HLL's brand pull takes a beating
Going by Harish Manwani, president, Unilever (Asia/Africa)'s insistence on looking at market share as a strong performance indicator, HLL's numbers for the quarter ending June '06 should be a cause for concern.
Going by Harish Manwani, president, Unilever (Asia/Africa)'s insistence on looking at market share as a strong performance indicator, HLL's numbers for the quarter ending June '06 should be a cause for concern.
Market shares in major categories like laundry, toothpastes and skin care have dipped, while the company has held shares in personal wash and shampoos.
A combination of a clear strategy of brand investments and a robust rural growth has, of course, helped the consumer goods major report a 12% volume growth in its FMCG business. The stock was quoted at Rs 232.3 on Monday, down by 4% - an indication of 'lower-than-expected' market expectations.
In its main business of home and personal care (HPC), the company has lost market share in personal wash, from 54.9% in the June '05 quarter to 54.5%. Its market share had increased to 55.9% during the March '05 quarter, but later slipped. In this category, Lifebuoy was doing well; Lux was facing a decline, but has recovered.
However, Breeze is still under pressure. Its market share in toothpaste has also declined from 32.5% in June '05 to 30.2% in June '06. What's surprising is that in fabric wash - a category where its sales have been quite healthy (the June '06 quarter sales growth for soaps and detergents was 13%) - the market share has declined.
Fabric wash share during June '06 quarter declined to 36.6% from 38.2% in the quarter. Shampoo share recorded a marginal improvement, from 47.5% to 47.7. Company officials have attributed the lower market share numbers to the lag effect of AC Nielsen's market research studies, which do not yet reflect the rural growth rates.
“If that be the case, the market shares should have at least been constant rather than actually declining,” said an industry analyst. Overall, the company's performance reflects its efforts at cashing in on an upbeat consumer mood through product innovation, distribution initiatives and market activation.
The company has relaunched quite of few of its HPC brands like Lifebuoy, Sunsilk Surf Excel and several other variants. The HPC category has done well with sales growing by about 13%. HLL is yet to spring any surprises with foods.
In the foods category, the beverages segment has been a disappointment as sales have declined 3.7%, while its segment profit has declined by 24.5%.
The focus on profitability remains, with the company claiming to have rejigged its supply chain in a manner that gives it a cost advantage. In terms of performance, it has been a good quarter for HLL. Overall sales grew 10.9% and it claims two-thirds of this is due to volume growth.
Despite higher material costs and a 20.5% increase in advertising expenditure, its operating profit margin has actually increased by 126 basis points to 13.5% compared to the previous corresponding period. This is attributed to cost savings, price increases and buying efficiency, and to some extent, to savings on excise.
The effective tax rate during the year indicates that it is benefiting from the production being done in tax exempt locations.
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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
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'
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 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
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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KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
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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