Brand Updates -15-9-2012

Marico to use Paras brand to target youth market

Marico has decided to use Paras’ brands such as Set Wet, Zatak and Livon to focus on high-growth, high-margin segments such as deodorants and hair gels; Marico’s traditional portfolio of hair and edible oils (Parachute and Saffola), in comparison, is relatively well penetrated.
Marico had bought Ahmedabad-based Paras from Reckitt-Benckiser. This move is seen an attempt to enhance the youth portfolio in line with demographic trends. It is predicted that over the longer term, these are tailwind categories with higher potential for growth

HUL to launch Dove Hair oil as super premium brand

HUL is planning a strong foray into the hair-oil market by extending its Dove brand into the largest segment of hair-care business. It is planning to launch Dove hair-oil at a price point ranging Rs 180-200 for a 100 ml bottle. This would make it a super-premium brand, costlier than rival brands such as Marico’s Parachute Scalp Therapie and Bajaj Almond Drops (Rs 125 for 100 ml). It will be launched in 3 variants.

This has comes six years after HUL exited the hair-oil segment by selling its brand Nihar to Marico for Rs 240 crore. Its other brand Clinic oil is sold only in select markets. Hair oil accounts for 52% of the Indian hair care market estimated at Rs 12,800 crore. But it has one of the highest market penetrations at 90% and is highly competitive

 

iPhone 5 – same price as iPhone 4S, starting $199

Apple iPhone 5 will come with the same price tags as iPhone 4S, that is $199, $299 and $399.The new iPhone line-up will now include iPhone 5, iPhone 4S and iPhone 4.Apple has phased out the smartphone’s older model iPhone 3GS.

iPhone 5 is the world’s thinnest smartphone, is 20% lighter than iPhone 4S and has the ability to surf a high-speed 4G LTE network. It features a screen which will have a 1136 x 640 screen resolution, with a 16:9 aspect ratio and has 3 microphones.

Globally, Samsung leads the smartphone market with a 32.6 percent share followed by Apple with 17 percent.The iPhone 5 will use the services of the three largest US carriers – Verizon Wireless, AT&T Inc, and Sprin.

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Brand Updates 8/9/2012

Renault Scala Launched

Renault has launched Scala sedan, its 5th model in India, with both petrol and diesel engine options. The base petrol (RxE) is priced at Rs 6.99 lakh, the top-end RxL retails at Rs 7.85 lakh, the diesel RxL costs Rs 8.69 lakh and the RxZ diesel retails at Rs 9.57 lakhs.

The Scala is a badge-engineered Nissan Sunny. Hence it has a 1.5-litre dCi diesel and 1.5-litre XH2 petrol engine from the Sunny. It looks a lot more appealing than the Sunny thanks to the large, aggressive grille, stylish headlights and new alloy wheels. It is packed with technology like outside rear view mirrors (ORVM), 15-inch alloy wheels, dual airbags, ABS with EBD and Brake Assist.

With Scala’s launch, Renault India is now present across segments of the Indian car market with 5 products which also include Koleos and Duster in the SUV segment, the premium sedan Fluence and the small car Pulse

 

Kraft to Split

Kraft Foods Inc. is set to split into two companies on Oct. 1. It has decided to spin off its global snack business in March. That company, called Mondelez International Inc., will be home to global brands including Oreo, Cadbury and Nabisco and trade under the ticker “MDLZ.”

Its North American grocery business will continue to have the name Kraft and include Velveeta, Miracle Whip and Oscar Mayer. Its ticker will change from “KFT” to “KRFT.” Separately, Kraft’s Mondelez is expected to have a long-term revenue growth of 5% to 7% and earnings growth in the double digits.

 

New standard packaging norms for FMCG cos

Amid growing cases of unfair trade practices, it would be mandatory for FMCG companies to pack and sell specific products like biscuits and milk powder in standard sizes only, with effect from November 1.

Following complaints regarding unfair reduction in the quantity of packaged products from some consumer organisation, the government has amended the Legal Metrology (Packaged Commodities) Rules 2011.

Other categories like baby food, weaning food, biscuits, bread, butter, coffee, tea, cereals, pulses, milk powder, salt, edible oils, rice and wheat flour, aerated soft drink, drinking water, cement and paints are among products that manufacturers are required to pack and sell in standard sizes

 

Mercedes to launch all-new B-Class & Sports Tourer to take on rivals

 

Changing tack after losing traction in the Indian market to its German rivals, Mercedes-BenzIndia is adopting a “step-down” strategy to garner market share. It is preparing to launch an all-new B-Class known as the Sports Tourer in September, to take on BMW and Audi in a segment that is clearly showing signs of a slowdown.

The Sports Tourer would be the most affordable car from the Mercedes stable in the sub- 25 lakh price bracket. The Indian subsidiary of Daimler AG, currently sells its C-Class at 28.56 lakh (ex-showroom Delhi), its cheapest offering in India. For BMW, its lowest priced X1 forms around 30% of its annual sales in 2011 and Audi’s cheapest car in India at 26.5 lakh, the recently-launched Q3 compact SUV lakh, has taken the market by storm.

 

Nestlé to acquire Pfizer Nutrition to enhance its position in global infant nutrition

In a strategic move to enhance its position in global infant nutrition, Nestlé has agreed to acquire Pfizer Nutrition for USD 11.85 billion. The acquisition, which is subject to regulatory approval, will be accretive to the Nestlé model both for growth and margins as well as the group’s earnings per share in the full first year. Nestlé estimates the acquired business’ 2012 sales at USD 2.4 billion. 85% of Pfizer Nutrition’s sales are in emerging markets, many of them with large, fast-growing populations.

 

ITC Net Profits up

ITCs Non – Cigarette FMCG segment registered a robust revenue growth of 23% and improved profitability. But its Hotels business continued to be impacted by weak global and domestic economic environment.

Agri-Business profits grew, driven by improved realisations and enriched portfolio and there was robust performance by Paperboards, Paper and Packaging business was driven by product mix enrichment.

ITC was also awarded the prestigious ‘World Business and Development Award 2012’ at the Rio+20 UN summit for its Social and Farm Forestry initiative.