MAM
One-stop specialised direct marketing units woo ad agencies and clients
MUMBAI: “Stick to core competencies – outsource the rest” seems to the mantra for ad agencies! A new breed of one-stop direct marketing shops for loyalty programmes, corporate gifting and mail-orders undertaken by corporates (such as banking institutions, credit card companies, automobile and retail companies) has emerged! Ad agencies are coordinating or outsourcing direct marketing (DM) requirements of their clients from companies top players such as Brand Magnet and Infovision amongst others.
Brand Magnet (a division of 15-year old 1st Mail Order company promoted by Leena Godiwala) has completed two
years in the sphere of “fulfillment” related services. It also provides back-end logistics complete with warehousing services and catalogue services.
Established in Mumbai in 1988, 1st Mail Order is India’s pioneering mail order house which markets innovative gift products, for personal and corporate gifting needs, through its colourful mail order catalogues.
Brand Magnet currently handles companies such as Standard Chartered Bank, Tata TELCO’s Indica and Indigo divisions. Infovision too has clients such as The East India Hotels (Oberoi group), Barista and Philips.
In fact, these companies also provide services to websites (such as rediff.com, indiatimes.com) which have online shopping channels. Adequate care is taken to receive orders, source the required goods, package them attractively, deliver them to the client, collect payments and handle customer service.
While undertaking these above mentioned activities, these companies have become an extension of BPO (business process outsourcing) and IT enabled services (ITES). Corporates and agencies who don’t have requisite expertise in this segment have obtained a considerable measure of success by indulging in such
direct marketing activities.
Brand Magnet director marketing Vanashree Ghate says:
“We provide low-cost options as we have adequate resources including affiliates in 11 cities mapping the length and breadth of the country. Otherwise, companies have to dedicate resources and invest in infrastructure to tackle complaints and after-sales
services.” Ghate is a veteran with experience in ad agencies (FCB Ulka) and marketing (Faber Castell India amongst others).
Infovision assistant VP Rohit Gupta says: “InfoVision Group has been promoted by professionals, with vast experience in the IT enabled service industry including software development . The company philosophy is focused upon a relentless pursuit of
excellence and quality in every sphere of its activities. Whether it is the field of managing call-centers, data processing, software development or eMail response activity, InfoVision Group has the resources and infrastructure required to meet future
challenges of an ever changing technology environment.”
The database for the direct marketing events are either obtained from the client or sourced locally through allied companies. Brand Magnet, for instance, has access to 135,000 names which are on the database of its parent organisation 1st Mail Order. Through 1st Mail Order’s existing brand equity, new names are being added to the database every day.
Infovision also has access to the several names compiled by sourcing lists from people who sell databases. Brand Magnet also does regular mailing to more than 50 per cent of the above mentioned list.
“With the hectic marketing for emerging sectors such as the telecom, retail and insurance sectors, more corporate entities are open to our suggestions. However, ad agencies must realise that organisations such as our have the capabilities to take complete
responsibility for the services,” says Brand Magnet’s Ghate.
The business pie is increasing with several new insurance companies (ICICI Pru Life, Aviva, Birla Sun Life, Tata AIG amongst) others aggressively using the direct marketing route. Retail companies such as Shoppers Stop, Westside and Globus strongly believe in loyalty programmes for wooing retail customers.
JWT’s direct marketing Thompson Connect’s head Rakshin
Patel says: “Loyalty programmes help brands and services to establish a one-to-one equation with clients and customers. We look at several viable options based on the client requirements and budgets.”
Looks as if several ad agencies and corporates are realising the importance of outsourcing resources for specialised loyalty programmes or relationship-building programmes which are conceived with the intention of providing long term benefits!
Brands
Kwality Wall’s reports standalone losses following strategic HUL demerger
Ice cream major faces Rs 64 crore Ebitda loss amid commodity inflation and muted Q3 sales
MUMBAI: Kwality Wall’s (India) Limited (KWIL) has released its first set of financial results as a standalone entity, revealing a challenging start to its independent journey. Following its successful demerger from Hindustan Unilever Limited (HUL) on 1st December 2025 and its subsequent listing on 16th February 2026, the company is navigating a transition period marked by structural changes and high input costs.
For the quarter ended 31st December 2025, the company reported revenue of Rs 222 crores. Despite the revenue base, the bottom line was impacted by several factors, resulting in an Ebitda loss of Rs 64.2 crores. When calculated on a Pre-IND AS 116 basis, the Ebitda loss stood at Rs 83.8 crores.
Organic Sales Growth (OSG) declined by 6.5 per cent year-on-year during the quarter. Volume growth, however, saw a marginal increase of 1.2 per cent. The company reported a gross margin of 41.5 per cent. Additionally, exceptional expenses amounting to Rs 94 crores were recorded, primarily linked to non-recurring costs during the transition phase.
Performance across portfolios and channels was mixed. Within the impulse portfolio, brands such as Magnum and Cornetto recorded mid-single digit volume growth, indicating steady demand in on-the-go consumption. However, the in-home portfolio, which includes take-home packs, experienced muted consumption. The company is planning a relaunch of this category with improved offerings ahead of the 2026 season.
Quick commerce (Q-Com) continued to emerge as a strong growth driver, delivering robust double-digit growth during the quarter. Meanwhile, the company also expanded its physical distribution network by increasing the number of company-owned cabinets across markets.
Margin pressure during the quarter was driven by a combination of one-off factors and broader cost inflation. Gross margins were impacted by around 600 basis points due to trade investments made for stock liquidation. Additionally, cocoa price inflation contributed to another 400 basis points of pressure on margins.
Deputy managing director Chitrank Goel attributed the muted performance partly to prolonged monsoons and transitional challenges linked to the GST framework. Operating expenses also increased as the company invested in establishing its standalone supply chain, operational systems and corporate infrastructure following the demerger.
Looking ahead, the management remains focused on a volume-driven growth strategy. To restore profitability, the company has initiated a cost productivity programme aimed at reducing non-consumer-facing costs. It is also working on building regional manufacturing networks to optimise logistics expenses and improve operational efficiency.
The commodity outlook for the near term remains mixed. Dairy prices are expected to remain firm due to tight supply conditions and rising fodder costs. Sugar prices may also move higher following increases in the Minimum Selling Price (MSP). While cocoa prices have moderated recently, currency depreciation has offset some of the potential cost relief for the company.
