Moov- Backache Baadshah

Dr Amit Rangnekar NMIMS

Paras Pharmaceutical Prods
 Estd

1959 by N A Patel, initial investment Rs 7000  Shifted HQ to Ahmedabad in 1984  Stopache, only moderately successful product then  Unerringly located consumer’s pulse time & again  Innate gut feel for consumer’s requirements & preferences  Current Chairman Girish Patel’s (GP) favourite spare time activity- To sit behind chemist counters incognito & get hands-on feedback from consumers.

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Current Status
 5P

strategy- product, price, positioning, packaging & promotion  “Most Paras products have been formulated based on the perceived needs and requirements of the common man” GP  2006- 23% stake taken by Actis, Valuation of Paras Pharma- Rs 750 crores,  No 3 Indian company in FMCG (Nirma, Dabur)  D’Cold, Itchguard, Crack, Dermicool, Livon - all blockbusters  2004- Moov 60 Crores, growing and with a national presence

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Dr Amit Rangnekar NMIMS

Moov
 Moov

launched in 1986  Objective- Establish a national presence for PPL  Innovation- Moov rewrote the rules of the game by packaging in a contemporary, international pack - a tube with a carton – and a feminine colour to appeal to the Indian woman.

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Dr Amit Rangnekar NMIMS

'Rubs' or 'Balms' Market
 Rubs

and balms market in India Rs 470 Cr (ORG 2003).  Mid 1980s- Iodex, Amrutanjan, Zandu, Relaxyl dominate  Positioning of top brands- as Multipurpose products

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Research findings
 13%

of Indian homes resort to 'Rubs' or 'Balms'  Majority of body aches- related to the back  Women more prone to backache  Lower backache suffering- perpetual  People ignore backaches - believing it would go away automatically  but backaches almost always return with more aggravating pain

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Dr Amit Rangnekar NMIMS

Moov- Strategy
 Vision-

Ensure presence in every Indian home, serve as a true friend  Segment- Pain  Target segment- Backpain  Target audience- The middle-class Indian housewife  Rationale- Decision-maker, key influencer  Positioning- Focus, than follow the leader  Occupy the vacant position- Backache  Position as- 'The Backache Specialist‘  Differentiation- Lamitube, Stain free, Counterirritant, More for same

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Dr Amit Rangnekar NMIMS

Promotion
 Invest

in creating awareness about seriousness of backaches  Focus on the 'backache specialist‘  1993- Advertising re-launch established it firmly as the backache specialist  1997- Consolidation leadership  Consumer research into aches, pains & the emotional trauma helped redefine & reposition in sync with the changing times

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Result
 Niche

backache market, grown into a major segment  Synonymous with relief from backache  Enjoys a sense of belonging with the Housewife  People reach out for Moov when pain strikes  Acceptability led to extension into men’s segment  Moov grew by over 4000% (40 times), from MS of 0.3% (1988) to 2%(1993) to 9% (1997) to 11%(1999) to 12%(2001) to13% (2004)  Exports to 20 countries across the world

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Dr Amit Rangnekar NMIMS

Late 1990s
 Moov,

perceived by consumers as a leader  Need to broaden its consumer base, without diluting the ‘backache’ focus  1999- Identify target consumer groups through research  Gather further insights into the Indian housewife & deepen understanding of its core consumer  Focus- Physically active adult

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Dr Amit Rangnekar NMIMS

Moov 5 gm economy pack (2000)
 Concerns-

Low household category penetration  Increase penetration to access large section of society  Reach- Availability with 95% chemists nationally including micro interiors  2 years post launch, 18 million units of 5 gms pack sold

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2001
 Target-

The physically active adult, but retain the housewife as core  Research- fresh insights on a housewife’s values, routine, dreams, unmet needs  New brand positioning- Strengthen the housewife bond by becoming her inner voice  Research finding- Backaches driven by  Sedentary & stressful lifestyles  Faulty postures while sleeping / riding bikes/ driving/ accessing computers  State of the roads  Backaches afflict all at some point in time

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Advt
 'Rama

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ki aah' set in a joint family set-up, dramatised a housewife’s tireless commitment towards her highly dependent family

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Moov spray (2002)

    

 Perceived
July07

as instant relief  1 million cans in 2 years

r a k 2002- Moov spray (aerosol) launched e n Communication target- Male g positioningn Exploited the occasion-based usage 'Jab koi na ho saath' Ra (When you are alone and unattended, self it is inconvenient'), application of an ointment m A Help overcome sense of helplessness, enhance r brand image D
Dr Amit Rangnekar NMIMS

2002
 Established

Moov as a means to reunite the family & an indispensable remedy for her backache ‘Indispensable' captured in a new tagline,  “Aapke ghar mein kaun rehta hai?” Kamardard ya Moov?'  (Who lives in your house? Backache or Moov?)  The communication graduated Moov from a pain reliever to a housewife's soul mate

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Dr Amit Rangnekar NMIMS

2002
 Moov-

synonymous with relief from backaches  Research revealed infrequent usage among current users as women often tolerated backaches  Strategy- Make Moov a regular habit  Link communication to relief & rest and encourage consumers to use Moov often

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2003
 Research

revealed housewives using Moov on more occasions than earlier  One pack of Moov sold every second  If all 25 gm packs of Moov sold since inception were placed one on top of the other, they would be 1,935 times the height of Mount Everest  The total tonnage of Moov sold to date is equivalent to the weight of twelve Boeing 747s  The total number of Moov packs sold to date would cover the earth's diameter more than twice

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Dr Amit Rangnekar NMIMS

Product
 Estimates-

Between 50-80% of the world's population suffer from backache  Backache, probably the most frequent cause for discomfort & if left untreated, could become chronic  Specialised 100% ayurvedic medicine  Active ingredients- Oil of wintergreen, tarpin oil, nilgiri oil & mint flowers to provide a 'soothing warmth' to relieve pain  Differentiate through innovation & packaging  Range- 25gm regular pack,15gm up-graders pack, 50gm family pack for joint families, 5gm economy pack, Moov spray

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Dr Amit Rangnekar NMIMS

Promotion
1993- Each element of brand & communication mix defined to deliver a credible relief process  'Aah se aha tak', ('from pain to relief)  1997 Research- Consumers considered heat as integral to the relief process  Positioning- 'Chain ki garmahat' (soothing warmth)  Communication- slice-of-life situations  One woman's brand conviction converts another to use  Highlight ‘non-staining’ as benefit in separate communication  Incur large ad spends (50 crore / 20%+)  Shrewd media buying  Aggressive TV advertising, based on market research, & a July07 Dr Amit Rangnekar NMIMS deep understanding of consumer behaviour

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Branding
 Invest

in branding, keep introducing new brands  Effectively use key research insights on target segment, consumers, trade & competition  Focused communication created brand loyal housewives in a market with fickle loyalties  Illustrated how OTC brands can be built and sustained through advertising where speed and agility lead to competitive advantage, and not size and reputation

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Place
 Factory

to depots (every state) to wholesalers /stockists to retailers, primarily chemists  "Expanding coverage to grocery outlets / malls is crucial, otherwise there will be considerable wastage in advertising“ Darshan Patel  1,200 additional stockists to broaden distribution coverage in interior markets  Salesmen recruited to directly book orders from grocery shops to expand channel coverage  2004- Reach of 700,000 retailers

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Dr Amit Rangnekar NMIMS

Packaging
 Innovative

packaging- Lamitubes, 5gm  Focus on value, convenience and choice  Paras has successfully fought the onslaught of the market majors and emerged as a significant player by investing in packaging innovation

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Positioning Insights
3

pronged positioning approach  Focus on key segment- Positioned as back pain reliever, not for general pain  “Iodex & Boroline lost out on their market shares essentially due to the complacency that had crept into their marketing. Iodex introduced many new products worldwide, but in India continued as the smelly black pain balm for years” GP  Offer better solutions than existing- specialised back pain relief in a non-messy and non-staining tube  “There is never a perfect solution, there can only be a better one, which we strive to perfect” GP  Value for money: “More for the same price” a strategy followed with remarkable success  Moov priced competitively but provided more quantity-

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Dr Amit Rangnekar NMIMS

Differentiation
 Moov

non-stain lami-tube cream forced Iodex (SKB) to change decades-old avtaar of the gooey black pain balm, in an unattractive black bottle packaging to the natty, happening- Iodex Power Cream  Boroline (GD Pharma) the antiseptic skin cream leader, a sticky formulation that detered regular use. Non-sticky BoroSoft & BoroNatural creams, leaders  Nycil’s medical plank-‘bacteria cause prickly heat’, positioned as a long term cure, but research showed consumers looked for "instant relief“. DermiCool positioned as a powder that offered instant relief thro a perceptible cooling sensation

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Dr Amit Rangnekar NMIMS

Differentiation
 Krack

cream introduced for burns but repositioned for cracked heels. Research showed women had high tolerance levels and used Krack only when the cracks bled. Advertising changed to a preventive approach and volumes increased. By 2004, the prefered choice  Vicks range increased prices and became unaffordable. D’Cold launched at the same price but with more quantity.

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Dr Amit Rangnekar NMIMS

Moov- Brand Values
 Brand

identity- Reliable family friend  Core brand value of an 'up-lifter‘  Functional value proposition- relief  Emotional value proposition- trusted & dependable  Economic value proposition- more for less  Social driver- elevating the Indian housewife’s current status

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Dr Amit Rangnekar NMIMS

Critical Success Factors (CSF)
 Successfully

& innovatively tapped the potential of ayurveda through extensive R&D  Research focus- Consumer pulse  Innovative packaging  Product delivered on the promise of desired relief  Projected as a part and parcel of daily active life, reassuring users that an effective & immediate pain-reliever was always within reach  Focused on backaches as specialist, others addressed general body sprains, pains, aches  The most preferred remedy for backaches, extended to pains

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Dr Amit Rangnekar NMIMS

Quotes
 Paras

CMD Girish Patel: "We've chosen markets where there is a strong no. 1 but no strong no. 2“  HLL Executive, "Here's a marketing company that really understands the Indian consumer market. Their ability to exploit niches is quite fascinating. It's a reasonably simple formula for success but surprisingly hard to imitate “  “OTC medicine marketers like Paras enjoy higher profitability margins: 15-18% compared to about 8-10% in ethical drugs” Dabur Executive

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Dr Amit Rangnekar NMIMS

Failures
 Stopache

cream balm  Winter Shield, a petroleum jelly substitute  Freshia  D’Cold Clear

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2007
 1-

Minute, Moov ki Maalish  From relief to preventive relief  Increase use (from pain to prevention)  Increase users (focus on family)  Increase usage (from 1 finger tip-full move to 10 finger tips-full maalish)

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Dr Amit Rangnekar NMIMS

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