Financial Daily from THE HINDU group of publications Tuesday, May 09, 2006 |
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Marketing
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Outlook UB expects slower Bagpiper growth rate Purvita Chatterjee
Mumbai , May 8 UB group company, United Spirits, expects its Bagpiper brand of whisky to grow at 10 per cent this year. The brand crossed 10 million cases in 2005. The company expects growth to slow down this year due to its large base, thanks to the brand clocking a growth rate of almost 40 per cent last year. Speaking to Business Line, a company spokesperson said: "We are looking at lower growth levels for Bagpiper this year as it is not possible to grow with such a huge base for the brand." Bagpiper hopes to increase its 30 per cent current market share to nearly 50 per cent to be on a par with its prestige whisky brand, No. 1 McDowell. Having appointed actor Ajay Devgan as its new brand ambassador, Bagpiper expects to intensify its presence, especially in the eastern markets, where it continues to have a weak franchise. "Orissa is our weakest market and we plan to have disproportionate media spends. This is one State where we would like to have more consumer trials and improve our distribution," the official added. Besides, to avoid cannibalisation between its own brands, United Spirits has decided not to increase its spends behind promoting Bagpiper Gold - its other prestige whisky brand. Bagpiper Gold has a strong presence in Tamil Nadu and Delhi and there are no plans to promote it in other States. At the same time, Bagpiper also expects to gather volumes in its surrogate business of water and soda. With five per cent share in the water market, Bagpiper still has a long way to go compared to brands such as Kinley and Aquafina. "The water segment is growing rapidly and we are still nowhere near the Coke and Pepsi brands." Making innovations in its packaging, Bagpiper has recently launched its brand in the cartons segment. Having launched cartons in Karnataka and Maharashtra, it plans a phased expansion to gather additional volumes across the country. Apart from packaging innovations, Bagpiper is also expected to bring in product-related innovations, such as new blends. "We are working on some new blends and there will be product-related new offerings." This year Bagpiper celebrates its 30th anniversary.
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