IIPM: October 2006

Thursday, October 26, 2006

Management’s most important job is to make wise choices in allocating its resources

If one were to do a sector-wise bifurcation, the FMCG companies rule the roost. GCPL tops the list, followed by Nestle India. Hindustan Lever Limited and Colgate Palmolive are neck-to-neck with each other on RoA. While both the companies have a 3-year average ROA of 0.46, HLL scores over Colgate in the FY 2006. HLL has a RoA of 0.59 for FY 2006, while Colgate Palmolive generated Rs.49 for every Rs.100 invested in assets.

Management’s most important job is to make wise choices in allocating its resources. Anybody can make a profit by throwing a ton of money at a problem, but very few managers excel at making large profits with little investment.

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Source:- IIPM Editorial

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Thursday, October 19, 2006

Reliance Industries Ltd

Reliance Industries Ltd (RIL) is the only other company after ONGC, which has achieved the milestone of more than one trillion rupees market cap. No doubt, it’s the second most valuable company in India today. As on March 31, 2006, in terms of market capitalisation, RIL’s worth was Rs.1.10 trillion. However, since then, rampant expansion plans of the company have catapulted the market value of the company tremendously in the current fiscal. The company recorded a growth of 41% in its market cap, which climb up to Rs.1.55 trillion in a small time span of five and half months.

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Source:- IIPM Editorial

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Thursday, October 12, 2006

Pepsi Blue Billion:- The Blue Billion is coming Blue

BRAND: Pepsi Blue Billion
AGENCY: JWT
BASELINE: The Blue Billion is coming Blue

DESCRIPTION: A boy

is standing by the riverside with his dog. Suddenly, he sees birds flying away from the top of a mounted figure and there is a chant of ‘Oooooh Aaaaah India, Aaaaah Yaaaaa India’. Next, the boy is seen running through narrow lanes, trying to get away from the chorus. On the other side, from colleges to hotel kitchens to discos, the chant of ‘Oooooh Aaaaah India, Aaaaah Yaaaaa India’ is building up. Unable to take it any more, the boy goes into a dark room and shuts himself in it. He grabs a Pepsi and drinks it, but he can still hear the mystic chant. He realises that it’s coming out of the Pepsi bottle!

4Ps TAKE: This is Pepsi’s association with the Men in Blue — the Indian cricket team. This ad is the first part of the Blue Billion series of ads. Call it a teaser of sorts, it reinforces the brand’s closeness with India’s favourite sport. Watch out for the next instalment!

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Source:- IIPM Editorial

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Tuesday, October 10, 2006

No doubts about it, KINETIC firm is fighting hard

Second 3: Kinetic

No doubts about it, this firm is fighting hard.

But one look at the latest market share and sales figures released by SIAM show it’s a losing battle, to say the least, for Kinetic in India. Though it has a variety of products like Velocity, GF 125, Challenger etc., which are widely spread across all segments, none of them is a hot favourite – they clearly lack unique selling propositions. Not to forget the very ambitious Kinetic Comet 250, which is priced at Rs.1.67 lacs & has found very few takers. Can they challenge the leaders? Not this year...

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Source:- IIPM Editorial

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Wednesday, October 04, 2006

Nestlé and the Chocolate Factory

Remember the famous Rowntree chocolate factory in York, England, that has been making Nestlé Smarties – the colorful sugarcoated chocolate buttons – since 1937? Now, the Rowntree chocolate factory has stopped making Smarties, as Nestlé has moved the production to Hamburg in Germany. In the process, the Swiss confectioner, that is facing stiff competition from other chocolate makers like Cadbury and Mars, also announced the loss of 645 jobs at Rowntree, while adding that the job losses were part of a wider restructuring to improve “the competitiveness of the York factory and the group’s overall European confectionery business.”

For complete IIPM article click here

Source:- IIPM Editorial

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