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Emami’s Marketing Strategy Deciphered in Terms of Marketing 4 P’s

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Course Facilitator:

Prof. Milind Fadnavis

Submitted By:

Name: Kunal Roy

Roll No: 2014141



Emami (HMN) has successfully entered, made an impact and established leadership in niche product categories. It has created categories like Cooling Oil, Cooling Talc and Men’s Fairness Cream, and has gained leadership in Antiseptic Cream, where it faces limited competition from a regional player (Boroline). Its strategy of using Ayurvedic proposition, creating a portfolio of high gross margin products with low competitive (especially MNC) intensity, driving volumes through smaller unit packs with a mass market focus, and investing aggressively in brands has made four of its largest brands leaders in their respective categories. 70% of its sales are from categories where its brands are market leaders.

HMN has a proven and demonstrated track record of innovation, out of the box thinking and category creation. It has successfully entered and established leadership in niche categories that were previously dominated by regional players. Its strategy of using its ayurvedic  proposition, establishing presence in categories with high gross margins, driving volumes through smaller unit packs and investing aggressively in brands has helped four of its largest brands –BoroPlus Antiseptic Cream, Navratna Hair Oil, Fair and Handsome, and Zandu Balm– to achieve leadership strength. In this section, we describe the company’s positioning in its key categories – Cooling Oil, Skin Care, and Pain Relief.

Let us have an overview of the Product categories which Emami has to offer:

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Now let us take a deep dive into each of the product categories:

  1. Cooling Oil:

The Cooling Oil category contributes 25% of HMN’s revenue. Its brands in this category, Navratna and Navratna  Xtra Thanda cumulatively have over 55% market share. The company launched Navratna in 1989 and created the Cooling Oil category through aggressive advertising and increased push through smaller unit packs (~30% of Navratna’s sales). In the last three years, Cooling Oil (INR8.6b market) has been the fastest growing category within Hair Oil and now constitutes 11% of the overall Hair Oil category.

Emami’s Strategy for the Category:

Continued investment in the base Navratna brand. Increasing push for Navratna Xtra Thanda in key markets of Uttar Pradesh and Bihar to thwart regional competition (primarily from Himgange).Category expansion via marketing and consumer activation.

My performance review of Emami for the Category:

HMN enjoys the first mover advantage and is the only pan India player in this category. Navratna is the market leader, with 55% share (over 90% share in the South region).The brand has registered 18.2% revenue CAGR in the last three years. Brand extension, Navratna Xtra Thanda has garnered4% market share within two years of launch.

  1. Skin Care

The INR 62b Skin Care category in India is characterized by the presence of large domestic as well as MNC players. Skin Care contributes 35%of HMN’s revenue and a higher share of its profits owing to superior margin profile. HMN is the market leader in Antiseptic Cream, with its BoroPlus brand. It is also the market leader in Men’s Fairness Cream, with Fair and Handsome(first mover advantage, having capitalized on the need for a fairness product for men; focus on mass market). It is increasing its market share in the Talcum Powder category, with Navratna Cool Talc (niche cooling positioning; benefiting from the market leader’s lack of aggression and focus). Presence of deep pocket MNCs like HUVR and Garnier, which are increasingly focusing on the Men’s Fairness market, coupled with overall slowdown in Fairness Cream may keep growth under pressure in the near term.

Emami’s Strategy for the Category:

Deepen category presence via:

1. Brand extensions such as BoroPlus Lotion, BoroPlus Face Wash.

2. New launches in Face Wash category –F&H Instant Fairness Face Wash (launched in4QFY14).

My performance review of Emami for the Category:

HMN is the second largest player in the overall Skin Care category. Skin Care is the largest category in HMN’ srevenue and profit mix. Major brands in HMN’s Skin Care portfolio which help Emami’s cause are:

1. BoroPlus Antiseptic Cream –74% market share in Antiseptic Cream category; revenue CAGR of 9% in the last three years.

2. Fair and Handsome –58% market share in Men’s Fairness; CAGR of 13% in the last three years.

3. Navratna Cool Talc– 18% market share; Niche cooling positioning; three-year CAGR of 60%

C. Balms and Pain Relief

Pain Relief has been a focus segment for HMN, which has home grown brands such as Mentho Plus Balm and Himani Fast Relief. However, the acquisition of Zandu in 2008 significantly increased this category’s contribution to ~26% of HMN’s consolidated sales. The company’s Ayurvedic positioning and widening rural presence has facilitated strong growth in this category over the last three years.

Emami’s Strategy for the Category:

  • Grow the Balms category by increasing brand investments.
  • Focus on increasing sales of the low unit pack SKU of Zandu Balm to facilitate higher penetration and increased volume growth.
  • Increase presence in Pain Relief through Zandu’s untapped Ayurvedic and OTC products portfolio.

My performance review of Emami for the Category:

HMN enjoys being the market leader in Balms, with Zandu Balm and Mentho Plus having a combined market share of 58% (ZanduBalm:43%, Mentho Plus:15%) in the INR 7b category.

Zandu Balm (acquired in November 2008) has posted 22% sales CAGR for FY10-13.

Himani Fast Relief has achieved a CAGR of 10% in the last three years; growth has tapered off in the last two years on slow category growth. HMN enjoys 4% share in the INR 10b category.



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