"Experiment, anticipate future, innovate, collaborate to survive in a VUCA world"

Ravi Kant, Vice Chairman, Tata Motors feels that it is pertinent to look at the past and study how different companies have managed economic crises

e4m by Shobhana Nair
Published: Oct 31, 2013 9:21 AM  | 3 min read
"Experiment, anticipate future, innovate, collaborate to survive in a VUCA world"

Managing bottomlines and delivering on business goals amid tough economic conditions is a new reality that companies face today. Navigating in this VUCA (Volatility, Uncertainty, Complexity and Ambiguity) world poses a lot of challenges for companies and industry honchos. According to Ravi Kant, Vice Chairman, Tata Motors, it is pertinent to look at the past and study how different companies managed such crises.

As per industry data, there were 500 S&P companies in the US 40 years ago. The number now stands at just 74. It is expected that only one-third of these companies will survive in the next 25 years. Clearly, changes have triggered the entry, exit and renewal points of companies. In fact, till the 90s, IBM, which was the leading hardware business, switched gears to keep up with changing times and started offering software and services. Likewise, Ravi Kant pointed out, Tata Motors, which was only into locomotives, started manufacturing premium cars and trucks of different sizes. He said, “Tata Motors was very vertically integrated. Now, we crowd source things. Initially, we were doing everything in-house, now we believe in the collaborative way of working. Also, we only had domestic presence earlier, but now we have grown internationally – organically and inorganically.”

Tata Motors has gone through all kinds of business cycles, wherein the truck category shrunk by 15 per cent. Ravi Kant remarked, “One must have low break-even point. So, when you go down, you make less money. And when you go up, you make more. The company aims to reduce the break-even points from 60 per cent to 30 per cent.”

Tata Motor’s acquisition of the Jaguar and Land Rover businesses from Ford Motor Company in 2008 generated a lot of buzz internationally. One of the key strategies of such an acquisition was spreading Tata’s footprint globally. As of 2013, 78 per cent of Tata Motors’ revenues come from its international business, while the domestic business contributes 22 per cent. Ravi Kant informed, “80 per cent of our bottomline comes from Jaguar Land Rover. Five years ago, people thought that it would sink the company, but today, it is Jaguar that is helping Tata Motors survive.”

According to the Tata Motors’ Vice Chairman in order to survive and grow in tough conditions, companies should be able to experiment, which they need to do by anticipating the future, innovating and collaborating.”

Ravi Kant was speaking at ISA’s Global CEO Conference - Navigating VUCA, organised by the Indian Society of Advertisers (ISA) in partnership with exchange4media. The Conference was held in Mumbai on October 30, 2013.
 

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RK Swamy, the creative power behind the Sengol story

The agency has created all the communication material for the project

By exchange4media Staff | May 26, 2023 6:41 PM   |   1 min read

rk swamy

The Sengol story, a project that captures the journey of Sengol that signifies the transfer of power to Indians in August 1947, has been creating quite a buzz. Marketing agency RK Swamy has created the communication material for the project.

Working quietly behind the scenes for the project that brings to life a piece of the nation’s history, RK Swamy has created all communication materials for it.

RK Swamy conceptualized the communication architecture, the website, eight videos and ebrochures, FAQs and every other piece of work that was required for this. All of the work has been done in 13 languages.

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Amul Lassi video goes viral over fungus claims, company responds

The dairy co-op has hit back at the video, saying that it was aimed at creating 'misinformation'

By exchange4media Staff | May 26, 2023 1:06 PM   |   2 min read

amul lassi

Amul has addressed a viral video, which claimed that the company's lassi packs has traces of fungus. A video that went viral on social media said that the beverage packs were tainted with fungus well before their expiry date.



Amul has hit back at these claims, calling the viral video "fake." The company shared its statement through its social media handles, clarifying that the creator of the viral video has neither contacted Amul for clarification nor shared the location where the so-called tainted lassis were purchased from.

"We wish to assure you that Amul Lassi is made at our state-of-the-art dairies and undergo strict quality checks for product quality and integrity of packaging," said Amul.
"We noticed in the video that the packs are damaged from the straw hole area. It can also be seen in the video that liquid is leaking from this hole. The fungus development in these packs are [sic] due to this hole which the maker of the video is most probably aware of," it added.

The company then went on to say that all its products have a declaration for consumer safety, which says, "DO NOT BUY PUFFED/LEAKY PACKAGES."

The company alleged that the video aimed at creating misinformation and spreading unnecessary fear and concerns among consumers.

Recently, a de-influencing video featuring Revant Himatsingka put Cadbury's Bournvita on full blast about its health claims. The company reacted by sending a legal notice to Himatsingka and refuting the allegations.

Cadbury was severely criticised for what was called a disproportionate response to a viral video. Child rights' body the National Commission for Protection of Child Rights even asked the company to withdraw all its 'misleading' ads.

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Shah Rukh Khan is the face of Myntra's EORS

Under this association, Khan will be seen in a series of ad films

By exchange4media Staff | May 26, 2023 12:30 PM   |   2 min read

SRK

Myntra has roped in Shah Rukh Khan as the face of the 18th edition of Myntra’s End of Reason Sale (EORS), its marquee bi-annual fashion festival.  

Under this association, Shah Rukh will be seen in a series of ad films. The brand campaign will be amplified extensively via multimedia channels leading up to and during EORS-18. Shah Rukh will also have extensive visibility on the app, to further garner the audience's attention.  

Talking about the association with Shah Rukh Khan, Sunder Balasubramanian, CMO - Myntra, said, “We are thrilled to have Shah Rukh as the face of EORS-18, and are confident that this association is poised to undoubtedly elevate the event to new heights of glamour, style and excitement. SRK stands among the few iconic celebrities whose popularity knows no boundaries and transcends age groups. He is loved by all, which perfectly aligns with the essence of Myntra EORS - an inclusive fashion extravaganza that brings the best of fashion, beauty, and lifestyle within reach for people across the nation. With Shah Rukh Khan as the face of the 18th edition of EORS, we are confident that it will be an unforgettable celebration of fashion, creating waves of inspiration and captivating experiences for all.” 

Speaking on the association, Shah Rukh Khan, said, “Fashion, for me, has always been a means of self-expression. It is a way to embrace one's unique style and create a statement that truly reflects your personality. I am excited to collaborate with the incredible team at Myntra and play my part in promoting an unforgettable experience for fashion enthusiasts across the country, as they gear up for EORS-18 which is India’s biggest shopping carnival.” 

EORS-18, starting June 1.

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AcneStar ropes in Raashii Khanna as new brand ambassador

As part of the collaboration, a TVC will be rolled out soon featuring the actress

By exchange4media Staff | May 26, 2023 11:41 AM   |   2 min read

Raashii Khanna

AcneStar the house of Mankind Pharma has onboarded Raashii Khanna as the new face of the brand for driving better engagement with the audience.

Owing to the popularity of Raashii Khanna across the spectrum through her films and shows panning over different languages, mediums and genres, the brand aims to intensify its reach PAN India with a TVC.

Commenting on the collaboration, Raashii Khanna said, “Acne and skin concerns are universally susceptible problems and as youngsters we are always looking at easier and safer ways to obtain a clear acne free skin. AcneStar employs scientific brilliance to present a product that offers dependable solutions to skin care, I am glad to be associated with a brand that is also vested in the public’s interest and better quality of living.”

Speaking on the occasion, Joy Chatterjee, Associate Vice President, Sales & Marketing, Mankind Pharma said, “We are very excited to onboard Raashii Khanna as the face of AcneStar. In order to expand our visibility and strengthen our foothold in the market, we were in search of a figure who was well-recognized by the audience. And considering that the actress is quite popular and at the same time resonates with the proposition of the brand, we collaborated with her to drive visibility amongst the target audience. It will further help us in augmenting the recall value of the brand amongst the masses. Furthermore, the audience having faith in the actress will aid in driving the authenticity of the brand at the same time.”

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Emami revenue grows by 9% in Q4FY23

EBIDTA growth stood at 22%

By exchange4media Staff | May 25, 2023 5:09 PM   |   4 min read

emami

The Board of Directors of Emami Limited met on Thursday, 25th May 2023 to consider the unaudited financial results of the company for the fourth quarter and year ended 31st March 2023. 

The FMCG industry witnessed a mixed demand environment in Q4FY23, as discretionary categories like personal care continued to remain muted on account of reduction of non-essential expenditure by rural consumers. Inflation in rural areas reached 6.8% in FY23, the highest level in the previous nine years, and rural inflation surpassed urban inflation for the first time since FY18. Additionally, excessive rainfall in many areas of the country in March impacted the demand for summer products. In the given macroeconomic context, Revenues at ₹ 836 crore grew by 9% over previous year during the quarter. 

Domestic business grew by 5% during the quarter. Excluding the sales of Healthcare and Pain management range which had a higher consumption during COVID period, Domestic sales grew by 11%. New age channels like Modern Trade and eCommerce continued to perform well, growing by 18% and 64% respectively over previous year. The contribution of both these channels to Domestic sales increased to more than 20% of Domestic net sales, a 500 bps growth over previous year. 

Complementing the launch of Zandu Fast Relief Gel earlier in August’22, the Company launched Zandu Fast Relief Spray in Q4FY23. Zandu Fast Relief is India’s only pain relief brand, recommended by the Indian Association of Physiotherapists and is endorsed by Dr. Ali Irani, the ex-physio of the Indian Cricket Team. Overall, the Company launched around 20 products in during the financial year, with a majority being digital first launches on its D2C website www.zanducare.com

International business grew by 19% during the quarter despite high inflation, currency depreciation and geopolitical challenges in several key markets.The growth was mainly driven by strong performances in markets of MENA, CIS and Bangladesh. 

With some moderation in input costs, Gross margins at 63.1% expanded by 60 bps in Q4FY23. EBIDTA at ~ ₹ 200 crore grew by 22% with EBIDTA margins at 23.9% expanding by 260 bps. Profit before Tax at ₹ 148 crore also grew by 51% over previous year. 

For the full year, revenues at ₹ 3,406 crore grew by 7%. Domestic business grew by 4% in FY23 on a higher base of COVID contextual categories like Pain Management & Healthcare range. Excluding sales from both the categories, Domestic Business grew by ~7% in FY23.  International Business also grew strongly by 20% during the year. 

In FY23, Gross Margins at 64.7% contracted by 160 bps due to inflationary pressure and unfavorable portfolio mix in first three quarters. EBIDTA at ₹ 863 crore declined by 9% but compared to pre-COVID period it grew by 4% on a 4 year CAGR basis. Profits before tax at ₹ 670 crore declined by 3% over previous year but it grew by 13% on a 4 year CAGR basis. Profits after Tax, before MAT cr. entitlement of earlier years, grew by 3.5% in FY’23. 

Mr Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited said: “Despite challenging demand scenario on account of high inflation, muted rural sentiments and unseasonal rains,  we have delivered a resilient profit led growth in Q4FY23. After few quarters of ongoing pressure on input costs, we have been able to expand our Gross & EBIDTA Margins delivering 20% EBIDTA growth. Our strategic investments and Dermicool acquisition have performed well and contributed to this growth. We will continue to make significant investment behind our core brands, innovations, channel expansions and digital optimisations which are expected to contribute immensely to future growth” 

Mr Mohan Goenka, Vice Chairman and Executive Director, Emami Limited said:  “Our sustained marketing interventions delivered higher penetration levels for our brands which continued to maintain their category leadership. While, new age channels such as Modern trade and e-Commerce plus D2C grew strongly by 18% and 64% respectively in domestic market, International business also reported a strong growth of 19% during the quarter despite economic and geo-political challenges in our key markets. With softening of input costs and decreasing inflationary pressures we are hopeful of a better demand scenario and improved margins in FY24”

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realme gets Shah Rukh Khan as brand ambassador

The first product Shah Rukh will endorse is the realme 11 Pro Series 5G

By exchange4media Staff | May 25, 2023 12:59 PM   |   1 min read

Shah Rukh Khan

realme has announced superstar Shah Rukh Khan as its brand ambassador for the realme smartphones.

This collaboration further reinforces the brand's commitment to inspiring the millennial generation and setting new benchmarks in the smartphone industry.

The first product Shah Rukh Khan will endorse for realme is the realme 11 Pro Series 5G, a testament to the brand's dedication to providing cutting-edge technology to its customers. With this collaboration, realme is poised to continue thriving and growing in the future, while staying true to its 'Dare to Leap' philosophy

Shah Rukh Khan shared, reflecting on the collaboration, “realme’s 'Dare to Leap' philosophy truly resonated with me. The brand's unwavering commitment to pushing boundaries aligns perfectly with my own pursuit of excellence. Together, we aim to ignite innovation and fuel the growth of realme globally. I am looking forward to joining the realme family as their brand ambassador and hope to inspire others to embrace challenges, take bold steps, and achieve greatness.”

Commenting on the association, Tao, Chief Marketing Officer at realme India, stated, "We are extremely excited to have Shah Rukh Khan on board as the brand ambassador for the realme smartphone category. His dare-to-leap spirit perfectly resonates with our brand's philosophy. With this collaboration, we aim to reach new heights of innovation and redefine the smartphone experience for our users."

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Tide & Sociowash put out campaign for Punjab Kings

The campaign spotlights Tide’s collaboration as Punjab Kings’ official laundry partner

By exchange4media Staff | May 25, 2023 12:22 PM   |   1 min read

Tide

Sociowash has joined hands with Tide to launch an integrated campaign this IPL. This campaign boasts a star-studded lineup that enthralled the audiences starring cricket icon Shikhar Dhawan and rising stars of cricket, Arshdeep Singh, and Shahrukh Khan. The campaign was designed and executed by Sociowash.

The collaboration was introduced in a brief teaser film titled 'Sadde Punjab ka Naya Favourite,' which also marked the debut of Tide Liquids in India. Tide Liquids will be the 'official laundry partner' of the legendary Punjab Kings. Sociowash helped Tide in creating a strategic plan, where they combined offline advertising, out-of-home (OOH) placements, in-stadium advertising, and digital advertisements to maximize the reach of the campaign. The campaign is intended to draw attention to the Tide Liquids launch and engage consumers through multiple touchpoints and assets.

Pranav Agrawal, Co-Founder of Sociowash, expressed his excitement about the partnership and the campaign's potential impact: "We are thrilled to collaborate with Tide on this campaign that showcases their association with Punjab Kings. The video, shot in our in-house production wing SW Studio, perfectly captures the essence of the partnership and highlights Tide's role as the official partner. We believe this campaign will create a lasting impression on consumers, resonating with both cricket enthusiasts and loyal Tide customers."

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