Figo controversy stirs ad industry

That social media is a double-edged sword is a fact well established. But the leak of the controversial Ford Figo advertisement and the fiasco around it has reiterated the power of the social media, which brings with it as many risks as advantages.

Advertisers have for long been celebrating the reach of the internet and viral marketing, but the extent of damage the medium could bring wasn't something that has hit advertising agencies on the forehead.

The leak of an ad for Ford Figo depicting former Italian Prime Minister Silvio Berlusconi and a car trunk full of gagged and handcuffed women has created a fury to the extent that the head of the advertising agency JWT India has lost his job over the incident.

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India Inc sees a spurt in Oct-Dec ad spends

CHENNAI: After a year's relief, advertising by FMCG companies is back, and with a bang.

The advertising spends of FMCG and retail companies have gone up significantly in the December 2012 quarter compared with the spends in December 2011 with some companies spending upto 80% more on advertising this fiscal. Godrej Consumer Products for instance, which spent about Rs 58 crore on advertising in the December 2011 quarter dished out roughly Rs 107 in December 2012 and Colgate-Palmolive (India) gave about Rs 99 crore for advertising in 2012 compared with Rs 68.94 it had set apart last year, data from CMIE showed.

"Companies went slow on advertising last year due to the lull in the economy and when they re-enter after a break, it has to be strong," said Harish Bijoor, an independent brand consultant. Globally, companies went slow on ad spends last year but Indian companies are now showing greater confidence in advertising," he said.

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LG Home Appliances invests Rs. 50 crore during festive season

LG India is on an aggressive marketing spree with Rs. 50 crore chalked out as marketing budget for this festive season; and innovations across its home appliances portfolio. For differentiation, the focus of the brand is on offering longer warranty periods and clearly steering away from discount. The brand is also focusing on a fresh line of communication for potential product categories and a host of experiential marketing activities. Experts opine that it is in fact the right time for LG Home Appliances to gear up to the growing competition and extend offerings that can guarantee a safety on investments. Pitch digs further into the company’s marketing plans.

Mapping their journey from 1997, when LG Home Appliances was introduced in the Indian market, this arm of LG Electronics India (LGEIL), as per company estimates, today stands at the podium with 37.7 per cent, 38 per cent and 39.5 per cent market shares in the washing machine, refrigerator and microwave oven categories, respectively. Logging a sales turnover of Rs. 16,200 crore in 2011, LG Home Appliances has been contributing as much as 45 per cent to the total turnover of LG Electronics in India.

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BPL's second innings

The erstwhile leader in colour television is looking to diversify in a host of areas to stay afloat.

Recently, when it was reported that BPL had failed to salvage part of its 350-acre land bank pledged with Deutsche Bank, it was a setback for a company that used to be among the leaders in many consumer durable segments in the late nineties.

Sample this: In its heyday, the brand value of BPL was valued at Rs 1,400 crore – a trend-setting parameter which many Indian companies followed later. But within the next decade, they have almost lost it all.

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