Showing posts with label Indian market. Show all posts
Showing posts with label Indian market. Show all posts

Thursday, October 25, 2012

SIXTEEN YEARS AFTER TAKING ‘THUMS UP’, THEY WANT INDIA

“According to the latest data compiled by A C Neilsen. Thums Up, an Indian brand that was sold to Coca-Cola (in 1993), retains the top slot of the most selling carbonated drink in India: AC Nilesen study, April, 2009.”

When they re-entered India in 1993, the challenges were very different. They had to build the market from scratch, which was dominated at that time by a number of local brands. Pepsi had entered somewhat earlier in 1989 and Lehar Pepsi had started making some waves. Coca Cola’s ingenuity at that time was to hit the home run in one go, when they acquired Parle’s brands, Thums Up, Gold Spot and Limca for $40 million. It is said that Coca Cola ultimately wanted to kill Thums Up but failed miserably. But strategically, Thums Up proved to be an excellent brand for them. It still remains the soft drink of choice in the Indian market. Besides, it also helped them launch a flank attack against Pepsi. “Thums Up was added to Coca-Cola portfolio in 1993. During this period, it moved towards a more individualistic masculine positioning in ‘I want my Thunder’. In 2002, Akshay Kumar was roped in as the brand ambassador and the brand continued to strengthen its position as a Male Iconic Brand through consistent positioning,” explains Kashmira Chadha, Director, Marketing, Coca-Cola India to B&E.

It has been a virtual duopoly in the Indian market, as both struggled to go one up on sponsorships, promotions, celebrity endorsements, distribution reach, product adaptations, et al. People would remember many instances – like the Nothing Official About It campaign by Pepsi (1996 Cricket World Cup), or more recently, Coca Cola sponsoring the Delhi Dare Devils and Kolkata Knight Riders teams, which got Pepsi in a tizzy (as team players Virender Sehwag & Ishant Sharma are Pepsi brand ambassadors). One of the interesting ploys on the product front was the Rs.5 Coca Cola bottle for rural areas. The strategy was clicking well, but Coca Cola ultimately withdrew it due to the hit it was taking on margins. But Coca Cola has turned corners after years of struggle (it is now profitable in India). The company recorded a growth of 29% in India for the quarter ended June 2009. Muhtar Kent, Chairman & CEO, Coca Cola, admits “Our investments in key growth markets contributed to the good performance in China, Mexico, India and Brazil (despite tough global economic conditions).


Source : IIPM Editorial, 2012.

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Tuesday, August 21, 2012

The Global Sales Division of Toshiba-Carrier Corporation

The Senior Vice President and Chief Marketing Executive of the Global Sales Division of Toshiba-Carrier Corporation reveals his company’s India roadmap to B&E’s Surbhi Chawla & Neha Saraiya

B&E: India being a highly competitive market, what would be your strategy to stay ahead of the race?
Akio Ozaka: The Indian market is evolving, with consumers understanding and demanding new technologies and features. The Toshiba range is comprehensive, with air conditioning solutions ranging from residential to light commercial to commercial applications. Our focus and expertise lies in providing consumers air conditioning, which is solution-oriented and not just about installing a cooling product.

B&E: What are Toshiba’s future plans for the Indian market?
Akio Ozaka: India is an extremely important and a growing market for us, and we are quite hopeful of writing a success story in coming times. Toshiba in India has registered a cumulative annual growth rate of 66% from 2005 to 2009. We would like to continue that momentum and make our products available to a wider section of consumers, backed by our cutting-edge technology. We are looking at growing our customer base beyond the metros in satellite towns and mini metros. Today, the Indian consumer has evolved and makes better informed decisions, which can lead to a preference for innovative products and solutions.

B&E: Are you planning to roll out any new products for the Indian market in the near future?
Akio Ozaka: Yes, we do plan to launch a new range of air conditioners later this year in India.

B&E: What is the present dealer network penetration of Toshiba and how do you plan to augment this?
Akio Ozaka: We plan to have a deeper penetration in the market and stay connected with our customers at all the possible touch points. Thus, we are aspiring to have a strong dealer network across the country.

B&E: What are your other plans for the future?
Akio Ozaka: The company will focus on maintaining and consolidating its position in the market, leveraging a diversified product range with the latest technology, and establishing a solid footprint.




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Friday, August 17, 2012

J. Patrick Doyle, Global President & CEO, Domino’s Pizza

Global President and CEO, Domino’s Pizza,8 talks to b&e’s angshuman paul about the various peculiarities that personify the company’s India operations

B&E: Domino’s Pizza has been into this country for more than a decade. The initial years were slow growth years. Has there been any change in the growth momentum after that?
Doyle: Of course during the initial years, like any other MNC, we too had teething problems and it took us time to understand the Indian market. But that kind of a situation lasted just for two years after we entered India in 1997. Since the early 2000s, we have grown at a very fast rate.

B&E: So what potential do you see in the Indian market? Especially in terms of contribution to the global turnover of the company, where do you want to take the Indian venture?
Doyle: During the last two to three years, India has actually become the fastest growing market for us. India is the most important Asian market for us and Domino’s sees a huge opportunity in India for pizza and pasta. And in terms of contribution to the global turnover of the company, India is amongst the top 10 earners for Domino’s. Currently, India contributes to around 1.5-2% of Domino’s annual global sales – we expect to take it further to a double digit figure. By 2014, we expect India to be among the top five earners – and our concrete plans to achieve this goal are in action.

B&E: The quick service restaurant (QSR) market in India is growing at 25% by CII estimates, and categorically in pizzas, apparently 25,000 pizzas are sold per day in the various corners of the country. Where does Domino’s stand in this? And what strategy are you implementing to cash in on this fiercely growing market?
Doyle: We currently enjoy the leadership position in India in the home delivery segment and we’ve always believed in enhancing this too. This [home delivery] is the USP of our brand and we will retain this further. But yes, as I mentioned, in Indian market, there are lots of new opportunities to explore. For example in the tier II cities there are new markets and not many players are present there. Now, about 20-25% of the revenues for our company comes from tier II and III cities. In the future, therefore, we would be expanding more into such markets.

B&E: Are you referring to your retail presence in these cities? What are your actual retail penetration plans?
Doyle: We have 300 stores in India and in total 9000 stores across the world. In another three years, our target is to have 500 stores in India, apart from the aim of entering newer cities and markets. There is still a huge untapped market in the country to be exploited.

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