According to the Chairman and MD of the company Mr Girish N Patel “Most of the products of Paras have in fact been formulated based on the perceived needs and requirements of the common man.” This identification of consumer needs and satisfying them with new products has enabled the company to create many categories.
As a conscious strategy the company has stayed away from the ethical pharma segment and instead decided to focus its energies on the OTC segment. Stopache was the one of the initial successful products that the company launched in the late 1960's, but the company waited for many years before its next flurry of product launches came.
It started with the launch of Krack cream in 1993. The company found that the market was served by petroleum jelly and there was a need for a product specifically targeted at cracked feet, and thus Krack was launched backed by a well designed communication campaign to convince consumers that its use in the initial stages would reduce damage. Krack registered an sale of 3.8 million tubes in the first year which shot upto 8 miilion by 1996 and now the brand is pegged at around 32 crores.
Second brand which did well in the a competitive market was Moov, it differentiated itself against Iodex as colorless ointment in a tube and attacked Iodex with its positioning as a "stain-free" option. From that it has moved on to “Ek minute MOOV ki malish” proposition for its consumers. Moov single offer to the consumer of "pain relief" versus the multiple benefits being offered by other competing creams in the marketplace has also helped it become a market leader.
The experince from launching two products which exploited the basics of marketing of good segmentation, targeting and and positioning helped it do well in other products which it launched later on, like Dermi cool with a crystal clear positioning: immediate cooling sensation. The cooling sensation came from the mentholated formulation. Other sucesful brands in the posrtfoplio include Itch guard and Rung guard.............
As you mentioned in the class, Paras has a great positioning strategy, especially with regards to Krack and Moov. I feel Moov was the tougher one because Iodex was the leader and they had to target where it hurts - the pain factor. All of their ads emphasized solely on the pain relief factor. When you were telling us in class, I realized how Moov had hit Iodex. Even I saw that shift happen in my household because for therapeutic relief, one had Amrutanjan... So Moov was a better option as compared to iodex for pain-relief...
ReplyDeleteYes, I agree that Moov's sucess if more significant as it had strong competition to content with. The significance of differentiation comes out in the context of competition. If you have products which are category creators like iPod (you could perhaps include Krack here) then maybe one need not worry much about differentiation, but in most cases we are either entering markets which have well established players, or competiting in those markets and thus the increased importance of differentiating your offer.
ReplyDeleteItch Guard Anti Fungal Cream Used to Relief from Itching & Inflammation in Skin.For quick relief from INTERTRIGO inflammation and itching of skin between folds of inner thighs, waist, buttocks, underside of breasts and armpits
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