S. BANDYOPADHYAY, MD, RELIANCE MONEY

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1. SBI’s ‘Taaki bachpan ke beech kabhi budapa na aaye’ campaign
2. Max New York Life’s ‘Karo zyada ka irada’
3. ‘Yeh hai youngistaan meri jaan’ from Pepsi
4. Coke’s ‘Little drops of joy’ was a delight
5. Indiabulls’ ‘Creating a world of smart investors’ campaign

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4Ps B&M: How has been the last year in terms of financials?
TF: Sony India during FY’08 for first three quarters (April- December 08) has realised actual sales of around Rs.28.3 bn which is a 25% growth from corresponding period in the previous period. However though Q4 (January–March’09) growth is expected to indicate a minor slowdown, we estimate that we can continue to maintain over 20% growth for the total FY’08 compared to last year.

4Ps B&M: How much is the size of CAV market in India and how do you plan to increase your share of the matket?
TF: Consumer Audio Visual (CAV) market in India is around Rs. 125 bn of which Sony has a market share of 18%. And overall trend in the industry has indicated a 10% growth till FY‘08 so we are quite optimistic about the same this year too.

4Ps B&M: Sony has been in India for a long period of time. But you didn’t have a brand ambassador for your products. Are there any plans in this regard?
TF: Globally we have a brand ambassador. But in India we think that we don’t need a brand ambassador for our products. Moreover, this is our strategy to differentiate from others.

4Ps B&M: What is the potential that you see in India in terms of growth?
TF: Indian economy is domestic demand driven economy. Thus saving ratio is higher than other countries. Moreover, the dependency on installment (consumer finance schemes) is also lower than other countries. Thus we see a great potential in terms of growth in future.

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Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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The world does not end in one quarter...

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4Ps B&M: Slowdown impact?
Slowdown impact has been there and more in recent times. Input costs have gone up over the last two years. We had to increase MRPs as there was significant inflation across the board. However, at the same time, we concentrated on delivering better quality competitively. So price change was not just a commercial decision, but a combination of handling costs and increasing consumer value. There could have been an impact on our volumes, but then the world does not end in one quarter.

4Ps B&M: What is your take on competition?
Britannia is comparatively in a stronger position in the biscuit market and is the market leader. We feel confident that we will be able to take on any challenge. We have healthy respect for competition. For us, the key criteria is to increase our market share.

4Ps B&M: Which strategies find Britannia in a good stead?
Over the least few years, a lot of effort has been put in strengthening our brands, in terms of USP, advertising, product mix, packaging, et al. Therefore, we have a robust and healthy all round growth. We chased consumption opportunities everywhere and increased our tonnage by 15-20% yoy. We also made significant changes in our ‘go-to-market’ strategy.

4Ps B&M: Some say that you are not aggressive with new launches?
The only new category in the biscuit space in last one year was nutritional biscuits – NutriChoice launched by us. There were no other product launches. We’ve certainly done more than competition but yes, we’d like to do more.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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