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Backache Baadshah

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Dr Amit Rangnekar
www.dramitrangnekar.com

Case Learnings

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Effectively positioning brand to target an unaddressed


segment, and emerge as a brand leader

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Differentiation through packaging and communication

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Line extensions to successfully grow the portfolio

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TG Focus, aligning promotion to TG, laddering the brand


Lifecycle management by growing TG
Winning against well entrenched MNC competition

Paras Pharma

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1959- Estd by N A Patel with Rs 7000 in Ahmedabad

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Innate gut feel for consumer preferences, unerringly locate

consumers pulse time & again

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Consciously stayed away from ethical pharma segment, OTC

focus

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Chairman Girish Patels (GP) favourite spare time activity-

Dispense medicines from chemist counters, get hands-on


feedback from consumers

Paras Pharma

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2009 M&A Reckitt Benckiser $726 million / Rs 3300


cr

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Actis (PE) 60% + Patel family 30% + Sequoia Capital


4%

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Restructuring- outside professional as CEO

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2010 Paras sales Rs.400 cr ($89 million)


Emami, Novartis, J&J, Taisho other suitors
Reckitt- Dettol, Strepsil, Mortein

Paras Portfolio

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Pain

Cold

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Skin
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Paras strategy 1980-90s

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Most Paras products formulated based on


the perceived needs and requirements of the
common man GP

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Focus- Product, price, promotion + positioning


and packaging
Effectively manage wholesalers and retailers

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2004- No 3 Indian company in FMCG (Nirma,


Dabur)
Moov 60 Crores, growing and with a national
presence

'Rubs' or 'Balms' Market

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Mid 1980s- Iodex, Amrutanjan, Zandu,


Relaxyl dominate

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Rubs and balms market in India Rs 470 Cr


(ORG 2003)

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PositioningA
of top brands- as Multipurpose
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products

Gap Analysis

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Multipurpose focus
Headache

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Joint Pain

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Back

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Muscle
Pain

Moov
NPL 1986

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Objective- Establish a national presence for PPL

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Contemporary, international pack

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Feminine
D colour to appeal to Indian women
Lami-tube with a carton

Research findings
13% Indian homes use 'Rubs' or
'Balms'

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Majority body aches- back related


Women more prone to backache

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Lower backache suffering- perpetual


Backaches ignored, aggravated

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Moov Strategy

GI
Cough/Cold/Allerg
y
Pain
Skin

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Lifestyl
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Nutritio
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Moov- Rationale
Vision- presence in every Indian home, as a womans true
friend

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TA- Middle-class Indian h/w (decision-maker, key influencer)

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Position- joint pain to backache specialist (vacant)

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Backaches- daily h/w ailment, larger surface area; sprainsrare

Differentiation- Lamitube, Stain free, Counter-irritant

Promotion

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Create awareness about seriousness of backaches

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Research- aches, pains, emotional trauma


1993- TVC
1995- Leadership

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1997- Consolidation

Aggressive TV advertising, based on market research

& deep understanding of consumer behaviour

Aah se aha tak

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1993- brand communication to deliver a credible relief

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One woman's brand conviction
converts another to
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'Aah se aha tak',
('from pain to relief)
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Communication- slice-of-life situations
process

Promotion
1999- Research on the Indian housewife- deepen understanding

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Enjoyed sense of belonging with the Housewife

Reached out for Moov when pain struck, perceived as leader

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Need- broaden consumer base, without diluting backache focus

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Identified new target consumer group- Physically active adult


Large ad spends (50 crore / 20%+), shrewd media buying

Line extension- 5gm tube

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2000 Concerns- Low household category penetration

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Moov 5 gm economy pack- access to large sections of

society

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Reach- availability with 95% chemists nationally

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2 years post launch, 18 million units of 5 gms pack sold


Additional Rs 15 cr revenues

2001

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Target- physically active adult, but retain housewife as core

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Research- housewifes values, routine, dreams, unmet needs

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Findings- backaches driven by sedentary & stressful lifestyles,


faulty postures- sleeping / riding bikes/ driving/ lap tops/ PC

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New brand positioning- Strengthen the housewife bond by


becoming her inner voice

Advt- Rama ki Aah

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Dramatised housewifes tireless
commitment towards her highly
dependent family

Line extension- Moov spray (2002)

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Insight- men seek convenience, spray perceived as


instant relief

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Extend communication target- Male adult

Occasion-based usage positioning- 'Jab koi na ho saath'

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1 million cans in 2 years


Incremental Rs 5 cr revenues

2002 Aap ke Ghar Me Kaun Rehta


Hai

cision-maker in
old.

advertising re-launch established it firmly as

Established
as
the backacheMoov
specialist and
sawa
an upswing

in its market share. The results demonstrated


that PPL had found the right positioning.

means to reunite the family

ul times,
st everyone at
d on this insight,
o men, as well.

1997 was the year of consolidation, with


& an indispensable
remedy
Moov having grown by over 400%, from a

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market share of 2.2% in 1993 to 9.1% in 1997


(Source: Jan-Dec Volume Shares, ACNielsen
ORG-MARG).

for her backache

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The communication

graduated Moov from a pain


reliever to a housewife's
soul mate

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Page 2

Blockbusters 2002

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Impact

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Niche backache market, grown into a major


segment

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Exports to 20 countries, 40X NMS e
growth
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2002, Paras A/S 28% - Rs 34
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crore on sales of Rs
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190 crore
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2002

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users as women often tolerated backaches
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Strategy- link communication
to relief & rest,
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encourage consumers
to use Moov often
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Make Moov
a regular habit
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Research- infrequent usage among current

Brand laddering
Abstract
Competent
Housewife

Emotional

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Trust &
dependence

Functional
Back pain
relief

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Moov makes me a
better housewife

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I keep my family
happy, thanks to
Moov

Moov keeps me fit,


I can take better
care of my family

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2007
1- Minute, Moov ki Maalish
From relief to preventive relief

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1 finger tip full to 10 finger tips full

Research- infrequent usage among current users,

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often tolerate backaches


Strategy- link communication to relief & rest,

encourage consumers to use Moov more often

2008 Moov Neck and


Shoulder
Target- current lifestyles and increasing incidence of neck

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and shoulder pain due to regular use of PC/ laptop, driving,

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uncomfortable travel, bad postures while sleeping,


working,TV etc

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Moov N&S 15gm gel @Rs 35, 30gm @Rs 67, 35 gm Spray @
Rs 65

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Highlight functional (pain relief) and emotional benefits


(Trust)

2009

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active haldi & 10 other natural ingredients
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Positioned for 'Cough during
cold' or 'sardi waali
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khaansi
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2 SKUs - 60 m
ml for Rs 32.00, 100 ml for Rs 48.00
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D'Cold Natural cough syrup- ayurvedic syrup, with

2009 Janani- the giver of life a


woman

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Empower woman to do what she wants, in case of any pain,


theres always Moov- TVC, Press, PoP, outdoor, viral, radio

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Slice of life situations- woman gives in to her instincts,


inner child

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Ads end with husband applying Moov to ease her backache

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Steals husbands Bullet, drops kid to school


Tackles cricket ball

Hurt trying to retrieve object on a height

2010-11 NPL
2010 Moov Heat Belt
50+ chronic & severe
backache sufferers

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Slice of life situation, focus on


convenience wrt to a hot
water bag

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2011 Moov Gel- for younger


women with active lifestyles
who do not use Moov Cream
as they do not have the time
or inclination

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Print Ads

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Price Points
Paras

Moov Pain Relief

Gm

Pack

MRP

25

Cream

36

50

Cream

65

80

Amrutanjan

Amrutanjan

Cream

65

Balm

20

Balm

37

Balm

50

45

Balm

60

10

Cream

20

50

Cream

60

10

Balm

24

30

Balm

60

30

Cream

69

55ml

Spray

109

Balm

22

18

Balm

38

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25
35

Iodex
Zandu
Volini
Tiger

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GSK

Emami

Ranbaxy
Elder

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105

35

Moov Neck & Shoulder

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Spray

Place

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3000 stockists
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750
salesmen
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ti 10,00,000 retailers

2 Factories- Kalol, Baddi

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Exports 40 countries

Critical to expand coverage to


grocery outlets / malls, else there is

Brand Extensions
Line Extensions
50gm Family
pack
25gm Regular pack

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15 gm Upgraders pack
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5 gm Economy
pack
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Spray

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Brand
Extensions
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Neck & Shoulde

Heat Belt

Gel

Moov Sales Rs Cr

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Positioning rationale

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Target segments with strong No 1, no strong No 2- Iodex, Vicks, Nycil,


Boroline

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Reposition the competition- Iodex sprain/ joints, Amrutanjan/ Zandu head/cold

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Focus on key segment- Positioned as back pain reliever, not for general pain
Central benefit- relief from backaches, demonstrable evidence, emotional
connect

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Offer better solutions than existing- non-stain lami-tube


Value for money- More for same consumer satisfaction

Brand strategy
Brand
identityReliable family
friend

Brand
imageback pain

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Perceptionback pain
specialist

Positionback pain
relief

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Functional
VP- relief

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Economic VPmore for less

Emotional VPtrust &


dependence
Brand
PersonalityCompetent,
trusted

Quotes

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HUL 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.

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OTC medicine marketers
like Paras enjoy
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higher profitability
margins: 15-18%
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compared to about 8-10% in ethical drugs
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Dabur Executive
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Failures
Stopache cream balm

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Winter Shield, a petroleum jelly substitute


Freshia
DCold Clear

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Brand management
learnings

Market traits- value seeking consumers, fickle loyalties

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Research- Consumer pulse, company, trade, competition


Packaging- brand visibility + TG attention

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Communication- emotional connect, consistent identity


NPL- brand, line extensions, PLC, demonstrable evidence

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Core brand value- elevates Indian housewifes current status


Increase use (pain to prevention), users (focus on family),
increase usage (1 finger tip-full to 10 finger tips-full maalish

References

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Interview Mr Girish Patel, CMD, Paras, 2007

Reckitt Benckiser to buy Paras Pharma for $726 million Michael Erman & Sumeet Chatterjee/Reuters
13Dec10

Actis raises stake in Paras Pharma, to appoint new CEOS Kalyana Ramanathan & Harit Mehta /
Chennai/AhmedabadMarch 31, 2008

www.paraspharma.com

Paras Novartis to set up JV- 6 Januray 2004, Business Standardhttp://www.businessstandard.com/india/news/paras-novartis-to-setjv/122744/

Mudra's 'Moov' to counter that pain in the neck Arcopol Chaudhuri on Aug 20, 2009, Advertising, India

A 'Moov'ing ode to the giver of life http://www.4psbusinessandmarketing.com/05072007/imgsmall/61.jpg

Savia Jane Pinto, afaqs!, Mumbai, September 29,Sequoia invests $12 mn in Paras Pharma

30 Oct, 2006,INDIATIMES NEWS NETWORK

A relieving story : MOOVs success formula shared by Mr. AjayRawal- MICA

Sunday, October 21, 2007 Paras Pharma Succeeding Through Segmentation


http://rajeshaithal.blogspot.com/2007/10/paras-pharma-suceeding-through.html

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