FMCG cos rev up brand spends

As the fight with durables for the consumer's share of wallet ebbs, FMCG companies are opening up their purse strings. The sectoral players that withdrew into a shell, forced by low price competition and a stagnant market, are now looking beyond just protecting their turf.

e4m by exchange4media Staff
Published: Jun 28, 2006 6:50 AM  | 3 min read
FMCG cos rev up brand spends

As the fight with durables for the consumer's share of wallet ebbs, FMCG companies are opening up their purse strings. The sectoral players that withdrew into a shell, forced by low price competition and a stagnant market, are now looking beyond just protecting their turf.

Almost all the FMCG companies are showing a perceptible shift in their focus - from price realignment to a proactive product innovation and channel augmentation strategy, with aggressive brand marketing thrown in.

To begin with, spends on advertising and sales promotion (ASP) of FMCG companies has surged by as much as 26% in '05-06, outpacing the sector growth (17%). As a percentage of revenue, spends on ASP have grown 14.6%, up from 11.8% in '03-04.

Analysts attribute much of this aggression and increased expenditure to the fact that many of these consumer companies have achieved fiscal savings by setting up manufacturing facilities in states that offer tax holidays and excise sops. These savings are being pumped into front-end investments. “Increased spends are also on account of rising media costs and higher fragmentation, which means you have to spend more to reach the same target audience,” says Hoshidar Press, ED and president, Godrej Consumer Products.

Besides pushing ASP, FMCG companies have turned to innovation, launching a slew of products as they enter newer categories. Dabur has set up a new Innovation Cell in the company with a clear mandate to analyse, evaluate and help develop products in new categories, in line with the company's existing brand architecture.

“We have been proactive on new product development in existing categories, evaluating new formats and variants to strengthen our existing portfolio,” says Sunil Duggal, CEO, Dabur India. The company has already entered the skincare and beauty soap segment through its brand, Vatika.

Nestle and HLL are also busy strengthening their innovation baskets. The former launched a series of new culinary initiatives under the proposition 'Taste Bhi, Health Bhi', such as Nestle Raita, Maggi Vegetable Atta Noodles and New Maggi Healthy Soups. It launched Maggie vegetable noodles early this year and more recently, introduced Nestle Ceremeal Daliya (porridge) and Maggie Sambhar Dal noodle.

Also on the cards is Everyday Sugar-free variant to kick-start the product's growth on the health platform. HLL, on the other hand, has been repositioning its key brands, including Lux, Lifebuoy, Lakme, Ponds and Taj Mahal. Similarly, GSK has launched Boost Choco Blast, while Colgate launched Advanced Whitening, Active Salt and Max Fresh this year.

Food companies are quiet bullish in the out-of-home (OOH) segment and are expanding their thrust in the segment. “Innovation is the key requirement today to leverage the changed consumer trends as everyone wants unique product,” a source said.

At a time when the personal care category is growing at 20%, global personal care brands like Garnier, Revlon and L'Oreal have upped the ante, galvanising Indian players like Emami, Dabur and Marico into action. Marico has extended its positioning from hair oils to beauty and wellness along with the launch of hair conditioner and hair gels.

Dabur is realigning its distribution machinery to tap three most important interfaces with the consumer - chemist, grocer and modern trade. Since the profile and expectations of customers from these three channels are different, the herbal major plans to develop and package its products and realign service levels to suit the respective needs.

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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

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Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

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Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

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Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

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