Indica is a brand that is an epitome of persistence. Tata Motors through Indica has demonstrated how to manage product lifecycle effectively. The brand which was launched in 1998 has passed through many hurdles. The brand successfully transcended the initial flaws, bad customer /expert reviews and brickbats to become one of the largest selling cars in the Indian auto industry.
The brand survived and thrived because of the constant focus of Tata Motors to improve the product continuously. More than the product innovation, it was the value proposition that forced customers to choose Indica despite all those nagging troubles. You can see lot of Indica customers cribbing about the bad service and constant trip to the service centers but sticking to the brand because of the value proposition. You cannot get a diesel car with that much space at the price at which Indica is selling ( so far).
Tata Motors has been continuously tweaking the brand over these years sometimes making quantum leap in the quality and refinement of the product. A snapshot of the brand's evolution is given below
1998 - Indica announced
2001 - Indica V2
2004 - Rejuvenated Indica V2
2005- Indica V2 Turbo Diesel
2006- Indica Xeta
2008 - Indica Vista
The brand made a quantum leap in 2008 with the launch of Indica Vista. The entire brand personality changed with the launch of Vista. The product's looks and feel had changed completely and it was a rebirth for Indica.
The changes in the product was not limited to exteriors. Indica began sporting different types of engines from Fiat which gave a new perception of quality to the brand.
At the pricing also, Tata Motors consciously raised the Vista brand to a higher level . The Vista is pricier than the original V2 thus reducing the attractiveness of the brand to the Taxi segment. At a price range of Rs 4 - Rs 5 Lakh, Indica Vista is not a cheap diesel car. It was an upward stretch by the brand.
The Indica brand portfolio consists now of three sub-brands V2, Vista and Xeta.
V2 is the most economical of the lot and is the original Indica. This product is retained because there is still huge demand for V2 at that price point. Within the V2 range, there are three variants which includes the Indicab which is for the Taxi segment. Price of this sub-brand ranges from Rs 3,50,000 - Rs 3,95,000
Next sub-brand is the Vista. Vista is the new generation Indica and Tata Motors would like this brand to take over the leadership position from V2 in future. The brand is targeting the discerning Indian consumer with its value proposition and good looks.Vista has lot of variants satisfying the various needs of the customer. The Indica Vista Aura is the premium range that sports many goodies that premium brands claim like ABS, Airbags etc. Vista also comes in Petrol version sporting the Saphire engine. Prices range from Rs 3,90,000 - Rs 4,90,000 ( apprx). Within the Vista range, customers are given lot of engine option including engines from Fiat.
Xeta is the petrol variant of Indica V2. I am not sure about the future of Xeta since the petrol segment is heavily competitive and compared to Maruti and Hyundai, Indica Xeta's value proposition is not that attractive as the diesel option. Prices range from Rs 2,72,000- Rs 3,00,000).
The positioning across the brand portfolio remains the same. All the brands focus on the value proposition. But these sub- brands sports different taglines
Indica V2- More car per car
Indica Vista- Changes Everything ( Surprise Yourself is the new tagline)
Indica Xeta - Makes much more car sense.
Vista recently relaunched itself with Drivetech 4 technology and is now sporting a new tagline Surprise Yourself .
Indica in a way is an example of good marketing practice. The brand continues to evolve and is a pleasure to watch.
CRTSY - MARKETING PRACTISE
Wednesday, May 19, 2010
Wednesday, May 12, 2010
iAds New Way of Advertising
Mobile is the undisputed champion of media across the globe with more than 4.1 billion people using mobile phones. That’s about six in 10 people, compared with less than three in 10 who access the internet through a PC. It is easy to understand why advertisers are excited about using mobile as a tool for marketing. The ubiquity of the mobile, combined with the ability to target, track, measure and reach people at key purchase decision points, quickly transforms into advertising nirvana. So why then is mobile advertising only expected to account for a paltry 2% of the digital media market’s spending in 2010 (according to eMarketer)?
Apple CEO Steve Jobs has the answer: “Because most mobile advertising really sucks.” He is right. Screens are small, which leads to disappointing creativity that makes it difficult for an ad to successfully compel a viewer to invest the time away from their current activity to click through. But Apple’s new iAd platform has these possibility to change that, at least for the projected 100 million Apple mobile device users.
It is a relatively small number of the total global mobile population, but as Jobs pointed out in his April presentation it is a very attractive demographic for advertisers. Furthermore, AdMob reported that the iPhone OS accounts for 50% of mobile web traffic and, in places such as Japan, Apple’s iPhone accounts for 72% of the smartphone market, according to Tokyo-based MM Research Institute Ltd.
With iAd, not only has Apple re-thought mobile advertising with the entire iPhone ecosystem in mind, but it has also drawn on its experience as one of the world’s most enjoyed brand advertisers, leading to several features that sets iAd apart. Users will come across iAd within an application. At first, the ad will look similar to the current small banners that are common, but the meat of the ad presents itself after a user initiates interaction.
Paramount to Jobs is that the iAd experience does not take a user away from their current app. Because of the new iPhone OS4 multitasking capabilities, a user can interact with an iAd without closing their current app and go back to where they left off when they are done with the ad. Jobs believes that if people don’t have to “pay the penalty of having to find their way back to their app” it will result in more clicks (or taps) for advertisers. An improved user experience may be just the thing the mobile advertising industry
needs to propel itself further into the plans and budgets of advertisers.
iAd intends to present advertisers a mobile ad platform with more impact, delivering “interactivity and emotion”, as Jobs puts it, by giving creatives a richer canvas to work with, blurring the line between entertainment, information, apps and advertising.
It sounds very promising, but there are questions and challenges.
One unknown is the quality of the metrics and data advertisers will be able to get on iAd campaigns. According to registered developers, there are restrictions on third-party targeting and measurement, which many
advertisers rely on for precise and unbiased information about their digital marketing.
All the data will flow through Apple, presumably on the technology that came with its recent Quattro acquisition.
Targeting will benefit from the detailed understanding Apple has about users from its iTunes and App Store behaviour, however, it is yet to be determined how well this approach will be received by marketers.
The iAd interactive and emotional experience is also not alone in the mobile
advertising market. Companies such as Medialets offer similar units, which also allow for rich and immersive creative.
Furthermore, while the number of Apple apps downloaded far surpasses any others, the Apple App Store isn’t the only game in town. Nokia, BlackBerry and others have moved into the apps distribution business. Then there is the price tag.
The Wall Street Journal recently reported that being part of the iAd launch could cost up to US$10 million, with regular campaign pricing eventually in the US$1 million range. There is no denying that Apple has proven time and time again its expertise at making technology simpler, fun and sexier. Apple has redefined categories so don’t be surprised if mobile advertising is next.
The author is Jason Kuperman, vice president, digital development, Asia Pacific, Omnicom group.
Apple CEO Steve Jobs has the answer: “Because most mobile advertising really sucks.” He is right. Screens are small, which leads to disappointing creativity that makes it difficult for an ad to successfully compel a viewer to invest the time away from their current activity to click through. But Apple’s new iAd platform has these possibility to change that, at least for the projected 100 million Apple mobile device users.
It is a relatively small number of the total global mobile population, but as Jobs pointed out in his April presentation it is a very attractive demographic for advertisers. Furthermore, AdMob reported that the iPhone OS accounts for 50% of mobile web traffic and, in places such as Japan, Apple’s iPhone accounts for 72% of the smartphone market, according to Tokyo-based MM Research Institute Ltd.
With iAd, not only has Apple re-thought mobile advertising with the entire iPhone ecosystem in mind, but it has also drawn on its experience as one of the world’s most enjoyed brand advertisers, leading to several features that sets iAd apart. Users will come across iAd within an application. At first, the ad will look similar to the current small banners that are common, but the meat of the ad presents itself after a user initiates interaction.
Paramount to Jobs is that the iAd experience does not take a user away from their current app. Because of the new iPhone OS4 multitasking capabilities, a user can interact with an iAd without closing their current app and go back to where they left off when they are done with the ad. Jobs believes that if people don’t have to “pay the penalty of having to find their way back to their app” it will result in more clicks (or taps) for advertisers. An improved user experience may be just the thing the mobile advertising industry
needs to propel itself further into the plans and budgets of advertisers.
iAd intends to present advertisers a mobile ad platform with more impact, delivering “interactivity and emotion”, as Jobs puts it, by giving creatives a richer canvas to work with, blurring the line between entertainment, information, apps and advertising.
It sounds very promising, but there are questions and challenges.
One unknown is the quality of the metrics and data advertisers will be able to get on iAd campaigns. According to registered developers, there are restrictions on third-party targeting and measurement, which many
advertisers rely on for precise and unbiased information about their digital marketing.
All the data will flow through Apple, presumably on the technology that came with its recent Quattro acquisition.
Targeting will benefit from the detailed understanding Apple has about users from its iTunes and App Store behaviour, however, it is yet to be determined how well this approach will be received by marketers.
The iAd interactive and emotional experience is also not alone in the mobile
advertising market. Companies such as Medialets offer similar units, which also allow for rich and immersive creative.
Furthermore, while the number of Apple apps downloaded far surpasses any others, the Apple App Store isn’t the only game in town. Nokia, BlackBerry and others have moved into the apps distribution business. Then there is the price tag.
The Wall Street Journal recently reported that being part of the iAd launch could cost up to US$10 million, with regular campaign pricing eventually in the US$1 million range. There is no denying that Apple has proven time and time again its expertise at making technology simpler, fun and sexier. Apple has redefined categories so don’t be surprised if mobile advertising is next.
The author is Jason Kuperman, vice president, digital development, Asia Pacific, Omnicom group.
Wagon R - 'Old Wine In New Bottle'
One of India's best selling car brand got better. Recently Maruti Suzuki launched the new Wagon R in the Indian market. The new spruced up model features the famed K Series engine and with a brand new look.
Wagon R has been a run away success since its launch in 1999. So far the company has sold around 8.8 lakh units of Wagon R (source). Infact Wagon R is the second largest selling car brand from Maruti's product portfolio.
Wagon R operates in the A2 segment of Indian car market which is witnessing most of the competition in recent times. Most of the car majors are viewing this segment seriously and some of the new brand launches like Chevrolet Beat and Ford Figo has been highly welcomed by the consumers.
This intense competition has prompted Maruti to relaunch the upgraded version of Wagon R with a new engine and renewed look. It is interesting to note that Wagon R recently launched a high profile brand campaign featuring the Celebrity Madhavan.
Maruti have aggressively responded to the competition from Chevy and Ford by keeping the price point of the new Wagon R at the range of Rs 3.5 lakh - 3.85 lakh. Maruti has taken the risk of cannibalizing other brands like Estillo and A Star. The rejuvenation is also a part of Maruti to take the brand from the Maturity stage of the lifecycle stage to the growth path.
The new launch is expected to give much needed boost to the brand. Wagon R is still relevant in the Indian market. The users have vouched for the comfort and drive-ability of this car in the urban jungle. The company feels that the brand still have lot of steam left in it.
The company is calling the new Wagon R as the Blue Eyed Boy. The brand has retained Madhavan as the brand ambassador in the new avatar also.
Most of the auto review comparing Wagon R , Figo and Beat has rated the competitors as better than Wagon R. But what will be driving this brand will be the Maruti endorsement . Although Chevy and Ford have established themselves in the Indian market, Maruti still holds tremendous brand equity among Indian consumers. But competitors are not sitting idle. When Chevy launched Spark to take on Alto, it ran a highly successful campaign guaranteeing Zero maintenance cost for three years. That gave lot of boost to the sale of Spark.
Wagon R in a way offers less risk for the discerning Indian consumers compared to the new entrants in terms of cost of maintenance, spares , service etc. That will help Wagon R hold on to its pivot position atleast for now.
CRTSY - MARKETING PRACTICE
Wagon R has been a run away success since its launch in 1999. So far the company has sold around 8.8 lakh units of Wagon R (source). Infact Wagon R is the second largest selling car brand from Maruti's product portfolio.
Wagon R operates in the A2 segment of Indian car market which is witnessing most of the competition in recent times. Most of the car majors are viewing this segment seriously and some of the new brand launches like Chevrolet Beat and Ford Figo has been highly welcomed by the consumers.
This intense competition has prompted Maruti to relaunch the upgraded version of Wagon R with a new engine and renewed look. It is interesting to note that Wagon R recently launched a high profile brand campaign featuring the Celebrity Madhavan.
Maruti have aggressively responded to the competition from Chevy and Ford by keeping the price point of the new Wagon R at the range of Rs 3.5 lakh - 3.85 lakh. Maruti has taken the risk of cannibalizing other brands like Estillo and A Star. The rejuvenation is also a part of Maruti to take the brand from the Maturity stage of the lifecycle stage to the growth path.
The new launch is expected to give much needed boost to the brand. Wagon R is still relevant in the Indian market. The users have vouched for the comfort and drive-ability of this car in the urban jungle. The company feels that the brand still have lot of steam left in it.
The company is calling the new Wagon R as the Blue Eyed Boy. The brand has retained Madhavan as the brand ambassador in the new avatar also.
Most of the auto review comparing Wagon R , Figo and Beat has rated the competitors as better than Wagon R. But what will be driving this brand will be the Maruti endorsement . Although Chevy and Ford have established themselves in the Indian market, Maruti still holds tremendous brand equity among Indian consumers. But competitors are not sitting idle. When Chevy launched Spark to take on Alto, it ran a highly successful campaign guaranteeing Zero maintenance cost for three years. That gave lot of boost to the sale of Spark.
Wagon R in a way offers less risk for the discerning Indian consumers compared to the new entrants in terms of cost of maintenance, spares , service etc. That will help Wagon R hold on to its pivot position atleast for now.
CRTSY - MARKETING PRACTICE
Thursday, April 29, 2010
DelMonte Sauce - TASTE LIKE NEVER BEFORE
Brand : Del Monte
Company : FieldFresh Foods
Agency : Contract Advertising
Del Monte brand is making lot of noise across various channels as well as marketing blogs these days. The brand is in news because of the launch of its range of sauces in the Indian market.
Delmonte sauces launched recently is bought to India by FieldFresh Foods Ltd which is a joint venture between Bharti Group and Philippines based Delmonte Pacific. The JV was formed in 2007 and the Del Monte products were available in select cities. I presume the company has decided to launch the products nationwide in 2010.
Del Monte is a global brand with a rich heritage of over 118 years. The Del Monte brand architecture itself is very confusing with different brand owners/licensees across the globe. The brand Delmonte is originally owned by US based Del Monte Foods and licensed to other firms across the globe. The detailed brand ownership details can be accessed here ( Wiki). FieldFresh Foods have the JV with Del Monte Pacific which has the Del Monte brand license for this part of the world.
FieldFresh Foods has launched a series of food products under the Del Monte brand name. The product range include Packed Fruits, Fruit Drinks, Ketchup and Sauces, Olives, Pasta and corn. I presume this is the first time that Del Monte brand has been promoted heavily in the media.
FieldFresh has launched two sauce brands under the Del Monte brand - Twango and Zingo. Twango is a fruit based sauce and Zingo is the traditional eastern style sauce with garlic, ginger etc. The brand is running the launch campaign for these products across various channels.
The sauce product range has taken the tagline : Taste Like Never Before. The brand has taken the taste as the USP. Delmonte is promising refreshing new tastes for its range of sauces. The launch ad is at best amusing with the brand using hyperbole to drive home the taste USP. The histrionics of the lady in the ad and the theme has nothing new to talk about. I wonder why the brand chose to use one of the most common themes for the first major brand campaign. The Indian Ketchup/Sauce market is worth around Rs 220 crore and is dominated by Maggi.
Another interesting fact is that the company decided to focus on the Umbrella brand Del Monte instead of the sub-brands Twango and Zingo. Most of the viewers may have missed those sub-brands in the ads. It is very difficult of build and sustain individual brands in the foods business. Hence umbrella branding is the only sustainable economical branding solution. The company may use Point of Purchase promotions for pushing the sub-brands.
Although Del Monte has used " Taste Like Never Before" tagline, it may be used only for the sauce product line. As far as the umbrella brand Del Monte is considered, the brand mark resembles a Quality Seal rather than a Logo. Hence Del Monte does not really need a tagline for itself.
Del Monte will be an interesting brand to watch because it has the backing of two big companies - Bharti and Del Monte. It will be tough for these brands to break the stronghold of established brands like Maggi, Heinz ,Kissan etc. Distribution and retailer support hold the key for any such brands in cracking the Indian market. Bharti which has big plans to establish retail chain may be looking for pushing the brands through its own stores in future.
courtsey- ADMAD World.
Company : FieldFresh Foods
Agency : Contract Advertising
Del Monte brand is making lot of noise across various channels as well as marketing blogs these days. The brand is in news because of the launch of its range of sauces in the Indian market.
Delmonte sauces launched recently is bought to India by FieldFresh Foods Ltd which is a joint venture between Bharti Group and Philippines based Delmonte Pacific. The JV was formed in 2007 and the Del Monte products were available in select cities. I presume the company has decided to launch the products nationwide in 2010.
Del Monte is a global brand with a rich heritage of over 118 years. The Del Monte brand architecture itself is very confusing with different brand owners/licensees across the globe. The brand Delmonte is originally owned by US based Del Monte Foods and licensed to other firms across the globe. The detailed brand ownership details can be accessed here ( Wiki). FieldFresh Foods have the JV with Del Monte Pacific which has the Del Monte brand license for this part of the world.
FieldFresh Foods has launched a series of food products under the Del Monte brand name. The product range include Packed Fruits, Fruit Drinks, Ketchup and Sauces, Olives, Pasta and corn. I presume this is the first time that Del Monte brand has been promoted heavily in the media.
FieldFresh has launched two sauce brands under the Del Monte brand - Twango and Zingo. Twango is a fruit based sauce and Zingo is the traditional eastern style sauce with garlic, ginger etc. The brand is running the launch campaign for these products across various channels.
The sauce product range has taken the tagline : Taste Like Never Before. The brand has taken the taste as the USP. Delmonte is promising refreshing new tastes for its range of sauces. The launch ad is at best amusing with the brand using hyperbole to drive home the taste USP. The histrionics of the lady in the ad and the theme has nothing new to talk about. I wonder why the brand chose to use one of the most common themes for the first major brand campaign. The Indian Ketchup/Sauce market is worth around Rs 220 crore and is dominated by Maggi.
Another interesting fact is that the company decided to focus on the Umbrella brand Del Monte instead of the sub-brands Twango and Zingo. Most of the viewers may have missed those sub-brands in the ads. It is very difficult of build and sustain individual brands in the foods business. Hence umbrella branding is the only sustainable economical branding solution. The company may use Point of Purchase promotions for pushing the sub-brands.
Although Del Monte has used " Taste Like Never Before" tagline, it may be used only for the sauce product line. As far as the umbrella brand Del Monte is considered, the brand mark resembles a Quality Seal rather than a Logo. Hence Del Monte does not really need a tagline for itself.
Del Monte will be an interesting brand to watch because it has the backing of two big companies - Bharti and Del Monte. It will be tough for these brands to break the stronghold of established brands like Maggi, Heinz ,Kissan etc. Distribution and retailer support hold the key for any such brands in cracking the Indian market. Bharti which has big plans to establish retail chain may be looking for pushing the brands through its own stores in future.
courtsey- ADMAD World.
Wednesday, April 14, 2010
FMCG N INDIA BAZAAR
The Indian FMCG sector is the fourth largest sector in the
economy with a total market size in excess of $13.1 billion.
It has a strong MNC presence and is characterised
by a well established distribution network, intense competition
between the organised and unorganised segments and low
operational cost. Availability of key raw materials, cheaper labour
costs and presence across the entire value chain gives India a competitive
advantage. The FMCG market is set to treble from $11.6
billion in 2003 to $33.4 billion in 2015. Penetration level as well
as per capita consumption in most product categories like jams,
toothpaste, skin care, hair wash etc in India is low indicating the
untapped market potential. Burgeoning Indian population, particularly
the middle class and the rural segments, presents an opportunity
to makers of branded products to convert consumers to branded
products. Growth is also likely to come from consumer 'upgrading'
in the matured product categories. With 200 million people
expected to shift to processed and packaged food by 2010, India
needs around $28 billion of investment in the food-processing
industry.
POLICY
India has enacted policies aimed at attaining international competitiveness
through lifting of the quantitative restrictions, reduced
excise duties, automatic foreign investment and food laws resulting
in an environment that fosters growth. Cent per cent export
oriented units can be set up by government approval and use of
foreign brand names is now freely permitted.
CENTRAL AND STATE INITIATIVES
Various states governments like Himachal Pradesh, Uttaranchal
and Jammu & Kashmir have encouraged companies to set up manufacturing
facilities in their regions through a package of fiscal
incentives. Jammu and Kashmir offers incentives such as allotment
of land at concessional rates, 100 per cent subsidy on project
reports and 30 per cent capital investment subsidy on fixed
capital investment upto $63,000. The Himachal Pradesh government
offers sales tax and power concessions, capital subsidies and
other incentives for setting up a plant in its tax free zone.
TRENDS
Demand for FMCG products is set to boom by almost 60 per
cent by 2007 and more than 100 per cent by 2015. This will be
driven by the rise in share of middle class from 67 per cent in
2003 to 88 per cent in 2015.
The boom in various consumer categories, further, indicates a
latent demand for various product segments. For example, the
upper end of very rich and a part of the consuming class indicate
a small but rapidly growing segment for branded products.
The middle segment, on the other hand, indicates a large market
for the mass end products.The BRICs report indicates that
India's per capita disposable income, currently at $556 per annum,
will rise to $1150 by 2015 - another FMCG demand driver. Spurt
in the industrial and services sector growth is also likely to boost
the urban consumption demand.
HOUSEHOLD CARE
The size of the fabric wash market is estimated to be $1 billion,
household cleaners to be $239 million and the production of synthetic
detergents at 2.6 million tonnes. The demand for detergents
has been growing at an annual growth rate of 10 to 11 per cent during the past five years. The urban market prefers washing powder
and detergents to bars. The regional and small un-organised
players account for a major share of the total volume of the detergent
market.
PERSONAL CARE
The size of the personal wash products is estimated at $989
million; hair care products at $831 million and oral care products
at $537 million. While the overall personal wash market is growing
at one per cent, the premium and middle-end soaps are growing
at 10 per cent. The leading players in this market are HLL,
Nirma, Godrej Soaps and Reckitt & Colman. The oral care market,
especially toothpastes, remains under penetrated in India (with
penetration level below 45 per cent). The industry is very competitive
both for organised and smaller regional players.
The Indian skin care and cosmetics market is valued at $274 million and dominated by HLL, Colgate Palmolive, Gillette India and
Godrej Soaps. The coconut oil market accounts for 72 per cent
share in the hair oil market. In the branded coconut hair oil market,
Marico (with Parachute) and Dabur are the leading players. The
market for branded coconut oil is valued at approximately $174
million.
FOOD AND BEVERAGES
The size of the Indian food processing industry is around
$ 65.6 billion, including $20.6 billion of value added products. Of
this, the health beverage industry is valued at $230 million; bread
and biscuits at $1.7 billion; chocolates at $73 million and ice
creams at $188 million.
The size of the semi-processed/ready-to-eat food segment is
over $1.1 billion. Large biscuits & confectionery units, soya processing
units and starch/glucose/sorbitol producing units have also
come up, catering to domestic and international markets.
The three largest consumed categories of packaged foods are
packed tea, biscuits and soft drinks.
The Indian beverage industry faces over supply in segments like
coffee and tea. However, more than half of this is available in
unpacked or loose form. Indian hot beverage market is a tea dominant
market. Consumers in different parts of the country have heterogeneous
tastes. Dust tea is popular in southern India, while
loose tea in preferred in western India. The urban-rural split of the
tea market was 51:49 in 2000. Coffee is consumed largely in the
southern states. The size of the total packaged coffee market is
19,600 tonnes or $87 million. The total soft drink (carbonated
beverages and juices) market is estimated at 284 million crates a
year or $1 billion. The market is highly seasonal in nature with consumption
varying from 25 million crates per month during peak
season to 15 million during offseason. The market is predominantly
urban with 25 per cent contribution from rural areas. Coca cola
and Pepsi dominate the Indian soft drinks market.
Mineral water market in India is a 65 million crates ($50 million)
industry. On an average, the monthly consumption is estimated at
4.9 million crates, which increases to 5.2 million during peak
season.
economy with a total market size in excess of $13.1 billion.
It has a strong MNC presence and is characterised
by a well established distribution network, intense competition
between the organised and unorganised segments and low
operational cost. Availability of key raw materials, cheaper labour
costs and presence across the entire value chain gives India a competitive
advantage. The FMCG market is set to treble from $11.6
billion in 2003 to $33.4 billion in 2015. Penetration level as well
as per capita consumption in most product categories like jams,
toothpaste, skin care, hair wash etc in India is low indicating the
untapped market potential. Burgeoning Indian population, particularly
the middle class and the rural segments, presents an opportunity
to makers of branded products to convert consumers to branded
products. Growth is also likely to come from consumer 'upgrading'
in the matured product categories. With 200 million people
expected to shift to processed and packaged food by 2010, India
needs around $28 billion of investment in the food-processing
industry.
POLICY
India has enacted policies aimed at attaining international competitiveness
through lifting of the quantitative restrictions, reduced
excise duties, automatic foreign investment and food laws resulting
in an environment that fosters growth. Cent per cent export
oriented units can be set up by government approval and use of
foreign brand names is now freely permitted.
CENTRAL AND STATE INITIATIVES
Various states governments like Himachal Pradesh, Uttaranchal
and Jammu & Kashmir have encouraged companies to set up manufacturing
facilities in their regions through a package of fiscal
incentives. Jammu and Kashmir offers incentives such as allotment
of land at concessional rates, 100 per cent subsidy on project
reports and 30 per cent capital investment subsidy on fixed
capital investment upto $63,000. The Himachal Pradesh government
offers sales tax and power concessions, capital subsidies and
other incentives for setting up a plant in its tax free zone.
TRENDS
Demand for FMCG products is set to boom by almost 60 per
cent by 2007 and more than 100 per cent by 2015. This will be
driven by the rise in share of middle class from 67 per cent in
2003 to 88 per cent in 2015.
The boom in various consumer categories, further, indicates a
latent demand for various product segments. For example, the
upper end of very rich and a part of the consuming class indicate
a small but rapidly growing segment for branded products.
The middle segment, on the other hand, indicates a large market
for the mass end products.The BRICs report indicates that
India's per capita disposable income, currently at $556 per annum,
will rise to $1150 by 2015 - another FMCG demand driver. Spurt
in the industrial and services sector growth is also likely to boost
the urban consumption demand.
HOUSEHOLD CARE
The size of the fabric wash market is estimated to be $1 billion,
household cleaners to be $239 million and the production of synthetic
detergents at 2.6 million tonnes. The demand for detergents
has been growing at an annual growth rate of 10 to 11 per cent during the past five years. The urban market prefers washing powder
and detergents to bars. The regional and small un-organised
players account for a major share of the total volume of the detergent
market.
PERSONAL CARE
The size of the personal wash products is estimated at $989
million; hair care products at $831 million and oral care products
at $537 million. While the overall personal wash market is growing
at one per cent, the premium and middle-end soaps are growing
at 10 per cent. The leading players in this market are HLL,
Nirma, Godrej Soaps and Reckitt & Colman. The oral care market,
especially toothpastes, remains under penetrated in India (with
penetration level below 45 per cent). The industry is very competitive
both for organised and smaller regional players.
The Indian skin care and cosmetics market is valued at $274 million and dominated by HLL, Colgate Palmolive, Gillette India and
Godrej Soaps. The coconut oil market accounts for 72 per cent
share in the hair oil market. In the branded coconut hair oil market,
Marico (with Parachute) and Dabur are the leading players. The
market for branded coconut oil is valued at approximately $174
million.
FOOD AND BEVERAGES
The size of the Indian food processing industry is around
$ 65.6 billion, including $20.6 billion of value added products. Of
this, the health beverage industry is valued at $230 million; bread
and biscuits at $1.7 billion; chocolates at $73 million and ice
creams at $188 million.
The size of the semi-processed/ready-to-eat food segment is
over $1.1 billion. Large biscuits & confectionery units, soya processing
units and starch/glucose/sorbitol producing units have also
come up, catering to domestic and international markets.
The three largest consumed categories of packaged foods are
packed tea, biscuits and soft drinks.
The Indian beverage industry faces over supply in segments like
coffee and tea. However, more than half of this is available in
unpacked or loose form. Indian hot beverage market is a tea dominant
market. Consumers in different parts of the country have heterogeneous
tastes. Dust tea is popular in southern India, while
loose tea in preferred in western India. The urban-rural split of the
tea market was 51:49 in 2000. Coffee is consumed largely in the
southern states. The size of the total packaged coffee market is
19,600 tonnes or $87 million. The total soft drink (carbonated
beverages and juices) market is estimated at 284 million crates a
year or $1 billion. The market is highly seasonal in nature with consumption
varying from 25 million crates per month during peak
season to 15 million during offseason. The market is predominantly
urban with 25 per cent contribution from rural areas. Coca cola
and Pepsi dominate the Indian soft drinks market.
Mineral water market in India is a 65 million crates ($50 million)
industry. On an average, the monthly consumption is estimated at
4.9 million crates, which increases to 5.2 million during peak
season.
Monday, April 12, 2010
TATA- PEPSI JV to grab Health Drink Market
Now TATA AND PEPSI has entered into a join venture for creating a new entity for non carbonated drinks. The new company will be exclusive for the Indian market, said Sanjeev Chadha, chairman of cola and snacks foods multinational PepsiCo.
now the question is Pepsi has already a JV with HUL for marketing, selling and distributing Lipton ice tea. and TATA TEA and HUL are in stiff competition to grab that market. HUL competes with the Tata Group firm in the packaged tea market.now it would be interesting to see what HUL has to say about this. Though both TATA TEA and PEPSI has said it wont affect any existing deals and would be taken as a step forward fro another healthy competition.
Under the new entity both the companies are trying to bring their non carbonated based products under the new entity.PEPSI has products like Nimbooz, Aquafina and tropicana juices as their non carbonated drinks in their portfolio. While TATA include Tata Tea’s ‘good for you’ liquid beverages such as Himalayan packaged water and T!ON — a fruit juice and tea-based beverage.
TATA which has been trying to reposition itself as branded beverage company, this JV would be crucial. India’s health and wellness food sector, estimated at Rs 5,050 crore, is growing at 24% a year, a report by Tata Strategic Management Group said last week.This JV is definitely going to redefine the particular market segment and would add fuel to already going war between HUL, NESTLE, P&G, Coca Cola and others.
now the question is Pepsi has already a JV with HUL for marketing, selling and distributing Lipton ice tea. and TATA TEA and HUL are in stiff competition to grab that market. HUL competes with the Tata Group firm in the packaged tea market.now it would be interesting to see what HUL has to say about this. Though both TATA TEA and PEPSI has said it wont affect any existing deals and would be taken as a step forward fro another healthy competition.
Under the new entity both the companies are trying to bring their non carbonated based products under the new entity.PEPSI has products like Nimbooz, Aquafina and tropicana juices as their non carbonated drinks in their portfolio. While TATA include Tata Tea’s ‘good for you’ liquid beverages such as Himalayan packaged water and T!ON — a fruit juice and tea-based beverage.
TATA which has been trying to reposition itself as branded beverage company, this JV would be crucial. India’s health and wellness food sector, estimated at Rs 5,050 crore, is growing at 24% a year, a report by Tata Strategic Management Group said last week.This JV is definitely going to redefine the particular market segment and would add fuel to already going war between HUL, NESTLE, P&G, Coca Cola and others.
Impact of Slowdown and Inflation and Changing Strategies in FMCG Sector
Impact of Slowdown and Inflation and Changing Strategies in FMCG Sector
The recent financial crisis has impacted several industries across the globe. In this article I will be addressing the impact on FMCG sector in India and the changing strategies which are being considered to counter the meltdown.
Impact on FMCG Sector
Post liberalization, because of the entry of a number of MNCs in India, the FMCG sales went up. But soon between 2000 and 2004, FMCG sector got hit, attributed to agricultural crisis and industrial slowdown. The crisis of declining FMCG markets was also driven by new avenues of expenditure for growing consumer income such as consumer durables, entertainment, mobiles, motorbikes etc. Indian population was all set to experience the new basket of products, but with cut-down on FMCG products. This lead to low share of FMCG spends in the consumer’s wallet.
But every year the disposable income was increasing, from $424 in 2002 to $599 in 2007. There was an inflection in 2005, when they could spend on value added/ premium products along with the new basket of products. This was the boom stage; all categories were growing at healthy double digit rates.
As the share of FMCG spend has come down over the last few years, high inflation will not have a major impact on the consumer. The incremental expenditure will not pinch. In the current slowdown and high inflation, my hypothesis is that the consumers may not reduce the expenditure on FMCG products; rather they may cut down expenditure on expensive restaurants. People may prefer local cinema halls or in-house entertainment (Movies on Demand), than multiplexes. Consumers may prefer a local transport than Taxis. They may hold their decision of buying a new car for sometime.
Having said that let me discuss what possible impact can be there on FMCG sector.
1. Marginal Slowdown in products with low perceived value
Can you think of consumers stop consuming Atta in North and Rice in South in the current scenario? Will consumers stop bathing and washing their clothes? The answer is No!! The simple reason being it’s a necessity. Now the next question is whether consumer will buy expensive/ premium detergents or the basic ones. I think that if the perceived value from the offer is high, consumers will not downtrade to cheaper brands. This means that “Value for Money” products will not be impacted. Here “Value for Money” is independent of the price. There may be products that are inexpensive, but may offer less value to the consumers. Those will get impacted.
Therefore, large mass FMCG segment, which deliver value, may be insulated from the vagaries of the financial market; the under-penetrated premium-end category could face the heat.
From 2005, we have seen willingness in consumers to move to evolved products/ brands, because of changing lifestyles, rising disposable income etc. This was the key reason for FMCG companies like HUL, P&G, Marico focusing lot on value-added products and premium-end products to drive their growths. We all have seen big launches of two premium Anti-Ageing brands, namely Olay and Pond's Age Miracle.
In the current scenario, there may be some hit to the premium FMCG brands, because of mainly two reasons:
1. Products which are not differentiated and have low perceived value will be impacted. Consumer may reconsider buying expensive skin care products, high-end food items.
2. Some consumers who were ready to upgrade from popular to premium brands may hold, as they may find more value in popular brands
In a nutshell, consumer will look for value and not the MRP.
2. Rural FMCG Sales: The growth engine
In last few months we have several FMCG categories like shampoos, toothpaste, hair oils etc growing faster in rural than urban markets. This is attributed to higher prices of farm produce, farm loan waiver and rising rural income. These consumers are not impacted with the global slowdown. The rural consumers are upgrading to higher end products, which is driving the volume sales of FMCG companies.
Now to understand the impact on FMCG sales, let us see the split. Rural, semi-urban and urban contributed 57%, 21% and 22% respectively in 2007-08. Rural with the highest base is growing the fastest. So even if there is marginal drop in premium and value-added products (as mentioned in the previous point), the overall sales would not be impacted much. Therefore, FICCI’s prediction of growth of FMCG sector by 16% may marginally come down, because of less than expected growth rates in the premium segments.
Changing Strategies in FMCG Sector
As mentioned in the first half of my article, the overall impact on the FMCG sales will be marginal. Heavy dependence on the agri-sector and FMCG not being very capital-intensive are among the factors that have insulated the sector from the downturn. But rising input prices, inflation and increased commoditization of products are forcing FMCG companies to adopt new strategies, to have a viable business proposition. Let me enlist few of the strategies which companies have adopted and the outcome of the same.
1. Increase in price: Due to increase in raw material prices, many companies were forced to increase their prices and pass on the cost to the consumers.
a) HUL: Hiked the price of its detergent bar Surf Excel (120 g) earlier known as Rin Supreme from Rs 13 to 15. They have also increased some of their toilet soap brands
b) Tea Companies: Tata Tea and Duncans Tea have also hiked prices for select brands in their stables. Even regional players like Royal Girnar and Soceity Tea have increased prices of their brands to compete with national players
c) Britannia: Hiked the price of its popular brand ‘Britannia NutriChoice Digestive’ from Rs 14 to 15.
Some companies have been able to maintain the prices. Parle Agro has not changed the price of Frooti in spite of upward pressure on prices.
It may be easy to increase the prices of premium products but in case of popular products, the preferred choice is between reducing grammage and maintaining the same price points or introducing another price point to suit consumer pockets.
2. Introduction of lower SKUs: To prevent down trading, the companies have introduced packs with lower SKUs so that per unit purchase does not pinch the consumer’s wallet. With that companies are sharpening their focus on the existing smaller packs and increase their availability.
a) Henkel: Introduced a new 400 gm pack of Henko washing powder at Rs 40 and withdrawn the 500 gm pack that used to sell for Rs 46. As quoted by Henkel, “A family of four requires only 400-425 gm of washing powder in a month. We withdrew the 500 gm packs as they were making consumers spend more and consume more”. They have reintroduced Pril liquid for Rs 50 (425 gm bottle), down from Rs 55 (500 gm). They recently brought out its popular Fa deodorant in 75 ml and Margo soap in 40 grams.
b) Procter & Gamble: P&G has reduced the pack size of its flagship detergent brand ‘Tide’ from 1 kilo to 850 gm while maintaining the price point at Rs 62. They have also also reduced the size of its 500 gm to 480 gm at the same price.
c) Gujarat Cooperative Milk Marketing Federation: Amul introduced 25 gm packs of butter few months back, which is now registering higher sales than the traditional 100 gm and 500 gm packs. Same has happened to their milk powder. They used to sell more of traditional packs of 200 gm, 500 gm and 1 kg, with the 500 gm packs selling the most. In the recent scenario, 25 gm and 50 gm packs are selling in higher numbers.
As an outcome, companies are registering faster offtake in the mid-sized packs.
3. Cost Cutting Strategies: While companies resorted to price hike, many companies are exploring ways to cut down cost.
a) Companies are busy in strengthening their distribution and logistics, by bringing in more efficiency and innovation in the supply chain. Companies are closely monitoring their stock levels and loading patterns
b) Soap companies have shifted to cheaper options of raw materials to source their products at a competitive price.
c) Some companies have cut down their spends on advertisement
4) Mergers and Acquisitions: The turmoil in global markets seems to have a favorable impact on Indian FMCG majors’ acquisition. While many big FMCG companies find this situation an ideal opportunity to go for acquisitions, there are others who are cautious to invest in M&A. CK Ranganathan, chairman & managing director, CavinKare Pvt Ltd said that the global melt down will have a favorable impact for Indian companies’ acquisition plans. According to him, it’s an opportunity for them to acquire companies as they get good value for money. The current financial crisis may offer more opportunities because of better valuation.
5) Restructuring to leverage synergies: With the ‘power of one’ strategy, PepsiCo is aligning its beverages and snacks businesses under a common leadership. This will help them to maximize synergies of the two businesses across key functions such as procurement, agriculture and production, which will lead to production efficiencies. This will help them to minimize the price hike.
Outcome: FMCG sales & profit unaffected despite mayhem
In the June quarter, FMCG companies saw an impressive topline growth. However, rising input prices and inflation impacted their profitability. To counter the decreasing profitability, as mentioned above, companies adopted multiple strategies.
As an outcome, if we look at September quarter results, it clearly shows that the FMCG sector is not impacted, despite rise in raw material cost; credit crisis and the global meltdown. The combined net profit of 12 Bombay Stock Exchange (BSE) FMCG index companies has increased by 14% as compared to the same quarter last year. In fact, net profit of 350 BSE-500 companies increased 7% in the July-September 2008 quarter, as compared to the same period last year.
The robust net profit was boosted by a 21% increase in net sales of these 12 companies, despite the fact that raw material cost increased by 29% as compared to the same period last year. This clearly indicates that companies were able to offset the input cost hike by passing it on to the consumers as retail prices of goods in this segment increased on an average by 10-20% in the last few months. The sector is showing strong volume growth across product categories.
Vote
Has the recent increase in prices of FMCG products impacted your FMCG buying behavior?
a) Downgraded from Expensive Brands to Cheaper Ones
b) Stuck to your old brand; but moved to cheaper SKUs
c) No change in buying behavior
References
Top-end FMCG products may witness slowdown (Times of India)
FMCG cos remain unaffected despite turbulence (Financial Express)
PepsiCo to go ahead with India plans (Economic Times)
Slowdown in India won't impact growth, says Nestle (Business Standard)
FMCG: Strong volumes, margin pressure (Equitymaster)
Despite slowdown, FMCG cos put M&As on fast lane (Financial Express)
Inflation blues: FMCG prices set to rise (Financial Express)
FMCG companies push product launches despite inflation (Financial Express)
Inflation heat has not dampened FMCG offtake (Hindu Business Line)
Companies bet big on small packs to beat inflation heat (Economic Times)
Inflation: FMCG majors on a reinventing spree (Economic Times)
FMCG cos buck downtrend, may grow 17 pc (Ibef)
FMCG firms in a fix over pricing strategy (Business Standard)
FY10 should be good for FMCG: Godrej (Utvi)
POSTED BY NITIN KOCHHAR
The recent financial crisis has impacted several industries across the globe. In this article I will be addressing the impact on FMCG sector in India and the changing strategies which are being considered to counter the meltdown.
Impact on FMCG Sector
Post liberalization, because of the entry of a number of MNCs in India, the FMCG sales went up. But soon between 2000 and 2004, FMCG sector got hit, attributed to agricultural crisis and industrial slowdown. The crisis of declining FMCG markets was also driven by new avenues of expenditure for growing consumer income such as consumer durables, entertainment, mobiles, motorbikes etc. Indian population was all set to experience the new basket of products, but with cut-down on FMCG products. This lead to low share of FMCG spends in the consumer’s wallet.
But every year the disposable income was increasing, from $424 in 2002 to $599 in 2007. There was an inflection in 2005, when they could spend on value added/ premium products along with the new basket of products. This was the boom stage; all categories were growing at healthy double digit rates.
As the share of FMCG spend has come down over the last few years, high inflation will not have a major impact on the consumer. The incremental expenditure will not pinch. In the current slowdown and high inflation, my hypothesis is that the consumers may not reduce the expenditure on FMCG products; rather they may cut down expenditure on expensive restaurants. People may prefer local cinema halls or in-house entertainment (Movies on Demand), than multiplexes. Consumers may prefer a local transport than Taxis. They may hold their decision of buying a new car for sometime.
Having said that let me discuss what possible impact can be there on FMCG sector.
1. Marginal Slowdown in products with low perceived value
Can you think of consumers stop consuming Atta in North and Rice in South in the current scenario? Will consumers stop bathing and washing their clothes? The answer is No!! The simple reason being it’s a necessity. Now the next question is whether consumer will buy expensive/ premium detergents or the basic ones. I think that if the perceived value from the offer is high, consumers will not downtrade to cheaper brands. This means that “Value for Money” products will not be impacted. Here “Value for Money” is independent of the price. There may be products that are inexpensive, but may offer less value to the consumers. Those will get impacted.
Therefore, large mass FMCG segment, which deliver value, may be insulated from the vagaries of the financial market; the under-penetrated premium-end category could face the heat.
From 2005, we have seen willingness in consumers to move to evolved products/ brands, because of changing lifestyles, rising disposable income etc. This was the key reason for FMCG companies like HUL, P&G, Marico focusing lot on value-added products and premium-end products to drive their growths. We all have seen big launches of two premium Anti-Ageing brands, namely Olay and Pond's Age Miracle.
In the current scenario, there may be some hit to the premium FMCG brands, because of mainly two reasons:
1. Products which are not differentiated and have low perceived value will be impacted. Consumer may reconsider buying expensive skin care products, high-end food items.
2. Some consumers who were ready to upgrade from popular to premium brands may hold, as they may find more value in popular brands
In a nutshell, consumer will look for value and not the MRP.
2. Rural FMCG Sales: The growth engine
In last few months we have several FMCG categories like shampoos, toothpaste, hair oils etc growing faster in rural than urban markets. This is attributed to higher prices of farm produce, farm loan waiver and rising rural income. These consumers are not impacted with the global slowdown. The rural consumers are upgrading to higher end products, which is driving the volume sales of FMCG companies.
Now to understand the impact on FMCG sales, let us see the split. Rural, semi-urban and urban contributed 57%, 21% and 22% respectively in 2007-08. Rural with the highest base is growing the fastest. So even if there is marginal drop in premium and value-added products (as mentioned in the previous point), the overall sales would not be impacted much. Therefore, FICCI’s prediction of growth of FMCG sector by 16% may marginally come down, because of less than expected growth rates in the premium segments.
Changing Strategies in FMCG Sector
As mentioned in the first half of my article, the overall impact on the FMCG sales will be marginal. Heavy dependence on the agri-sector and FMCG not being very capital-intensive are among the factors that have insulated the sector from the downturn. But rising input prices, inflation and increased commoditization of products are forcing FMCG companies to adopt new strategies, to have a viable business proposition. Let me enlist few of the strategies which companies have adopted and the outcome of the same.
1. Increase in price: Due to increase in raw material prices, many companies were forced to increase their prices and pass on the cost to the consumers.
a) HUL: Hiked the price of its detergent bar Surf Excel (120 g) earlier known as Rin Supreme from Rs 13 to 15. They have also increased some of their toilet soap brands
b) Tea Companies: Tata Tea and Duncans Tea have also hiked prices for select brands in their stables. Even regional players like Royal Girnar and Soceity Tea have increased prices of their brands to compete with national players
c) Britannia: Hiked the price of its popular brand ‘Britannia NutriChoice Digestive’ from Rs 14 to 15.
Some companies have been able to maintain the prices. Parle Agro has not changed the price of Frooti in spite of upward pressure on prices.
It may be easy to increase the prices of premium products but in case of popular products, the preferred choice is between reducing grammage and maintaining the same price points or introducing another price point to suit consumer pockets.
2. Introduction of lower SKUs: To prevent down trading, the companies have introduced packs with lower SKUs so that per unit purchase does not pinch the consumer’s wallet. With that companies are sharpening their focus on the existing smaller packs and increase their availability.
a) Henkel: Introduced a new 400 gm pack of Henko washing powder at Rs 40 and withdrawn the 500 gm pack that used to sell for Rs 46. As quoted by Henkel, “A family of four requires only 400-425 gm of washing powder in a month. We withdrew the 500 gm packs as they were making consumers spend more and consume more”. They have reintroduced Pril liquid for Rs 50 (425 gm bottle), down from Rs 55 (500 gm). They recently brought out its popular Fa deodorant in 75 ml and Margo soap in 40 grams.
b) Procter & Gamble: P&G has reduced the pack size of its flagship detergent brand ‘Tide’ from 1 kilo to 850 gm while maintaining the price point at Rs 62. They have also also reduced the size of its 500 gm to 480 gm at the same price.
c) Gujarat Cooperative Milk Marketing Federation: Amul introduced 25 gm packs of butter few months back, which is now registering higher sales than the traditional 100 gm and 500 gm packs. Same has happened to their milk powder. They used to sell more of traditional packs of 200 gm, 500 gm and 1 kg, with the 500 gm packs selling the most. In the recent scenario, 25 gm and 50 gm packs are selling in higher numbers.
As an outcome, companies are registering faster offtake in the mid-sized packs.
3. Cost Cutting Strategies: While companies resorted to price hike, many companies are exploring ways to cut down cost.
a) Companies are busy in strengthening their distribution and logistics, by bringing in more efficiency and innovation in the supply chain. Companies are closely monitoring their stock levels and loading patterns
b) Soap companies have shifted to cheaper options of raw materials to source their products at a competitive price.
c) Some companies have cut down their spends on advertisement
4) Mergers and Acquisitions: The turmoil in global markets seems to have a favorable impact on Indian FMCG majors’ acquisition. While many big FMCG companies find this situation an ideal opportunity to go for acquisitions, there are others who are cautious to invest in M&A. CK Ranganathan, chairman & managing director, CavinKare Pvt Ltd said that the global melt down will have a favorable impact for Indian companies’ acquisition plans. According to him, it’s an opportunity for them to acquire companies as they get good value for money. The current financial crisis may offer more opportunities because of better valuation.
5) Restructuring to leverage synergies: With the ‘power of one’ strategy, PepsiCo is aligning its beverages and snacks businesses under a common leadership. This will help them to maximize synergies of the two businesses across key functions such as procurement, agriculture and production, which will lead to production efficiencies. This will help them to minimize the price hike.
Outcome: FMCG sales & profit unaffected despite mayhem
In the June quarter, FMCG companies saw an impressive topline growth. However, rising input prices and inflation impacted their profitability. To counter the decreasing profitability, as mentioned above, companies adopted multiple strategies.
As an outcome, if we look at September quarter results, it clearly shows that the FMCG sector is not impacted, despite rise in raw material cost; credit crisis and the global meltdown. The combined net profit of 12 Bombay Stock Exchange (BSE) FMCG index companies has increased by 14% as compared to the same quarter last year. In fact, net profit of 350 BSE-500 companies increased 7% in the July-September 2008 quarter, as compared to the same period last year.
The robust net profit was boosted by a 21% increase in net sales of these 12 companies, despite the fact that raw material cost increased by 29% as compared to the same period last year. This clearly indicates that companies were able to offset the input cost hike by passing it on to the consumers as retail prices of goods in this segment increased on an average by 10-20% in the last few months. The sector is showing strong volume growth across product categories.
Vote
Has the recent increase in prices of FMCG products impacted your FMCG buying behavior?
a) Downgraded from Expensive Brands to Cheaper Ones
b) Stuck to your old brand; but moved to cheaper SKUs
c) No change in buying behavior
References
Top-end FMCG products may witness slowdown (Times of India)
FMCG cos remain unaffected despite turbulence (Financial Express)
PepsiCo to go ahead with India plans (Economic Times)
Slowdown in India won't impact growth, says Nestle (Business Standard)
FMCG: Strong volumes, margin pressure (Equitymaster)
Despite slowdown, FMCG cos put M&As on fast lane (Financial Express)
Inflation blues: FMCG prices set to rise (Financial Express)
FMCG companies push product launches despite inflation (Financial Express)
Inflation heat has not dampened FMCG offtake (Hindu Business Line)
Companies bet big on small packs to beat inflation heat (Economic Times)
Inflation: FMCG majors on a reinventing spree (Economic Times)
FMCG cos buck downtrend, may grow 17 pc (Ibef)
FMCG firms in a fix over pricing strategy (Business Standard)
FY10 should be good for FMCG: Godrej (Utvi)
POSTED BY NITIN KOCHHAR
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