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: VIII

November, 2007

 

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Food and Beverages

Share Prices

 

 

 

 

 

Sales and Market Share

 

 

 

43. Mint-O Fresh Overtakes Chlormint – November 07

ITC Ltd. overtakes Perfetti VanMelle in the cough lozenges segment

According to an AC Nielsen report on confectionery sector for the July-September 2007 quarter, tobacco and hospitality company ITC Ltd. overtook MNC confectionery leader Perfetti VanMelle in the cough lozenges segment.  In value terms, ITC’s Mint-O Fresh brand captured a 17% share of the segment, compared to the 14.3% share of Perfetti Van Melle’s Chlormint. Both brands — positioned as adult mint candies — are available at identical price points of 50 paise a unit. According to Ravi Naware, CEO, ITC Foods division, a combination of wide distribution channels, aggressive trade-level activity and consistent marketing efforts have helped the company to gain a substantial share in the segment.

 

Source: The Economic Times

 

 

 

Trends, Marketing Initiatives and Others

 

 

 

44. Big Growth Potential For RTE Food: Study – October 20

RTE market in India to grow to Rs 2,900 core by 2015: Study

According to a study by Tata Strategic Management Group (TSMG), the ready-to-eat (RTE) market in India is expected to grow to Rs 2,900 core in size by 2015 from a mere Rs 128 crore in 2006. The report stated that there is a huge untapped market opportunity arising due to rapid demographic shifts in income, urbanisation and proportion of urban working women in India. While the report estimates the current consumption base to be less than 3% of the total base i.e. nearly 5.4 million households residing in the top 24 in SEC A and SEC B cities;  the target market by 2015 is expected to be over 25 million households, a 400-plus % growth by 2014-2015. Acceptability, affordability and availability will be the three driving factors in the ready-to-eat segments.

 

Source: Fnb News   

 

 

 

45. Coffee Consumption Seen Up 6% In 2007 – November 15

Coffee consumption expected to touch 90,000 tonnes in 2007

Coffee consumption is likely to increase 6% in 2007 due to better availability, promotional activities by the Coffee Board of India and an increase in out-of-home use. Coffee consumption is expected to touch 90,000 tonnes in 2007, rising from 85,000 tonnes in 2006. Driven by the growth of cafes and vending machines, the out-of-home consumption of coffee is increasing in metros as well as in tier 2 cities. According to the Coffee Board, the share of coffee consumption in restaurants and cafes comprises 85% of the total out-of-home segment.

 

Source: The Economic Times

 

 

 

46. Amul In Multinational Arena With Snack Launch – November 12

Amul forays into the branded snacks market with ‘Munch Time’

Gujarat Cooperative Milk Marketing Federation (GCMMF), known for its dairy products brand Amul, has forayed into the branded snacks market with Munch Time, a salty snack. Being test-marketed in Gujarat, the product is expected to be rolled out nationally by January 2008. Priced at Rs 5 a packet, the snack is targeted at teenagers and children.

 

Source: Business Standard   

 

 

 

47. Iced-Tea Market Getting Hot – October 23

Iced-tea segment to register a change 

Food and tea companies from Gujarat, Rasna and Wagh Bakri plan to change the iced-tea segment in the country, by launching flavoured and iced-tea. While Pioma Industries, which markets the Rasna brand and controls over 90% share in the soft drink concentrate segment, launched iced-tea in Russia, Wagh Bakri and Jivraj Tea also plan to launch flavoured and iced-tea. While over 80% of the tea consumed in US is iced-tea, in India most of the tea connoisseurs prefer a hot cup of tea. 

 

Source: The Economic Times                                    

 

 

 

48. Future Group Building FMCG Brands Out Of Food Labels – October 17 

Future Group initiates in-store branding and marketing activities for its private labels

The Future Group, in an attempt to develop and promote brands as other FMCG products, is taking its food and beverage private label venture to the next level, through in-store branding and marketing initiatives. The retail major has private labels such as Fresh-n-Pure for dairy based products, Tasty Treats for processed food labels, etc. The company also hopes to attract customers through the price points that will be 8-10% below the normal category price.

 

Source: The Hindu Business Line   

 

 

 

49. Sweets Sale Falls This Diwali Season: ASSOCHAM – November 08

Shift in consumer preference leads to a decline in sale of sweets by 40% According to industry association ASSOCHAM, sales of sweets in Delhi have fallen by 40% during the Diwali season due to a shift in consumer preference towards dry fruits, cookies, chocolates, snacks and other affordable items. Increased sales of durables such as bed sheets, crockery, and portable electrical and electronics gadgets have also contributed to this trend.

 

Source: The Economic Times

 

 

 

50. Nirula’s Opens Ice-Cream Museum – November 15

Nirula’s opens ice-cream museum on Children’s Day in Noida

On 14 November, 2007, on the occasion of Children’s Day, Delhi-based quick service restaurant chain Nirula’s opened its first ice-cream museum in the National Capital Region of Noida. Located inside Nirula’s ice cream factory, the museum provides visitors with an entertaining mix of ice cream-related facts, trivia, games as well as an opportunity to get involved in ice-cream making.

 

Source: The Hindu Business Line

 

 

 

Product Launches

 

 

 

51. Veetee Fine Foods Unveils Ready-To-Eat Range – November 10

On 9 November, 2007, UK-based Veetee Fine Foods Ltd. (VFFL) entered the Rs 200-crore ready-to-eat segment in India with the introduction of three ranges of its ready-to-eat collection — curry, wholegrain rice, and soups and desserts. Products in these ranges will be priced between Rs 40 and Rs 60.

 

 

 

52. PepsiCo Launches Tropicana Twister In The Country – October 24

On 24 October, 2007, PepsiCo India launched its international fruit drink brand, ‘Tropicana Twister’ in India.

 

 

 

Advertising Campaigns

 

 

53. Powered By Mother Dairy – November 13

Mother Dairy launches its corporate campaign with a set of two TVCs

On 12 November, 2007, Mother Dairy launched its corporate campaign as a set of two TVCs created by advertising agency Saatchi & Saatchi.

The first of the two TVCs, ‘Classroom’, shows three students appearing for a mathematics test with their teachers. Each student takes turns deciphering the answer to the question asked by the teachers.

 

The second film, ‘Gym’, shows young boys and girls practising karate and kick-boxing in a gym. Both films include a voiceover that says, “Kuchh mushkil nahin, namumkin nahin. Shakti doodh ki hai mujh me (Nothing is difficult or impossible.

 

The strength of milk is in me).” Both films start with a shot of the Mother Dairy logo, which gradually opens out into the respective spots of action, the classroom and the gym.

The aim of these TVCs is to ensure that Mother Dairy is no longer seen as a mere milk brand, but as a comprehensive dairy player. Besides television advertising, press and outdoor advertising will also be used.

 

Source: Agencyfaqs 

 

 

 

54. It’s All About Loving Your Friends – October 24

Cadbury launches a new TVC

Cadbury launched a new TVC featuring actor Amitabh Bachchan, based on the premise of ‘rishta’ or relationship between friends. Based on a research by Cadbury and Contract (ad agency) that people go out of their way to do special things for friends, a new tagline 'Dosti ko Banaaye Khaas’ was used.

 

The ad opens on a shot of Amitabh Bachchan spotting a photograph of his long lost friend, who has been voted ‘Businessman of the Year’, in a newspaper. Bachchan calls his friend, whom he used to lovingly call ‘Lalten’, but is refused by his friend’s granddaughter as she does not get the connection.

 

Following the advice of his mother, he then goes to visit his friend to wish him Happy Diwali.

 

 

However, he is rudely turned away by the security guard, who refuses to acknowledge that Lalten lives there.

 

On overhearing the conversation Bachchan’s friend turns around to greet him with his childhood name, ‘Qutub Minar’. As the two hug each other, Bachchan presents Lalten with a Cadbury Celebrations pack, which he jokingly touts as the secret behind his height.

 

A product shot follows, after which Lalten’s granddaughter asks Bachchan why he calls her grandfather Lalten, to which Bachchan quips that his friend used to wear red innerwear to school (‘Lal’ meaning Red) and his roll number was 10 (‘ten’). The TVC ends with the core thought, ‘Dosti ko Banaaye Khaas (Makes Friendship Special)’.

 

Source: Agencyfaqs 

 

 

   

55. Mili Chai TVC Mocks Scheme Driven Tea Brands – October 20

Mili Chai launches a TVC mocking the scheme driven tea brands

Mili Chai, launched in 1994 by the Wagh Bakri Group, launched a new TVC mocking the loose tea market as well as the scheme driven tea brands. Developed by Hanmer Advertising Pvt Ltd, the TVC shows a henpecked husband getting back at his authoritarian and smug wife, while visiting some friends. He also takes the chance of praising the hostess in front of his wife. The company’s earlier TVC, launched in September 2007, showed the lady of the house to be open to positive change and is able to persuade others to change too, based on sound logic. While the earlier TVC targeted consumers who purchased mostly loose tea, the new TVC is targeted at those tea brands that offer various schemes to lure customers on a regular basis. The ad film concentrates on the USP, ‘Consistent reliable quality at a very reasonable price’ of Mili Chai. The film aims to drive home the point that the quality of the tea purchased, and not the gift, should be the influencing factor for the purchase.

 

Source: Exchange4media