Pitch Madison Advertising Report 2017: Innovate relentlessly, improve accessibility, immerse in rural: Sunil Kataria, Godrej Consumer Products
Kataria shared his winning formula for refreshing the FMCG category at the recent edition of Pitch Madison Advertising Report 2017

At the unveling of the Pitch Madison Advertising Report 2017 last week, Sunil Kataria, Business Head – India and SAARC, Godrej Consumer Products, spoke on the subject of ‘Rebooting the FMCG category’. He shared insights on what it really means to reboot and revive the category, in addition to adapting a winning formula, based on his deep expertise.
At the onset, he admitted that the subject was a contextual one, given the recent move of demonetisation and the serious slowdown of the FMCG category in India. Kataria showed a graph to the audience, which displayed the growth rates of the top six FMCG companies derived from their respective annual reports. The results showed that the growth rates had declined sharply from 12 per cent in 2014 to 2 per cent in 2016.
Money ploughed into promotions, not into advertising
He presented his analysis of how the advertising-to-sales ratio and the promotion-to-sales ratio of the FMCG industry shaped up in the last six years (2011-2016). While the advertising-to-sales ratio remained constant, the promotion-to-sales ratio had jumped from 0.9 percent in the first three years to almost double at 1.5 per cent in the next three years. “What’s interesting is that all that money is being ploughed back into promotions and not into advertising at an industry-wide level,” remarked Kataria.
Short-term versus long-term
Kataria then presented figures, which showed that in 2012, there were 17,000 new product launches, which reduced to 9,500 in 2015. “One thing clear is that investment in new product launches has definitely come down, which shows that we are so caught up in the here and now that the focus on innovation is coming down,” he pointed out.
Stagnant retail expansion
“Distribution is the key to FMCG business,” stated Kataria adding that “the retail universe in India has remained flat.” The numbers showed a steady rate of 0.1 per cent over the last three years.
How to revive FMCG?
Kataria admitted that a rebooting exercise is certainly required. He then proceeded to share his formula to revive the FMCG category, which was broken down into four major takeaways: 1) India has enormous headroom for penetration, 2) There is a need to innovate relentlessly, 3) Accessibility needs to be improved, and 4) There is a need to immerse in rural.
Elaborating on innovation, Kataria cited the example of Godrej itself. “In the last year, we did five new launches.” These included three big disruptions—Good Knight Fast Card, Godrej Aer Pocket, and Godrej Expert Rich Crème Hair Colour.
Speaking about accessibility, Kataria said, “FMCG cannot thrive without distribution,” stressing on the importance of numeric distribution as well as building indirect reach through channel partnerships. “There is a clear correlation between a brand’s sales growth and numeric distribution,” he added. He also stated that it is imperative to invest in e-commerce for penetrating smaller cities.
“Immerse in the rural market. The Union Budget 2017 has also given an impetus by stating that the income of farmers is set to double in the next five years,” he said. Furthermore, he stated that the rural market should be thought of as one. The use of new media—for example, community radios, which operate within a cluster of around 20 villages—may also prove beneficial, according to him. Finally, brands need to be able to offer affordable and portable packages, something Kataria believes most brand managers miss due to their desire to bring in modern packaging.
To sum up the session, Kataria advised the audience to “not reboot, but repeat what you have been doing so well.”
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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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