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Emami plans brand blitzkrieg, to step up advertising spend [DNA : Daily News & Analysis (India)]
[November 01, 2014]

Emami plans brand blitzkrieg, to step up advertising spend [DNA : Daily News & Analysis (India)]


(DNA : Daily News & Analysis (India) Via Acquire Media NewsEdge) Emami, personal and healthcare products maker, is readying a strong pipeline of new product launches after recent launches into the high volume but crowded deodorant and women hygiene segment.



This coupled with a change of how sales to distributors are accounted for would continue to ensure good quarterly growth in revenue, the company told analysts.

"We have a very strong pipeline of new launches," director Mohan Goenka said.


During the year Emami launched 'He' male deodorant and roped in Hrithik Roshan as the brand endorser while it acquired 'She Comfort' a small sized sanitary napkin brand from Mumbai-based Royal Hygiene.

"The deo has done well for the last four months with sales exceeding our internal targets. For She Comfort we have significant plans next year, and we would be launching the campaign this quarter," Goenka said.

Emami's healthcare range under the Zandu portfolio, cashing on the gradual shift of consumers towards natural wellness products, would also see several new launches in coming days.

Emami enjoys 66% gross margin, which improved by 300 bps during the quarter. "'Going forward, scenario looks improving further with costs not going up and we are confident of improving our margins. We have a very strong headroom in gross margin and we wish to invest that much money in advertising," Goenka said.

Emami saw satisfactory growth in many of its key brands, taking away market share from its rivals.

Cleaning shelves With consumer sentiment still down this fiscal so far, fast-moving consumer goods makers are finding means and ways to improve profitability and push growth in a stressed business environment. Earlier this week, Hindustan Unilever Ltd said it will be culling non-performing stock keeping units (SKUs). Following suit is Nestle India, which will eliminate low-margin products from its portfolio to rationalise product offerings and improve profitability. During the past couple of quarters, Nestle has withdrawn Nestle Eclairs, Nescafe Mild and milk sachets as they were low margin and low growth products.

Cookie delight Sunfeast, from the house of ITC Foods, has introduced Mom's Magic, an ideal cookie experience that's loaded with butter, cashew and almonds. With rich and wafting aroma, the cookie, despite being crunchy, swiftly melts in the mouth. It comes in two variants and, is priced between Rs 10 and Rs 30 across three variants.

India call Chinese handset maker OPPO considers India as a key strategic market and is collaborating with Flipkart and Amazon for online sales of its products. OPPO N3 with automated swivel camera and OPPO R5, which the company claims is the world's thinnest smartphone measuring 4.85 mm in width, will be available in India around December. Prices haven't been disclosed as yet. The company has launched 10 smartphones in India till date.

New Pulsar Bajaj Auto is likely to launch Pulsar 200 SS by December 2014. The sports bike is being produced at the company's Pimpri, Pune, plant. The bike will take on Yamaha YZF R15 2.0 and KTM RC 200. The Pulsar 200 SS shares the same platform as the Pulsar 200NS but has a meaner looking body frame like a toned down production version of the Hero Hastur concept motorcycle. The bike is powered by a 199.5 cc single cylinder liquid cooled engine that will produces 18 Nm torque and 23 BHP.

-Sumit Moitra, Ashish K Tiwari with agency reports, mail us details of brand launchwes on [email protected] Credit:Sumit Moitra, Ashish K Tiwari (c) 2014 @ 2014 DILIGENT MEDIA CORPORATION LTD. ALL RIGHTS RESERVED

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