As Coca-Cola celebrates its 125th anniversary, can the brand's marketers find inspiration in past glories as they seek to ensure the success story continues, asks Alex Brownsell.
Sunday, 15 May 2011
'Retailer-Developer partnership is the way forward'
The ISCF is an annual feature held with a vision of bringing together leading retailers, shopping centre developers, consultants, financial institutions and support professionals and companies. The year the theme is challenges before shopping centres. The need to cover more ground - to lay the right foundation for the future of retail in India.
The fourth edition of ISCF began with a silent tribute to the icon of Indian retail – Raghu Pillai who passed away in April this year. The congregation remembered the man who pioneered the concept of modern retail in India as early as the 1990s.
Moving ahead the inaugural session saw industry luminaries like BS Nagesh, vice chairman, Shoppers Stop, speak on the changing retailer-developer relationship status, while Raj Singh Gehlot, chairman, Ambience Group of Companies, highlighted the key elements in building successful malls in the future. Thomas Varghese, CEO, Aditya Birla Retail, chairman CII, National Committee on retail, and S Raghunandhan, chairman SCAI & CEO, Prestige Retail Group again touched upon the changing retailer-developer relationship and how both can create a win-win situation through a mutually beneficial partnership.
The panel agreed that shopping centres are an integral part of economic growth. They symbolize the civilization and lifestyle development of the economy.
Raj Singh Gehlot highlighted the key elements for building successful malls in the future. He said that a shopping centre needs to create an experience for its customers. It should have a clear positioning depending upon the attitude and lifestyle of the catchments area. He further added, “This sector has high growth trajectory as the consumer behaviour and preferences are changing. Today we have entered the new era of 'Experiential Economy'. A mall visit should provide a customer a memorable and 'emotions evoking' experience. Mall developers should readily adapt to the changes as per the consumer requirements and emerging social and psychological trends.”
BS Nagesh spoke about the changing scenario in the retail sector. The industry has gone through multiple stages starting from bullish optimism six years ago to a pessimistic bent and then back to positive optimism last year. Today it is at the stage of Truism. This is possible because of the “Revenue sharing model” adopted by the mall developers. This model has brought trust factor in the partnership between the retailers and the mall developers.
Insisting on developing a partnership not limited to the retailers and mall developers Nagesh emphasised on the need to involve the entire eco-system including the customers, the mall employees and the society as a whole.
Varghese highlighting the positive development in the retail sector stated that the Indian organized retail market will grow from USD 170 billion to USD 260 billion by 2020 which will generate around 13 million jobs. He highlighted the importance of organised retail in driving economic growth as the industry has the ability to serve
producers (farmers and manufacturers), employees, consumers and the government.
Later on in a session titled ‘Shopping Centres as catalysts in urbanisation of India’ anchored by Anuj Puri, chairman & country head, JLL, Manish Kalani, MD, EWDPL, stressed on the fact that shopping centres are an integral part of modern living, as much as schools, offices, hospitals and banks. However they do not figure on the agenda of the government and town planners as important part of India’s
infrastructure development plans. The Municipal Corporations don't have a bylaw for shopping centres. Pallavi More, president, Growel Group opined that to build a community, shopping centres are important and the authorities should consider the same while preparing the master plan. They should earmark facilities for shopping centres. It was agreed upon to highlight the outcome of this session to the national press. The organisers will further pursue the matter with the regulatory authorities.
WPP and IMG Worldwide announce global licensing collaboration
WPP and IMG Worldwide has announced a worldwide partnership to collaborate in offering consumer products licensing and merchandising services.
As part of the multi-year agreement, WPP and IMG will establish a joint team and share resources to offer and provide licensing services to clients from WPP’s portfolio of agencies.
Martin Sorrell, chief executive officer, WPP said, "More than ever, licensing is emerging as one of the new creative ways of developing brands and sales. It is a capability we see as increasingly important to our clients. We wanted to offer this important discipline in a global execution and with the market leader - that is IMG. In our view, there could be no better partner to help us achieve our goals in this area."
George Pyne, president of IMG’s Sports and Entertainment Group added, “WPP’s agencies have an impressive roster of clients coupled with the brand knowledge and consumer insights that come from years of experience working with them. We believe that our global execution capability and specialized expertise in the licensing business coupled with their deep-rooted knowledge and relationships with certain client companies can yield some very beneficial and successful partnerships. This is a really natural collaboration that was waiting to happen.”
A note from IMG stated that executives from the WPP-IMG partnership will be meeting with advertisers who have expressed interest in developing brand licensing programs or who have potential to do so.
It also noted that the new WPP venture is an additive unit to IMG Licensing's existing operations and the latter will continue to serve existing and new clients without change.
MPG launches mobile marketing arm Mobext in India
MPG, the flagship brand of Havas Media, has announced the launch of mobile marketing brand Mobext in Asia with India being chosen one of the first markets for the roll out. Within this year, the brand is slated to be launched in China, Indonesia and Philippines. Mobext, a network brand of Havas Media specialising in Mobile Marketing, is currently present in eight markets globally. The new brand is expected to strengthen the digital offerings of Havas Media, which currently has a strong digital media agency brand in Media Contacts.
Commenting on the launch of Mobext, Vishnu Mohan, chief executive officer, MPG and Havas Media, Asia Pacific said: “Asia presents an enormous potential in the mobile space with high levels of penetration, installed base and growth rates. All our clients have needs in this space and we want to ensure that as a media agency we are not neglecting such an important medium and one that will gain even more prominence in the future. Mobext brand has been doing very well in other markets and we have been waiting for the right time and the right people to launch it in Asia. What better market to launch than India, which has whopping 790 million mobile users currently and is also a key market for the group in Asia Pacific region.”
On their future plans, he added, “Mobile offers advertisers an interesting media to reach their audience on a more engaged basis and the launch of Mobext will fulfil this need. We are looking launch the brand in China, Indonesia and Philippines within the year and will look at both greenfield as well as partnership entry strategies.”
The agency has made senior appointments as part of the launch with Arnav Neel Ghosh appointed as the general manager for South Asia. The team in India, which brings substantial mobile marketing experience, is likely to be expanded in the next few months.
Anita Nayyar, chief executive officer, MPG and Havas Media, South Asia, said, "We want to be ahead of the curve in tapping the medium of the future. Mobile marketing is gathering steam and it is the right time for us to offer specialised mobile marketing expertise to help our clients leverage this platform. Investments in mobile will pay off in the long run.”
Mobext will offer comprehensive services which includes messaging services like sms and download; mobile internet services like WAP consulting and development, mobile display, mobile search; proximity based services including LBS and mapping. It will also offer integration through reporting and analytics by Havas Digital’s campaign management platform.
Ghosh was most recently the executive vice-president of Digital at Iris Nation and has previously worked in senior roles at Publicis Modem and Active Media Technology, a UK based mobile marketing company. Ashutosh was most recently the associate director of mobile marketing at ACL Wireless and has had stints at Mobile2Win and ConnectTurf.
Commenting on the launch of Mobext, Vishnu Mohan, chief executive officer, MPG and Havas Media, Asia Pacific said: “Asia presents an enormous potential in the mobile space with high levels of penetration, installed base and growth rates. All our clients have needs in this space and we want to ensure that as a media agency we are not neglecting such an important medium and one that will gain even more prominence in the future. Mobext brand has been doing very well in other markets and we have been waiting for the right time and the right people to launch it in Asia. What better market to launch than India, which has whopping 790 million mobile users currently and is also a key market for the group in Asia Pacific region.”
On their future plans, he added, “Mobile offers advertisers an interesting media to reach their audience on a more engaged basis and the launch of Mobext will fulfil this need. We are looking launch the brand in China, Indonesia and Philippines within the year and will look at both greenfield as well as partnership entry strategies.”
The agency has made senior appointments as part of the launch with Arnav Neel Ghosh appointed as the general manager for South Asia. The team in India, which brings substantial mobile marketing experience, is likely to be expanded in the next few months.
Anita Nayyar, chief executive officer, MPG and Havas Media, South Asia, said, "We want to be ahead of the curve in tapping the medium of the future. Mobile marketing is gathering steam and it is the right time for us to offer specialised mobile marketing expertise to help our clients leverage this platform. Investments in mobile will pay off in the long run.”
Mobext will offer comprehensive services which includes messaging services like sms and download; mobile internet services like WAP consulting and development, mobile display, mobile search; proximity based services including LBS and mapping. It will also offer integration through reporting and analytics by Havas Digital’s campaign management platform.
Ghosh was most recently the executive vice-president of Digital at Iris Nation and has previously worked in senior roles at Publicis Modem and Active Media Technology, a UK based mobile marketing company. Ashutosh was most recently the associate director of mobile marketing at ACL Wireless and has had stints at Mobile2Win and ConnectTurf.
Tuesday, 3 May 2011
Marketers’ 3Ps mantra to tackle inflation
Despite an inflationary environment, India’s consumer spending on fast moving consumer goods (FMCGs) has been stimulated with the triple-play of aggressive promotional offers, smaller pack sizes and price discounts across categories. The organised FMCG market’s resultant value growth of 13 per cent is attributed to this and has outpaced the underlying volume growth of 8.2 per cent. This indicates a steady and stable demand for branded, packaged fast moving goods.
Impact on branded, packaged foods – Essentials Vs Impulse
Rising commodity prices have, however, impacted food categories much more than non-food categories. This is evident from the fact that food categories have grown faster in value terms while volume growth has been relatively slower. In non-food categories, however, both value and volume growth has moved in lockstep at around 8 per cent over the last year.
Rising commodity prices have, however, impacted food categories much more than non-food categories. This is evident from the fact that food categories have grown faster in value terms while volume growth has been relatively slower. In non-food categories, however, both value and volume growth has moved in lockstep at around 8 per cent over the last year.
Within foods, two types of categories were more affected by price increases than others. Non-essential categories like jam/ jellies and squash/ cordials saw high value but low volume growth, and a slowdown in consumption during 2010 due to steady price increases. They were accompanied by milk-based categories like butter/ margarine and milk powder, which saw manufacturers step up prices to protect margins against rising input costs. These early signs indicate that if inflationary pressures don’t ease, discretionary spending on these categories is likely to shrink further.
Surprisingly, even essential milk-based categories like baby cereals and infant formula saw volumes stagnate as prices gained momentum. An increased reliance on solid foods and an earlier shift to liquid milk from specially formulated milk/ cereals are typical substitutes to combat inflationary pressures.
Other essential categories were not entirely immune to inflation either. Categories like packaged atta (wheat flour) and packaged rice, etc., also experienced sluggish volume growth as consumers temporarily resorted to unbranded alternatives.
Impulse takes on inflation
Small treats continued to be important to the Indian consumer at a time when inflation cut into bigger items of discretionary expenditure like eating out, out of home entertainment, etc. Impulse categories like biscuits, namkeens (salty snacks), and chocolates continued to attract consumer purchases. Manufacturer initiatives for these categories drove growth via small packs (small per transaction cost), product innovations (baked alternatives, new consumption occasions, and attractive promotions) and increased availability. This bodes well at a time when economic optimism and inflationary pressures appear to be colliding.
Small treats continued to be important to the Indian consumer at a time when inflation cut into bigger items of discretionary expenditure like eating out, out of home entertainment, etc. Impulse categories like biscuits, namkeens (salty snacks), and chocolates continued to attract consumer purchases. Manufacturer initiatives for these categories drove growth via small packs (small per transaction cost), product innovations (baked alternatives, new consumption occasions, and attractive promotions) and increased availability. This bodes well at a time when economic optimism and inflationary pressures appear to be colliding.
Non-food categories hold their ground
Amongst the top non-food categories like washing powder, shampoo, and toilet soap there seems to be no evidence of inflation’s adverse affect as robust topline growth continued unabated. These items have long become a part of the ‘must-buys’ in the consumer basket and remained unaffected overall with possible selective purchase of more cost-effective branded alternatives as well as greater responsiveness to promo offers. The lead players in these categories have also stepped up price activation by using value promotions and re-launching at new price points.
Amongst the top non-food categories like washing powder, shampoo, and toilet soap there seems to be no evidence of inflation’s adverse affect as robust topline growth continued unabated. These items have long become a part of the ‘must-buys’ in the consumer basket and remained unaffected overall with possible selective purchase of more cost-effective branded alternatives as well as greater responsiveness to promo offers. The lead players in these categories have also stepped up price activation by using value promotions and re-launching at new price points.
Interestingly, lifestyle/ personal grooming categories like hair conditioners, hair dyes, hair remover, liquid soap, etc., don’t seem to have been as affected by inflation. Like impulse foods, these too serve as a cost-effective indulgence. Baby diapers and sanitary napkins, too, stayed unaffected with help from the increased availability of small pack sizes and cheaper brand variants for consumers unwilling to compromise their health and well-being.
Interestingly, more ‘external’ manifestations of indulgence and aesthetic expenditure like nail enamel, lipsticks, etc., slowed down, indicating a temporary adjustment in the purchase basket to accommodate items that have witnessed stronger price growth. Clearly, consumers seem to be differentiating between products that represent ‘caring’, for example conditioners, and those that are purely cosmetic.
The year 2011 is set to see a surge in the number of new launches and the brands that innovate in terms of price, pack size and promotional efficacy will garner a greater share of the growth opportunity that India’s consumer markets presents.
Realty, bank, auto drag as RBI hikes rates
MUMBAI: Rate sensitive sectors were witnessing a sell-off after the Reserve Bank of India hiked the repo and reverse repo rate by 50 basis points each. According to experts, these sectors are likely to remain under pressure in the near term.
"50 basis points hike by the RBI was a disappointment for the market. Reward for investors won't be very high in rate sensitive stocks and bearish on these stocks in the near term. The rate hike will hurt companies without pricing power," said Ramdeo Agarwal, co-founder and director, Motilal Oswal on ET Now.
He added that real danger for banks will be slow-down in credit growth. He gas advised to be selective in picking PSU banks pack.
Meanwhile, the rate sensitive sectors were dragging down the indices. BSE Auto Index was down 2.16 per cent, BSE Bankex fell 1.97 per cent and BSE Realty Index slipped 1.46 per cent.
M&M (-3.77%), Tata Motors (-2.87%), Bajaj Auto (-2.56%) and Maruti Suzuki (-2.28%) were the top losesrs from BSE Auto Index.
The worst hit in banking space were Canara Bank (-3.85%), Punjab National Bank (-3.57%), Axis Bank (-2.89%) and State Bank of India (-2.88%).
Realty space was also reeling under selling pressure. DB Realty (-2.50%), HDIL (-2.49%), Mahindra Lifespace (-1.99%) and Peninsula Land (-1.97%) were the major losers.
"50 basis points hike by the RBI was a disappointment for the market. Reward for investors won't be very high in rate sensitive stocks and bearish on these stocks in the near term. The rate hike will hurt companies without pricing power," said Ramdeo Agarwal, co-founder and director, Motilal Oswal on ET Now.
He added that real danger for banks will be slow-down in credit growth. He gas advised to be selective in picking PSU banks pack.
Meanwhile, the rate sensitive sectors were dragging down the indices. BSE Auto Index was down 2.16 per cent, BSE Bankex fell 1.97 per cent and BSE Realty Index slipped 1.46 per cent.
M&M (-3.77%), Tata Motors (-2.87%), Bajaj Auto (-2.56%) and Maruti Suzuki (-2.28%) were the top losesrs from BSE Auto Index.
The worst hit in banking space were Canara Bank (-3.85%), Punjab National Bank (-3.57%), Axis Bank (-2.89%) and State Bank of India (-2.88%).
Realty space was also reeling under selling pressure. DB Realty (-2.50%), HDIL (-2.49%), Mahindra Lifespace (-1.99%) and Peninsula Land (-1.97%) were the major losers.
Sunday, 1 May 2011
Wedding fever helps to restore royal brand, says survey
The forthcoming royal nuptials could usher in a new era of popularity for the royal family, according to research from JWT London.
Royal Wedding: a positive effect on the royal family's popularity
An overwhelming 80% of respondents said they believe the Royal Wedding will have a positive impact on how they view the royal family. Some 67% of consumers believe the country still needs a monarchy, and the same number agree they are "a wonderful institution that does a great job."More tellingly, with the exception of the Queen alone, the younger royals are commanding greater respect from the public than their senior counterparts. William himself has a respect rating of 64%, with brother Harry not far behind on 59% and new addition Kate already at 49%. Princes Charles (42%), Andrew (28%) and Edward (24%) trail in their wake.
Half of the British public (47%) are now planning to show their support for William and Kate's big day – a potential audience of 30 million. However, despite the huge amount of coverage given to street parties, with online grocery giant Ocado selling out of Union Jack bunting, just 16% of consumers are planning an event with their neighbours.
Despite the popularity of Royal Wedding memorabilia, on Twitter just 16% of those surveyed would consider purchasing a souvenir, with respondents describing those who do purchase as "sad", but "typically British".
Of the 16%, the majority (51%) would buy classic collectables such as crystal, china, coins, stamps and dolls.
The survey was carried out among 500 people in the UK.
| Reasons for celebrating the Royal Wedding | |||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Why are you planning to celebrate the Royal Wedding ? | Total % | ||||||||||||||||||||||||||||||||||||||||||||||||
| To mark an event in history | 60% | ||||||||||||||||||||||||||||||||||||||||||||||||
| To support our future monarch | 39% | ||||||||||||||||||||||||||||||||||||||||||||||||
| To be patriotic | 36% | ||||||||||||||||||||||||||||||||||||||||||||||||
| I'm a fan of the royals | 35% | ||||||||||||||||||||||||||||||||||||||||||||||||
| For my children, it will be something for them to remember | 30% | ||||||||||||||||||||||||||||||||||||||||||||||||
| I'm genuinely excited | 15% | ||||||||||||||||||||||||||||||||||||||||||||||||
| To bring the community together | 13% | ||||||||||||||||||||||||||||||||||||||||||||||||
| It's just an excuse to have a party | 11% | ||||||||||||||||||||||||||||||||||||||||||||||||
| Someone I know cares about the royals, I'm tagging along | 5% | ||||||||||||||||||||||||||||||||||||||||||||||||
| Respect for the Royals | |||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| How much do you respect these members (and future members) of the Royal Family ? | Total % | ||||||||||||||||||||||||||||||||||||||||||||||||
| (net) | |||||||||||||||||||||||||||||||||||||||||||||||||
| The Queen | 70% | ||||||||||||||||||||||||||||||||||||||||||||||||
| Prince William | 64% | ||||||||||||||||||||||||||||||||||||||||||||||||
| Prince Harry | 59% | ||||||||||||||||||||||||||||||||||||||||||||||||
| Kate Middleton | 49% | ||||||||||||||||||||||||||||||||||||||||||||||||
| Prince Charles | 42% | ||||||||||||||||||||||||||||||||||||||||||||||||
| Prince Philip | 40% | ||||||||||||||||||||||||||||||||||||||||||||||||
| Prince Andrew | 28% | ||||||||||||||||||||||||||||||||||||||||||||||||
| Prince Edward | 24% | ||||||||||||||||||||||||||||||||||||||||||||||||
This article was first published on marketingmagazine.co.uk
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