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Dr Amit Rangnekar
NMIMS
Paras Pharmaceutical Prods
Estd 1959 by N A Patel, initial investment Rs 7000
Shifted HQ to Ahmedabad in 1984
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Stopache, only moderately successful product then
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Unerringly located consumer’s pulse time & again
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preferences
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Innate gut feel for consumer’s requirements &
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Current Chairman Girish Patel’s (GP) favourite
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spare time activity- To sit behind chemist counters
incognito & get hands-on feedback from
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consumers.
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July07 Dr Amit Rangnekar NMIMS
Current Status
5P strategy- product, price, positioning,
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packaging & promotion
“Most Paras products have been formulated
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based on the perceived needs and requirements
g n
of the common man” GP
a n
it R
2006- 23% stake taken by Actis, Valuation of
Paras Pharma- Rs 750 crores,
A m
No 3 Indian company in FMCG (Nirma, Dabur)
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D’Cold, Itchguard, Crack, Dermicool, Livon - all
blockbusters
2004- Moov 60 Crores, growing and with a
national presence
July07 Dr Amit Rangnekar NMIMS
Moov
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A m
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July07 Dr Amit Rangnekar NMIMS
'Rubs' or 'Balms' Market
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People ignore backaches - believing it would go
away automatically
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but backaches almost always return with more
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aggravating pain
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Positioning- Focus, than follow the leader
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Occupy the vacant position- Backache
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Position as- 'The Backache Specialist‘
Differentiation- Lamitube, Stain free, Counter-
irritant, More for same
July07 Dr Amit Rangnekar NMIMS
Promotion
Invest in creating awareness about seriousness
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of backaches
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Focus on the 'backache specialist‘
g n
a n
1993- Advertising re-launch established it firmly
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as the backache specialist
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1997- Consolidation leadership
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Consumer research into aches, pains & the
emotional trauma helped redefine & reposition in
sync with the changing times
July07 Dr Amit Rangnekar NMIMS
Result
Niche backache market, grown into a major
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segment
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Synonymous with relief from backache
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n
Enjoys a sense of belonging with the Housewife
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it R
People reach out for Moov when pain strikes
Acceptability led to extension into men’s segment
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Moov grew by over 4000% (40 times), from MS of
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0.3% (1988) to 2%(1993) to 9% (1997) to
11%(1999) to 12%(2001) to13% (2004)
Exports to 20 countries across the world
July07 Dr Amit Rangnekar NMIMS
Late 1990s
Moov, perceived by consumers as a leader
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Need to broaden its consumer base, without
diluting the ‘backache’ focus ek
1999- Identify target consumer groups through
g n
research
a n
it R
Gather further insights into the Indian housewife
& deepen understanding of its core consumer
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Focus- Physically active adult
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July07 Dr Amit Rangnekar NMIMS
Moov 5 gm economy pack (2000)
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Research finding- Backaches driven by
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Sedentary & stressful lifestyles
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Faulty postures while sleeping / riding bikes/
driving/ accessing computers
State of the roads
Backaches afflict all at some point in time
July07 Dr Amit Rangnekar NMIMS
Advt
'Rama ki aah' set in
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a joint family set-up,
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dramatised a
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housewife’s tireless
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commitment
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towards her highly
D r dependent family
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2002- Moov spray (aerosol) launchedk
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Communication target- Male
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'Jab koi na ho saath' Ra
Exploited the occasion-based usage positioning-
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application of an ointment is inconvenient'),
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Help overcome sense of helplessness, enhance
brand image
Perceived as instant relief
1 million cans in 2 years
July07 Dr Amit Rangnekar NMIMS
2002
Established Moov as a
means to reunite the
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family & an indispensable
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remedy for her backache
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‘Indispensable' captured
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in a new tagline,
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“Aapke ghar mein kaunR
rehta hai?”
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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
July07 Dr Amit Rangnekar NMIMS
2002
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Link communication to relief & rest and
encourage consumers to use Moov often
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July07 Dr Amit Rangnekar NMIMS
2003
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be 1,935 times the height of Mount Everest
The total tonnage of Moov sold to date is
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equivalent to the weight of twelve Boeing 747s
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The total number of Moov packs sold to date
would cover the earth's diameter more than twice
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Active ingredients- Oil of wintergreen, tarpin oil,
nilgiri oil & mint flowers to provide a 'soothing
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warmth' to relieve pain
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Differentiate through innovation & packaging
Range- 25gm regular pack,15gm up-graders pack,
50gm family pack for joint families, 5gm economy
pack, Moov spray
July07 Dr Amit Rangnekar NMIMS
Promotion
ar
k
1993- Each element of brand & communication mix defined to
deliver a credible relief process
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g
'Aah se aha tak', ('from pain to relief)
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Positioning- 'Chain ki garmahat' (soothing warmth)
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Communication- slice-of-life situations
One woman's brand conviction converts another to use
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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
deep understanding of consumer
July07 behaviour
Dr Amit Rangnekar NMIMS
Branding
Invest in branding, keep introducing new brands
Effectively use key research insights on target
segment, consumers, trade & competition
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Focused communication created brand loyal
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housewives in a market with fickle loyalties
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a n
Illustrated how OTC brands can be built and
sustained through advertising where speed and
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agility lead to competitive advantage, and not size
and reputation
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July07 Dr Amit Rangnekar NMIMS
Place
Factory to depots (every state) to wholesalers
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/stockists to retailers, primarily chemists
e
"Expanding coverage to grocery outlets / malls isk
crucial, otherwise there will be considerable
g n
a n
wastage in advertising“ Darshan Patel
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1,200 additional stockists to broaden distribution
coverage in interior markets
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Salesmen recruited to directly book orders from
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grocery shops to expand channel coverage
2004- Reach of 700,000 retailers
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pain relief in a non-messy and non-staining tube
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“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-
July07 Dr Amit Rangnekar NMIMS
Differentiation
Moov non-stain lami-tube cream forced Iodex (SKB)
to change decades-old avtaar of the gooey black pain
ar
k
balm, in an unattractive black bottle packaging to the
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natty, happening- Iodex Power Cream
g n
a n
Boroline (GD Pharma) the antiseptic skin cream
leader, a sticky formulation that detered regular use.
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Non-sticky BoroSoft & BoroNatural creams, leaders
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Nycil’s medical plank-‘bacteria cause prickly heat’,
positioned as a long term cure, but research showed
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consumers looked for "instant relief“. DermiCool
positioned as a powder that offered instant relief thro
a perceptible cooling sensation
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unaffordable. D’Cold launched at the
same price but with more quantity.
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Economic value proposition- more for less
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Social driver- elevating the Indian housewife’s
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current status
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July07 Dr Amit Rangnekar NMIMS
Critical Success Factors (CSF)
Successfully & innovatively tapped the potential of
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ayurveda through extensive R&D
Research focus- Consumer pulse
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Innovative packaging
g n
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Product delivered on the promise of desired relief
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Projected as a part and parcel of daily active life,
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reassuring users that an effective & immediate
pain-reliever was always within reach
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Focused on backaches as specialist, others
addressed general body sprains, pains, aches
The most preferred remedy for backaches,
extended to pains
July07 Dr Amit Rangnekar NMIMS
Quotes
Paras CMD Girish Patel: "We've chosen
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markets where there is a strong no. 1 but no
strong no. 2“
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HLL Executive, "Here's a marketing company
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a n
that really understands the Indian consumer
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market. Their ability to exploit niches is quite
fascinating. It's a reasonably simple formula for
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success but surprisingly hard to imitate “
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“OTC medicine marketers like Paras enjoy
higher profitability margins: 15-18% compared to
about 8-10% in ethical drugs” Dabur Executive