Fast moving consumer goods major Hindustan Lever (HLL) has undertaken new initiatives for its foods business.
As part of the strategy, the company is test marketing the International Best foods flagship brand Knorr. Under this brand, it has introduced 'rice @ ease', a rice based snack in Chandigarh. It is available in three variants: saucy masala, tangy twist and chicken n' spice.
Also, the company has taken initiatives to further expand the market and improve profitability of its portfolio comprising soups, tomato products, jams and fruit drinks under the Knorr and Kissan brands.
Also Read
The company has introduced Annapurna ready-to-eat chapatis at Rs 1.50 a chapati in Mumbai. The product will be extended to other parts of the country in a phased manner.
HLL has also begun to test-market Dalda Classic, a cooking product with butter aroma. Kissan chocolate and Honey Spreads too are being test marketed.
During 2001, Lever put in place an integrated foods distribution network. It has combined the distribution and sales systems of popular foods, culinary products, spreads and cooking category, and the erstwhile International Best Foods. The company expects that this move will bring cost and synergies in the long term of a combined portfolio and improved reach for all products.
The company, which has forayed into the confectionery business through the launch of Max, has become the leader in the Tamil Nadu surpassing its competitors.
The company is also in advanced stages to test market bottled drinking water in south. It will also launch OTC products in the healthcare business.
...to step up adspend
Notwithstanding the global economic slowdown, the country's largest advertiser Hindustan Lever (HLL) will be stepping up its advertising and sales promotion expenditure during 2002.
HLL has reported a 18 per cent increase in advertising and sales promotion expenditure to Rs 824 crore for the year ended December 31, 2001.
M S Banga, chairman, said, "We will continue to step up our advertising and sales promotion expenditure in the current year. More than 90 per cent of the expenditure was allocated to power brands. The increase in advertising expenses, led to a 6.5 per cent growth in power brands," he said. Banga said there were some competitive issues regarding market circumstances and "we believe in investing in advertising. It is an input where the company's message reaches consumers". The company will be disproportionately apportion the available resources among the power brands, Banga added.