Friday, November 13, 2009

SWAIN FLU SE RAKSHA KARTA HAI LIFEBOY - HUL

The aggressive promotion by Hindustan Unilever Ltd of its Lifebuoy product range as a shield against swine flu may be paying off as sales improve, but it’s drawing flak from some critics who say the ad campaign is misleading and an attempt to cash in on public fear of the potentially fatal infection.


Hindustan Unilever, or HUL, India’s largest consumer goods company by sales, is plugging Lifebuoy soaps and hand washes in newspaper advertisements as products “proven to protect from H1N1 type virus”. “Wash away swine flu germs,” goes the tag line on advertisements running across media platforms, including television and print.

The flu, transmitted by inhaling infected droplets expelled by coughing or sneezing or by contact with contaminated hands or objects, has claimed 508 lives in India, where at least 14,500 have tested positive for the H1N1 virus that causes the disease, PTI reported on Wednesday.

“To prevent spread, people should cover their mouth and nose when coughing or sneezing, stay home when they are unwell, clean their hands regularly, and avoid crowded areas,” says the World Health Organization on its website.

Lifebuoy sales seem to have won a lift as consumers take precautions to guard against the risk of swine flu, which claimed its first life in India in August when a Pune teenager died after being infected. “The ads are all over the media and it has definitely created an impact,” said a Gurgaon-based HUL distributor who didn’t want to be named. “The sales of Lifebuoy have gone up by at least 30-40% in the last four months.”

 Plugging in: The Lifebuoy website has a section devoted to swine flu.

Plugging in: The Lifebuoy website has a section devoted to swine flu.

But HUL’s campaign hasn’t gone down well with some experts and consumer forums. “Washing hands with soap and water definitely reduces the chances of getting the flu, but promoting one brand as the solution is not fair,” said Dharam Prakash, secretary general, Indian Medical Association, which used to endorse Lifebuoy once. “These are all promotional strategies. Yes, we used to endorse Lifebuoy almost a decade ago, but not now,” he said.

Launched in 1894, Lifebuoy has been plugged in advertisements over the years as a product that stands for good health and hygiene. The websitewww.lifebuoy.com has a section devoted to swine flu.

“Playing on fear and psychology of consumers is an old trick used by marketeers to sell their product in time of crisis or emergency situation, and I think it is very unethical to do so,” said N. Bhaskara Rao, chairman, Centre for Media Studies, a New Delhi-based multidisciplinary research organization. “I strongly believe that until and unless a company has the Indian Medical Association or a related industry body to support the claim based on research, it should not be an advertisement.”

According to HUL, the campaign reinforces the “core proposition” of Lifebuoy as a shield against germs. “Lifebuoy has been successfully tested in an internationally recognized lab on effectiveness in protecting against influenza type A H1N1 (swine flu) virus and that is the basis of the claim made by us,” a spokesperson for HUL said. The spokesperson declined to disclose how much money HUL had spent on the campaign, saying the company doesn’t report advertising spending on individual brands.

Nitin Paranjpe, HUL’s chief executive officer and managing director, spoke at the India Economic Summit on Tuesday about the “keep your hands clean” campaign. Paranjpe said the campaign was part of the company’s concept of “doing well while doing good”. “So we want to do good to society, but we want to do in a manner that will also be good for our business,” he said.

Future Brands managing director and chief executive Santosh Desai says swine flu has immediate currency, so it’s understandable—and effective— when brands communicate the message that consumers should wash their hands to guard against the virus.

“But when brands exaggerate a claim by representing the brand as the only solution to the problem, which in this case is swine flu, then the ad becomes dodgy and consumers need to be protected from such messages,” he said.

To be sure, HUL has its supporters, including the Advertising Standards Council of India, which is for encouraging any ad spreading health awareness.

Friday, November 6, 2009

BRITANNIA LAUNCHES A HEALTH DRINK

We are looking at categories where we can make a difference’

Vinita Bali, MD, Britannia Industries, on product innovation, cost-cutting and brand management..


There’s a time in the evolution of categories when consumers make the switch from having to make it at home to going out and buying it.


Bijoy Ghosh

Vinita Bali, Managing Director, Britannia Industries Ltd, at the launch of health drink Actimind

Vinay Kamath

Vinita Bali, Britannia Industries Ltd’s Managing Director, is on a whirlwind trip to Chennai. She’s in the city to participate in the Foodpro as well as launch Britannia’s new milk drink for children, ActiMind. Bali is gung-ho on the growth of the dairy business and says Actimind is the first in a pipeline of products planned in dairy. Post launch, Bali, a former worldwide marketing director of the Coca-Cola Co, who joined Britannia a little over four years ago, spoke to Brand Line on a variety of issues: the company’s strategy for biscuits to maintain its one-third share of the organised biscuits market, consumer trends and insights driving the company, spiralling commodity prices and its small pack strategy. Excerpts:

ODONIL IN NEW RANGE


Dabur India has relaunched its air freshener range of Odonil Blocks. The product is now available in improved fragrances of Orchid Dew, Mystic Rose, Lavender Meadows and Jasmine Mist. It is priced at Rs 20, Rs 27 and Rs 33 for the 50 gm, 75 gm and 10 0 gm packs respectively. It can be used in bathrooms and cupboards.

"WIPRO" NOW IN INDIAN FMCG SECTOR"

Wipro Consumer buys Yardley for Rs 214 cr

Wipro Consumer Care and Lighting (the FMCG arm of the company) announced today that it has acquired the Yardley businesses for Asia, Australasia and the North and West African markets for close to Rs 214 crore from the UK-based Lornamead Group, which currently owns the brand.

The Group has, however, retained its Yardley businesses in Europe and the Americas.

The Yardley deal, to be fully funded through internal accruals, is on a run rate business of $24 million (Rs 113 crore) for this fiscal and the transaction is expected to be completed by mid-December, said Mr Vineet Agrawal, President, Wipro Consumer Care and Lighting.

The 239-year-old English brand, famous for its signature fragrances English Lavender, Lily of the Valley and English Rose, has products across various categories such as talcum powders, perfumes and soaps. Wipro plans to add deodorants, body washes, shaving creams and after-shaves to the range.

The brand has had a strong presence in the West Asian markets, with almost 70 per cent of Lornamead’s revenues coming from the region.

With this acquisition, Wipro Consumer Care would see its revenues from the West Asian countries double at around Rs 141 crore from the current Rs 70 crore, said Mr Dipak Kumar Bohra, General Manager, Finance, Wipro Ltd.

Brand Yardley in India

“Though Yardley’s presence in India is still small (about 20 per cent of its Asian revenues), we want to expand it dramatically,” said Mr Agrawal.

The transaction, he said, would add a strong brand to its current portfolio of brands comprising Santoor, Chandrika, Glucovita, Unza and Northwest. The company acquired Singapore-based Unza for Rs 1,010 crore in July 2007.

The company hopes to take Yardley to at least 50,000 outlets soon. Yardley would now be Wipro’s most premium brand on retail shelves.

Sunday, November 1, 2009

Asian Paints makes it double

Asian Paints September 2009 Results

For the Quarter ended September 30, 2009

Consolidated Net Sales and Operating Income has risen by 16.8% to Rs. 1,723.9 crores from Rs. 1,475.9 crores. Consolidated Net Profit has increased by 104.1% to Rs. 268.4 crores from Rs. 131.5 crores. Standalone Net Sales has increased by 18.6% to Rs. 1,386.5 crores from Rs. 1,168.9 crores. Standalone Net Pofit has increased by 109% to Rs. 254.3 crores from Rs. 121.7 crores.

For the Half Year ended September 30, 2009

Consolidated Net Sales and Operating Income hased increased by 17.1% to Rs. 3,184.2 crores from Rs. 2,718.6 crores. Consolidated Net Profit after Minority Interest has increased by 87% to Rs. 444.5 crores from Rs. 237.7 crores . Standalone Net Sales increased by 17.8% to Rs. 2,551.3 crores from Rs. 2,164.9 crores. Standalone Net Pofit has increased by 90.6% to Rs. 418.8 crores from Rs. 219.7 crores.

The Board of Directors recommended the payment of an interim dividend of Rs. 8.50 per share (85%). The company distributed an interim dividend of 65% for H1-FY2009. Total Dividend of 175% was distributed in FY2009. The dividend payout ratio was 54.19% in FY2009.

ITC GAINED AN INCREASE IN NET PROFIT BY 26% IN LAST QUARTER

ITC delivered yet another quarter of strong performance with Post tax profits growing by 26% despite a challenging business environment. With the exception of the hotels segment, which is reeling under the impact of the global economic slowdown, all businesses posted strong bottom line growth. Cigarettes, FMCG Others, Agri and Paper & Packaging businesses grew handsomely in net revenues by 21%, 14%, 19% and 13% respectively.

Profitability improved on the back of better product mix, smarter sourcing of inputs and a series of targeted cost management actions. Investments in brand building in the Personal Care and Branded Foods businesses continue to impact the segment results of ‘FMCG-Others’.

Pre-tax profits and post tax profits at Rs 1492 crores and Rs 1010 crores respectively grew by 26% over the same period last year. Earnings Per Share for the quarter stood at Rs.2.67.

DABUR GAINED AN INCREASED IN PROFIT BY 30.7%


Dabur India Q2 Net Profit Surges 30.7% To Rs 140.34 Crores
Monday, October 26, 2009
  • Consolidated Q2 Revenue Up 22.4% to Rs 855.06 Crores
  • EBIDTA Grows at 33.7%

  • Consolidated Q2 Revenue Up 22.4% to Rs 855.06 Crores
  • EBIDTA Grows at 33.7%

    Dabur India Ltd continued to move ahead on the growth trajectory in the second quarter of the 2009-10 financial year, reporting its strongest-ever growth in 18 quarters. Riding on strong volume-driven growth across its key categories, Dabur ended the second quarter of 2009-10 with a 22.4% jump in Revenue at Rs 855.06 Crores as against Rs 698.45 Crores a year earlier. The company also reported a 30.7% surge in consolidated Net Profit during the quarter at Rs 140.34 Crores, up from Rs 107.41 Crores a year ago. EBIDTA margin also reported an improvement of 183 basis points to 21.8% for the second quarter of 2009-10.