TUESDAY, JULY 11, 2017 W W W. F I N A N C I A L E X P R E S S . C O M BLOGGER’S PARK P2 DIGITAL CONTENT IS A HEROIC MUTANT, EVOLVING WITH SPECIAL POWERS, SAYS MINDSHARE’S DEVENDRA DESHPANDE IN THE NEWS PointNine Lintas launches in India MullenLowe Lintas Group has launched its new independent full-service agency in India,PointNine Lintas.Vikas Mehta,currently the group’s CMO and president,marketing services,has been named CEO of the new entity. BARC India ropes in Nielsen BARC India has appointed Nielsen India as its primary digital measurement partner.Nielsen will fuse its global experience with India-specific adaptations to meet the unique needs of the Indian market. Vizeum bags A&M Noodles Vizeum has bagged the media mandate for A&M Noodles from Maruchan Ajinomoto India, following a multi-agency pitch. A&M Noodles is present in Tamil Nadu since December,2016. Star to launch a FTA sports channel The FTA sports channel,Star Sports First,will be launched on DD’s FTA DTH platform Freedish.The channel in all probablity,will launch before the Pro Kabaddi League begins. ZEEL elevates Atul Das Zee Entertainment Enterprises Limited (ZEEL) has appointed Atul Das as president — affiliate revenues and distribution.He will report to Punit Goenka,MD and CEO,ZEEL. DD News launches new website DD News has launched a new website — www. ddnews.gov.in.Its open source technology makes the website more responsive.Stories can be read in Hindi and English and with live webcast,one can watch DD News on the go. Sony’s IMS acquires stake in Httpool IMS Internet Media Services (IMS),a subsidiary of Sony Pictures Television Networks in Latin America,is set to acquire a majority stake in Httpool,an international cross channel advertising network. Two brands sign up with Envigo Envigo,a fullservice digital marketing agency,has won mandates of NGO Sightsavers India and travel portal GoFro.com. Ultimate Table Tennis gets Ceat Ceat has come on board as title sponsor for the inaugural edition of Ultimate Table Tennis (UTT),set to begin from July 13,2017. T W I T T E R : @ F E B R A N D WA G O N FA C E B O O K : F E B R A N D WA G O N REVIEW CORNER P3 FACE OFF P3 Motilal Oswal’s new campaign effectively picks expertise over dramatic storytelling Nickhil Jakatdar on why Vuclip entered the crowded OTT space with Viu, while highlighting the company’s plans ahead ‘THE KEY IS TO MAKE VIEWING A HABIT’ Oodles of noodles Over the years, instant noodles have become an important part of India’s snacking repertoire. After the 2015 Maggi fiasco, the category has only seen a change for good. With innovation at the helm, the market is seeing an upward trend MEGHNA.SHARMA @expressindia.com F OR OVERTHREE DECADES, the smooth curly strands of noodles have been keeping us happy.According to the Mordor Intelligence report,Instant Noodles Industry in India,the country has emerged as the most attractive instant noodles market in theworld —witnessing a growth of 7.6% from 2010 to 2017, despite the ban on Nestlé’s Maggi in some markets for some time. There are umpteen reasons for the growth of the category: the growing youth segment,rising disposable incomes,higher brand consciousness and changing consumer preferences, among others. The instant noodles market in India is valued at `3,400-3,600 crore and is projected towitness a growth of 6.65% till 2022, as per various reports. The positive upward trend has even made Wai Wai, a noodles brand from CG (ChaudharyGroup) Foods,to come out of its word-of-mouth publicity days and launch its first-ever brand campaign. Abneesh Roy, SVP, Edelweiss Securities,notes,“Before the Maggi fiasco,almost 75% of the market belonged to the brand. But the market has changed since then.” When Maggiwas off shelves in 2015 aftera health hazard clarion call by Food Safety and Standards Authority of India (FSSAI), Wai Wai gained share in North India while ITC’s Sunfeast Yippee! gained significant market share in South India. However, in the 12 months from June, 2015, to June, 2016, the overall instant noodles market shrunk by 47% to `2,000 crore. Today, Maggi’s market share stands at 61% while Wai Wai takes 15-20% of the pie as pera report byAntique Stock Broking. It is followed byYippee! at 8-10%. A hot bowl full of challenges It wasn’t an easy path for Maggi to claim back its share. It has, since April, 2016, launched about 40 products — the highest numberof launches bya companyin a span of 12 months. It has successfully regained its market standing backed byan increased presence in outlets, product innovation, renovation and marketing. For the twisty snack, millennials want options! IN PERSPECTIVE SALONI NANGIA INDIAISTHE world’s fifth largest instant noodles market after China, Indonesia, Japan and Vietnam, according to the 2016 data byWorld Noodle Association. The concept of instant noodles in India was introduced by Nestlé in 1983. Over the years,the category has grown significantly and has seen the entry of other players.Today,Nestlé’s Maggi is the market leader accounting for close to 60% market share (2017). Other key brands include ITC’s Yippee!, Nepal-based Chaudhary Group’s Wai Wai,Ching’s Secret, Patanjali, HUL’s Knorr Soupy Noodles and Mama Noodles,among others. Brands such as Ching’s and Wai Wai have established themselves in specific flavourcategories such as Chinese,spicy, etc.These brands have been able to cater to specific preferences of Indian consumers by positioning themselves on a specific flavour platform. However, the ban on Maggi in June, 2015,led to shrinking of the overall market,although fora brief period.The product’s sales then recorded a decline as the entire category suffered from trust Says a Nestlé India spokesperson,“We believe that in order to offer Maggi with a twist, we need to keep adding fresh elements to ourproduct portfolio.We recently launched Maggi Masalas of India to caterto the palette of our consumers.”And to give a fillip to this, in a first-of-its-kind association,the companycollaboratedwith Google and Paytm Mall to roll out new products. THE ‘TWOMINUTE’ STORY deficit. Having said that, the ban helped other brands to get a higher shelf visibilityand build their brand awareness.This has expanded the market from a twothree brands play to five-six brands, increasing competition in the category. Today’s consumers,especiallymillennials, are open to experimentation and choices/options that cater to their different moods and occasions.It has,thus, become important for brands to stand out in the competitive environment.Offering a range ofvariants has been one of the differentiating strategies — these range from the basic flour (atta and oats, for healthier variants) to flavours (Peri Peri, Curry, Schezwan, Fiery Chilli and Masalas of India among many others), cooking styles and time,and basic ingredients (vegetarian,chicken). It has become imperative for brands to constantly engage with consumers to stay relevant. Innovation with flavours will emerge as a key dimension for the growth equation for brands in this space.It can also help them create higher brand loyalty, with one or more flavours connecting well with consumers, and encouraging stickiness and loyalty. ■ Maggi made the concept of ‘2minute noodles’ popular and turned India into an instant noodle consumption market ■ In the mid ‘80s, Maggi was positioned as a quick snack for children and was accepted by mothers too ■ Till ‘90s, Maggi ruled the category which soon saw the entrance of other brands Top Ramen (Indo Nissin Foods) in 1991, Ching’s Secret (Capital Foods) in 1996 and Wai Wai (CG Foods) in 2005 The author is president,Technopak Given the category salience,kids (4-14years) and their mothers (typically in the 25-44 age bracket), form the core TG,but most newlaunches also aim at expanding the consumer base to teens and health-conscious adults. ■ FMCG giants ITC (Sunfeast Yippee!), Glaxo-Smithkline (Horlicks Foodles) and Hindustan Unilever Limited (Knorr Soupy Noodles) also forayed into the market ■ Continued on Page 2 How Harley-Davidson plans to vroom ahead SHINMIN.BALI @expressindia.com LEGENDARY MOTORBIKE BRAND HarleyDavidson is,thisyear,celebrating 60years of itsSportsterfamilyofmotorcycles.TheSportsterplatformcomprisesIron883,1200Custom,Forty-Eight and Roadster.According to SocietyofIndianAutomobileManufacturers (SIAM)India,two-wheelerssalesregistereda growth of 9.58% in April-May 2017 over April-May, 2016.Within the two-wheelers segment, scooters and motorcycles grew by 24.67% and 4.04%,respectively. A Harley-Davidson rider is typically aged between 28-45 years. Urban cities witness people within the 28-34 year-age bracket to be Harley-Davidson customers, whereas those in tierII cities are aged between 35-45 years.What is staggering to note is that 98% of the brand’s customers are male.The companyis nowlooking to bring in morewomen riders into its consumer fold.Towards that end, Harley-Davidson recently held a women’s only riding event which saw 40 women fromvarious cities taking part. Also on the cards are regional markets. The company currently has presence in 26 cities across India.“With the growth in improved road networks across the country and growing aspirations of people, the tier II market has witnessed a sudden upsurge in the field of leisure motorcycling,” Pallavi Singh,director,marketing,Harley-Davidson India, tells BrandWagon.The company has been known forbeing involvedwith its user communityand started off the HarleyOwners Group (HOG) in late 2010, a year after the brand started its operations in India, to engage with its consumer community. Harley-Davidson also organises interactive sessions like Passport to Freedom and Boot Camp to equip new riders and enthu- The motorcycle brand, famous for the customer communities it creates, has set its sights on capturing a bigger slice of tier II cities and developing a leisure motorcycling culture among women Pallavi Singh; (left) The fourth HOG Parade in Goa siasts with the necessary skills to handle heavy displacement motorcycles.There are five marquee rallies held everyyear.Four of these are zonal rallies which culminate in the India HOG rally. Each zonal rally is hosted by a dealership of that particular zone.The India HOG rally is usually hosted in the first quarter of the year in Goa,which sees over 2,000 participants. Apart from rallies, Harley-Davidson organises interactive sessions with industry and in-house experts to train people on the techniques of confident riding.This iswhere Passport to Freedom (PTF), Boot Camp and HarleyRock Riders come in.PTF,conducted across all dealership cities, brings together seasoned riders and motorcycle experts to encourage confident riding. Now in its second season, PTF has been conducted in Mumbai,Ludhiana,NewDelhi,Coimbatore, Bengaluru, Kozhikode, Surat, Hyderabad and Dehradun so far this year. The Boot Camp entails an introduction to the Harley-Davidson lifestyle and culture, its origin, history and an understanding of the motorcycle families to identifythe right bike for oneself. The company has already organised sessions in Bhopal,Raipur,Ranchi and Lucknow till now. Then there is Harley Rock Riders, a rock music festivalwhich brings togetherriders’ interests of bikes and music. Direct engagement bywayof events and activations,Singh explains,is extremelycrucial for the brand and to that end the brand launched the HOG ‘Chapter of the Year’, an exclusive recognition programme for Indian customers.It is awarded to the most active chapter,and forthe collective effort and contributions made by the members in theirchapterin oneyear.The brand looks to create experiential events at both company and dealerlevels.Events such as HarleyRock Riders, zonal and national HOG Rides and Boot Camps are examples.Among upcoming events is the sixth Northern HOG Rally and Harley Rock Riders scheduled to take place over the next couple of months.Associations play an important role in how the brand engageswith customers.It has an ongoing association with GoPro, manufacturerof action cameras,forall its big events. On the brand’s ratheroffbeat communication strategy, Singh notes, “Since our launch in India,we have focussed on being present where our customer is, be it offline or online, and our marketing mix reflects that. All other mediums form a balanced mix in our communications plans.” Anotherplayerin the biking space,Royal Enfield (owned byEicherMotors India),sees production happening out of Chennai.The bikes are priced relatively competitively against Harley-Davidson, making it the more affordable option in the category. Amidst news of dipping sales globally, Harley-Davidson launched Street Rod a few months ago priced at `5.86 lakh.The entry level motorbike, Street 750, costs `4.98 lakh. The brand does not seem perturbed about the pricing advantage that this gives its rivals, as it focusses on serving the premium-priced motorcycle aficionado. Leisure motorcycling — nowhere’s a category that has steadily been growing as the riding culture sees more and more of a shift from utility based riding to leisure and/or luxury focussed riding. It will be worth watching how far Harley-Davidson leverages biker communities to generate more growth in the country. @shinminbali
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