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Ahead of IPO, Mamaearth drops most expensive acquisition Momspresso

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Mamaearth Honasa Consumer

Ahead of its initial public offering (IPO), Mamaearth has apparently covertly terminated its first and most expensive acquisition – Momspresso.

For the past 48 hours, accessing Momspresso’s website and app has proven futile. The website displayed an error message, stating, “Unable to locate the server,” while the app simply indicated, “Something went wrong.”

It’s worth noting that Mamaearth has apparently distanced itself entirely from Momspresso, as the parent company has removed the name from the list of brands it possesses on its website.

A questionnaire sent to Mamaearth inquiring about the development has not received a response as of the time of publishing this story.

Mamaearth Shutting Down Momspresso Divisions:

It is important to highlight that in July of this year, it was reported that Mamaearth was closing down two divisions of Momspresso – Momspresso MyMoney and its brand marketing sector. Prior to discontinuing these segments, the company had laid off 80-100 employees earlier in the year.

According to Mamaearth’s red herring prospectus (RHP), the company’s board made a decision in a meeting held in March 2023 to “downsize” most of Momspresso’s business segments.

The RHP indicated that Momspresso’s performance and profitability were in decline, with the business notably falling short of its FY23 business plan during the fourth quarter of FY23.

Mamaearth products
Mamaearth products (Representative Image)

“Further the business synergies envisaged from the investment could not be realized despite best efforts of the management. The management also presented multiple scenarios with medium term to long term estimates for the acquired business but none of the scenarios demonstrated considerable improvement in profitability profile and any sight of realizing synergies for the core product business,” the RHP said.

It appears that the choice to divest from Momspresso aligns with Mamaearth’s strategy to distance itself from financially draining subsidiaries in preparation for its stock market listing.

With the exception of Momspresso (Just4Kids Services Private Limited) and Honasa Consumer General Trading LLC, Mamaearth’s other subsidiaries, including BBlunt, B:Blunt Spratt, and Fusion (Dr. Seth’s), maintained profitability during the initial quarter of the current fiscal year.

Notably, Honasa Consumer General Trading LLC recorded a minor loss of INR 40 lakh in Q1 FY24, while Just4Kids incurred a substantial loss of INR 5.4 crore for Mamaearth.

Adding to the challenges, Honasa Consumer Limited had to recognize a significant goodwill impairment loss of INR 136 crore, resulting in a net loss of INR 151 crore.

Mamaearth incurred a goodwill write-off of INR 136 crore for Just4Kids. In total, the company reported exceptional items before tax amounting to INR 155 crore in FY23, primarily due to the impairment of goodwill and other intangible assets. Excluding these exceptional items, the startup would have posted a net profit of approximately INR 3.7 crore for the year under review.

Get more news here: Dr. Reddy’s Ventures into E-Commerce with Celevida Wellness!

According to Mamaearth’s draft red herring prospectus (DRHP), the net value (assets minus liabilities) of Momspresso stood at INR 16.2 crore at the time of its acquisition. Additionally, the D2C unicorn also disbursed INR 136 crore for the “goodwill arising from the acquisition.”

Subsequently, the startup raised its ownership stake in Momspresso, resulting in a total acquisition cost of INR 167.9 crore.

Conclusion:

Established in 2016 by Vishal Gupta, Prashant Sinha, and Asif Mohammed, Momspresso offered parenting guidance and pregnancy advice to mothers. The content was predominantly created by women in English, Hindi, and eight additional regional languages.

In FY23, Momspresso recorded an operational revenue of INR 40.4 crore and incurred a net loss of INR 21 crore.

Gupta and Sinha have recently introduced a new marketing agency called Pravis.

In the meantime, Mamaearth’s IPO is scheduled to commence on October 31 and conclude on November 2. According to its RHP, the public offering will consist of a fresh issue of shares valued at INR 365 crore and an offer for sale of 41.25 million shares.

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Kochi cracks down on eateries without STPs: 72-hour ultimatum issued

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SnackTeam
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Restaurant
(Representative Image)

The Kochi municipal authorities have initiated the process of notifying hotels and restaurants that have yet to establish sewage treatment plants (STP). They have requested these establishments to complete the installation of STPs within a 72-hour window, with the possibility of facing penalties.

In response to this enforcement, certain dining establishments have incurred fines ranging from INR 25,000 to INR 50,000. This action is prompted by mounting apprehensions about urban flooding during the rainy season, primarily attributed to the obstruction of drainage systems and canals due to unauthorized waste disposal practices.

Kochi Restaurants:

The city encompasses over 600 hotels and dining establishments, and a substantial portion, nearly 60 percent of them, currently lack sewage treatment plants (STP). Up to this point, approximately 10 to 15 percent of these establishments have received notices.

Notably, Kochi includes some that have STPs in place but are not operating them correctly, leading to the direct discharge of wastewater, along with food waste, into the city’s drains and canals. Health officials from the municipal corporation have been conducting visits to these venues and issuing notifications based on the provisions outlined in Sections 337 and 340 (A) of the Kerala Municipalities Act, specifically targeting those that have not appropriately implemented STP systems.

restaurant

Meanwhile, the Kerala Hotel and Restaurant Association (KHRA) convened an urgent meeting on Tuesday. During this gathering, it was resolved to schedule discussions with municipal officials on Wednesday.

Kochi News: The issue has garnered increased attention, especially following the Kerala High Court’s recent concern regarding the frequent instances of flooding in key areas of the city. Municipality representatives attributed the drain blockages, despite their prior cleaning efforts, to the accumulation of silt and the unregulated disposal of waste from hotels.

“It is a serious concern as many of the small and medium restaurants will face closing if these rules are implemented,” said KHRA district president T J Manoharan.

“To set up a STP you need an adequate area (which most restaurants lack) and the cost. This will not be viable for many restaurants which serve food to people at an affordable price. Also, restaurants that have installed STP have been asked to not release the treated water into the drains. Then where will we release the water?” said KHRA vice-president Azees Moosa.

Check more news: Ahead of IPO, Mamaearth drops most expensive acquisition Momspresso

“We are in talks with Kochi corporation to reach an amicable solution”, added Moosa.

Meanwhile, corporation’s health standing committee chairman T K Ashraf said they are acting as per the instructions of the high court. “It is mandatory for all hotels and restaurants to have STPs”, Ashraf added.

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Long-Term Connection: Keeping Users Engaged in the Post-Purchase Phase

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Post-Purchase

The journey doesn’t end with the click of the “Buy Now” button in the dynamic world of e-commerce. Actually, here’s where the real fun starts for companies trying to establish enduring bonds with their clients. A plethora of opportunities exist in the post-purchase phase to engage, nurture, and retain users, fostering long-lasting brand loyalty. This piece will discuss the value of post-purchase interaction and offer suggestions on how companies can maintain customer relationships over time.

The Post-Purchase Phase: An Untapped Opportunity

While customer acquisition gets a lot of attention, the post-purchase phase often remains an underutilized asset. Yet, it’s a goldmine of potential. Here’s why it matters:

1. Retention and Loyalty: Post-purchase engagement is essential for customer retention. Engaged customers are more likely to come back for more, fostering loyalty to your brand.

2. Brand Advocacy: Satisfied customers often turn into brand advocates. They can become your most effective marketing tool, sharing their positive experiences with friends and family.

Post-Purchase Relationships with Consumers

3. Upselling and Cross-selling: It’s easier to sell to an existing customer than to acquire a new one. Post-purchase interactions offer a perfect opportunity to suggest complementary products, increasing your revenue.

4. User-Generated Content: Engaged customers are more likely to leave reviews and testimonials, generating user-generated content that not only builds trust but can also boost your online presence.

Strategies for Effective Post-Purchase Phase:

Now, let’s delve into strategies that businesses can employ to maximize the potential of the post-purchase phase:

1. Personalized Thank-You Notes: Send personalized thank-you emails or messages to express your appreciation for the customer’s purchase. Personalization shows you care.

2. Educational Content: Provide valuable content related to the purchase, such as how-to guides, product tips, or informative blog posts. This keeps customers engaged and positions your brand as a source of knowledge.

3. Exclusive Offers: Reward your customers with exclusive offers, discounts, or early access to new products. This sense of exclusivity can encourage repeat business.

4. Loyalty Programs: Implement loyalty programs that encourage customers to return for more. This is a tried-and-true method for building long-term connections.

New Stories: Jubilant Foodworks: Q2 Net Profit Drops 26%, Revenue Grows Amid Expansion

5. Encourage Reviews and Feedback: Request user reviews and feedback through surveys or review requests. Positive reviews and constructive feedback can help you improve and show customers you value their opinions.

The Bottom Line

The post-purchase phase is an untapped opportunity for businesses to create long-term connections with their customers. By implementing post-purchase engagement strategies that align with SEO best practices, you can not only secure customer loyalty but also improve your online visibility and search engine rankings. It’s not just about making a sale; it’s about fostering relationships that can lead to sustained success in the ever-competitive world of e-commerce. So, start engaging with your customers post-purchase, and watch your brand loyalty flourish.

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Visual Storytelling: Creating a Compelling Brand Image that Captivates Audiences

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SnackTeam
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Visual Storytelling

Visual storytelling is the practice of conveying a narrative or message through visual content, such as images, graphics, and videos. It goes beyond words and speaks directly to our emotions, making it an influential tool for building and reinforcing a brand’s identity.

Why Visual Storytelling Matters

  • Memorability: Humans are wired to remember visual content better than text. A well-crafted visual story is more likely to stick in the minds of your audience.
  • Emotional Connection: Visual stories evoke emotions, allowing consumers to connect with your brand on a deeper level. This connection can lead to brand loyalty.
  • Universal Language: Visuals are a universal language that transcends cultural and language barriers. They can convey messages to a global audience.
  • Differentiation: Visual storytelling allows your brand to stand out in a crowded marketplace. It gives your audience a reason to choose you over your competitors.

Creating a Compelling Visual Brand Image

Understand your target audience’s values, interests, and preferences. This knowledge will guide your visual storytelling.  Maintain consistency in your visual branding elements, such as colors, fonts, and imagery. This consistency helps create a memorable and recognizable brand image. Every brand has a story. Share your journey, values, and mission through visual content that resonates with your audience.

Brand communication

Apart from that the content should encourage your customers to create and share content related to your brand. This not only builds trust but also provides authentic visual stories by utilizing platforms like Instagram, Pinterest, and YouTube, which are inherently visual, to share your visual stories effectively.

Case Study: Airbnb’s “Belong Anywhere” Campaign

Airbnb’s “Belong Anywhere” campaign is a prime example of compelling visual storytelling. The company uses stunning images of unique accommodations around the world to convey the idea that no matter where you are, you can “belong” in an Airbnb. This campaign appeals to the wanderlust and sense of adventure in its target audience.

Measuring the Impact of Visual Storytelling

To determine the effectiveness of your visual storytelling efforts, consider these metrics:

  • Engagement: Track the level of engagement your visual content receives, including likes, shares, comments, and views.
  • Conversion Rates: Measure how visual storytelling impacts conversion rates on your website or e-commerce platform.
  • Brand Recall: Conduct surveys to assess how well your audience remembers your brand after engaging with your visual stories.
  • Customer Feedback: Pay attention to customer reviews and feedback, as they can provide insights into the impact of your visual storytelling efforts.

Check more news: Mokobara Secures $3.6M Investment for Expansion from Current Investors!

Visual storytelling is a powerful tool for creating a brand image that captures the hearts and minds of your audience. It allows you to convey your brand’s essence, values, and mission in a way that resonates with consumers on a deeper level. In a world saturated with information, compelling visual stories are a way to cut through the noise and leave a lasting impression. So, embrace the art of visual storytelling to captivate your audiences and establish a brand image that stands the test of time.

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Profit with Purpose: Turning Sustainable Brands into Consumer Conversions

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SnackTeam
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Sustainable Brands

Businesses that adopt sustainable brands are not only improving the globe but also profiting greatly in this era of heightened environmental awareness and social responsibility. This essay explores the ways in which firms with a purpose can use their dedication to sustainability to increase customer conversions and contribute significantly.

Consumers today are more informed and discerning than ever before. They are not only interested in the products and services they buy but also in the values and ethics of the companies they support. Sustainable and socially responsible practices resonate strongly with this growing segment of conscious consumers.

Defining Profit with Purpose

The concept of “Profit with Purpose” centers on a business model that integrates profit-making with a commitment to social and environmental causes. By pursuing a clear and impactful mission, companies can not only enhance their brand image but also drive higher consumer conversions.

The Business Case for Sustainable Brands

  • Positive Brand Image: Embracing sustainability initiatives and supporting social causes enhances a brand’s image and reputation. Consumers are more likely to choose products or services from a company that aligns with their values.
  • Competitive Advantage: Sustainable practices can set a business apart from competitors. A focus on eco-friendly manufacturing, ethical sourcing, and carbon neutrality can be powerful selling points.
Sustainable Brands News
Sustainable Brands News (Representative Image)
  • Customer Loyalty: Consumers who align with a company’s purpose are more likely to become loyal customers. They make repeat purchases and advocate for the brand, contributing to long-term profitability.
  • Regulatory Compliance: Many regions are introducing regulations that require businesses to meet certain sustainability standards. By embracing sustainable practices proactively, companies can avoid potential penalties and disruptions to their operations.

Leveraging Sustainable Brands for Conversions

  1. Transparent Communication: Be transparent about your sustainability initiatives. Share your progress, challenges, and achievements with your audience. Authenticity is key to building trust.
  2. Engage with the Community: Involve your customers in your sustainability journey. Encourage them to participate in initiatives or provide feedback on your efforts.
  3. Storytelling: Use storytelling to communicate the positive impact of your sustainable initiatives. Share stories of real people who have benefited from your mission.
  4. Certifications and Badges: Display relevant certifications and badges that demonstrate your commitment to sustainability. This can provide immediate credibility and assurance to consumers.
  5. Sustainable Product Lines: Develop sustainable product lines that directly appeal to eco-conscious consumers. Highlight the eco-friendly aspects of these products in your marketing.

Patagonia’s “Don’t Buy This Jacket” Campaign

Outdoor clothing brand Patagonia made waves with its “Don’t Buy This Jacket” campaign. The ad encouraged customers to think twice about their consumption and opt for durable, long-lasting products, aligning with the company’s commitment to environmental responsibility. This unconventional approach boosted brand awareness and loyalty.

Measuring the Impact

To gauge the impact of your sustainability initiatives on consumer conversions, consider the following metrics:

  • Conversion Rates: Measure the percentage of website visitors who take a desired action, such as making a purchase or signing up for a newsletter.
  • Customer Surveys: Collect feedback from customers to understand how your sustainability efforts influence their purchasing decisions.
  • Social Media Engagement: Analyze the level of engagement and interaction with your sustainability-related content on social media platforms.

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  • Sales Trends: Track sales trends over time, looking for correlations with sustainability-focused marketing campaigns or product launches.

In the age of conscious consumerism, businesses that embrace sustainability and purpose-driven initiatives are not just doing good for the planet and society; they are reaping the rewards of increased consumer conversions. By aligning their values with the values of their customers, companies can create lasting relationships that benefit both the bottom line and the greater good. Profit with purpose is a win-win strategy that points the way to a more sustainable and prosperous future.

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Cognitive Biases in Consumer Behaviour and Marketing

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SnackTeam
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Consumer Behaviour - Cognitive Biases

Successful strategies in the dynamic field of marketing are built on an understanding of consumer behaviour. Cognitive biases, which have their roots in human psychology, have a big influence on purchasing decisions. This article will examine how these biases affect customer behaviour and how companies may use this information to create marketing strategies that are more successful.

Cognitive biases are mental shortcuts or patterns of thinking that often lead people to make irrational decisions. These biases are a result of our brain’s attempt to simplify information processing, but they can also lead to predictable errors in judgment. Here are a few common cognitive biases that significantly impact consumer behavior:

  1. Confirmation Bias: People tend to seek out information that confirms their pre-existing beliefs and ignore contradictory information. In marketing, this bias can be leveraged by aligning your messaging with the consumer’s existing mindset.
  2. Anchoring Bias: Consumers tend to rely heavily on the first piece of information they receive when making decisions. This is why “original price” and “discounted price” labels can sway purchase decisions.
  3. Social Proof: People are influenced by the behavior of others. Testimonials, user reviews, and social media likes and shares can create a bandwagon effect, encouraging more people to engage with your brand.

Consumer Engagement

  1. Recency Effect: Consumers give more weight to recent information. This bias can be exploited through time-sensitive offers and flash sales.
  2. Loss Aversion: People fear losing what they have more than they desire to gain something new. This principle underlies the effectiveness of limited-time offers and the fear of missing out (FOMO).

Leveraging Consumer Behaviour in Marketing

Understanding cognitive biases can be a game-changer in marketing. By aligning your strategies with the way people naturally think and make decisions, you can create more compelling and persuasive marketing campaigns. Here’s how:

  • Use Social Proof: Encourage customer reviews and testimonials to build trust and show that others have had positive experiences with your product or service.
  • Scarcity and Urgency: Create a sense of urgency in your marketing. Limited-time offers, flash sales, and low-stock alerts can tap into the fear of missing out and the desire to act quickly.
  • Framing and Anchoring: Present your product or service in a way that highlights its value. Use anchor prices or comparisons to make your offerings seem like a great deal.
  • Personalization: Tailor your marketing messages to individual preferences. This minimizes cognitive dissonance and reinforces consumers’ existing beliefs.
  • Transparency: Address cognitive biases by being transparent about your product or service’s limitations. Honesty and candor can build trust with consumers.

Case Study: Amazon’s Use of Anchoring Bias

Amazon is a master of the anchoring bias. When you visit a product page, you’re often presented with a higher original price crossed out next to the current price. This anchored original price gives you the impression that you’re getting a great deal, even if the discount isn’t as significant as it appears.

Measuring the Impact of Cognitive Biases

To measure the effectiveness of your marketing strategies rooted in cognitive biases, pay attention to:

  • Conversion Rates: Measure the percentage of people who took the desired action after encountering your campaign.
  • Click-Through Rates: Analyze how many people engaged with your ad or content.
  • Customer Feedback: Listen to customer reviews, comments, and feedback to gauge their reactions to your strategies.

Check more stories: Profit with Purpose: Turning Sustainable Brands into Consumer Conversions

  • A/B Testing: Run A/B tests to compare the performance of campaigns that leverage cognitive biases with those that don’t.

Cognitive biases are deeply embedded in human decision-making processes. By understanding and utilizing these biases, businesses can create marketing campaigns that resonate with consumers on a subconscious level. Successful marketing is not just about promoting a product or service; it’s about understanding how the human mind works and aligning your strategies with those natural inclinations. In doing so, you can shape consumer behavior and drive your business toward greater success in the dynamic world of marketing.

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Jubilant Foodworks: Q2 Net Profit Drops 26%, Revenue Grows Amid Expansion

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SnackTeam
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Jubilant Foodworks

Jubilant Foodworks Limited, the company behind popular fast-food brands Domino’s Pizza and Dunkin’ Donuts, reported a 26 percent drop in its consolidated net profit for the second quarter (Q2) ending September 2023. The net profit stood at INR 97.20 crore, down from INR 131.53 crore in the corresponding period of the previous fiscal year, as per a regulatory filing made on Wednesday.

Nevertheless, its total revenue increased to INR 1,375.69 crore in the second quarter of fiscal year 2024, up from INR 1,311.92 crore in the second quarter of fiscal year 2023.

Jubilant Foodworks Business Expansion:

The company’s overall expenditures for the September quarter also saw a rise, reaching INR 1,290.16 crore in the second quarter of fiscal year 2024, compared to total expenses of INR 1,153.92 crore in the corresponding period of the previous fiscal year, according to the BSE filing.

Jubilant FoodWorks News

Shyam S. Bhartia, Chairman and Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks Limited said, “We are focused on pursuing growth, driving innovation and executing on opportunities to expand margins. Our investments in technology and delivery channel are paying off, as we registered positive like-for-like growth in the channel and traffic on the app grew ahead of our plan. We will continue to make investments in store expansion, technology and the team to stay ahead of the curve and ensure our continued long-term success.”

Jubilant Foodworks – CEO and Staff!

Sameer Khetarpal, CEO and MD, Jubilant FoodWorks Limited said, “The growth continues to be order led with elevated level of consumer engagement and the decline in ticket is also now arrested. Also, second consecutive quarter of sequential improvement in ADS of mature stores and Gross Margins are early indicators of structural improvement in the health of our business. Every single action being taken by us is not only helping us manage the short-term challenge but will also ensure a very solid foundation for the long-term growth of our business.”

In India, the company launched 60 new stores, expanding its network to a total of 1,949 stores across all of its brands.

By opening 50 new stores and venturing into three additional cities, Domino’s India bolstered its network presence to encompass 1,888 stores spread across 397 cities.

Try more news: The Art of Persuasion: Mapping Out the Ideal Sales Process for Your Product

The company expanded its presence in several ways: it introduced five new Popeyes restaurants, marking its entry into two new cities—Hyderabad and Madurai, which brought the total network to 22 restaurants spanning six cities. For Hong’s Kitchen, four new stores were incorporated, elevating the network to 18 stores across three cities. In the case of Dunkin’, a new store opened in a previously unrepresented city, and now 11 out of 21 stores align with the brand’s coffee-first concept.

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Yum Yum Cha expands its pan Asian dining experience to Noida

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Yum Yum Cha
Yum Yum Cha (Representative Image)

The Yum Yum Tree Group is excited to introduce Yum Yum Cha in Noida, marking a new addition to their culinary offerings.

Yum Yum Cha, renowned for its Pan Asian cuisine and unique dining ambiance, was established by Restaurateur Mr. Varun Tuli in 2008.

Yum Yum Cha Recognition:

They gained recognition by introducing India’s first sushi conveyor belt and revolutionizing Sunday brunches, not just in New Delhi but across the entire nation.

Over time, it has evolved into a dining destination, expanding to various locations including Select Citywalk Mall (2014), DLF Cyber Hub (2016), Khan Market (2017), and DLF Promenade (2018).

“We are excited to bring the flavors of Yum Yum Cha to Noida and look forward to welcoming patrons to our newest location. Our commitment to offering a unique and delightful dining experience remains unwavering,” said Mr. Varun Tuli, Managing Director, The Yum Yum Tree Group.

Menu blends traditional and creative elements, showcasing dishes like “Little Bundles of Joy” and “Huge Bowls of Happiness.”

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Significantly, the menu also offers a dedicated section for gluten-free choices, guaranteeing its appeal to a diverse range of dietary preferences.

The dining experience at Yum Yum Cha is elevated with an array of gourmet delights, encompassing Dim Sum, Sushi, Sizzling Stone Bowls, Bubbling Hot Pots, Mochi Ice Cream, Fun Bottles, and an assortment of snacks.

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Despite beer sales drop, Heineken reports Q3 earnings boost

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Heineken
Heineken

Heineken retained its full-year outlook on Wednesday after the world’s second-largest brewery witnessed a decline in beer sales during the third quarter. Nevertheless, the company managed to boost its earnings by capitalizing on higher prices and the growing consumer preference for premium lagers.

Heineken Owns Brands like Sol and Tiger:

The European beverage company renowned for its top-selling lager, Heineken, alongside brands like Sol and Tiger, reported that Brazil and Mexico showed strong performance. In Asia, the situation had improved compared to earlier, although it was still below expectations. In Africa, declining volumes in Nigeria and South Africa had a negative impact, while in Europe, the unseasonably poor summer weather in July and August had adverse effects.

In a statement, CEO Dolf van den Brink mentioned that Heineken had observed positive volume trends in approximately half of its markets and was successfully maintaining its market share in slightly over half of them.

“Whilst inflation-led pricing is tapering, we observe a slowdown of consumer demand in various markets facing challenging macro-economic conditions,” he said.

During the July-September quarter, Heineken reported a 4.2% decrease in beer volumes on a like-for-like basis, with declines evident in all regions except the Americas. Nevertheless, net revenue, excluding one-off items, increased by 4.5%.

See some great news: Yum Yum Cha expands its pan Asian dining experience to Noida

The results were in accordance with anticipated figures, as analysts surveyed in a company-conducted poll had predicted a 4.3% decrease in volumes and a 4.8% revenue increase.

Heineken reaffirmed its projection for operating profit growth in 2023, which falls within the range of zero to a mid-single-digit percentage increase.

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