1) Reckitt Benckiser clinches third spot ahead of Godrej Consumer, Marico in home & personal care market
Reckitt Benckiser has topped Godrej Consumer and Marico to clinch the third spot in the Indian home and personal care market, even as the British firm plans to build one of its biggest factories in the country by next year.
Reckitt Benckiser India (RB India), which sells products ranging from soaps to over-the-counter medicines to condoms, posted revenues of Rs 3,593 crore for the year ended March as per its latest filing, slightly ahead of Godrej Consumer, Marico and Colgate-Palmolive (see graphic).
Market leader Hindustan Unilever is, however, four times its size and competes with the Dettol-maker in soaps and household products. Procter & Gamble too is ahead of RB India, but only after combining all its three businesses, including Gillette and P&G Hygiene.
Read more: http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/reckitt-benckiser-clinches-third-spot-ahead-of-godrej-consumer-marico-in-home-personal-care-market/articleshow/23843266.cms
2) Serving the below middle-class consumer: A look at their spending habits
There is one category of Indian consumers that is the least understood — a section that is neither poor nor middle-class. This class of consumers, which earns anything between Rs 90,000 and Rs 2 lakh a year, forms a third of the country’s population and commands substantial buying power.
Here’s a snapshot of their spending habits…
3) MRF trumps Apollo in home market
The Chennai-based tyre maker is now India’s fastest growing and most profitable tyre maker, beating its peers on almost all financial parameters. In the last five years, MRF revenues have grown at compounded annual rate of 20.2 per cent, faster than closest rival Apollo Tyres, which grew at 17 per during the period on a standalone basis. MRF’s profit growth has been even faster. From FY08 to FY13, MRF’s operating profit (on standalone basis) expanded at an annualised rate of 26 per cent, against 15.7 per cent growth reported by Apollo Tyres during the period. MRF’s net profit during the period expanded at a rate of 29.6 per cent against 8.4 per cent growth recorded by Apollo Tyres. MRF is not only growing faster but widening its lead over Apollo Tyres. (See chart)
For analysts however MRF’s diversified product portfolio with presence across the vehicle category is one of its biggest competitive strength besides its brand equity in the replacement market. “MRF has a strong brand loyalty in the replacement market that enables it to charge a premium over peers. It gets nearly three-fourth of its revenues from the replacement market that is more profitable,” says G Chokkalingam, managing director & chief investment officer, Centrum Wealth Management.
A strong foothold in the aftermarket helped MRF to make the most of the automotive boom in India. A passenger car require new set of tyres every three to four years while commercial vehicles sales need a new set almost every year. A boom in new vehicle sales translates into a boom in aftermarket with a lag of few quarters. MRF made the most of it with its calibrated investment in branding and sales & distribution. “MRF is one the most recognised brands in the industry and has one the widest distribution network in the industry,” says Devang Mehta, senior vice president and head equity sales at Anand Rathi Financial Services.
In last three years, MRF has steadily stepped its brand spend and is now the biggest advertiser in the industry. During its latest fiscal year ending September 2012, MRF spend Rs 120 crore on advertisements, two and half times jump over three years. In contrast, Apollo’s advertising budget shrunk to Rs 95 crore in FY13 from Rs 154 crore in FY09. It complemented this by stepping up brand visibility on the ground by opening a chain of exclusive MRF T&S (tyre and sales) stores across all cities. Designed like a modern store with all creature comforts, T&S stocks the entire range of MRF tyres and employ company trained technicians to provide the entire gamut of tyre and wheel related services that the owners of modern cars require. Set-up under franchisee model, the company now has nearly 400 T&S nationally and over two-dozen in Delhi NCR region itself, the country’s largest passenger car market.
4) Onida looks to regain lost market share, new CEO plans Rs 50-crore ad campaign
Onida, a domestic television and home appliances brand, is reviving part of its once-famous tagline, ‘neighbour’s envy, owner’s pride,’ as it seeks to regain its lost market share under its new CEO YV Verma.
Onida was one of the top television brands along with BPL and Videocon in the 80s and 90s. Once it started losing ground, Onida made several attempts to stay relevant and expanded its product portfolio to even include mobile phones, but it did not work out.
Mirc Electronics, owners of the Onida brand, will use the tagline ‘owner’s pride’ for its new campaign to mark the launch of a line-up of premium products including an LED television with loud sound output and a microwave oven that can measure the quantity of raw material and accordingly programme itself for cooking at the touch of a button.
At present, Mirc has some 5-6% market share across categories such as television, washing machine and air-conditioner. At a time when Japanese brands such as Sony and Panasonic are giving strong competition to LG and Samsung, it won’t be easy for an Indian band to make much impact in a highly competitive electronics and appliances market. Verma and his new team will sure prove Mirc’s pride if they make Onida a top brand once again.
5) Prestige to spend Rs 300cr on marketing; to launch water filters
Home appliances maker TTK Prestige, which recently signed on Bollywood couple Abhishek and Aishwarya Rai Bachchan as brand ambassadors, will spend Rs 300 crore over the next three years on marketing/brand building.
Jagannathan, Chairman, said the company is also looking at foraying into the water filter category. “We launch one (new) category in three-four years and this year we will launch water filters…water filter category has big players, you have HUL in the business,” he said, adding, the company’s water filters will be priced about Rs 3,000 onwards. “The water filter market is Rs 3,000 crore and we are in a Rs 1,000-cr category, which is gravity filters. This is the largest category and the fastest growing category”