Globally, companies like Coca Cola, P&G and Unilever have adopted the performance-based model. In India, the trend is gradually catching on. A Coca Cola India spokesperson said the company is in the process of moving from an input-cost based compensation system for its agency partners towards a value-based one. This model is about paying agencies for results, not activity. HUL refused to comment, citing policy constraints on speaking about remuneration.
Come September, the company will launch its Time Travel -- Journey 1 album with Sonu Nigam to be released on Nokia's 5130
With the rural segment accounting for 60 per cent of sales for fast moving consumer goods companies and 40-50 per cent for consumer durables manufacturers, the government's admission of sowing having fallen almost 20 per cent due to the weak monsoon, and declaring 161 districts as drought-prone, has put these sectors under a cloud.
Personal care products, the firm's most profitable segment, has been losing market share consistently over the past several quarters. The first quarter of this financial year hasn't been too exciting either. Domestic sales grew by 12.8 per cent, with underlying volume growth of about 2 per cent.
According to a web information company, Alexa, Google dominates the charts but Bing is already at 19th position with about 5 per cent of users from India accessing internet to visit Bing.
Job portals like Monster.com and Naukri.com affirmed the observation.
A survey by five brokerage houses -- SBICap Securities, Angel Broking, ICICI Securities, Motilal Oswal and HSBC Securities -- reveals that after a volatile calendar year which saw input costs rise to record levels in the first half and then fall dramatically in the second half, FMCG companies will now see the benefit, as it usually takes a quarter for falling costs to show in the results.
Analysts say they have more product ideas, nimbler market responses than the giants.
Fast moving consumer goods company Dabur is planning to acquire more companies in the healthcare segment in India and could spend up to Rs 500 crore for the buyouts.
But the fear of less-than-normal rain hitting rural demand continues to haunt the industry.
Kellogg claims to have cornered 70 per cent market share of the breakfast cereals market in value terms.
The Indian foods industry is at an inflection point, believe major fast moving consumer goods companies.
"The December and February stimulus packages, which included a cumulative 4 percentage point excise duty cut, have helped the industry register this growth," said Nandi, adding that the festive season would bring more cheer, unlike last year, when the slowdown was taking effect.
Kamal Nandi is a relieved man. As vice-president (sales & marketing) of Godrej & Boyce Manufacturing, Nandi has been seeing sales back on track for the last two months.
Hindustan Unilever has many firsts to its credit. Now, it adds one more. India's largest fast-moving consumer goods company has found a new way of keeping in touch with its employees -- present and former.
E-tailing, or online retailing, is catching up in India with major retailers setting shop online.
Telecom operators in India appear to be gung-ho over the prospects of value-added services which help them to differentiate, add substantially to their margins while simultaneously be a precusor to third generation or 3G regime. The recent creative campaigns of majors like Vodafone (ZooZoos), Airtel (R Madhavan and Vidya Balan), Virgin Mobile (music download) and Aircel's (Internet applications) are a case in point.
The Godrej group is revising its investment plans and revisiting its growth targets for the current financial year, as well as for the next five years, in anticipating of a higher GDP growth rate now that the Congress-led United Progressive Alliance government is firmly in the saddle for a second term at the Centre.
Even as large fast moving consumer goods companies like Hindustan Unilever and ITC struggle with their volume growth, mid-tier FMCG companies like Godrej Consumer Products, Marico, Dabur and Nestle have reported strong spurts in volumes as they focus on inorganic growth and rural markets, according to industry experts.
A Nielsen research states that it's the network quality which is on top of the consumer's mind. The research, carried out in the top 10 Indian cities, says that 42 per cent of Indian subscribers rate network performance as very important for selecting their mobile operator. In fact, with 34 per cent votes, network-driven choice is ahead of price-driven choice.
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