Monday, September 5, 2016
Saturday, August 13, 2016
It is too early to say what the precise impact will be, we have to see what the rate is going to be. It will certainly bring about a level playing field and that is something which we are extremely pleased about. The second important benefit will be that industry will have an opportunity to become far more efficient than ever before. This too augurs very well for the industry.
We are absolutely delighted that GST is moving in the right way. We are also very cognisance of the fact that implementation is going and it is not going to be an easy task. We are talking about a big nation, about huge IT systems. HUL has invested a lot in trying to be GST ready. But it is not just about us. Our suppliers, our customers - everyone has to be ready - and that is a big task.
Friday, August 12, 2016
In a development that may prove India's growing penchant for herbal and ayurvedic products, homegrown companies such as Dabur and Patanjali have robbed market share from top MNCs such as Colgate and Hindustan Unilever (HUL) in the toothpaste category.
This has prompted some of the larger players to launch 'natural' products and price them competitively. Till now, it was only Haridwar-based company Patanjali, which had been playing the low-price card to disrupt the country's FMCG market.
Quoting data from research firm Nielsen, senior FMCG executives said Patanjali has gained market share at the fastest pace by cornering 2.1% of the pie in January-June 2016, compared to 0.5% in 2015. Dabur managed to increase its share to 12% during the first six months of 2016, as against 11.2% in the same period last year.
In comparison, market leader Colgate-Palmolive and HUL saw a decline in their shares.
"Baba Ramdev deserves credit for the explosion in the ayurvedic FMCG space. The amount of viral marketing that has happened over the last one year over Patanjali products is every marketer's dream," said Arvind Singhal, founder of retail consultancy Technopak. "Also, Indian consumers have a lingering mindset that products made by Western companies may have harmful chemicals, although scientifically it may not be true."
Britannia is increasing its distribution centres across the country and working on newer products to offset a sluggish demand in the consumer sector which it believes will continue for the rest of the year.
The maker of Good Day and Bourbon biscuits said it added 60,000 direct distribution outlets in the last three months, more in the north Indian states were it has a weaker presence compared to its competitors such as Parle and ITC. As of July, the company has 1.32 million outlets, up from 1.26 million.
"Those numbers give us a pretty good reach. Growth for us in states such as Gujarat, Rajasthan and Madhya Pradesh, except Uttar Pradesh, has been higher than the rest of the country and we are seeing the momentum we want," managing director Varun Berry told TOI. Including the direct outlets and wholesalers, Britannia is present in 4.7 million outlets.
Berry said the company is exploring other segments where it can venture, such as ready-to-eat, breakfast and snacks as part of its innovation. "The R&D centre in Bengaluru is working on this and we will hopefully hit the sweet spot next year," he said.
Berry, who was roped in from PepsiCo three years ago, said he does not expect demand to gather momentum during the rest of the year. That has been evident as a majority of FMCG companies reported low single growth in the recently concluded quarter.
Tuesday, August 9, 2016
Consider Indigo Airlines' sampling campaign for 3M bandages or the one for GlaxoSmithKline's Sensodyne toothpaste. Or an in-flight product sampling campaign for NutriChoice crackers conducted in Jet Airways. Also, when ITC launched Dark Fantasy, it did a sampling exercise with some domestic airlines. Aliasgar Merchant, head, airline business, Global Onboard Partners, an out-of-home, in-flight advertising specialist, says, "In-flight product sampling is popular with FMCG companies as it gives direct access to a captive audience that needs to be engaged. This works really well in low cost carriers (LCC) as they don't serve meals."
What makes in-plane sampling exercise different is the direct access to SEC A-A+ audience (a prime target group for a bevy of advertisers), guaranteed viewership, clutter free environment and direct product interaction. "Unlike sampling in a mall or a retail store, the passenger in the airplane is sitting idle and, thus, it is easier to grab her attention. It is like free samples of juices and energy drinks given to people when they are running," says Mukesh Agrawal, co-founder & head, servicing, The Media Ant, a marketplace for offline media.