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FMCG player CavinKare Pvt Ltd is re-allocating its marketing spends for the deodorant category, on the basis of findings from the Wipro Market-Mix model provided by Wipro Technologies. The changes would be effective April 2011. The model, which helps arrive at the weights and impact of different marketing and media vehicles, would be employed for CavinKare's shampoo and hair colour brands in the near future.
Growth
Speaking at a Shoppers and Consumer Insights seminar in Mumbai, Mr Ramesh Viswanathan, Executive Director, CavinKare, explained that the deodorant category was chosen for testing the model, as it is witnessing 40 per cent y-o-y growth.
“In the FMCG sector, 17 to 18 per cent of sales revenue goes into marketing, because brands are the lifeline for an FMCG company. The percentage of spend is 30 per cent for deodorants. It is a high-investment, high growth category. We will look at other categories next, probably shampoos and hair colours,” he said. It took three months for the Market-Mix model to reveal its findings for the deodorant category.
One of the key findings from the model in the deodorants category was that for over 50 per cent of buyers, there was no intent to purchase a deodorant before they reached the retail outlet.
Deo portfolio
“We will now look at increasing spends on certain parameters of the marketing mix; POS is only one of them. Spends will be re-allocated accordingly,” added Mr Viswanathan.
CavinKare's deodorant portfolio includes Spinz, and adidas and Jovan through a distribution deal with Paris-based Coty. The spokesperson pointed out that for Spinz, which targets the upmarket urban youth who have to be reached through TV, print, digital, experiential and POS, the model has helped arrive at how much to allocate for each avenue.
Mr Somjit Amrit, Vice-President and Global Head, CPG Industry Vertical, Wipro Technologies, pointed out that in-store displays and promotions play a bigger role in effecting purchase of deodorants, while advertising creates awareness. He also stressed on the need for in-store promotions to be kept distinct and measurable.
On the Market-Mix model, he added, “The model would help employ money more diligently, and identify focus areas. We have worked with clients in categories like bottled water, alcobev and personal care so far in the Indian market with this model.”
Mumbai marketing ops
The Chennai-headquartered CavinKare, with sales of Rs 900 crore across multiple categories, will set up marketing operations in Mumbai. Mr Viswanathan confirmed the development to Business Line on the sidelines of the seminar.
To start with, the marketing operations of the company's personal care business will be shifted to Mumbai. While there is no confirmed time line for the move, it is expected to happen by April 2011.
“We will be looking at shifting marketing resources and also talent acquisition. The idea is to access a wider talent pool in advertising and marketing, both from a people and communication agency perspective. Internally, it will be a small team to start with, with a maximum of 10 to 12 people,” he said.
Ad agencies
Advertising agencies working on CavinKare brands include Mudra, Bates and Leo Burnett. The media AoR is MEC.
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