Chennai-based FMCG major CavinKare has appointed Mediaedge:cia as its agency on record. The company has earmarked a budget of Rs 30 crore for media spends. Four agencies were in the fray for the business. Hitherto, the media duties were handled by CavinKare’s in-house agency Hemalata Enterprises.
Ramesh Vishwanathan, Vice-president, Marketing, Cavinkare, said, “Mediaedge:cia made a great pitch presentation which had a completely different thought process, in terms of the way they are looking at the media. The pitch was for one of our brands called Chik and their presentation was completely different, where they have used different sets of data. They also have a lot of global tools and software, which would give us a great deal of efficiency in media planning.”
On the need to outsource the media duties even though CavinKare has an in-house media agency, Vishwanathan said, “Although we have our own in-house media agency, we are not able to invest on tools because we are the only client. But Mediaedge:cia has the quality tools which would improve our media planning dramatically. By going to someone who already has multiple clients and international business, we have access to technology that would help improve media planning.”
CavinKare’s has set up a manufacturing plant in Haridwar, and according to Vishwanathan, there is lot of excise and income tax benefit by having a plant in Haridwar. “The government is also extending its complete support, which makes it financially viable and attractive. Besides, a significant part of business takes place in Uttar Pradesh, which is also another factor for putting up a plant in Haridwar,” Vishwanathan added.
About CavinKare’s plan to enter into new category, Vishwanathan said, “We have no immediate plan to enter into any new category, but we are exploring several categories.”
CavinKare has three distinct SBUs — personal care, foods and international business. The divisions operate on diversified product portfolio like shampoos (Chik, Meera, and Nyle); fairness cream (Fairever); deodorant and talc (Spinz); masalas and ready mixes (Ruchi, Chinnis); hair dyes (Indica); and toilet cleaners (Tex); among others.