According to media analyst estimates, the telecom sector spent Rs 4,500 crore in advertising in 2016. The telecom industry’s pricing war is spreading to advertising, as top carriers Bharti Airtel, Vodafone India and Idea Cellular jacked up spending on promoting their latest price points and services to ring-fence users from jumping ship to Reliance Jio Infocomm.
Jio is expected to raise its spending by 50% on year this fiscal in the fire fight to swiftly build on the 100 million user base, especially in the crucial months immediately after it starts to charge for services from April 1. Jio will have to promote its offers to get users to make it the primary SIM. Currently, most of its customers use it as a secondary operator, and for customers to shift loyalty, Jio will have to advertise heavily, experts said.
While the three officials have already increased ad spending by 10-15% each since Jio launched services early September, they are expected to further rev up expenses by at least 20% on year each this fiscal through March 2017, heads of advertising and marketing agencies involved in planning telco strategies said.
Coco cola with a vigorous energetic & salubrious approach with new product line:
Coca-Cola is preparing to launch packaged coconut water in India, as increasing consumer preference towards non-sugary drinks take the fizz out of cola sales.
In India, Coke and rival PepsiCo are facing more troubles. Some trader associations in Tamil Nadu and Kerala said their members would not sell the soft drinks made by the two companies, which they accuse were drawing too much groundwater and depleting the water resources in the states facing a severe drought.
Coke is importing the product and testing it in at least two Indian markets, two trade officials directly aware of the matter said. “Though brands such as these are niche, Coca-Cola has to prepare the decks and hedge bets, as the backlash on cola consumption and health activism is gaining ground in the country,” one of them said.
In India, Coke is test marketing Zico, a US coconut water brand it acquired in late 2013. Packaged coconut water is one of the fastest growing beverage categories in the world and the 2013 deal has given the company the top position in the segment. Positioned as a ‘natural replenishment’, brand Zico has been gaining traction in world markets, information posted on its website said.
