational in Saudi Arabia and Egypt by October this year, Rasna's Chairman and Managing Director Piruz Khambatta told reporters on Thursday.

"We would be focusing more on enhancing the manufacturing facilities abroad this year. Besides the existing manufacturing centres in Bangladesh and Dubai, two new facilities in Saudi Arabia and Egypt are set to be operational by October," he said.

The company, which enjoys about 93 per cent market share in the soft-drink concentrate market in the country, is also expecting a 7-8 per cent increase in its marketing spends this year.

The marketing spends of the company stood at about Rs 16 crore in last year, he said.

At present, the company has manufacturing facilities in seven locations in the country and has access to 18 lakh outlets, he said.

Rasna on Thursday launched a new healthy drink,Fruitplus, which, the company said, is a zero fat fruit drink fortified with value-added ingredients.

27. Seedhi ‘laat’: Sprite takes a pot shot at Pepsi’s Youngistaan

April 09, 2008

Soft drink brand Sprite is back to its old tricks: pulling the rug from below the competition’s feet. The brand, known for making (and receiving) digs at PepsiCo’s Mountain Dew and Pepsi in the past, has created another ad – this one blasting Pepsi’s new Youngistaan campaign.

Pepsi’s ad (made by JWT) shows actor Ranbir Kapoor making a desperate attempt to climb to his girlfriend’s (Deepika Padukone’s) balcony at night, and falling down instead. Hearing the noise, the girl’s elder brother (Shah Rukh Khan) walks out demanding an explanation. Kapoor, inspired by a hoarding nearby, comes up with the word Youngistaan and pretends to be a creature from outer space, from a land called Youngistaan. Thus, he gains entry into Padukone’s room and gains access to Pepsi as well, thanks to the impressed brother.

Sprite’s ad is a rather direct spoof on Pepsi. Titus Upputuru, senior creative director, O&M, says, “Pepsi’s ad was almost an answer to our prayers.” To him, Sprite’s recently adopted thought, ‘Seedhi baat, no bakwaas’, found its perfect embodiment in a spoof on Pepsi. “Pepsi’s ad is almost unreal – a hammed, convoluted way of doing things,” says Upputuru. “The ad almost asks for another brand to take its case.” And Sprite, being the irreverent brand it is, was only too willing to jump in.

The Sprite spoof, created by O&M, has the same setting depicted in the Youngistaan TVC. The film opens on a Ranbir Kapoor look-alike making outlandish attempts to enter the home of his girlfriend (a woman made to don the exact look and clothes as Padukone), while avoiding her over-protective brother (an SRK look-alike). When the girl’s brother demands to know where the boy is from, the Kapoor replica fumbles, saying he is from Junglistaan (dressed as a savage man), or Kabadistaan (with items of garbage all over him), or even Firangistaan (with loads of white cement over his face). Not amused, the brother slams the door on him each time.

Cut to a shot of the Sprite boy who is seen walking casually into the house through the door, like any normal person would, and SRK allows him in as he is a ‘padosi’ (neighbour). When Kapoor’s look-alike sees the Sprite boy in the girl’s balcony, he asks him how he managed to get into the house. “Darwaze se (from the door),” comes the straight answer. The film ends on ‘Yeh Hai Hindustan Meri Jaan’ (taking off from Pepsi’s ‘Yeh Hai Youngistan Meri Jaan’), while Sprite’s tagline, ‘Seedhi baat, no bakwaas’ is also leveraged. (Submit your opinion on this ad.)

A beverage industry analyst comments that this tongue in cheek attempt by Sprite should definitely brighten up the cola industry as a whole. It will be interesting to see how Pepsi will retaliate to Sprite’s spoof, the analyst adds.

Pepsi’s elements such as the robotic voice, alien concept, or even the elaborate efforts to enter the home, have been minutely examined by Sprite in order to create this spoof. “We didn’t have to try too hard to find the creative idea,” grins Upputuru, who has worked on the campaign along with Varsha Raina, Krishna Mani and Pooja Trehan of O&M. “Personally, I find the outer space angle too complicated and forced.” On the other hand, by talking straight, the Sprite man is shown being welcomed into the house – the insight being that neighbours are treated with courtesy in India.

The Sprite ad serves a dual purpose: While taking the competition head on, it also furthers its own ‘seedhi baat’, cutting through the chase premise. Upputuru is miffed that the youth in Pepsi’s ad is shown taking some time to come up with an excuse to explain his presence outside the house. “But today’s youth thinks instantly!” he exclaims. “When we launched the concept of ‘Main pados se aaya hoon’, we wanted to show that young India is confident enough to do its own thing.” In other words, young India is about being oneself, instead of pretending to be someone else.

The film has been directed by Parag Kulkarni of Ramesh Deo Productions, and is currently running along with the India-South Africa series, and on some other channels.

For the record, Sprite’s last few spoofs were on Mountain Dew (‘I wanna do’) and Pepsi’s Bubbly TV (‘Bada hi ugly channel hai’). Some other mockeries by Sprite on Pepsi in the past include an ad titled ‘The car nahin, dakaar’, which showed that on consuming a soft drink, a person burps (dakaar), and doesn’t get any car (as Pepsi’s ad had shown).

28. Trident Hotels plans overseas expansion 

April 01, 2008

MUMBAI: As it changes the brand name of its premier hotels property once more,  hospitality group EIH Ltd is also planning to expand overseas.

The new brand identity Trident Hotels, comes about as a consequence of the fall-out of the alliance between Trident Hotels and Hilton group.

P R S Oberoi, chairman, EIH Ltd, said, “We are exploring opportunities of expanding overseas. The real growth will be (apart from India) in Middle East, China, Thailand, Singapore, Malaysia and Cambodia.”

The strategy would be to go for joint ventures and management contracts, especially in Gulf and Middle East. The details were not divulged except that hotels would come up wherever there was a demand and land available.

EIH will add three more to the nine Trident hotels in the next two-and-a-half years. These include a second hotel in Mumbai, a 436-room project, by the last quarter of calendar year 2008. While this is completely owned by Trident Hotels, the next two, currently under construction in Bangalore and Hyderabad, will be run under management contracts. These will be 320 rooms and 334 rooms respectively.

The construction for a 200-room hotel in Chandigarh will begin by the year-end. The management also expressed its interest in opening another hotel in Navi Mumbai.

On investments, Oberoi said, “We invest Rs 1 crore per key including all the back-end support that would go into running it.”

A key in an hotelier’s terms means room. That means that the 436-room hotel inBandra-Kurla will cost Rs 436 crore plus a few extra costs for banquet halls and restaurants.

The company follows a 50:50 ratio of debt and equity for its investments.

This took place as Hilton entered into a join venture for its three star garden inns with another company. “An association with them would then grade our five star hotels and also pose a competition to us.”

A massive re-branding exercise is being taken up as Trident Hotels gradually change their look to suit the new brand, its logo and the black and red colour combination. For example, at Trident Nariman Point, Mumbai, rooms on the premium floors of hotels have undergone re-designing. About 4-5 floors will be changed every year in all the existing hotels.

Rattan Keswani, president, Trident Hotels, said, “We are carrying out extensive branding initiative with Trident guests, international and domestic travellers, travel trade fraternity and employees.”

The group expects word of mouth to help establish the new brand along with the help of travel trade and internet. More than $1million will be invested for brand change.

29. 55 IT SEZs planned for Gurgaon

April 8, 2008

NEW DELHI, India, April 8 -- Haryana government is gearing up to take advantage of the ample job opportunities coming its way out of the upcoming IT (information technology) SEZs (Special economic zones) in Gurgaon. About fifty per cent of the 55 SEZs of all categories coming up in Gurgaon would be in the IT sector and would generate millions of jobs for the local youths as well as others, the Haryana IT secretary claimed.

The state government has decided to set up community colleges and professional training institutes to train the local youths on lifestyle and professional skills to take advantage of the upsurge in job opportunity coming up here in the next five years, P.K. Chaudhery the financial commissioner and principal secretary - Industry and IT, Haryana said.

Those coming up with IT SEZs include DLF, Raheja, Bestech, Parsavnath and others. As per a recent NASSCOM study, Gurgaon currently is the highest creator of job opportunities not only in India but the world and is the world's IT capital. Presently about 2.5 lakh people work in the IT industry that includes BPOs, Call centers, software and hardware development companies in Gurgaon.

While quoting a NASSCOM study headed by the pioneer of the BPO industry in Gurgaon and chairman of Quatrro BPO Solutions, Raman Roy said, "58 out of 100 jobs created world over got generated by BPO companies in India alone during 2007-08. Surprisingly 50 per cent of these job opportunities came up in NCR (National Capital Region) and 70 per cent of this in Gurgaon. Raman Roy was the first to set up a BPO in Gurgaon 15 years ago."

Gurgaon however, is not going to stop here as the Haryana IT secretary told Hindustan Times, "A total of 55 SEZs of all categories will come up in Gurgaon in times to come. 35 SEZs have already been accorded formal approval, while in-principal approval has been granted to 18 SEZ and the rest two are awaiting approval. The good news is that about fifty per cent of the SEZs coming in Gurgaon would be in the IT sector and would create millions of job opportunities for the locals as well as others."

Will it benefit the local youths?

As Raman Roy of Quatrro BPO Solutions points out that majority of the local youths in Gurgaon have been working either as cab drivers or security guards since they lack the necessary skills needed for IT companies like BPOs. Hence the IT booms has failed to benefit the local youths.

But Chaudhery said that the state government was well aware of the flaws of its education system that kept the Gurgaon youths aloof from the job opportunities. "For this we have decided to set up a community college in Gurgaon and other cities as well. In these colleges the less educated youths would be trained in English language and accent and personality development. We also have plans to set up technology institutions that would churn out at least 1,000 skilled manpower in the next two years."

30. Emaar MGF plans four luxury hotels

April 02, 2008

MUMBAI: Emaar MGF, the joint venture between Delhi-based MGF Development Ltd and Dubai-based Emaar Properties PJSC, will construct four luxury hotels in the next three years.

These properties, involving an investment of $400 million, will include three JW Marriott hotels each in Delhi, Hyderabad and Kolkata and one business hotel under the Courtyard brand in Amritsar.

The company is also looking at a tie-up with Global Hyatt Corp for about 20 hotels and another venture with Four Seasons.

Sanjiv Rai, chief operating officer, hospitality, Emaar MGF said, “The memorandum of understanding has been signed with Hyatt for its latest brand Hyatt Place. We are also in talks with Four Seasons.”

Emaar is constructing 100 budget hotels for Accor under the brand name Formule 1 at an investment of $300 million, which will be completed by 2016. “These will be budget hotels with room charges lower than Rs 2,000 on similar lines as Ginger Hotels” Rai said.

The company has entered into another joint venture with Premier Inn, a subsidiary of Whitebread Plc, UK’s largest hospitality company, to build 80 Premier Inns by 2015. This would require $600 million investment from Emaar MGF.

On its initial public offer plans, Shravan Gupta, executive vice-chairman and managing director, Emaar MGF, said, “We believe that the IPO market will give us another chance in the next 12-18 months. For our current projects, we are well-funded with a large share capital and low debt-to-equity ratio. Third-party investments and debts from banks will not be a problem.”

Emaar postponed its IPO plans in February due to slump in the market.

For de-risking its hospitality business, Emaar is setting up hotels in places where it will have access to various sources of entertainment and will be ideally placed in centre of activity.

For example, the JW Marriott which will come up in Kolkata will have two exclusive floors for retail while the Marriott in Hyderabad is right next to the 18-course golf course. The one in Jasola, Delhi, has many sources of shopping and entertainment nearby and the Courtyard in Amritsar will be built above a mall.

“We are looking at a long-term commitment through integrated master plan communities. So shopping along with entertainment and a luxury stay is on the offering. This optimises both our short- and long-term revenues,” said Gupta.

The company is also in talks with Marriott International to explore other cities under Marriott’s different brands. This could certainly come through soon considering that Ed Fuller, president and managing director, international lodging, Marriott Internaional Inc announced that the hotel group would have 32 hotels operational in India by 2011 from the current eight.

31. Retailers ride high on easy EMIs

March 21, 2008

Mumbai, March 20 EMIs (Equated Monthly Instalments) and other financial schemes are increasingly becoming significant growth drivers for the sale of consumer durables, say retailers. Though cash payments remain the main source of income for the multi-brand consumer durables’ retailers, EMI sales have grown by close to 100 per cent on year-on-year basis.

E-Zone and Electronic Bazaar of Future Group registered a growth of more than 100 per cent in their electronic goods sales this year.

“Though our maximum sale is through the cash and card route, our finance schemes introduced by in-house Future Money, saw a growth of more than 100 per cent in sales from last year. Currently, about 10 per cent of customers opt for such schemes, but the number is definitely expected to grow,” said Mr Manoj Kumar, Chief Executive Officer, E-Zone and Electronic Bazaar.

Retailers are tying up with banks in order to provide attractive schemes to customers.

The growth rate on consumer durables through credit cards and EMI schemes is close to 60 to 70 per cent on a year-on-year basis, said Mr Parag Rao, Senior Vice-President (Head-Product and Portfolio Management Credit Cards), HDFC Bank. More than 10 to 12 per cent of total credit card spends come from the consumer durables segment, said senior bank officials.

“The presence of organised retailers has minimised the risk for banks that also benefit from the higher spends on cards,” said Mr Sachin Khandelwal, General Manager, Head-Cards Product Group, ICICI Bank.

EMI demand

VU Technologies, which runs four stores and plans 30 flagship stores, introduced the EMI scheme during Diwali last year due to demand from its young consumers.

“When we operated out of South Mumbai and Ahmedabad, we never felt the need to have EMI schemes as people made cash payments. But when we opened our store in Pune, young customers demanded EMI facilities and we had to introduce it,” said Ms Devita Saraf, Chief Executive Officer, VU.

At the launch of their seventeenth Croma store, in Mumbai, Mr Ajit Joshi, Chief Executive Officer and Managing Director, Infiniti Retail Ltd, said, “Our EMI sales have grown to more than 20 per cent as compared to 5-10 per cent two years ago.”

Such schemes enable consumers to purchase the product of their choice without worrying about the down payment as they can cough up the sum over a period of time. While some retailers like VU feel it is the younger generation of customers, which drive EMI sales, others like Pantaloons think that it is the aspirational class of consumers driving the demand.

POS scheme

ICICI Bank has tied up with Croma, Big Bazaar and Future Group among others for such schemes.

“We have put up specifically programmed point of sale terminals (POS) at the retail outlets which can provide such EMI plans to the customers. When a customer swipes his card on the POS he will be given the choice to go in for the EMI scheme and once he opts for it his payment will automatically get converted into an EMI mode,” said Mr Khandelwal.

32. For global retailers, India ranks 44th in the preferred destination list
April 1, 2008

New Delhi, March 31 India has been placed at number 44 in the list of preferred destination for global retailers looking to expand, according to a latest report by CB Richard Ellis.

Out of the BRIC (Brazil, Russia, India and China) countries China and Russia are in the top 10 of the rankings while India and Brazil are way lower down in the order.

The report ‘How Global is the business of Retail?’, maps the global footprint of 250 of the world’s top retailers, explores the globalisation of the retail industry and scrutinises retailer presence in relation to market sectors, country of origin, regional trends and other influences.

“Even though the Indian economy is growing at a rapid pace with consumers having more buying power, we are still only at the 44th position on this list. This is primarily due to FDI restrictions in retail and also relatively lower average per-capita income in the country. Hopefully in the future if the FDI norms are relaxed, coupled with expected economic growth, India would move up in the rankings,” said Mr Anshuman Magazine, Chairman and Managing Director, CB Richard Ellis South Asia.

The study ranks the UK as the global leader in relation to international retailer presence, with 55 per cent of retailers surveyed present.

Spain’s position as the second-ranked market, closely trailing the UK, is an unexpected result which gives perspective to the market’s new global significance, with 51 per cent of retailers present.

France and Germany also performed strongly in the global ranking, achieving third and fourth positions respectively, and emerging markets including the United Arab Emirates, China and Russia all figured in the top 10.

The US surprisingly registered outside the top 10, at number 11, with 39 per cent of international retailers present in that market.

CB Richard Ellis attributes this to the maturity, size and strength of its domestic retailers, which make it a market that only the strongest foreign retailers are able to break into.

The report also analysed which types or categories of retailers have the strongest international penetration, and found that luxury goods dominated international retail expansion, with almost 90 per cent having a presence in more than 10 markets.

This was markedly more than grocery, food and drink retailers, with just 60 per cent present in 10 or more markets, and the clothing, footwear and accessories retailers of which 54 per cent were in more than 10 markets.

33. March sees record 7.6 mn new GSM users

April 12, 2008
 

NEW DELHI: Riding on cheap tariffs and extended network coverage in small towns and rural India, India’s GSM players — Airtel, Vodafone, Idea, BSNL, MTNL, Spice, BPL and others — have added 7.6 million mobile customers in March. This is the highest subscriber addition on this technology platform since the inception of mobile services in the country. With CDMA players yet to declare their numbers, the world’s fastest growing mobile market may well see the number of new users cross the 10-million-mark in March, establishing a global record.

According to the latest data compiled by the Cellular Operators’ Association of India (COAI), the industry association representing all GSM operators, the GSM subscriber base has touched 192.3 million in March 2008, up 4% from 185 million in February 2008. The growth in March was led by Bharti Airtel, which added 2.3 million new users taking its subscriber base to just under 62 million.

Bharti now commands a market share of 32.22% in the GSM space. Bharti was followed by Vodafone Essar which added 1.6 million new users last month taking its subscriber base to 44.1 million and Idea Cellular, whose cellular base was up by 1.1 million during the same period. Idea’s customer base has now crossed the 24 million mark. This also marks the first time that Idea has added over a million subscribers in a month.

“The good performance of the GSM industry is due to a combination of factors including aggressive network expansion, affordability and ample choice of service” COAI general T V Ramachandran said.

He also added that in April, the Indian telecom industry would overtake the United States and become the second largest wireless network in the world, after China.

Last month, among all circles, category C circles witnessed the highest rate of growth, of nearly 4.5%. Within this category, the highest growth was recorded by Assam (6.9%) followed by Jammu & Kashmir (4.8%), the COAI said. In terms of growth, category C circles were closely followed by category A circles, which recorded a healthy growth of 4.4% over the previous month. Here, the Maharashtra Circle recorded the highest growth (6.5%) followed by Gujarat (5.0), COAI added.

This was followed by category B circles, which witnessed 4.0% growth, with UP (West) recording the highest growth of 4.7% followed by Rajasthan at 4.0%. The COAI data also reveals that subscribers in metros grew by only 2.4% over the previous month, with Chennai recording the highest growth of 2.8% followed by Kolkata (2.7%). 

34. India to beat US in mobile telephony

March 25, 2008

NEW DELHI: India, which added 8.53 million new mobile users in February, is set to become the second-largest wireless market in the world after China by April 2008, telecom regulator TRAI said on Monday. As per data compiled by TRAI, India had 250.93 million wireless users by end-February, compared with 256 million in the US and 540.5 million in China.

“India’s monthly wireless subscriber addition is the highest in the range of 8-9 million. Thus, India’s wireless subscriber base during the first half of April 2008 will surpass that of the US and become the second-largest wireless network in the world. Not only this, the total subscriber base (wireless plus fixedline) of India will also cross the 300-million mark in April 2008,” TRAI said in a statement.

According to CTIA, the association of wireless operators in the US, the current subscriber base there is 256 million, and the country is adding about 2-3 million subscribers a month, as against 8-9 million in India. However, India for the past several months had boasted of the largest subscriber additions in the world but it lost out to China last month.

The two Chinese telecom companies added 9.5 million new users in February in home country. China Mobile registered 8 million new customers while China Unicom added 1.5 million. This also implies that India’s record of 8.77 million new mobile phone connections in January 2008, the highest record so far globally, has now been overtaken by China. India still has the upper hand in terms of growth — it added over 91 million users during the past 13 months compared to 85 million by China.

February’s growth in India was led by Bharti Airtel, which added 2.26 million users during the month followed by Reliance Communications (1.61 million) and Vodafone Essar (1.41 million). The surge in wireless users is negatively impacting the fixedline segment. The fixedline subscriber base has fallen yet again to 39.18 million in February 2008 from 39.22 million in the previous month.

Despite scorching growth, India’s overall tele-density is just over 25%. This implies that just one in every four of the country’s one billion plus population has a telephone connection. India’s growth in broadband also continues to be poor. Despite the government setting a target of 10 million broadband users by 2007-end, the country had just 3.47 million in February-end 2008.

35. MTNL, Aksh Optifibre launches video phone calling services

March 20, 2008

MUMBAI: State-run Mahanagar Telephone Nigam has joined hands with Aksh Optifibre to offer subscribers a bouquet of 100 interactive personalised television channels and video phone calling services in Mumbai, a top company official said on Thursday.

"We will be offering IPTV-Aksh-Tel and video phone calling services-V Spyk to our subscribers in Mumbai and Delhi in April," MTNL Executive Director J Gopal told reporters while launching the IPTV services on Thursday.

The services will be available to subscribers at Rs 499 per month, which includes IPTV, VOIP and 50 free calls and 50 MB broadband services, Gopal said adding that MTNL will launch mobile TV by this month-end.

Aksh-Tel, Aksh Optifibre's interactive personalized television delivers TV programming, which comes with a high quality reception and several add on features like time-shift television, video on demand etc.

V Spyk launched by Aksh is a real time video-phone calling service between two users, enabling real time communication at a more personalised level. Both the services are easily available to all MTNL broadband subscribers. MTNL is hopeful of targeting 10,000 subscribers by December 2008.

36. Hero Honda in top gear on increase in sales

April 01, 2008
 

Hero Honda Motors rose 1.93% to Rs 703.50 at 10:46 IST on BSE after the company said on Monday its sales rose 15% to 3.20 lakh units in March 2008 over March 2007.

Meanwhile, the BSE Sensex was up 50.94 points, or 0.33%, to 15,699.94 as Asian stocks edged higher after data showed US business activity shrank less than estimated in March 2008 and after Elpida Memory Inc, Japan's largest memory-chip maker, said it will raise prices.

On BSE, 6,571 shares were traded in the counter. The scrip had an average daily volume of 86,297 shares in the past one quarter.

The stock hit a high of Rs 714.40 and a low of Rs 700 so far during the day. The stock had a 52-week high of Rs 786 on 25 September 2007 and a 52-week low of Rs 561 on 22 January 2008.

India’s largest motorcycle maker by sales had outperformed the market over the past one month till 31 March 2008, declining 9.71% compared to the Sensex’s fall of 11%. It had also outperformed the market in the past one quarter, declining 1.16% compared to Sensex’s decline of 22.94%.

The company’s current equity is Rs 39.94 crore. Face value per share is Rs 2.

The current price of Rs 703.50 discounts its Q3 December 2007 annualized EPS of Rs 55.08, by a PE multiple of 12.77.

Cut in prices across models by Rs 1,000 to Rs 2,400 following reduction in excise duty on motorcycles in Union Budget 2008-09, boosted Hero Honda's sales in the month just gone by.

For the fiscal year to 31 March 2008, Hero Honda sold a total of 33.4 lakh motorcycles and scooters, almost the same as in the previous year. The sales, helped by new model launches, increased Hero Honda's marketshare in motorcycles to 52%, Managing Director Pawan Munjal said in a statement.

Hero Honda Motors posted 31.50% rise in net profit to Rs 275.01 on 2.90% increase in net sales to Rs 2743.07 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in manufacturing and marketing motorcycles and spare parts and currently sells 13 models in the market.

37. Bajaj, Hero Honda, Kinetic plan gas-based 2-wheelers

March 21, 2008 

MUMBAI: After buses, cars and auto-rickshaws, two-wheeler manufacturers are looking at models that would run on gas. Fearing that the Nano would eat into their marketshare, two-wheeler manufacturers such as Bajaj, Hero Honda and Kinetic are considering launching models that can run on gas.

Energtek, an Israel-based company and world leader in absorbed natural gas (ANG) technology, has initiated discussions with Indian two-wheelers manufacturers to supply the new technology. This company claims that ANG will reduce fuel cost by over 50% compared to petrol.

Bajaj Auto has decided to develop a dual-fuel two-wheeler which can run on gas and will also have the option of running on petrol, company sources said. Honda, TVS, LML and Kinetic are also believed to be considering this.

Energytek has entered into a 50:50 joint venture with Nagpur-based LPG bottling company Confidence Petroleum to launch Confi Energtek Asia Ltd, a company that will market Energytek’s ANG technology in India and other Asian countries.

Confirming this development, Lev Zaidenberg, chief executive officer, Energytek, told ET, “Energytek has proprietary ANG technology solutions to distribute clean energy.’’ We are in talks with Indian two-wheeler manufacturers, he said.

We can increase the commercial use of Energytek’s ANG technology to help Asian residents reduce pollution emitted by motorcycles.” The company has launched the world’s first ANG technology for two and three-wheelers in the Philippines in cooperation with the Department of Energy and PNOC, Philippines.

38. TVS launches Apache RTR 160 in Hyderabad

March 24, 2008

Hyderabad, March 23 TVS on Sunday announced the launch of the new 2008 Apache RTR

160 at Hyderabad, at the company’s Performance and Capability Show organised at People’s Plaza, Necklace Road.

As part of the show, daredevil and breathtaking motor bike stunts were performed by professional bike riders on the new TVS Apache RTR 160.

The company has provided a visually larger size presence without the weight of the bike being altered.

The 2008 Apache RTR 160 comes with all new air scoops that help in quicker engine cooling and features data logging as in race bikes. These include 0-60 lap time and top speed indicators.

“These features are seen in international race bikes and are tuned to provide the RTR rider with flaunt value and tool for comparison of riding,” Mr R. Dilip, Vice-President (Sales), TVS Motors, said in a statement.

39. Hind Unilever to sell anti-ageing cream thru direct marketing

April 3, 2008

New Delhi, April 2 Hindustan Unilever Network has launched a premium range of anti-ageing solutions under the brand name Aviance Prestige. It will be available through direct marketing.

“While most cosmetic creams deliver active ingredients that benefit the skin only during application, Aviance Age Defense range, through its Time Release Technology, ensures a continuous release of the active ingredient into the skin throughout the day. Hence, the benefits are available for a longer period of time,” said Mr Sunil Tolani, Business Head, Hindustan Unilever Network, launching the product with Bollywood actor Perizaad Zorabian.

The Time Release Technology has been in use in medical science and is now being used for the first time in an anti-ageing product, claimed the company in a release.

The range is priced at Rs 750 and upwards and includes a hydrating foam, a toner and night cream. It is being imported by Hindustan Unilever Network.

40. Nivea India launches whitening oil control for men

April 11, 2008

Nivea, a brand of Beiersdorf, has launched Nivea for Men whitening oil control in India.

Having started the 'whitening revolution' for Indian men in May 2007 with the launch of the basic Nivea for Men whitening range, "the revolution is now progressing into the next level, targeting very specific needs of oily skin," said general manager Kai Bendix.

"We are entering an as yet unattended segment of male grooming in India," said head of marketing Soma Ghosh.

41. Reebok makes its ‘move’ on the competition

March 19, 2008

For Reebok, it’s time to sit up and be noticed. The global sports brand, although very popular, has always had a laid-back, complacent image as compared to its more aggressively positioned competitors, Nike and Adidas. Well, Reebok has now taken the bull by the horns in its new global campaign called ‘Your Move’.

Your Move is an invitation for people to express themselves and to do things in their own unique way in sports and life – make the choice/move they feel is right for them.

“Unlike Nike or Adidas, Reebok is more about individuals, and less to do with attitude and achievement,” says Vaibhav Singh, creative director, McCann-Erickson, Reebok’s agency in India. “Reebok doesn’t push people; it encourages them to run for themselves, not to win a race or to be the best.” This is in complete and open contradiction to Nike and Adidas, both of which encourage winning and achieving.

Reebok has always stayed away from making suggestions for change, or propelling people to increase efficiencies. Around three years ago, Reebok launched the ‘I Am What I Am’ campaign, featuring top sportspersons and other well-known personalities and encouraging consumers to celebrate their individuality. Around six months ago, it unveiled another global thought: ‘There are Two People in Everyone’. This allowed consumers to be comfortable with their complexities. The women’s range saw the birth of ‘I Am More’, signifying that there’s more to a woman than meets the eye.

According to Singh of McCann, all these campaigns were precursors to Your Move. “As Reebok has always stood for being comfortable with yourself, Your Move is almost a natural conclusion or a final synopsis of the core brand thought – that of choosing to be whoever one wishes to be,” he says.

Current brand ambassadors for Reebok are Bollywood actor Bipasha Basu (specifically for the women’s range) and eight cricketers, including MS Dhoni, Yuvraj Singh and Harbhajan Singh. Other sportspersons endorsing Reebok include legendary soccer player Thierry Henry, basketball player Allen Iverson and tennis star Nicole Vaidisova. More sports stars are to be roped in soon.

The Your Move campaign is supported by icon specific thoughts such as Yuvraj Singh’s move to go for a six in the sixth over, which is captured through the line, ‘Every over has six opportunities’. Dhoni’s leadership qualities are captured through ‘Play without fear’, while Bipasha Basu’s versatile personality is brought out through ‘Break stereotypes’.

An extensive outdoor and print campaign has been rolled out pan India, and some TV commercials are expected to be launched in a few months. These are likely to feature Basu, as according to Singh, “Bipasha, being a non-sportsperson, brings in the qualities of being a regular person.”

Shamim Sajid, director, marketing and products, Reebok India, states firmly, “We want to define the line between sport and lifestyle rather than occupy the extremes on either side.” Simply said, Reebok wishes to be a regular person’s brand, rather than just an athlete’s choice.