Vkreate -Group B3- Source- Business standard

Headline: Mahindra 2 Wheelers launches 'intelligent' motorcycles, Jan 06, 2013

Mahindra 2 Wheelers have re-entered into the motorcycle segment by unveiling two indigenously developed bikes. Mahindra has launched two new models, ‘Centuro’ and ‘Pantero’ powered by a 110cc engine. The struggling Mahindra two wheeler division which was trying to get a foothold in the two-wheeler space dominated by Hero Motocorp, Honda and Bajaj Auto. The Pantero which is a revamped version of Stallio, its first motorcycle, was discontinued after weak consumer demand.

The entry level motorcycle segment is divided into 3 sub-segments

A1: (40,000-43,000) Bajaj Platina and Hero HF

A2: (44,000-49000) Hero splendor, Hero Passion, Bajaj Discover 100 and Mahindra Centuro

A3: (48,000-54,000) Dream Yuga, Hero Passion Pro, Bajaj Discover 100T and Mahindra Pantero

Mahindra Centuro and Pantero will enter in the A2 and A3 segments respectively which already boast of Bajaj Discover, last fiscal year’s highest selling motorcycle and Hero splendor, world’s highest selling motorcycle, thus making it difficult for Mahindra to compete in the segment.

Headline: McDonald's seeks higher royalty from India arm, Jan 09, 2013

·         Hardcastle Restaurants Private Limited (HRPL) to pay royalty of 8% of net sales by 2020, against the current 3%.

·         This would be one of the highest royalties paid by an Indian company to its parent abroad.

·         According to the agreement, for 20 years up to 2030, HRPL would operate as a development licensee (franchisee). The licence can be extended by another 10 years. Apart from lending its marquee brand name, McDonald’s would also help train HRPL staff, according to the agreement.

·         Higher royalty pay-outs have become a cause of disagreement between promoters of companies and pro-investor groups. Many shareholder activist organisations have raised questions on increased royalty payments to parent companies. They have sought this be cleared in the annual general meeting of shareholders, with 75 per cent voting for the resolution.

·         According to, Shriram Subramanian, founder and managing director of Ingovern Research Services, the royalty should not hurt minority shareholders’ interests and the management should give the reasoning for any increase in royalty payments.

Headline: Has Sony finally found the winning formula? Jan 09, 2013

Sony Entertainment Television is the Indian broadcast arm of Sony Corporation, the $74-billion Japanese consumer electronics giant.  In the last three years, its revenues have more than doubled to an estimated Rs 3,000 crore. That brings it within breathing distance of Zee, but still far from Star’s broadcasting revenues.  Where it beats both Star and Zee conclusively is in audience gains over the last three years. Its share of viewership in the total Hindi market has gone up by 50 per cent because of SAB TV and a resurgent Sony, its flagship channel. It is now the clear number two in the bellwether segment of the Rs 34,000 crore television broadcast market – Hindi. More important, with Indian Premier League and films its total share of audiences or network share has grown by over 30 per cent.

 The first was a clear focus on programming. Sony has a history of backing good fiction with shows such as Heena, CID, Jassi and Bhanwar in the late ‘90s and early parts of the millennium. With a sharpened positioning and a viewer that the company identified as the 18- to 35-year-old woman, mythically named Kusum, Sony invested in a slew of new shows. Bade Achhe Lagte Hain became one of the biggest hits on Hindi television in 2011. Next came Kya Hua Tera Vaada and Saas Bina Sasural, among others. Then came the audacious bid for Kaun Banega Crorepati, its big non-fiction gambit. This paid off with audience and advertising gains.

The second was getting its network right. The two biggest successes in the Sony stable have been SAB TV and MAX. SAB changed track from “being a youth entertainment channel to a light-hearted family one”. Sony propagated  the positives of the joint family instead of the negatives like the other GECs (general entertainment channels). Tarak Mehta Ka Oolta Chasma and RK Laxman Ki Duniya among others keep family audiences with the Sony family. SAB  is one of the biggest reasons for Sony’s mammoth jump in the Hindi markets.

MAX, arguably the only blended channel after Doordarshan, carries movies, sports and event programming. IPL alone brings in average ratings of 3.4 over 54 days. This way to leverage the strengths of a big network is to have a strong GEC and sports property, which Sony have. Building and selling channels is a dead game. With digitisation comes the possibility of more niche channels which improve the scope for pay revenues. Pay revenues, currently 30 per cent of top-line, could double in the next three years if digitisation goes on schedule.

Headline: Lure of the green card, Jan 07, 2013

Summary:

Environmental impact has become one of the biggest selling points for brands when striving to gain consumer attention. Whether intentional or not, the potential to mislead consumers regarding the environmental benefits of a product or service (that is, green washing) and the legal risks associated with it has also grown. How does the Indian marketer fare? Is there real action behind the ‘green’ talk? More importantly, how transparent are they in their reporting on sustainability measures?

Review:

This article talks about how green technology and sustainable business practices are generally perceived more as compliance issues rather than something that must be done. This is possible only if both government and businesses start realising that a country’s economy is the wholly-owned subsidiary of nature. While we do have a large number of environment-conscious companies doing their bit for pollution control, it is unfortunate that a few companies dubiously claim their product to be environment friendly. Also it says that, companies need to get their products Carbon foot-printed by an accredited agency before making any claims of being environment-friendly.

Headline: Nescafe’s early bird advantage, Jan 07, 2013

Ø Development of Nescafe:     
In 1930, Brazil had a huge surplus of coffee that needed to be preserved. But there was no way out. The then Brazilian government ended up approaching Vervey-based food company Nestle to find a way out. There was no instant solution. Eight years later – in 1938 — Nestle came up with an instant product mix – Nescafe — that became the second most recognised brand in the world only after Coca-Cola.

The World War-II also played a role. Nescafe could not secure its popularity instantly in Europe. In the mid 1940s, Nestle started exporting to France, Great Britain, and the US. Surprisingly, American forces played the key role for the success of Nescafe, making it a staple in their food rations.

Ø Next is more in India:

The coffee retail market in India is growing at 20-30 per cent year on year and is expected to treble by 2016-17. Coffee consumption in India grew by three per cent. The country consumed 1.71 million bags of 60 kg each. The consumption of the brew in India, the world's sixth biggest exporter, has grown at a compound annual growth rate of 5.7 per cent during 2001-2011. By 2015, Nestle hopes to double the amount of Nescafe coffee bought directly from farmers and their associations, purchasing 180,000 tonnes of coffee from around 170,000 famers.

Ø  The challenges:

Nestle has become a household name in India. The real market for instant coffee in rural India is still untapped. Thus, there is huge scope. The café culture has already made inroads into urban India, so people will tend to experiment with variants of coffee, and could tend to shift to filter coffee, as availability would not be a concern in these markets, unlike rural markets where distribution is still a challenge.

The main challenge for Nescafe in India is Hindustan Unilever’s Bru, which has also been selling in small sachets and packs to woo customers. When Nescafe roped in Bollywood actor Deepika Padukone, Bru brought in its own brand ambassadors, Shahid Kapoor and Priyanka Chopra.

Ø  Industry experts say both can co-exist for some time because of the low-level of penetration of the drink. Compared to tea penetration at 96 per cent, coffee penetration is as low as 16 per cent.