A DIFFERENT TEA WAR:-

The days of cold drinks are now coming to an end. Now the era of cold tea is entering into Indian market. In metro cities, more than 60%peoples preferred cold tea in place of cold drinks. So, why our cold drink majors are keep quite? That’s why major rivalries are entering in this segment. You are right thinking, I am talking about Coke India and PepsiCo. The both companies are entering into iced tea segment in India. But this time they are not alone, these companies are entering with joint ventures with other companies.
The world’s largest food company, Nestle shakes hands with the world’s largest beverage company Coca Cola with the name of Beverage Partners Worldwide (BPW). They launched their first ready to drink beverage, Nestea , in India. PepsiCo is not very far, they made a 50:50 joint venture with Tata Global Beverage in the arena of non-carbonated ready to drink health beverages with a mandate to do business globally. Add to this another joint venture for Lipton Iced tea, where PepsiCo has an alliance with unilever.
The auction begins against a backdrop where the health and wellness beverages category, which these three ventures target, is predicted to grow at 22 percent per year and reach Rs. 17350 crore by 2015, according to consulting company Tata Strategic Management Group. As BPW launched Nestea beginning with Mumbai, a market that it claims is the country’s largest for iced tea.
At the present time, one out of 10 customers visiting coffee chains ask for iced tea, the market is still niche and moving at a painfully slow pace, say rivals. According to experts, it is very tough category in India, because the Indian peoples are still looking for hot tea. But if you considers what the TSMG report says, “Yoghurt drinks, fruit juice, energy and sports drinks are likely to be the fastest growing beverage categories’, reaching eight time their aggregated current size by financial year 2015.”
The future is unpredictable, but one thing is very clear the we peoples will enjoy the different tastes of iced teas. On the behalf of THE WORLD OF FMCG, I Pravin Tripathi wishing COKE and PEPSICO a great luck.

Namaste Europe

New Delhi, Nov 16, 2010: Dabur India Ltd today acquired 100% equity in Namasté Laboratories LLC and its three subsidiary companies -- Hair Rejuvenation & Revitalization Nigeria Limited, Healing Hair Laboratories International, LLC, and Urban Laboratories International, LLC along with its South African arm – for $100 million, in an all-cash deal. This marks Dabur’s entry into the fast-growing $1.5-billion ethnic hair care products market in U.S., Europe and Africa.

“This acquisition is in line with our strategy to build a global presence in the international FMCG market,” Dabur India Ltd. Chairman Dr. Anand Burman said. “The Namasté Group has a complementary product mix that can be easily integrated with Dabur and will also serve as a gateway to the US market for our portfolio of consumer products. This transaction will also enhance our profitability, increase stakeholder value and substantially add to Dabur’s already strong presence in Africa, serving as one of the key pillars in strengthening our competitive position in the African continent.”

The transaction is expected to be completed by the end of the 2010 calendar year, subject to regulatory approvals in the US. Mr. Gary Gardner, founder and CEO of Namasté, along with the well experienced management team will continue to run the business as a wholly-owned subsidiary of Dermoviva Skin Essentials Inc -- a subsidiary of Dabur India Ltd. Namasté’s North American sales team will also remain in place, and its existing relationships with retailers, wholesalers, distributors and suppliers will not change as a result of this transaction.

Founded in 1996 to fulfill the needs of the health-conscious consumers of African descent, Namasté Laboratories offers a range of products developed with natural ingredients. Namasté markets a portfolio of products under the Organic Root Stimulator® brand and is one of the leading marketers of hair and beauty products for women of colour. The company controls a 12% market share in the US and enjoys significant market positions in many countries in Africa, the Middle East, Europe and the Caribbean region of North America. It has a strong multi-channel distribution platform across the US in mass, retail, beauty stores and salons.

"We are very excited about this acquisition as it opens up new vistas for our burgeoning overseas business. This transaction will mark Dabur's entry into the hair care market in Africa and add to our already substantial and growing oral care and skin care business in the African continent,” Dabur India Ltd Group Director Mr. P. D. Narang said. “We expect this transaction to provide a tremendous platform for value creation in both the US and Africa. With this acquisition, nearly 25% of Dabur's consolidated revenue would be generated overseas.”

“Over the last few years, Dabur has been following a very disciplined and focused approach to identify acquisitions that represent a strong fit with our business,” Dabur India Ltd Chief Executive Officer Sunil Duggal said. “We have also developed strong processes to manage and integrate these acquisitions, as demonstrated in the successful integration of Balsara, Fem and Turkey's Hobi Kozmetik. We are confident that the opportunities for capitalizing on the strengths of Namasté’s business across our international operations are significant.”

"The entire Namasté management team is excited to be joining forces with Dabur," said Namasté founder and CEO Gary Gardner. "In Dabur, we have found a strategic partner who will help realize our vision of becoming the hair care brand of choice for people of colour worldwide. With their presence in Africa, and with our knowledge of the consumer of African descent, we look forward to building a global presence rooted firmly on the African continent. We believe this partnership will thrive because the two companies complement each other so well and because there is a mutual respect. We know our employees, customers, distributors and retailers will benefit from this great growth opportunity.”

Now Taste Dabur Chyawanprash In Orange & Mango Flavours

In the biggest-ever innovation in the Chyawanprash market, Dabur India Ltd – India’s largest Ayurvedic and natural healthcare company – today launched its flagship healthcare brand Dabur Chyawanprash in two new fruit-flavoured variants – Dabur Chyawanprash Orange and Dabur Chyawanprash Mango flavours.

Dabur India Ltd has also roped in popular Bhojpuri cine star Ravi Kishan for consumer-connect and brand building initiatives for Dabur Chyawanprash. Ravi Kishan has been roped in to lead Dabur Chyawanprash’s effort in spreading awareness about need for immunity through its various below-the-line mass activities, like consumer contact programs, dealer meets etc, in Bihar and Uttar Pradesh.

“This marks two new firsts for Dabur Chyawanprash and for the healthcare industry in India. Consumers have always sworn by the health benefits of Dabur Chyawanprash and we are now offering the same immunity and health benefits of Dabur Chyawanprash in a tastier form with the launch of Orange and Mango flavours. This launch would go a long way in expanding the consumer base for this age-old health tonic,” said Dabur India Ltd Category Head-health Supplements Mr. Praveen Jaipuriar.

"INDIAN MARKET"- A TWO WAY CONCEPT

Now, we are going to make some study about the nature of Indian market. In a simple words we can say that the Indian market is a two way concept. For the same product there are several demands at different area. The major cause of it is Heterogeneity of Indian market. It is divided into two kind of market. 1)Rural Market and 2)Urban market. The nature and characteristic of both kind of market is very different from each other. One side, the customers of urban markets are looking for a good quality and brand name, but at the same time, the customers of semi-urban and rural areas are looking for a good quality in cheaper price. Due to such kind of heterogeneity of market, no any company can produce only one product in the market.

Proctor and Gamble,a leading FMCG company of world has changed his strategy to lead Indian Market. The very popular detergent brand "Tide" has been introduced by the company as compare to Surf Excel of HUL. But for leading the rural market, the company diversify it's product line and introduce a 200gm economy pack of this detergent at Rs. 10.This strategy makes the brand an all rounder. Now, it works effective in both formats of market as well as only one single brand of P&G has been able to compete all the economy and premium brands of HUL. This is called the dual concept of Indian market.

The Five Basic Questions asked by a rural customer in India:-

1)What is the price of the product?

2)Is there any free scheme with it?

3)Give me some more discount on MRP.

4)If the price of your product is same as the other branded product, than I will go for that product.

5)Good Packaging. ( Because they wants to use the empty packs for other use).


Five Basic Questions Asked By An Urban Customer:-

1)What is the company of the product?

2)Show me the contains?

3)Is it latest manufactured or not?

4)Is there any guarantee or warranty with the product?

5)Show me some latest manufactured.




This is all about the dual concept of Indian market. It is very difficult to make coordination between both the market, but the marketer who is able to make it will become the leader of market.

Example- Dabur Chyawanprash, Clinic Plus Shampoo, Tide Detergent, Hero Honda Motorbike, Vimal Garments, Reliance Telecommunication etc.

THE TIME MARKETING

Time marketing is a very latest concept of marketing practice. In very simple words, the Time Marketing refers to "Introduced your Product, Before your Competitors". In the modern era, there is a lot of implementation of time marketing. Suppose, you are a marketer and you have develop a fine marketing plan, but due to any reason, same kind of product with same marketing plan, your competitor has been introduced in the market , then what will happens with you? At the time you have nothing to do. This is called time marketing.

Time marketing focus on open your mind with your eyes and ears, don't give a single chance to your competitor. There is also a reverse effect of time marketing. Time marketing not only suggest you to introduced your product before others but also it refers to wait for a suitable time for introduce your product. It depends on balancing of time in the field of marketing.

The implementation of time marketing is much more in film industry. They properly use time marketing before releasing their latest film. Like film industry, there are also many implementation of time marketing in all other industries.

In India, in the year 2003, coke has been introduced a 200ml bottle of coke for Rs. 5. It was a huge success for the company and increased the sale of the product. After some times, Coke's closest rival, Pepsi also introduced same in Rs. 5,but it was too late. Airtel introduced a scheme of life time connection in just Rs. 999. It was a very cheapest and save scheme for the customers at the time which turns a good job for the company, after several days,some other companies also introduced same scheme, but Airtel dominates the market. There are many stories like that which proves the value of time marketing in the market.

The Basic Mantras of Time Marketing:-

1) Wait for a suitable time for introduce your product.

2) Do your steps before your competitor.

3) Make a balance between time and introduction of product.

4)_Be a front foot player, not a back foot player.

TV COMMERCIALS : THE GOLDEN DAYS ARE GOING TO AN END.

There was a time, when TVC plays life blood for the advertising for a product. In 90'S The people wishes to watch TVC's with more eagerness. As the result, they coincidently keep in touch with the particular product. In 90's, people goes to the stores and demanded for any product by using the tagline given in the adds. Like- "Fevicol kaa joor hai, tootega nahi". Customer comes to the market by attracting from the lovely TVCs. We can't forgot the TVC of Dhara oil called "Jalevi". Like that there was a lot of popular advertises which creates a bigger impression on customer mind. Peop-le loves to watch the TVCs.

But as per there is a life cycle of anything, the life cycle of TVCs in India is comes to an end. Today the advanced technology and digital media makes the TVCs more attractive and modern, but the people hardly takes an interest in watching in such kind of TVCs. The plenty of TV channels and people's busyness is also a major reason behind it. Today, a common Pearson having a TV with a cable connection. So, he wants to utilized hi cable as much as possible. As the result, he don,t watch TVCs and change the channel at the time when advertise shown on T.V. It is a major problem facing by T.V media of advertising. But most of the major companies are not getting this point and they are spending much and much money on the TVCs, due to competition with rival which in not good for the point of view of company.

Reasons for the downfall of TVC's.:-

1) Plenty of availability of multi channels and different program's. People not take interest in watching the TVC's.

2) Extra busyness and less time with people.
3) Easy and cheaper availability of internet and relating devices.
4) Decline stage of advertising in India.
5) Other means of advertising are running effectively, like- canopy promotion, sales promotion, direct marketing.

6) Easy availability of any information related to the product on internet.
7) Repeating the same video many times a day.


So,The days of DD1 are gone. Now a days expending more on the TVC is just wasting money.So, major companies should take step on this point

This is How HUL is No. 1

30 years has been past away, but the first choice of people of asking for Lux as their first preference as a toilet soap have not been changed. Today, when I get up in the morning and go to bathroom , I remember my childhood days after looking at same Pepsodent toothpaste. The brands of HUL is just like a regular brands of customers from age to age. Logos has been changed, packaging has been changed, but the choice of customer's has not been changed.

If we think about the reasons that why HUL is best in India in spite of huge competition, we will find that HUL is great because it is great, it's strategies are great, it's aggressive marketing is great and last but not least it is only Nitin Pranjape who remain it no. 1 today also.

I am not going to publish more statements or mesmerism words, I am just want to share some of great strategies of HUL and Pranjape.

In the time of 1990 when the concept of TV commercials was very new for the people, HUL dominates the market and published it's brands aggressively by TV commercials.
Some of the commercials like Liril soap, Lifeboy soap, Surf Detergent, etc. were the most lovable TVCs at the time. "Tandarusti kaa raksha karta hai Lifeboy" was the one of the favorite song of every child.

in 21st era, HUL comes with a different concept called canopy promotion which becomes a benchmark in advertising and sales promotion. Once again HUL become the market leader in all segments.

At the present time, according to great Pranjape, HUL is planning to sustainable production for it's all products. Right now HUL's products will define their own footprints.HUL products are manufactured in over 40 factories across India. Over 2000 suppliers and associates are involved in its operations. The giant HUL distribution network comprises of around 4000 redistribution stockists and 6.3 million retailer outlets. The wide-spread distribution network reaches almost entire urban India and around 250 million rural consumers. The HUL's products will be made after consider the environments. The super supply chain management and production system of HUL will be the idle for every company.

As a responsible corporation of the country, HUL has adopted the triple bottom-line approach to address environmental and social concerns. Following are the three key pillars in this approach:

PROSPERITY PEOPLE PLANET
(ECONOMIC) (SOCIAL) (ENVIRONMENTAL)

From the Behalf of The World of FMCG, I Pravin Tripathi wishing a good luck to HUL