Capital Foods says Facebook helped it to scale up noodles sales

Capital Foods claims to have grown 30% over the last six months in its revenues from the sale of food items after it ran an advertising campaign on Facebook, a social media network

The growing reach of popular social networking websites such as Facebook has been effectively used by fast moving consumer goods (FMCG) player Capital Foods to push up its noodles and soup sales over the last six months, reports PTI.

The company, which is an emerging player in the country's consumer market, has seen a 30% growth over the last six months in its revenues from the sale of food items after it ran an advertising campaign on Facebook, Capital Foods' chairman and managing director Ajay Gupta said.

"Advertisement campaigns in social networking sites such as Facebook and Twitter are the new marketing strategies these days. We have seen a 30% rise in our revenues in the last six months after we launched the campaign for our Ching's Noodles and soups on Facebook," Mr Gupta told PTI.

The Mumbai-based company, which clocked a turnover of Rs210 crore in the last financial year, expects to achieve a total turnover of Rs300 crore in the current fiscal from its operations in both domestic and foreign markets, Mr Gupta said.

The company, which makes instant noodles, soups and sauces under Ching's Secret, and 'Smith and Jones' brands, has targeted a monthly sales growth of 5% through its campaigns in Facebook and Twitter, he said.

"We have crossed one lakh followers on Facebook. Other leading FMCG brands have failed even to touch 30,000 so far," Mr Gupta said, adding that Ching's Secret’s Facebook community is part of its advertisement strategy to make the brand popular globally.

The company is eyeing a 20% share of the Rs1,000-crore packaged noodles segment in the domestic market over the next two years on the back of online advertising campaigns.

"We are using social media for crowd sourcing and to track what are the next flavours to launch. This is a fundamental and paradigm shift in the marketing philosophy," he said.

Over the past 10 months, Capital Food's instant noodles category has grown by 75% to Rs44 crore and is set to achieve a 20% market share over the next two years, he said.

The company has four manufacturing units across the country and has a total employee strength of around 1,100.

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    Kronos readying to scale up India operations, says CEO

    Kronos, which started its operations in the domestic market nearly three years back, plans to increase the number of its customers in India to 300 from 35 at present

    US-based player in work force management, Kronos Systems, has chalked out business plans to grow its footprint in the domestic market, primarily focusing on manufacturing and service industries, a top official has said.

    "We are looking for at least a 10-fold growth over the next three years. This will be done through innovative business models and aggressive client acquisition," Kronos System's chief executive officer (CEO) Aron Ain told PTI.

    The company, which started its operations in the domestic market nearly three years back, plans to increase the number of its customers in India to 300 from 35 at present, Mr Ain said.

    According to Mr Ain, the country's workforce management industry is still in an evolving stage and is expected to grow to a $100-million business over the next few years.

    The company, which has sold over one lakh licenses in India, has around 30-35 big companies as its clients here presently, he said.

    A work force manager helps firms to manage operational costs without downsizing the employee strength, Kronos' country manager James Thomas said.

    "Normally when a company needs a cut in its operational costs, they trim the work force. But through our system, we can downsize the operational cost by stopping leakages in the salaries instead of trimming the employees," Mr Thomas said.

    Compared to developed economies, the country's work force management industry is yet to open up, Mr Thomas said.

    "In India, so far, only 10% of this sector is opened up. Compared to the developed world, where workforce management is one of the top priorities, India has to be educated about it," Mr Thomas said.

    According to Kronos' data, more than 35 million workers from various companies worldwide are managed by Kronos' workforce management systems.

    Elaborating on its growth strategy in the country, Thomas said that Kronos will be focusing on firms from industries like manufacturing, IT-BPO, retail and healthcare sectors, primarily.

    The method Kronos uses to manage the workforce of firms enables those companies to compensate their employees according to their performance, he said.

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    Havells: Shock lagaa! Now what?

    Advertisements are known to get bizarre at times, but this commercial takes the cake

    One popular term that gets bandied around ad agency offices is ‘Surprising Solutions’. Which basically means providing a surprising, refreshing creative idea for a brand. Which is the way it should be. However, after watching the Havells bulb TV commercial, I think they should expand the phrase to ‘Surprising, Relevant Solutions’.
    Here’s why I say this: Havells has unabashedly used death as an advertising platform for its CFL bulbs, a deadly route that even life insurance companies would chicken out of. In that sense, this must be the first full-on macabre commercial in Indian advertising’s recorded history. The TVC features a hangman, who goes about his job pulling the lever on death row convicts. (It’s another matter these sods are jobless these days). Later, the chap gets a sudden conscience attack, and decides he must do something nice to atone for his ‘sins’. So he introspects out of the hanging chamber, goes home and promptly switches on the energy-saving Havells CFL bulb. VO: ‘Zindagi mein hum sabko paap karna padta hai. Kuchh toh punya kamaa sakte hain… bijlee bacha ke.’

    For its noticeability and its clutter-busting ability, I like this commercial, though the contrast between death and saving electrical energy is bizarre, to say the least. Yes, it will allow the brand to swiftly land into the consumers’ mind space. Bulbs are, after all, a low consumer involvement category—most people buy bulbs as commodities, so I quite understand where Havells is coming from. However, I am not certain this ad will lead to actual sales, as Indians in general are a superstitious lot, and would shy away from brands that remind them of death and misery. So, a brave effort but the commercial may well see an early hanging by the client.
    Which is where the point of ‘relevance’ comes in. It’s darn easy to break the TV clutter with outlandish advertising. Sex is often used for that purpose. Notice that bikini-clad chick arising out of the sea waters in the JK Super Cement ad. Absolutely no relevance to cement unless you match the product with the stiffness of the babe’s expressions. And there are countless such sexy instances.
    So Havells has managed to shock us with its bulbs. And that’s where its story will most likely end. However, the ad has resulted in many jokes on Twitter. I like this one the most: The client asked the ad agency to forget about a great idea and give him an excellent execution. And that’s just what they did, ha ha.

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    V Kumar

    1 decade ago

    I was reading an Edgar Wallace where a police officer tells a hangman that he (the hangman) is an officer of law just like the police officer and there is nothing to be ashamed of in carrying out the work dictated by the law. That was written 100 years ago. But that was England. In India, even after 100 years, educated people like copywriters think that a hangman commits a sin. This ad puts down the a legitimate job and should be condemned.

    Another in the same series is quite unabashed about showing child labour. The matter of acceptance of child labour is very disturbing.

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