4 Business of Brands

Pitch Report
Marutis Domestic Sales Crosses 1-crore Mark
NEW DELHI The countrys largest

THE ECONOMIC TIMES | MUMBAI | FRIDAY | 10 FEBRUARY 2012

Munni to Dhanush: Emami Gets its Coolaveri Di

FMCG major ties up with the upcoming Tamil film 3 for brand placement of Himani Navratna hair oil in the Kolaveri Di song
RAJIV SINGH
NEW DELHI

carmaker Maruti Suzuki India on Thursday said it has crossed the one crore units milestone of cumulative sales in the domestic market since it started selling cars 29 years back. The 10 millionth vehicle, a Red Swift Vxi, was dispatched to Coimbatore on Thursday morning from the company's Manesar plant, the company said in a statement. Maruti Suzuki India had rolled out its first caran M800in December 1983 and attained five million domestic sales in February 2006. The next five million domestic sales have been achieved in six years, the company said. While Maruti 800 and Omni powered sales for almost two decades, the Alto has been India's best-selling car for the last over seven years, the company said.PTI

Kodak to Stop Making Cameras to Cut Costs

TOKYO Eastman Kodak Co, the

bankrupt inventor of the hand-held camera, plans to stop making digital cameras, pocket video cameras and digital picture frames in the first half of 2012 in a bid to cut costs. The move marks the end of an era for Kodak, which is seen as one of the biggest corporate casualties of the digital age, after it failed to quickly embrace modern technologies such as digital photography. The company, which filed for bankruptcy protection last month, said on Thursday that it will take a charge of about $30 million for the business exit.Reuters

ow, its Emamis turn to sing Why this kolaveri di The Kolkata-based FMCG makers Himani Navratna hair oil will have its place in front of the camera when the viral hit song is shown in Tamil film 3, its CEO Krishna Mohan said. Dhanush, the actor-producer of the movie and lyricist-singer of the song, confirmed that a number of national and local brands have tied up for product placement during the song sequence. Yes, brands have tied up for in-song placement, but I can't disclose the details, he told ET. A person familiar with the development said other brands tied up for the song include luxury carmaker Audi, mobile service provider Aircel and Chennai-based consumer durables retailer Vasant & Co. Kolaveri di has become a national rage with more than 42-million hits on YouTube, over 2.5-million ringtone downloads and 3.5-million video downloads since its digital release on November 16 last year. For Emami, it will be the first product placement in a Tamil movie. The maker of Zandu Balm pain reliever rub and BoroPlus anti-septic cream has had its brands present in some Bollywood super hits such as Munni badnaam hui. The tie-up will give extra mileage to Emami products (in the south Indian market), Mohan said, add-

ing that Navratna oil with its tagline Thanda thanda cool cool makes a perfect connect with the song. From Kolaveri di to coolaveri di, he said. . Navratna oila `450-crore brand that is already endorsed by top South Indian actors such as Suriya, Junior NTR, Chiranjeevi and Mahesh Babuhas more than 65% share of the Indian cooling hair oil . market, estimated at close to `700 crore. While Emami dominates the cooling hair oil category in Tamil Nadu and Andhra Pradesh, its volume share in the overall hair oil segment in the two states are 14% and For Emami, it 18%, respectively . will be the
first product placement in a Tamil film. Kolaveri di till now has had over 42-million hits on YouTube BEACH SONG, STREET SONG

Brand Placement (2010-12)

MOVIE/SONG BRAND NAME
Dhanush

Kolaveri Di
Hits on YouTube

Ajab Prem Ki Gajab Kahani/ Emami Malai Kesar Tera hone laga hoon Cold Cream Force Dabangg / Munni badnaam hui Tees Maar Khan/ Sheila ki jawani Golmaal 3 Anjana Anjaani 3 / Kolaveri Di Fast Relief Zandu Balm Boroplus advanced moisturising lotion Fast Relief Emami Malai Kesar Navratna cool oil

42 million

2.5 m
Ringtone Downloads

3.5m
Video Downloads

Arun Pradheep, CEO-director of Brand Workx, an experiential marketing firm that helped Emami seal the deal for Kolaveri di, said the song was recently filmed in a set made to replicate the crowded shopping street of Chennais Marina beach. The sequence is such that the hero, played by Dhanush, does a choreographed step in front of the Emami stall while we show a lot of consumers buying Navratna oil, says Pradheep. He said the placement was planned according to the lyrics and the mood (heros heartbreak for heroine, played by Shruti Hassan). Association with top Bollywood actors and product placement in songs and movies has been Ema-

From Kolaveri di to coolaveri di...The tie-up will give extra mileage to Emami products
KRISHNA MOHAN
CEO, Emami

mis hallmark marketing strategy for years. While 'Munni Badnaam Hui' helped push Zandu Balm sales in 2010, Emami funded the entire cost of a Bhojpuri film song last year which had a mention of Himani Navratna Extra Thanda hair oil. Pritie S Jadhav, chief operating officer of P9 Integrated, the in-film marketing agency of Percept Group, said brands use films as a medium to gain higher return on investment as compared to conventional advertising.

If it was the lubricant brand Mobil displayed prominently in the Kishore Kumar-starrer chartbuster Ek ladki bheegi bhaagi si from Chalti Ka Naam Gaadi movie in 1965, yellow Rajdoot motorcycle became famous when lover boy Rishi Kapoor rode it in 1973 superhit Bobby . Jadhav, however, warns that this strategy will benefit a brand only if it is seamlessly integrated with the script. Otherwise the work will look forced and jarred.

MTS Launches Zero Paisa Plan to Retain Customers

NEW DELHI In the wake of older

Amway Challenges Biggies, Beats Nivea, LOreal in Size

RATNA BHUSHAN
NEW DELHI

players attempting to lure the subscribers of telecom firms affected by the cancellation of 2G licenses, Sistema Shyam TeleServices Limited , which operates under the MTS brand, offered a zero paisa to retain its customers. The Supreme Court last week ordered the cancellation of all 122 telecom licences issued during 2008. The plan offers unlimited local and national calling and 200 local and national SMSs on the same network for `17 for one day.IANS .

Famed French Perfume 'Nose' on Trial for Racism

PARIS French parfumier Jean-Paul Guerlain, for decades the "nose" behind the world-famous perfume brand, went on trial Thursday on racism charges after televised remarks caused widespread offence. Asked in an October 2010 interview about how he created the Samsara scent, Guerlain replied using a racial slur the French term "negre" and implied that black people are lazy. "For once, I set to work like a negro. I don't know if negroes have always worked like that, but anyway..." he said. The incident sparked widespread condemnation, with anti-racism groups saying it highlighted deep prejudice in French society. AFP

Heineken Extends Tie-up With Bond Films

NEW DELHI After collaborating

with five James Bond films, beer brand Heineken has extended its 15-year-long partnership with the popular franchise. The company has plans to launch a global campaign for the upcoming spy movie Skyfall. Skyfall is the 23rd film in the James Bond series, and the sixth consecutive James Bond film that the Heineken brand has been involved with. The marketing campaign will include a variety of promotion and activation rights in and around the film, including for the first time the participation of James Bond actor Daniel Craig in the brand's worldwide campaign.IANS

Direct selling company Amway now outsells several mainstream brands in select segments. Amways Nutrilite protein powder, for example, is far ahead of rivals like Wockhardts ProtineX, while its supplement pill Nutrilite Daily is neck-and-neck with Ranbaxy's heavily advertised Revital and its Glister toothpaste is on the heels of Dabur Red. Our competition now spills beyond direct selling companies, Doug DeVos, Amway president and youngest son of its co-founder Rich DeVos, told ET in an exclusive interaction. As a company too, Amway has outgrown multinationals like L'Oreal, Nivea and Kellogg in In. dia by reporting `2,130 crore in sales for calendar 2011. The US company, which started operations in India 14 years ago, attributes its success to 550,000 active distributors, aggressive pricing and advertising, and it plans to double its advertising spends . . this year to `58 crore from `30 crore in 2011 as it targets doubledigit growth to follow 19% rise in sales last year. The strategy is to gain market share and tell consumers our value story, DeVos says. Industry experts and analysts, however, say scalability is a challenge. For direct selling firms, achieving scale in the long term for top line and distribution is much more challenging compared to traditional firms like, say, a HUL or a Marico, says Pinakiranjan Mishra, partner and national leader (retail and consumer product practice) at consulting firm Ernst & Young. Unlike traditional model of selling through retailers, direct-sell-

ing firms appoint distributors who sell products directly to customers against a commission, which varies from company to company. Anand Mour, senior analyst at financial services firm Ambit Capital, says Amway is operating smartly with its pricing and advertising. But it will take time for Amway to directly challenge traditional FMCG brands in established categories, he says. Another long-term strategic . challenge for the `4,200-crore direct-selling business is the lack of a legislation to regulate it. Top players such as Amway Oriflame, , Avon and Tuppeware have been lobbying for legislation and industry status, unsuccessfully . Without good regulation its tough for consumers to figure out whats legitimate and what is not. If the legislation issues would not have been there, growth could have been faster, says DeVos. He is confident that the legislation will eventually happen. Amway India, a wholly owned subsidiary of the Michigan, USbased $9.3-billion Amway Corp, accounts for half of the total direct-selling market in the country . Its Nutrilite protein powder, launched in year 2000, is now a `250-crore brand, and Nutrilite . . tablets is a `200-crore brand, having grown 34% last year. Glister . toothpaste too crossed `100-crore turnover in 2011. Amways Satinique shampoowhich is available in Rs 5 sachets toois competing with Hindustan Unilevers Sunsilk and Procter & Gamble's Pantene. Amway India MD & CEO William Pinckney says, We have value products that compete directly with market leadersand we offer a full-money back guarantee that competitors dont.

China Car Sales Tumble 24%, a First in 7 Years

Out There
TIAN YING & LIZA LIN
BEIJING

Marching Ahead
TOP AMWAY BRANDS VS COMPETITION
Sales in 2011 Amway brand Glister Toothpaste Rival Dabur Red

NUMBER GAME

Position of India in terms of its contribution to Amways top line

`100 cr

`149 cr

Health Nutrilite Daily Ranbaxy Revital supplement tablet `200 cr `204 cr Wockhardts ProtineX

`200 cr
Investment by Amway in India

Protein powder

Nutrilite

500

`250 cr

`125-150 cr

Number of employees on its rolls in India

2,000

Number of people it indirectly employs at contract manufacturer locations

130
AMWAY VERSUS SOME MULTINATIONALS
2011 Sales Amway `2,130 cr LOreal Kellogg `1,030 cr `340-360 cr

SOURCE: Companies, industry insiders

"Our competition now spills beyond direct selling companies The strategy is to gain market share and tell consumers our value story Doug DeVos
President, Amway

Number of products sold by Amway across ve categories, namely, personal care, home care, nutrition and wellness, cosmetics and great value products

Nutrition
Its Amways best-selling category

China's monthly passenger-vehicle sales fell the most in more than seven years after an earlier-than-usual Lunar New Year holiday season deprived dealers of a week's worth of sales. Deliveries of passenger automobiles, including multipurpose and SUVs, dropped 24% from a year earlier to 1.16 million units last month, the China Association of Automobile Manufacturers said today in a statement. Sales were projected to drop 18%, according to the median of a Bloomberg News survey of five analysts who predicted declines ranging from 8.5%to 30%. The slump follows Chinese government estimates that holiday sales at the nation's main retailers and restaurants rose at their slowest pace since the 2009 financial crisis, adding to signs the world's second-largest economy is cooling. Carmakers from General Motors to Ford Motor are counting on a rebound in February as they rely on China, the world's biggest auto market, to help drive earnings this year. Even though the actual holiday was five working days, some dealerships took the opportunity to close their stores for a longer time, said Ran Fei, an analyst with Great Wall Securities in Shenzhen. The numbers are disappointing.
WORST DROP IN YEARS

Visitors look at cars at an auto event in Nanjing, China AP

slowing. Holiday retail sales on the Chinese mainland grew 16 percent to 470 billion yuan ($75 billion), or 3 percentage points below last year's increase, according to preliminary government data released by the Ministry of Commerce. Growth in total auto sales, including those of commercial vehicles, will probably accelerate to 8 percent this year after slowing to 2.5% in 2011, according to CAAM. Deliveries last year slowed from 32 percent in 2010 after the government withdrew a two-year package of tax breaks and rebates that helped the country overtake the U.S.
SLOWER THAN US

KAMAL

Tata Global, PepsiCo JV Eyes `700-cr Turnover .

PRESS TRUST OF INDIA
CHENNAI

Seven3Rockers Bags Global Mobile Rights for CCL

NEW DELHI Gurgaon-based value

added services provider Seven3Rockers Technologies Pvt Ltd has bagged worldwide mobile and Internet rights for the Celebrity Cricket League for an undisclosed amount. CCL is a cricket tournament between six teams comprising film actors from different regions . The league's first season took place in 2011 and the second season commenced in Sharjah in January this year. As part of the agreement, Seven3Rockers will be responsible for global live streaming of CCL matches on internet, video on demand and score updates on SMS among others. PTI

Eyeing a turnover of `700 crore in . the next five years, NourishCo -- a joint venture between Tata Global Beverages and PepsiCo India -today said it will expand its product portfolio of healthy products rapidly. The company, which on Thursday launched Tata Water Plus -- a nutrient rich packaged water here, said a new variant of the product will hit the market in the next 6-7 months. We expect that by 2016, the JV's . turnover would touch `700 crore with our product portfolio, Tata Global Beverages Vice-Chairman RK Krishna Kumar told reporters here. It is expected that in the next 18-24 months a whole variety of

healthy products would be coming into the market from NourishCo, he added. With the launch of Tata Water Plus, NourishCo has now a portfolio of three products including -Tata Gluco Plus (a glucose based, lemon flavoured drink) and Himalayan Natural Mineral water. He said the JV has invested around Rs 50 crore in the new

product and going forward more investments will be made into product development to keep in sync with market growth. Tata Water Plus, which has been priced at Rs 16 per 750 ml pet bottle, has been launched in Tamil Nadu market initially and would be launched in other parts of the country in a phased manner. Commenting on the new product, PepsiCo India Region Chairman and CEO Manu Anand said: This unique offering by NourishCo is for everybody developed , keeping in mind the nutritional gaps in an average Indian's diet. NourishCo, which has outsourced the production of the new product to a company in Chennai, will follow the same process all over the country .

We plan to cover the entire country including the far flung , areas in next three years, Kumar said. On the branding of the future products, Kumar said that there were no hard and fast rules and the JV would not follow any set pattern. In 2010, PepsiCo and Tata Global Beverages had announced forming a 50:50 joint venture to cater to the non-carbonated ready-todrink beverages segment and focus on health and enhanced wellness. While Tata Gluco Plus is the first product developed by the JV , Nourish Co had entered into a brand licensing and a manufacturing agreement with the Tatas for marketing the latter's Himalayan brand of mineral water.

January's drop was steeper than the previous record set almost seven years ago, when February sales declined 23% because the holidays occurred in January the preceding year, according to CAAM data stretching back to 2005. The auto group has forecast deliveries will rise 9.5% this year. The Lunar New Year -- also observed in South Korea, Singapore, Malaysia and Vietnam -- typically falls in early February . German and U.S. carmakers gained 1.7% points and 1.5% points, respectively in market , share last month at the expense of Chinese and Japanese brands, according to CAAM's statement today Volkswagen's . Passat sedan was the top- selling sedan model in January , ahead of GM's Buick Excelle, Chevrolet Cruze and Sail, according to CAAM. Consumer demand may be

Vehicle sales growth in China last year lagged behind the U.S. for the first time in at least 14 years, according to figures from the Chinese industry group and U.S. researcher Autodata Corp. Total vehicle sales fell 26 percent to 1.39 million units last month, according to CAAM. Sport-utility vehicle sales declined 12% to 126,300 units, while minivans -- used to ferry goods and people -- slid 24 percent to 200,300 units. Commercial vehicles, a category that includes buses and trucks, tumbled 37% to 229,200 units. The January numbers aren't pretty but they're still normal , because of the fewer working days, Dong Yang, deputy head of CAAM, said at a briefing in Beijing today . We haven't yet spotted anything special or abnormal. Some analysts agreed with Yang in saying that concerns over the January figures may be premature. Demand is still there and consumers in the smaller, less developed cities will still have a growing need for cars, said Chen Liang, an analyst with Huatai Securities Co. in Nanjing.
Bloomberg

Future Group ties up With Disney for Kids Cookies

OUR BUREAU
MUMBAI

Indias largest retailer Future group has partnered Disney to launch the countrys first cookies for kids under its own brandTasty Treat. The retailer feels that while the cookie sub-segment is growing three times faster than the overall biscuits market, the kids segment is virtually untapped. With the launch, Future group is targeting 20% of the cookie category in over 200 Big Bazaar stores. Kids are also driving consumption in this category and in the modern trade environment, kids can directly engage with brands and products. We have partnered with Disney to leverage this insight, launching an exclusive range of Kidz

Cookies with popular Disney characters. The product is developed with Unibic making it world class in quality said Devendra Chawla, president of food & FMCG business at Future Group. Most of the companies including Parle, Britannia and ITC have also been aggressive in the high margin segment to offset rising raw material costs such as wheat and digress away from the traditional biscuit and glucose market that are showing stagnating growth. The launch also strengthens the fact that children are fast becoming decision makers for many categories such as instant noodles and shampoos that marketers are now tapping to launch products specially designed for the younger target audience.