An IIM Ahmedabad alumni and one who cherishes interacting with fresh minds, he gave the audience an insight into both the FMCG industry and the turn around of certain flagging brands.
With the beauty and health sectors witnessing a considerable growth rate over the past 10 years, the skincare industry has become one of the most lucrative areas of investment. It is fueled by the fact that a near 100 pc penetration could be achieved in both the urban and the rural market. Some of the business challenges that plagued the industry were:
• Low entry barrier – fear of competition looms large
• Multifold increase in advertising expenses by companies
• Need to make far sharper choices
• High cost base – chokes ability to fuel growth
More into specifics, he explained how he and his team had actually turned around the drooping sales of Lux soap and the challenges faced by them. Lux, which had been considered the soap of film stars, had the distinction of being the most trusted cleansing brand for three years and actresses till the 90s used to do free advertisements for it. Post 2003, it saw a sharp decline in market share wherein in one year it lost about one crore out of the total five crore households. The task before the team was three pronged:
• Containing the decline – Highest priority
• Strengthen brand image
• Upgrade discount soap users
With its new launch in 2005 giving it a new shape and global packaging advantage, an aggressive campaign was launched to promote it. Capitalizing on its star value, the campaign concentrated on 75 years of stardom and “come and explore the word of stars” tag line. A nation wide thematic process was adopted and a rapid trial was conducted for the new product. A lucky star contest and star on each pack, things brightened up and market share showed some improvement. A chocolate solution and its aromatic flow made Lux an exotic soap offered at regular prices. It had captured the No.1 brand again followed by Lifebuoy in the soap industry.
The key lessons that were learnt from this exercise according to him were:
• Need for sharper problem identifiers
• A 360 degree approach to solving problems
• Metro marketing
• Powers of PR and how it helps in brand building
• Identification of key triggers for rural growth
• Need to keep in touch with customers all the time
• Big gains come with big risks
His analysis of the Lux case along with his experience was a truly enchanting and enriching experience for each one of the aspiring managers in the auditorium. Reading marketing textbooks will not be the same again, felt NITIE students. This experience would have changed the entire perspective and marketing would be at its interesting best!