From the desk of Strategic Resources For any query, discussion or feedback, please contact Pavan Chandra, Head of Strategic Resources at pchandra@zenithoptimediaindia.com, +91-124-4195100. Office Address : 10th Floor, Vatika Tower, Block-B, Sector 54 Gurgaon -122002, Haryana, India.

Volume: X

January, 2008

 

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Airlines

Share Prices

 

 

 

 

 

 

Sales and Market Share

 

 

 

Source: The Economic Times

 

 

 

01. Jet Loses 10% Mkt Share – January 16

Domestic passenger traffic grows by 32.51% between Jan-Dec 2007

According to air traffic figures released by the Directorate General of Civil Aviation (DGCA), domestic passenger traffic grew by 32.51% to 432.89 lakh passengers between January-December 2007. Seat factor (number of occupied seats as a percentage of total seats on any given flight) of domestic scheduled airlines also increased marginally, from 70.1% in 2006 to 71.5% in 2007. The market share of Jet Airways decreased to 22.6% in 2007 compared to 31.2% in 2006. Indian Airlines, JetLite and Deccan also reduced its market share during 2007. However, Kingfisher Airlines recorded a gain in market share from 8.7% in 2006 to 12.2% in 2007. Other carriers such as SpiceJet, Paramount Airways and GoAir recorded a rise in market share to 8.8%, 1.3% and 4.2% respectively.

 

Source: DNA

 

 

 

Trends, Marketing Initiatives and Others

 

 

 

02. Airlines Target Smaller Destinations – January 13

Airlines focus on smaller destinations

Increased congestion and intense competition has led to airlines shifting their focus to smaller destinations. While Kingfisher added 90 new flights to non-metro destinations in 2007, Jet Airways currently operates 44 daily flights to mini-metros. The share of metros in total passenger traffic declined from 15% in 2006-07 to 14% in 2007-08, whereas the share of mini-metros increased from 1.66% to 1.73%. Amongst the metros, Mumbai and Delhi recorded a decrease of 5% and 2% respectively, in overall traffic contribution.

 

Source: Business Standard

 

 

 

03. Deccan, Kingfisher Airlines Merger In Final Stages – December 20

Deccan to merge its scheduled airline operations into Kingfisher

On 20 December, 2007, the boards of Deccan Aviation and Kingfisher Airlines announced a merger, whereby Deccan Aviation will merge its scheduled airline operations into the unlisted Kingfisher Airlines to create a mega airline. The merged airliner will be called Kingfisher Airlines. The merger will help Kingfisher to meet Indian regulatory requirement of five year's operation to fly overseas destinations.

 

Source: The Economic Times

 

 

 

04. Jet Becomes First Pvt Airline To Launch Flights To Gulf – January 05

Jet Airways begins its services to the Gulf

On 5 January, 2008, Jet Airways became India's first private airlines to begin its services to the Gulf with the launch of its direct daily flight to Kuwait and Bahrain. Till date the Gulf sector was served only by the national carriers Air India, Indian and Air India Express.

 

Source: DNA

 

 

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Alcohol

 

Share Prices

 

 

 

 

 

 

Sales and Market Share

 

 

 

Source: Euromonitor Report- Alcoholic Drinks- India- June 2007

 

 

Trends, Marketing Initiatives and Others

 

 

05. Wine Sales To Exceed 1,400 Cr. By March: ASSOCHAM – January 12

Total wine sales estimated to touch 1,400 crore by March 2008

Based on feedback received from domestic wine manufacturers, The Associated Chambers of Commerce and Industry of India (ASSOCHAM) revealed that total wine sales — estimated at approximately Rs 1,000 crore upto December 2007 – is expected to touch Rs 1,400 crore by March 2008. Consumption of wine in rural India, which is increasing rapidly, recorded a sale of Rs 300 crore up to December 2007 and is expected to touch Rs 500 crore by March 2008. According to the estimates made by the ASSOCHAM, while the liquor industry is growing at approximately 10-12%, the growth rate at which the wine industry is growing is three times higher due to demand factor despite fragmented social campaign to discourage wine and liquor consumption.

 

Source: Fnbnews

 

 

 

06. Spirit Majors Get DJs To Set Tone For Lifestyle Drinks – December 21

Alcohol companies signing on celebrity DJs for pushing lifestyle brands

The alcoholic drinks industry is signing celebrity DJs for pushing their alcoholic lifestyle brands. Luxury vodka Belvedere from Moet Hennessy has signed DJ Aqeel as its social ambassador, while leading spirits manufacturers Diageo and Bacardi are broadening their ties with DJs for their brands in the cocktail circuit. Diageo has been banking heavily on a host of international DJs such as Sasha and Paul Van Dyke to propel the Smirnoff Experience parties across metros.  Bacradi Martini India Ltd. has built up properties such as Bacardi Blive in tandem with celebrity DJs such as Hussain and Suketu.

 

Source: The Economic Times 

 

 

 

07. Jeev Milkha Singh To Promote Responsible Drinking – December 26

Jeev Milkha Singh to encourage the message ‘never drink and drive’

Golf player Jeev Milkha Singh has been appointed as the Responsible Drinking Ambassador for the Johnnie Walker Classic golf tournament organised by spirits manufacturer, Diageo. The golf event will be held in New Delhi from 28 February to 2 March, 2008.  In his new role, Jeev Milkha Singh will encourage and extend his support to spread the message to consumers to sign the pledge to never drink and drive, reinforcing the Johnnie Walker brand’s worldwide responsibility message of ‘Winners always stay in control – never drink and drive.’

 

Source: Agencyfaqs 

 

 

 

Product Launches

 

 

 

08. McDowell's Caesar In K'taka – January 12

Spirits company United Spirits Limited (USL) launched McDowell's Caesar's Genuine Grape Brandy, a premium category brandy in Karnataka. The Caesar's Brandy will be available in a premium, flask-shaped green bottle at price points of Rs 286 for 750 ml, Rs 143 for 375 ml and Rs 70 for 180 ml.

 

 

 

09. Chateau d'Ori Unveils Its Range Of Wines – December 22

On 22 December, 2007, spirits company d'Ori Winery Pvt Ltd launched its range of wines – Viva, Merlot, Sauvignon Blanc, Cabernet Merlot, and Cabernet Syrab. The collection of two white and three red wines are priced at between Rs 350 and Rs 650.

 

 

 

Advertising Campaigns

 

 

 

10. An Actor And 4 Cricketers Join Hands To ‘Make It Larger Than Life’ For Seagram Royal Stag Mega Music – December 17

Seagram launches TVC for Seagram Royal Stag Mega Music

Seagram launched a new TVC for Seagram Royal Stag Mega Music featuring Saif Ali Khan, Mahendra Singh Dhoni, Yuvraj Singh, Harbhajan Singh and Robin Utthapa as members of a band. Created by O&M, the TVC takes the music route to reiterate its ‘Make it large’ experience.

 

The TVC shows Saif, Dhoni, Yuvraj, Harbhajan and Robin considering doing something to make their music ‘larger than life’.

 

 

Next shot shows them pondering over this, as they take a stroll inside a mall, when a masked robber runs away with Dhoni’s bag.

 

The cricketers chase the robber and in their pursuit are joined by several people. The chase takes the growing crowd through different parts of the city.

 

Eventually the robber gets cornered on a rooftop, and removes his mask to reveal that he is Saif, who had hatched this robber plan to gather a crowd. With the ‘audience’ in place now, the band begins their performance on stage thus giving everyone a ‘Make it large’ experience.

 

The campaign defines the entire concept of the ‘larger than life’ attitude associated with Royal Stag by featuring five celebrities and is targeted at the youth.

 

Source: Exchange4media

 

 

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Cars

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Sales and Market Share

 

 

..

 

 

11. Maruti, Hyundai, GM Power Ahead In Sales – January 03

2007 records a mixed response for the automobile industry

Year 2007 ended with a mixed response for the car companies. Some passenger car companies such as Maruti Suzuki India and General Motors reported a rise in sales whereas other companies such as Honda Siel, Tata Motors and Mahindra witnessed a dip.  In December 2007 Maruti’s sold 58,401 units, a 6.9% increase from December 2006. The company’s A3 segment grew the fastest at 54.7% at 3,291 units due to buoyant sales of SX4. With the launch of i10, Hyundai Motors India’s sales increased by 18.17 % to 13,078 units.  For the same period, Honda Siel’s sold 3,363 units, a 18.07% decrease from December 2006.

 

Source: The Hindu Business Line

 

 

 

Trends, Marketing Initiatives and Others

 

 

12. Various Reports On Tata’s Small Car: ‘Nano’

Nano’s launch may depress two-wheeler prices: ASSOCHAM – January 11

According to a quick survey of 250 CEOs by ASSOCHAM, Tata's small car 'Nano' may lead to a 20% reduction in prices of two-wheelers and a 35% decline in prices of second-hand cars. The Tata’s are expected to give a stiff challenge to two-wheeler manufactures, which would be forced to go in for product and technology innovation. Nearly 70% respondents stated that Nano should be able to capture the largest market size of over 50% in the next 3-4 years while the current market size of budget car manufactures would witness a reversal in metros and large towns.

 

Source: The Economic Times

 

 

 

Tata’s Nano may expand market by 65%: CRISIL – January 12

According to rating agency CRISIL, Tata Nano’s launch could expand the Indian car market by 65%, as the low price car will be affordable for families with incomes of Rs 1 lakh per annum. The increase in the market is expected to push up car sales by 20% in 2008 compared to 2007. CRISIL research states that the launch will prompt other players to enter the mini car category over the next few years. These launches will entice a section of two-wheeler owners (currently nearly 50 million) to upgrade to cars. CRISIL has prepared these estimates by projecting the income demographic transition pattern in India and the cost of ownership of existing and new entry level cars.

 

Source: The Economic Times

 

 

 

Nano will drive Tata Motors to top position: CSM Worldwide – January 14

According to a study by German research firm CSM Worldwide, Tata's Nano will drive the company as the country's biggest light vehicle manufacturer by 2013. The study stated that Tata Motors would bring out nearly 1.2 million light vehicles (LVs) per annum till 2013, of which Nano alone would contribute more than 50% and will help Tata in increasing its stake in the segment. Ultra low-cost vehicles such as Nano will also help in bringing new buyers to the market. The study also projected that by 2013, Tata Motors, Maruti Suzuki and Hyundai will retain the top three positions in the LV sales in India at 12, 10 and 4 lakh units respectively. It also added that by 2013, India would become the largest producer of light vehicles in the world, contributing approximately 16.7% to the total global sales, followed by China at 12.3%.

 

Source: The Economic Times

 

 

 

Product Launches

 

 

13. Product Launches At Auto Expo 2008

Tata Motors Unveils the Rs 1 Lakh ‘Nano’ Car – January 11

On 11 January, 2008, Tata Motors unveiled its peoples’ car – Tata Nano at Auto Expo 2008. The standard model of the car has been priced at Rs 1 lakh excluding transportation and VAT.  The official launch of the Nano would be by September-October 2008.

 

GM, HML, Mitsubishi and Others Announce Launch of New Vehicles – January 10

Day one of ninth Auto Expo 2008 witnessed the launch and unveiling of several new cars in different segments. While General Motors launched its premium SUV Chevrolet Captiva, Mitsubishi Motors and Hindustan Motors Ltd (HML) jointly unveiled four models. Fiat India Automobiles Pvt. Ltd (FIAPL) unveiled Linea, Grande Punto, Fiat 500 and Bravo, its proposed offerings for the Indian market. Mercedes-Benz launched a C-Class model, while Volkswagen announced the launch of Jetta, which would be available in showrooms by mid-2008. Maruti Suzuki also unveiled its Concept A-Star and Splash Concept cars.

 

 

 

14. Bajaj Unveils Low-Cost Car On LITE Platform – January 09

BAL unveils the prototype of its low-cost car LITE in New Delhi – January 09

On 8 January, 2008, Bajaj Auto Ltd. (BAL), which had announced a tie-up with Renault of France for exploring the possibility of developing a compact passenger car, unveiled the prototype of its low-cost car called LITE in New Delhi. According to Rajiv Bajaj, Managing Director, Bajaj Auto (BAL), the company has a 2-4 year time frame and the prototype of the low-cost car is expected to be launched by 2010.

 

 

 

15. Upgraded Version Of Rhino Launched – January 07

On 7 January, 2008, The International Cars and Motors Ltd (ICML) launched the upgraded version of its 100 bhp Multi Utility Vehicle (MUV) 'Rhino Rx', with prices starting from Rs 6 lakh.

 

 

 

16. Mahindra Launches Special Edition Bolero – January 03

On 2 January, 2008, automobile maker Mahindra & Mahindra Ltd launched a special edition of its sports utility vehicle Bolero in New Delhi. The company will sell only 1,000 units of this edition in the country.

 

 

 

17. Proposed Product Launches

Volkswagen’s Beetle to enter India – January 12

On 11 January, 2008, Volkswagen, a German car maker, announced that its retro small car Beetle would enter the Indian market by April-May 2008. The car will be available in 1.9 litre TDI diesel variant as early as April-May 2008.

 

Source: The Economic Times

 

 

 

Fiat to bring Alfa Romeo, Maserati, Ferrari to India – January 10

With an aim to reposition the Fiat brand in India, the Italian company has decided to introduce its luxury brands in India. Alfa Romeo would be launched first in 2008, followed by the Maserati and finally the Ferrari. The company is in discussion with Tata Motors on dealership and distribution of these brands.

 

Source: The Economic Times

 

 

 

Honda Siel to 'Jazz' in 2009 – January 10

On 10 January, 2008, car maker Honda Siel announced its plans to enter the small-car segment with the launch of 'Jazz' in 2009.

 

Source: The Economic Times

 

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Computers

Share Prices

 

 

 

 

 

 

Sales and Market Share

 

 

 

Source: IDC's India Quarterly PC Tracker, Q2 2007 Release (Efytimes)

 

 

Product Launches

 

 

18. ACi Launches 'Diary-Sized' Laptop At Rs 14,999 – January 09

On 9 January, 2008, Gujarat-based Allied Computers International-Asia Ltd, a laptop manufacturing company, launched its diary-sized laptop, priced at Rs 14,999. The book-sized laptop with a 7 inch TFT screen has VIA 1.0 GHZ ULV CPU, 512 MB RAM, 40 GB hard disk along with WiFi and Bluetooth capabilities.

 

 

 

19. HCL Launches Next Gen 'Datacenter In A Box' – January 11

On 11 January, 2008, HCL Infosystems Ltd announced the launch of its 'HCL - Datacenter in a Box', which claims to offer simplified IT Infrastructure solution with power-packed blade servers in one system that integrates storage, computing and networking.

 

 

 

20. HCL Launches Sub-14k Laptops – January 15

On 15 January, 2008, Indian hardware manufacturer HCL Infosystems launched an ultra portable range of laptops called HCL MiLeap X and Y Series with mobile internet computing in sub Rs.15,000 range.

 

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Consumer Durables

Share Prices

 

 

 

 

 

 

Sales and Market Share

 

 

 

 

 

 

 

 

 

 

 

 

Source: The Hindu Business Line

 

 

 

Trends, Marketing Initiatives and Others

 

 

 

21. High-End Consumer Durable Goods To Grow By 20 Percent In Quantity: FICCI Survey – December 24

Consumer durable goods sector expected to achieve 12% overall growth in 2007-08: FICCI

According to a survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI), the consumer durable goods sector has shown a quantum leap in growth in 2006-07. This growth is resultant of strong fundamentals of the economy and emerging opportunities, in terms of technological improvements; falling prices due to competition; aggressive and innovative marketing; and declining import tariffs. The survey also noted that the consumer durable goods sector was worth approximately Rs 35,000 crore in 2006-07 with 11.5% growth, compared to 8.5% in 2005-06. The sector is expected to achieve nearly 12% overall growth in 2007-08 and growth rates (in terms of quantity produced) of more than 20% in high-end TVs, MP3s, DVDs, split ACs, high-end washing machines, microwave ovens, etc.

 

Source: Exchange4media 

 

 

 

Product Launches

 

 

 

22. Electrolux Unveils New Range Of Refrigerators, Microwave Ovens – December 19

On 18 December, 2007, Electrolux launched a range of direct cool and frost-free refrigerators and microwave ovens, certified by the Bureau of Energy Efficiency (BEE) in Chennai.

 

 

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Financial Services

Share Prices

 

 

 

 

 

 

Sales and Market Share

Banks

 

 

Source: Indian Banks’ Association

 

 

23. PSBs Lose Market Share To Private Peers – January 15

Market share of PSBs continues to fall, while private sector banks strengthen their position

According to figures released by the Reserve Bank of India (RBI) for the quarter ended September 2007, the combined market share of public sector banks (PSBs) continued to fall, while private sector banks further strengthened their position. The State Bank of India (SBI) group, which includes SBI and its associates, gained its market share in deposits but lost out on credit share during this period. As a group, they accounted for 47.9% of the aggregate deposits, compared to 47.7% in quarter ended June 2007 and 50.6% in 2002. The share of private sector banks in aggregate deposits was 20.3%, up from 16.6% in 2002. For the same period, the credit-deposit (C-D) ratio of commercial banks and foreign banks stood at 71.5% and 79.9% respectively. For SBI and associates and other scheduled commercial banks, the C-D ratio was 72.5%.

 

Source: The Economic Times

 

 

 

Mutual Funds

 

 

 

Source: Association of Mutual Funds of India

 

 

 

Trends, Marketing Initiatives and Others

Banks

 

 

 

24. Banks With Global Ambition Must Have India Presence: E&Y – December 19

Presence in emerging economies is a must for foreign banks: E&Y

According to a report by international consultancy firm Ernst & Young, banks aspiring to become global must have a presence in India and other emerging economies, which are set to become a major source of financial sector revenue and profit growth. Titled ‘Strategic Business Risk 2008 — the top 10 risks for business,’ the report noted that a late entry into Asia would make it difficult for foreign banks to keep up with competition. It also stated that rapid transformation from “government bureaucracies into corporate governance and transparency-driven organisations” is one of the main threats facing the Asian banks.

 

Source: The Economic Times

 

 

 

25. List Of Re-Branding Banks Grows – January 02

Indian banks witness an image makeover

Indian banks are working towards not only increasing efficiencies but also shedding their dull public-sector branding to meet the post-2009 situation, when foreign banks will have access to more organic and inorganic growth in the country. In 2007, private sector banks such as Catholic Syrian Bank, Bank of Baroda (BoB), Jammu & Kashmir Bank and South Indian Bank had an image makeover and currently Canara bank is following the same. According to banking experts, the new identity helps draw new customers as well as help in changing public perception.  With more than half of the country being 25-years-old or less, the banks are adopting young look to allure this segment.
 

Source: DNA

 

 

 

26. Mass Market To Fuel Wealth Management Services – January 05

Indian wealth management industry to have AUM of $1 trillion by 2012: Report

According to Celent, a Boston-based financial research and consulting firm, the Indian wealth management industry is growing at 30% per annum and is expected to have assets under management (AUM) of $1 trillion by 2012. According to the report, the Indian wealth management business has moved from safeguarding wealth to growing wealth, and there is a momentum towards more sophisticated customer segmentation, products and delivery channels. The wealth management services market in India is broadly segmented into the mass market (investable surplus $5,000 to $25,000), the mass affluent ($25,000 to $1 million), the high net worth or HNW ($1 million to $30 million), and the ultra-high net worth or ultra-HNW (greater than $30 million) categories. Celent expects the mass market and mass affluent segments to grow at 27% and 30% respectively, in next five years.

 

Source: DNA  

 

 

 

27. Banks' Retail Loan Quality Seen Falling In India: CRISIL – January 08

Asset quality of retail loans may deteriorate as lenders increase exposure to higher risk

On 8 January, 2008, CRISIL said that asset quality of retail loans in India may deteriorate in the coming months as lenders are increasing exposure to higher risk customers and interest rates are rising. Gross non-performing assets (NPA) in retail loans are estimated to increase to 4% by 2010 from 2.7% in March 2007. CRISIL categorised personal loans and credit card receivables, which comprised 17% of total outstanding retail loans in March 2007, as high risk. Increased competition in lending has led companies to reach out to untapped clients, such as the self-employed and borrowers from smaller cities thereby increasing their exposure to risk. However, the situation remains manageable because secured loans such as mortgage and vehicle loans account for 80% of lenders' retail loan portfolio.

 

Source: The Economic Times

 

 

 

28. Finally, PNB ATM On Delhi-Agra Shatabdi – December 29

Railway department consents to the proposal for ATM on trains

The Indian Railways has consented to the proposal of installing automated teller machine (ATM) facility on moving trains. Initially, Punjab National Bank (PNB) will install an ATM on the Delhi-Agra Shatabdi Express, which is likely to be operational by 15 February, 2008.

 

Source: The Financial Express

 

 

 

29. Banks Told To Go Green – December 21

RBI asks banks to develop a plan of action towards environmental issues The RBI has asked banks, with the approval of their boards, to consider issues such as carbon dioxide emission and consumption of ozone-depleting CFCs and develop a suitable and appropriate plan of action towards helping the cause of sustainable development. The RBI also advised the banks/financial institutions to keep themselves abreast of the developments on an on-going basis and dovetail/modify their strategies/plans in the light of such developments.

 

Source: The Financial Express

 

 

 

Insurance

 

 

 

30. ‘Insurance Sector To Touch Rs 2 Lakh Crore By 2010’ – December 25

Insurance sector to grow by over 200% by 2010: ASSOCHAM

According to ASSOCHAM, with the entry of new players and increasing penetration, the insurance sector is expected to reach the Rs 2,00,000 crore mark by 2010. According to the study titled ‘Insurance in Next Two Years’, present size of the insurance sector is estimated at Rs 50,000 crore. For the same period, the insurance sector, both life and non-life, is forecast to grow by over 200%, whereas private insurers will achieve a growth rate of 140%.

 

Source: The Financial Express

 

 

 

31. Life Insurers’ Club To Swell, Market To Consolidate – January 05

The life insurance business in India to touch Rs 3,59,000 crore by 2011

The life insurance business is expected to reach Rs 3,59,000 crore by 2011, as nearly 18-20 new entrants are expected to enter the insurance sector in 2008. The subsequent competition is expected to lead to innovative products and a higher rate of penetration. According to analysts from ICICI Securities and Fox Pitt Kelton, India is the fifth largest insurance market in Asia and approximately 85% of the insurance business conducted in the country is related to life insurance. Rising income levels along with a growing middle class with smaller family sizes, are the target audience of most insurance companies.

 

Source: DNA

 

 

 

32. ICICI Lombard To Launch Weather Insurance Product – December 25

ICICI Lombard to expand its index-based weather insurance products across India

The private sector general insurance company ICICI Lombard General Insurance plans to expand its index-based weather insurance products across India. The product had already been introduced in the 52 districts falling under nine states of the country earlier in 2007. Currently the product is being sold in states such as Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, Maharashtra, Andhra Pradesh, Tamil Nadu, Chattisgarh, and Rajasthan.

 

Source: The Financial Express

 

 

 

Others

 

 

 

33. Indiabulls Ties Up With French Insurance Company – December 29

Indiabulls ties-up with Sogecap

Indiabulls Financial Services has tied up with Sogecap, the insurance   arm of French financial major Societe Generale (SocGen). Sogecap is the third largest insurance company in France and has presence in 10 countries. Indiabulls Financial Services will have a 74% stake in the joint venture.  The JV plans to capture 2-3% of the domestic life insurance business by 2010, which is expected to grow to Rs 2 lakh crore by that time.

 

Source: DNA

 

 

 

Product Launches

Insurance

 

 

 

34. Tata AIG Unveils Plans For United Bank Customers – December 19

On 18 December, 2007, Tata AIG Life Insurance Company Ltd (Tata AIG Life) launched

‘United Child Solutions’, a range of insurance offerings for the customers of United Bank of India. It is available in three variants: Educare 18, Educare 21 and Career Builder Plan.

 

 

 

Others

 

 

 

35. Bajaj Capital Launches Online Investment Platform – January 04

On 3 January, 2008, Bajaj Capital, a diversified financial and investment advisory house, announced its foray into online investment and stock broking services through the launch of a technology platform by the name ‘Just Trade’.

 

 

 

36. Reliance Money To Launch Portfolio Management Service – December 20

On 20 December, 2007, Reliance Money, a subsidiary of Anil Ambani group company Reliance Capital, announced its plans to start Portfolio Management Services (PMS) targeting people with an investment limit of between Rs 5 and Rs 75 lakh. The PMS will start from 15 January, 2007.

 

 

 

Advertising Campaigns

 

Insurance

 

 

 

37. Aviva Invites People To Live ‘Life Khul Ke’ – December 31

Aviva launches a TVC emphasizing the brand philosophy of ‘Living life khul ke’

Aviva Life Insurance’s new TVC, featuring brand ambassador Sachin Tendulkar, reinforces the brand philosophy of ‘Living life khul ke’. Created by the creative agency Publicis India, the objective of the campaign is to create realisation among the 30-35 year olds about the need to start planning their retirement at an early age. It highlights Aviva’s overall brand philosophy by portraying a successful executive’s unfulfilled desire of opening a book store. He is encouraged by brand ambassador Sachin Tendulkar, who advises him to act now by investing in Aviva’s Retirement Solutions to fulfill his dream much before he turns 60. In addition to television, the company plans to use other media such as print, radio, outdoor and internet.

 

Source: Exchange4media

 

 

 

38. No Worries, No Fear, When LIC Is Here’, Sounds All Too Familiar, But Works – January 15

LIC launches new TVC titled ‘Na chinta, Na fikar; Na hai koi darr’

Life Insurance Corporation of India (LIC) launched a new TVC, with a proposition of ‘Removal of fear’. The TVC, which went on air on January 12, 2008, has been conceptualised to showcase the bouquet of services offered by the company and shows different phases of life where LIC works as a safety resource. The commercial is shot with the backdrop of circus and roller-coasters to signify the highs and lows experienced by all in life.

 

Source: Exchange4media

 

 

 

39. That Sinking Feeling: Rediffusion’s Strategy For A Financial Brand – January 14

ING Vysya Life Insurance launches a new TVC

ING Vysya Life Insurance (IVL) launched a new TVC communicating its brand premise, ‘Experience the Joy of Fulfilling Your Responsibilities’. The TVC attempts to strike a balance between joy and trepidation and shows the two emotions through several instances.

 

The TVC, created by agency Rediffusion DY&R, starts with the shot of a South Indian wedding in which the bridegroom is being congratulated by his friends and relatives.

 

Suddenly, the groom ‘sinks’ a little into the ground, burdened by the financial obligations and responsibilities that his future now holds for him. A jingle explains the “joy of the moment and the realisation of responsibility”. The next shot shows a daughter revealing the news of her admission into an MBA programme to her father. He is overjoyed, but simultaneously feels the weight of his responsibility.
 

Last is the shot of a young man holding his newborn baby for the first time, while the ground beneath him cracks.

 

At this point, the ING Vysya Life Insurance advisor enters and tells him that with the help of IVL, he need not fear. The film ends with the couple coming out of the ING Vysya Life Insurance office and taking a confident step forward, with the tagline saying, ‘Mera Farz’.

 

The target group (TG) for IVL in the insurance category, is males in the age group of 25-44 years, while the secondary TG is women in the age group of 25-44 years.

 

Source: Agencyfaqs

 

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Food and Beverages

Share Prices

 

 

 

 

 

 

Sales and Market Share

 

 

 

Source: Euromonitor-Coffee-India-October 2007

 

 

Source: Euromonitor-Tea-India-October 2007

 

 

Trends, Marketing Initiatives and Others

 

 

 

40. General Mills Plans Range Of Frozen Breads – January 12

General Mills India to launch its export range of frozen Indian flat breads

General Mills India plans to launch its export range of frozen Indian flat breads under its flagship Pillsbury brand in the domestic market. The company is currently testing out a range of rotis, parathas and naans and has positioned them as ‘Authentic Indian Cuisine’. The company will also launch fillings such as aloo masaledar, paneer, gobi, spring onion and peas.

 

Source: The Hindu Business Line   

 

 

 

41. Hind Unilever Targets Schools For OOH Biz – January 09

HUL plans to have vending machines in schools

FMCG company Hindustan Unilever (HUL) is approaching school kids with its beverage brands, especially Knorr soups, on an experimental basis. After having installed vending machines at offices and public places including retail chains, the company aims to tap the potential of schools as an additional OOH (out-of-home) segment. Lipton, Bru and Knorr are primarily the three beverage brands available through the vending machines.

 

Source: The Hindu Business Line   

 

 

42. Lite Bite In Tie-Up For Quick Service Restaurant Chain – January 03

Lite Bite Foods enters into a strategic JV to establish a restaurant chain

On 2 January, 2008, Lite Bite Foods Pvt Ltd, promoted by Amit Burman, vice-chairman of FMCG company Dabur India Ltd, announced a strategic joint venture with food consultants Jiggs Kalra and Zorawar Kalra to establish a food court and restaurant chain company. The quick service restaurant (QSR)-based joint venture will focus on delivering customer satisfaction and will target a wide spectrum of consumers through a chain of QSRs, casual dining restaurants, fine dining restaurants and exclusive high-end catering services.

 

Source: The Hindu Business Line

 

 

 

Product Launches

 

 

 

43. Knorr Soups It Up This Festive Season – December 22

Knorr soups, a German food and beverage brand owned by the Anglo-Dutch company Unilever, introduced snacky, oriental and classic range for Rs 27.

 

 

 

44. Amul Launches High Calcium Milk – January 14

On 14 January, 2008, Gujarat Co-operative Milk Marketing Federation forayed into the high calcium milk segment with the launch of 'CALCI+' in India targeting pregnant women, growing kids and young adults.

 

 

 

45. Amul Introduces Dairy Products For The Calorie Conscious – January 11

Amul introduced a range of milk products which include ‘Amul Lite’, a low-calorie bread spread, and ‘Amul Lite and Trim Milk’, a long life skimmed milk with zero fat content.

 

 

 

46. India’s First Tribal Growers’ Organic Coffee Brand Launched – December 23

On 21 December, 2008, India’s first tribal growers’ organic coffee brand ‘Araku Emerald brand’ was launched in the Araku Valley at Andhra Pradesh.

 

 

 

47. Bagrry's Introduces Its Range Of Fruit 'n Fibre Mueslis – December 29

Food & beverage products manufacturer Bagrrys India unveiled a new range of fruit 'n fibre mueslis in five variants, which includes apple, strawberry, banana, pineapple and mixed fruit flavours.

 

 

 

48. Ranbaxy Forays Into Chyawanprash Market – January 12

On 11 January, 2008, pharmaceutical company Ranbaxy Laboratories Ltd (RLL) entered the chyawanprash segment with the launch of a sugar-free product under the brand name Chyawan Active.

 

 

 

49. Yakult Danone Introduces Probiotic Drink – December 20

On 19 December, 2007, Yakult Danone India (YDI) launched its probiotic drink Yakult in New Delhi. YDI is a 50:50 joint venture company between Japanese firm Yakult Honsha and French dairy company Danone.

 

 

 

Advertising Campaigns

 

 

 

50. Kurkure TVC Taps Into ‘Seriously Thoda Zyaada’ Adventures – December 27

TVC launched for Kurkure Xtreme

PepsiCo India’s Frito Lay division launched a TVC for its Kurkure Xtreme, which is available in two flavours – the fiery ‘Risky Chilli’ and the tangy ‘Electric Nimbu’. Designed by agency JWT, the TVC targets the youth, and attempts to convey that the new snacks are for those who are always game for a challenge and ready to indulge in extreme and exciting experiences.

 

The TVC shows the Kurkure family – Nikki (Juhi Chawla), Sid and Sach – atop Jodhpur Fort. Nikki is engrossed in her pack of Kurkure Xtreme Electric Nimbu, and as she puts the last Kurkure into her mouth, electric charges shoot around her and she jumps from the edge of the fort.

 

She finds herself on the tummy of a man sleeping and spots an auto coming before her and eyes another pack of Kurkure temptingly on it. As she charges towards it, a wedding procession blocks her from the auto.

 

After a couple of adventures, she manages to get hold of the pack of Kurkure Xtreme Risky Chilli.

 

Sid then asks her if she has had enough of her adventures, to which Nikki, who is enjoying her spicy snack, replies, “Zyaada! Woh kya hota hai?” A voiceover is then heard, “Seriously thoda zyaada”, which is also the punch line of the new products. The media mix includes TV, cinema halls, radio and outdoor campaigns, as well as leaflets, banners, etc.

 

Source: Exchange4media

 

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Hotels

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Sales and Market Share

 

 

 

Source: Euromonitor Report- Travel and Tourism - India- September 2006

 

Trends, Marketing Initiatives and Others

 

 

 

51. Demand To Outstrip Supply Of Hotel Rooms: Study – January 14

Demand for hotel rooms to surpass supply in 21 major cities of Asia Pacific Region: Amex

According to the American Express 2008 Asia Pacific Corporate Hotel Rate Projections and Market Forecast released on 14 January, 2008, demand for hotel rooms would continue to surpass supply in 21 major cities of Asia Pacific Region, with Bangalore topping the list, followed by Delhi and Mumbai. According to the study, Bangalore is projected to have a 225, Delhi to have 44% and Mumbai to have 30%, increase in the demand for hotel rooms during 2006-08. The study also found that the increase in demand of hotel rooms would increase the ‘corporate negotiated rates' in all the major cities in the Asia Pacific region.

 

Source: The Economic Times

 

 

 

52. ITC To Invest $1 Billion In Luxury Hotels – January 12

ITC Welcom-Group to spend $1 billion for expansion in India and abroad

ITC Welcom-Group, the hospitality division of the $5 billion tobacco company ITC Ltd, plans to invest $1 billion (Rs 4,000 crore) for opening super luxury hotels in India and abroad. The company has 70 hotels under five distinct brands - ITC The Luxury Collection, ITC Sheraton, ITC WelcomGroup, Fortune and ITC WelcomHeritage. According to Pawan Verma, executive VP-operations ITC hotels, the company is exploring Goa, Hyderabad, Ahemdabad, Kerala and Bangalore for creating super luxury products as these are the fastest growing markets in that segment.

 

Source: Fnbnews

 

 

 

53. Hidesign And Khoday Check In Hospitality Sector – January 14

India’s growing hospitality industry attracts Hidesign and Khoday

India’s growing hospitality industry is attracting companies from different backgrounds, such as Puducherry-based leather accessories maker Hidesign and Bangalore-headquartered liquor firms Khoday Group of Industries and John Distilleries. The Khoday Group plans to invest in a 250-room hotel in Bangalore and is also looking for land to set up resorts. Hidesign, which already has two boutique hotels in Puducherry, is now considering building beach villas and resorts, and is also planning a third boutique hotel in South India.

 

Source: The Economic Times

 

 

 

54. DLF, Hilton Plan First Branded Residential Hotel In Goa – January 12

DLF in collaboration with Hilton Group plans a branded residential hotel

Real estate developer DLF plans to introduce India’s first branded residential hotel with the Hilton Group in Goa. The 200-room hotel with 80 villas that will be sold out as vacation homes on lease-back basis will be operational by 2010-11. DLF, which plans to have six hotels on similar format by 2012-13, is in talks with several other international brands such as Four Seasons and The Aman Group targeting leisure destinations such as Kerala, Andaman, Sikkim and Himachal Pradesh.

 

Source: The Economic Times

 

 

 

55. Sarovar Group, Vipul Hospitality Plan 5 New Hotels – December 21

Sarovar Hotels and Resorts ties-up with Vipul Hospitality to establish five new hotels in India

Sarovar Hotels and Resorts (a hospitality management company) in collaboration with Vipul Hospitality (a part of Vipul Infrastructure Group), has planned five new hotels in Amritsar, Bhubneshwar, Mohali, Siliguri and Raipur. It is estimated that Vipul hospitality will invest Rs 300 crore in the projects. Three hotels, in Amritsar, Bhubneshwar and Raipur, will be five stars under the brand Sarovar Premiere.

 

    Source: The Financial Express

 

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Real Estate

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56. Jaypee Greens To Develop 500 Acres Township In Noida – December 16

Jaypee Greens to develop a premium township ‘Wish Town’

Realty developer Jaypee Greens will develop a premium township, called Wish Town, which would consist of both residential and commercial properties, over 500 acres of land at Noida. The company expects the project to be completed by 2010.

 

Source: The Economic Times

 

 

 

57. Parsvnath To Develop Pharma SEZ In Nanded – January 03

PSL to float a special purpose company jointly with MIDC to develop a Pharmaceutical SEZ at Nanded

On 3 January, 2008, Parsvnath SEZ Ltd (PSL), a subsidiary of real estate company Parsvnath Developers Ltd, announced that it will develop a Pharmaceutical Special Economic Zone (SEZ) at Nanded in Maharashtra. The company has received the letter of intent from Maharashtra Industrial Development Corporation (MIDC), a Maharastra government undertaking for development of Pharma SEZ project in Krushnoor Industrial area of Nanded. PSL will float a special purpose company jointly with MIDC to implement the project, under which PSL will hold 74% and MIDC will hold 26% stake.

 

Source: DNA

 

 

 

58. Omaxe In Talks With Starwood – January 09

Omaxe plans Rs 2,000 crore investment in hotel projects

Delhi-based realty firm Omaxe plans to invest Rs 2,000 crore in hotel projects and is in talks with US-based Starwood Hotels & Resorts Worldwide for the same. The company, which has so far focused on residential and commercial real estate projects, is planning hotels in Jaipur, Lucknow, Indore, Chandigarh, Ludhiana, Patiala, Amritsar, Greater Noida, Ghaziabad, Hyderabad and Visakhapatnam.

 

Source: Business Standard

 

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Retail

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Sales and Market Share

 

 

 

Source: Euromonitor Report- Hypermarkets - India- June 2007

 

 

 

Source: Euromonitor Report- Supermarkets - India- June 2007

 

 

 

Trends, Marketing Initiatives and Others

 

 

 

59. Youth Driving Retail Sector Growth In India – January 08

Growth of Retail in India: A study by E&Y

According to a study by Ernst & Young titled YouSumerism, retail in India has emerged as one of the most dynamic and fast paced industries due to rising disposable incomes especially among the middle class, increasing consumer base in urban areas, credit availability, growing number of nuclear families, working women, easy accessibility and convenience, and a potentially strong rural consumer market. The rising purchasing power coupled with an increasing propensity to consume has led to the emergence of a new class of consumers who indulge in spending. According to Ernst & Young analysis, 50% of the population is less than 25 years old, which is favourable for driving the sector’s growth, as today’s youth have a tendency to consume and influence larger household decisions. Also, the spending pattern of Indian consumers is a great paradox to marketers and retailers due to disparity between increasing discretionary income (Rs 3,800 – Rs 7,000 per month) and the typical Indian need of ‘value for money’.

 

Source: The Economic Times

 

 

 

60. Indian Retail Biz To Reach $440bn In 2010 – January 12

Total retail’s contribution to the national GDP to increase to 22% by 2010

According to projections by the ASSOCHAM, the size of organised and unorganised retail industry in calendar year 2007 has been estimated at $300 billion. It is likely to grow up to $365 billion in 2008 and to $440 billion by 2010. The retail sector had a growth rate of 25-28% in 2007. The organised retail occupied a space of nearly 14 million sq. ft in calendar year 2007 and in 2008, it is expected to be 16 million sq. ft. In 2007-08 fiscal, the total retail’s contribution to the national GDP is estimated at 8-10%, which would increase to 22% by 2010.

 

Source: Fnbnews

 

 

 

61. Malls See Drop In Visitors On Weekdays – December 26

Mall developers witness lower conversion rates during weekdays

Even as the mall culture gains ground across the country, the conversion rates (CRs) remain low during weekdays. CR is a unit used by retailers and mall managers to find out what percentage of shoppers actually end up buying at a mall. With half the shopping being done during the weekends at malls in India, mall developers in the country are witnessing a 40% dip in conversion rate (CR) during the weekdays. The mall developers and anchor stores are contemplating the idea to start weekdays shopping offers to generate higher CRs during the weekdays.

 

Source: The Financial Express

 

 

 

62. Trent To Launch Value Format – December 21

Trent plans a value chain format focusing on apparel segment

Tata Group’s retail company Trent is planning to add a value chain format focusing on the apparel segment to its existing chain of lifestyle stores Westside, book and music store chain Landmark, hypermarkets chain Star Bazaar and consumer electronic store chain Croma. The company plans to launch apparel stores across 50 towns and will stock mostly private labels of menswear, kidswear and womenwear.

 

Source: The Economic Times

 

 

 

63. Vishal Concocts Restaurant Chain – January 02

Vishal Retail plans to establish a restaurant chain

Vishal Retail is planning to set up a restaurant chain, either of a standalone format or sit-down ones, within its convenios depending on the availability of real estate. The company is evaluating the proposal and is in the process of building up a team.

 

Source: DNA

 

 

 

64. Non-Apparel Retailing Next Stop For Megamart – January 05

Megamart to venture into non-apparel retailing

Arvind Mill-promoted retail chain Megamart plans to venture into non-apparel retailing by adding new categories such as luggage, footwear and lifestyle electronics. The retail chain is in talks with companies such as Mobile Next to set up shop-in-shops within its stores for a variety of lifestyle electronic products such as cameras, mobile phones and laptops. The company plans to have brands such as VIP and American Tourister in luggage section, and M&B, Reebok, and Nike in the footwear section.

 

Source: The Hindu Business Line

 

 

 

65. Essar Telecom Retail To Roll Out Smaller Store Format – January 08

Essar Telecom Retail to introduce a small store format for wider penetration

Essar Telecom Retail, an Essar group company that owns ‘The MobileStore’ chain of multi-service telecom outlets, plans to introduce a small store format. It intends to set up 250 of these stores by March 2009 in residential apartments, offices complexes and malls. These smaller format stores have been planned for wider penetration and will sell handset models, accessories, connections and music services.

 

Source: The Economic Times

 

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Telecom (Service Providers)

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Source: Cellular Operators Association of India

 

 

 

66. Telecom Cos Add 8.3 Million Mobile Users In November – December 26

India’s wireless subscriber base touches 225.5 million in November 2007

According to the Telecom Regulatory Authority of India (TRAI), in November 2007, India added 8.3 million wireless users, thereby increasing the total subscriber base to 225.5 million. The fixed line user base in November fell to 39.31 million, from 39.41 million in October, as more and more users shifted to mobile phones. India, which added 60.35 million new wireless users during April-November 2007, is the world’s fastest growing mobile services market. The total telephone subscriber base, which included fixed line users, grew to 264.8 million by November 2007.

 

Source: The Economic Times

 

 

 

Trends, Marketing Initiatives and Others

 

67. Indians Not Just Talk Less, They SMS Less Too – January 02

SMS usage and minutes of usage decline for GSM and CDMA providers According to data from TRAI for the July-September quarter, both GSM and CDMA operators witnessed decline not only in SMS usage but also in minutes of usage. The SMS usage dropped by 11% and 15% for GSM and CDMA providers respectively, while for GSM companies minutes of cellular usage per subscriber declined by 2.94% from 476 minutes in June 2007 to 462 in September 2007. For CDMA players, the average minutes of cellular usage per subscriber per month decreased to 413 for the quarter ended September 2007, compared with 462 minutes in June 2007.

 

Source: The Economic Times

 

 

 

68. 25% Of Next Billion Mobile Users Will Be Indians: Report – December 21

1 in 4 of the next billion subscribers will be Indians: Boston Consulting Group

According to the report ‘Ringing in the next billion mobile consumers: A roadmap for accelerating telecom growth in India’ from Boston Consulting Group, although only about 1 in 20 of the first 2 billion mobile subscribers live in India, as many as 1 in 4 of the next billion subscribers will be Indians. However, the report states that reaching these subscribers profitably will demand radical changes in products and business models on the operator’s part. The report also estimates that approximately 91 million households in India belong to this next billion segment. Categorised by income, this segment is just above the poorest of the poor and just below consumers who are already targeted by most companies.
 

Source: The Hindu Business Line

 

 

 

69. Now Vodafone Users Can Pay Bills At Post Office In Andhra – December 20

Vodafone Essar ties-up with Postal Services in Andhra to make bill payment easier

On 20 December, 2007, cellular service provider Vodafone Essar announced a tie-up with Postal Services in Andhra Pradesh to enable its post-paid customers to pay their bills in cash at designated post offices. The aim of this initiative is to make payment simple and convenient for customers. Initially, this facility will be available at 496 designated post offices within the state. 

 

Source: The Economic Times

 

 

 

70. Airtel To Focus On Rural Markets – December 29

Bharti Airtel keen to make Airtel the most admired rural brand by 2010

Bharti Airtel has decided to focus on the rural market and plans to expand its network from the current 3 lakh to 6.14 lakh villages over the next 2-3 years. With the launch of IPTV (Internet Protocol Television) and DTH (direct to home) in the first half of 2008, media and entertainment products will be the thrust areas, and the company is keen to make Airtel the most admired rural brand by 2010.

 

Source: The Economic Times

 

 

 

71. Airtel Launches Upgrade To SMS Services – December 30

Bharti Airtel ties-up with Affle to offer its users 'SMS 2.0'

On 30 December, 2007, telecom company Bharti Airtel tied up with global mobile media company Affle to offer its 55 million users an up-graded version of SMS service 'SMS 2.0'. This alliance would enable the users to send personalised messages and receive content such as news and cricket updates.

 

Source: DNA

 

 

 

72. BSNL Ready To Ring In Free Insurance Plan For Subscribers – January 14

BSNL to provide free non-life insurance cover to its subscribers

BSNL has finalised plans to provide free non-life insurance (mishaps and accidents) cover of nearly Rs 50,000 to its subscribers. Initially, this facility would be provided to landline subscribers and later will be extended to mobile subscribers also.

 

Source: The Economic Times

 

 

 

Product Launches

 

 

73. BSNL Launches Caller Tracking Facility In N-E – January 05

On 5 January, 2007, public sector telecom company BSNL introduced the location-based services (LBS) in the North-East. The LBS package includes people finder service, dating, chatting, resource tracking and management service among others.

 

 

 

74. Tata Indicom Launches 'South Corridor Pack' – January 11

On 11 January, 2008, telecom service provider Tata Indicom launched the ‘South Corridor Pack’ for its post-paid mobile customers in Karnataka, Tamil Nadu and Kerala. Available at a monthly rental of Rs.75, this package offers STD calls at 50 paise/min to any phone in Tamil Nadu, Kerala and Andhra Pradesh.

 

 

 

75. Airtel On Wheels Launched – December 28

On 28 December, 2007, Bharti Airtel launched Airtel on Wheels', a coin operated Public Call Office (PCO) in private buses in Kochi city.

 

 

Advertising Campaigns

 

 

 

76. Airtel Breaks Barriers To Break The Clutter – January 03

Airtel adopts brand premise of ‘Barriers Break When People Talk’ in its new TVC

Airtel has adopted a new brand premise, ‘Barriers Break When People Talk’, in its new TVC.

 

The TVC, conceptualised by agency Rediffusion DY&R, begins with the shot of a Moroccan boy eating at home. When he sees a football land in his balcony he steps out to find another boy on the opposite side of the fence (presumably the border of a neighbouring country) asking him to pass the ball back.

Hesitatingly he looks back to see if his parents are watching and after thinking for a while, kicks the ball towards the other who, in turn, invites him over to join the game.

Not minding the restrictions any more, the boy crosses the boundary and joins his new friend.

 

They start playing together and the voiceover concludes “Deewarein gir jaati hain, faasle mit jaate hain, jahan do baatein ho jaati hain (Barriers break when people talk).”

 

The ad ends with Airtel’s signature tune. The campaign uses children as symbols of minds free of prejudice, with their innocence depicted in contrast to the desolate landscape around them.

 

Source: Agencyfaqs

 

 

 

77. Vodafone Still ‘Making The Most Of Now’ – January 10

Vodafone releases ‘visual ads’ for its ‘alerts’ services

Vodafone released a set of five TVCs for its value added service ‘alerts’ with an objective to create awareness and interest about the service.

 

The first TVC is on Astrology Alert, which shows a man hanging around in an elevator all day because his horoscope says he will find his soul mate in the lift that day. The second TVC, for News Alert, shows a man in a supermarket filling his trolley with all the onions available there because his Vodafone news alert told him that onion prices were going to rise.

 

The third, Art of Living Alert, shows a woman screaming at her husband at the breakfast table, while he just stares at her. She hurls a pillow at him, but he meekly lifts the pillow and gives it back to her, only to have it thrown back at him. This continues till the woman finally calms down. The super says, “A calm mind can overcome even a storm.” The Cricket Alert shows a man pacing the corridor of a maternity home. The film ends with the super, “India needs six runs from two balls.”

 

The last TVC is about beauty tips in which a girl is shown running around to catch a goat. The film ends with the super saying, “Goat’s milk is good for the skin.” All the TVCs end with a second super that says, “Make the most of now.” The ads use no dialogue as they are totally visual ads.

 

Source: Agencyfaqs 

 

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Two-wheelers

 

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Source: Auto News Bulletin May 18 – May 24, 2007 by Murad Baig Associates

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78. Passenger Vehicle Sales Up 8% In Dec – January 09

Two wheelers sales record a mixed trend

In December 2007, the two wheelers segment recorded a mixed trend with an increase in the sales of scooters and scooterettes, and a decline in the sales of motorcycles. While, Hero Honda recorded a 4.9% decline in sales to 2,26,103 units during December 2007, Bajaj Auto witnessed a 15.05% drop in sales at 1,37,980 units. Similarly, the sales of TVS Motor Company fell in the domestic market by 26.21% to 38,767 units. However, the scooters and scooterettes’ segment reported a 9.8% increase in sales to 77,494 units in December 2007.

 

Source: The Hindu Business Line

 

 

Trends, Marketing Initiatives and Others

 

 

 

79. Customer Satisfaction Of Scooters Drops: TNS Study – December 19

Customer satisfaction levels for scooters in India drops marginally in 2007

According to a study by global market research and insight group TNS, the overall two-wheeler industry average Total Customer Satisfaction Study (STCS) score drops marginally by one point compared to 2006. The findings of the study state that the best selling models Eterno and Activa from Honda Motorcycles and Scooter India and the Scooty Pep Plus from TVS Motor ranked the highest in their respective segments. The trend across genders remained that of last year with women consistently rating the products higher on satisfaction than their male counterparts. The study said, Bajaj Auto scooter customers were much less satisfied than its motorcycle customers. The study took responses of more than 2000 scooter buyers towards the performance of more than 15 models in the key areas of sales satisfaction, product quality, scooter performance and design, after-sales service, brand image and cost-of-ownership.

 

Source: DNA

 

 

 

80. Hero Honda Drives Into Used-Bike Market – December 20

Hero Honda launches ‘Hero Honda SURE!’, the used two-wheeler trading business

Hero Honda, manufacturer of two-wheelers, forayed into the used two-wheeler trading business under the ‘Hero Honda SURE!’ brand in December 2007. The company started SURE! at its 40 dealerships across India on a pilot basis. It has introduced a 110-check point quality parameter to assess the condition of used two-wheelers to develop SURE! as a reliable place to buy, sell and exchange pre-owned two-wheelers in India. Hero Honda engineers re-condition these used vehicles with genuine spare parts and the company also offers warranty on different vehicles and free service benefits.

 

Source: The Economic Times

 

 

 

81. TVS Banks On Slew Of Launches To Drive Sales – January 14

TVS Motors to launch three models and develop financing strategies to increase sales in 2008

Chennai-based TVS Motors plans to launch three models in 2008, besides the 125cc Flame, in the executive segment. It will launch the entry-level 100cc Star Sport at Rs 32,000 (ex-showroom Delhi), a scooter and a motorcycle in 2008. TVS Motors, which had reported a 40% decline in motorcycle sales to 3.90 lakh units during April-December, 2007 in the domestic market, is also working with leasing firms and financiers to improve funding options for buyers. 

 

Source: The Economic Times, The Economic Times

 

 

Product Launches

 

 

 

82. Honda Launches 'Aviator' Scooter – January 09

On 9 January, 2008, two wheeler manufacturer Honda Motorcycles Scooter India unveiled its new automatic scooter Aviator at the Auto Expo. Priced at Rs 39,675 (ex-showroom Delhi), the 102cc powered scooter will be available across the country from March 2008.

 

 

 

83. Hero Unveils Electric Bikes – January 09

On 9 January, 2008, Hero Exports, a subsidiary of Hero Cycles, launched two premium electric bike models Velociti and Maxi in Maharahstra.

 

 

 

Advertising Campaigns

 

 

 

84. Kinetic: Taking ‘Panga’ With Pink – December 28

TVC for Kinetic SYM Flyte features brand ambassador Bipasha Basu

The Kinetic-SYM association released the launch ad of Kinetic SYM Flyte featuring brand ambassador Bipasha Basu taking a direct pot shot on competitor brand TVS Scooty’s advertisement.

 

The ad, created by Publicis Ambience, shows women in a factory, dolled up in pink costumes, singing a jingle, “We are bubbly like our scooters, we are girly like our scooters.” The women wear pink makeup and climb onto homogeneous pink scooters in a robotic way.

 

In the next shot Bipasha Basu enters and she pulls out the electrical wires of the place, creating havoc. She then explains that today’s girls are not delicate and doll-like, but are smart and confident. As the women struggle to regain their balance, Bipasha Basu vrooms out of the crumbling factory on Flyte, saying that her vehicle is smart and confident, not bubbly. According to Shivpad Ray, assistant general manager, marketing, Kinetic, the Kinetic Flyte targets girls aged 18-23 and the ad reflects the change in the way girls in this age bracket think.

 

Source: Agencyfaqs

 

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Skin Care

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Source: Euromonitor Report - June 2007

 

 

 

Trends, Marketing Initiatives and Others

 

 

 

85. Pond’s Institute Organizes A High-End Anti-Aging Plenary Workshop For Leading Dermatologists – December 20

Pond's Institute conducts a workshop for dermatologists

Pond's Institute conducted a plenary workshop for leading dermatologists from all across India under the sponsorship of Pond's scientists Dr David Horne, Dr Mike Cheney, Dr Pushker Sona and Dr Stacey Hawkins. This workshop included a detailed presentation on the latest developments in anti-aging skincare. Global Face Care Director Dr Pushker Sona gave an overview on the special care taken by Pond's Institute to focus on Asian skin and how anti-aging has become a big business around the world.

 

Source: Businesswire India

 

 

 

Product Launches

 

 

 

86. Emami Launches Emami Malai Kesar Cold Cream – December 27

In December 2007, Emami, a manufacturer of cosmetic goods and toiletries, launched Emami Malai Kesar Cold Cream, which contains cream, saffron and aloe vera. The product will be available in packs of 8 ml, 30 ml and 60 ml priced at Rs. 5, Rs. 24 and Rs. 45 respectively.

 

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Sports Apparel

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87. Reebok To Focus On Kidswear, To Beef Up Lifestyle Portfolio – January 13

Reebok to strengthen its position in lifestyle segment

To strengthen its position in the lifestyle segment in the country, American sportswear brand Reebok is improving its women’s wear portfolio and evaluating opportunities in the kids’ wear segment. The company also plans to introduce high-end apparel and footwear, and invest further in sports such as soccer. Currently, Reebok is associated with top three football teams in India.

 

Source: Business Standard

 

 

 

88. Sportswear Brands Look At Kidswear Mart – January 14

Kids wear market attracting apparel brands

The growing kids’ wear market in India is attracting the attention of sportswear brands such as Nike, Kappa and Puma. According to industry estimates, the market size of branded kids’ wear in India, comprising national brands such as Ruff Kids, Ruff Baby, Weekender Kids, Gini n Jony, Liliput, ZAPP, Li’l Tomatoes, Planet Kids and Little Kangaroos, is estimated at approximately Rs 1,000 crore.

 

Source: The Economic Times

 

 

 

89. adidas Ropes In Sania Mirza As Global Brand Ambassador – December 25

Sania Mirza is the new global brand ambassador for adidas

adidas has signed on tennis player Sania Mirza as its global brand ambassador. According to Hartwin Feddersen, Director of Marketing, adidas India, “Sania is one of the most recognisable faces of global tennis and is a youth icon among young Asians across the world.”

 

Source: Exchange4media