[OVERVIEW OF BRAND ARCHITECTURE]

-by-Arkaprava Ghosh

NAVRATNA OIL: BRAND OUTLOOK• Largest brand of EMAMI Ltd.• 2010 saw a 25% volume growth driving 30%

revenue growth• 15-20% growth momentum can be sustained on

the back of new variants launched with aggressive promotions in North India

• Market size of Rs. 5507 mn ($117 mn)• Market leader with 48% market share• Rated as one of the most trusted brands by ORG

Marg• Commissioned some of the most visible brand

ambassadors (Amitabh Bachchan, Shahrukh Khan, and Mahesh

Babu, Chiranjeevi and Upendra for South)Source: KRC research

POSITIONING OF NAVRATNA OIL BRAND

• “COOLING” is the core equity of the brand• With the induction of AMITABH BACHHAN as endorser of the

brand NAVRATNA OIL saw a major shift in communication as a “stress buster”

Navratna tel ki maalish se neend aa gayi

Navratna tel lagaiye , sardard tension dur

bhagiye

POSITIONING OF NAVRATNA OIL BRAND

Homogenous Preference Benefit:

COOLING EFFECT

relieving headache

granting sound sleep

aids to increase memory

Eliminates tiredness

prevent premature hair fall

application on minor cuts and burns

Clustered Preference Benefit

Packaging promotes it as a unique blend of 9 herbs with multiple benefits

BRAND SEGMENTATION:

• TARGET GROUP: 18+ SEC A.B.C.D ; SEC R1-R4• Initially brand was targeted for predominantly male • Key issue : unable to tap the female consumer market• To rectify that NRO has recently launched an ad with

housewives

Key phsycograpi

c

•Lifestyle of consumer :

•need to succeed leads to a race with which comes unlimited and every going stress and anxieties for the modern man

• Brand setbacks were mainly faced in UP & BIHAR where “HIMGANGE” ruled the market owing to its heavy margins

• “HIMGANGE” offered cumulative margins of 40% whereas “NAVRATNA” was able to offer just 18%

• The target population there also found HIMGANGE to be “more effective”

LAUNCH OF NAVRATNA EXTRA THANDA OIL

AWARENESSAFFORDABILITY

ACCEPTABILITY

Navratna as a brand with the top class brand ambassadors had a huge awareness all over India

Not being a huge brand himgange could not afford to spend on media and totally relied on distribution and word of mouth

Competitor pricing strategy was followed

Prices & margins remained the same , so no scope for comparison remains

•Endorser: Amitabh Bacchan a “Upiite”•Superior feel and packaging•Excellent availability

Low packaging and feel led himgange to lose its market share to NRXT

NAVRATNA EXTRA THANDA HIMGANGE

MARKET GAP

• Cool oils are just 15% of the total hair oil category

•Normal hair oil users do not prefer the strong fragrance & stickiness of cool oilsKEY ISSUE

NAVRATNA LITE OIL launched with a mild fragrance and non stickiness

TG: 25+ ALL SEC’s predominantly females

1QFY10' 2QFY10' 3QFY10' 4QFY10' 1QFY11'

16% 16%

30%

0%

15%

Navratna oil revenue growth (YOY)

YoY growth

Steep fall in sales in 4QFY10’ can mainly be accounted to high sales during 4QFY09(the company reintroduced the Re.1 sachet). Growth targets are set to rise by 1QFY11’

Source:IIFL research

BRANDS SKU MRP

COMPETITOR SNAPSHOT

HIMGANGE

3ml 150ml 25

100ml 47200ml 78500ml 175

BANPHOOL3.5ml 1100ml 48200ml 88

HIMTAJ100ml 48200ml 88400ml 145

HIM RAHAT100ml 48200ml 85400ml 155

RAHAT ROOH

50ml 25100ml 47200ml 88500ml 195

HIMANAND200ml 72400ml 150

BHIMSAR100ml 30200ml 50400ml 150

DULHAN

3.5ml 150ml 25

100ml 45200ml 80500ml 175

NAVRATNA TODAY

• Cool oil category is growing at 10-15% on an annual basis• Target of over 19% growth for NAVRATNA OIL for 2010-11

fiscal• Focus on strengthening and popularisng NAVRATNA LITE OIL &

NAVRATNA COOL TALC• Re 1-sachet of Navratna oil, aimed at semi-urban and rural

markets, contributes around 30 per cent of total sales of Navratna Oil products

BOROPLUS BRAND PORTFOLIO

BOROPLUS

SKIN CARE ESSENTIALS

HEALTHY & FAIR WINTER FAIRNESS

PRICKLY HEAT POWDER

ICE

NON ICE

INTENSIVE SKIN THERAPY

ANTISEPTIC CREAM

BOROPLUS ANTISEPTIC CREAM: BRAND OVERVIEW

• Established in 1984• Market size of Rs. 2694 mn ($57 mn)• Leader in the antiseptic cream market with a 74% share• Largest selling antiseptic cream not only in India but also in Ukraine, Russia and Nepal• Sales grew by 15% in FY 10• Growing at CAGR of 18% in last 5 years• Boroplus Brand has been ranked 77th in the Brand Equity Survey conducted by The Economic Times, India

MARKET SNAPSHOT

76%

24%

MARKET SHARE(ALL INDIA BASIS)

BOROPLUS BOROLINE

KEY MARKETS UP , MP , Chhattisgarh , Rajasthan , Bihar , Orissa

Urban India(35% )

Rural India(75%)

WEAKEST MARKET West Bengal ; mostly dominated by BOROLINE

Target consumer

18+ SEC: B,C,D,E (urban)SEC: R1 – R4 (rural)

“BORO” segment is a 269 crore market of which 169 crores is dominated by BOROPLUS

Major competitor BOROLINE dominates 69 crores of the total pie

Source: interview with boroplus brand team

BRAND POSITIONING• Branded as Himani Boroplus to align it with the ayurveda lineage• The equity of BoroPlus is rooted in “antiseptic”• Brand building on its strengths • Antiseptic: Anti germ – Keeps skin Hygienic and clean• Herbal• Problem solution (for cuts & burns)

• Positioned Boro Plus AC as ‘Your Personal First-Aid box’.

• Re-position the other Boro Plus offerings on the platform ‘Dedicated Skin Care’

BRAND POSITIONING

Need gap

•Despite being a power brand, Boroplus was not present in the categories that had become popular

•market offerings to niche segment i.e. Teens in this case

With rising per capita incomes , BOROPLUS decided to upgrade its consumers to new offerings with 2 new launches in 2010

Healthy & fair winterness creamMoisturizing + protection + fairness

Intensive skin therapynourishing knees, elbows and ankles

EXTENSION OF BRAND EQUITY TO OTHER

CATEGORIES

BRAND STRATEGYresearch had revealed that there was a need for a low unit product (LUP) in the antiseptic category

TAPPING THE GAP

Emami launched the 8 gm variant of Boroplus priced at Rs 5 in October 2002

AFFORDABLE PRICE POINT

TRIGERRING IMPULSE

PURCHASE

Boroplus from 2003 started a surge in its rural marketing :

Decorated vans have been travelling from village to village in Uttar Pradesh, Madhya Pradesh and West Bengal selling & promoting the brand

GAP IDENTIFICATION

•Boroline ‘s distribution was strong only in west bengal in key areas like Kolkata•Gap was there in distribution to the rural areas

PRESTIGE

MASSTIGE

MASS

BRAND SNAPSHOT

• Winter care is a Rs 8 bn segment consisting of creams , lotions & petroleum jelly

• Accelerated turnover for Boroplus winter lotion from Rs.8.5 Crore (2007-2008) to Rs.14 Crore (09-10)

• Launched in october 2006• “Boroplus” as a brand was growing

at 14% ; hence the objective was to increase its penetration by diversifying into new areas

• Kareena kapoor as brand ambassador

Source: saket govind. Former brand executive , linkedin.com

BRANDS VARIANTS SKU MRP SCHEMES

PONDS triple vitamin moisturising lotion

100 ml 45 300 ml 99 50 gm ponds face wash free

NIVEA

moisturising fresh lotion 75 ml 74 UV protection lotion 250 ml 198

moisturising body lotion75 ml 84

250 ml 179 400 ml 249

AYUR herbal moisturizer 100 ml 40 200 ml 75

VASELINE

vaseline total moisturizer 100 ml 45buy 2 @99 rs and get 1 free alongwith vaseline

25g( modern trade offer)

vaseline white 100 ml 45

dove soap 30g free(retail offer)300 ml 110

vaseline pink 100 ml 60

vaseline green 100 ml 49400 ml 160

LAKME lakme peach milk 120 ml 125 pears pure 80 gm soap DABUR gulabari moisurizing lotion 50 ml 20

VLCClavang moisturiser 100 ml 115

200 ml 205

honey moisturiser 100 ml 170 200 ml 275

GARNIER body coccon moisturiser lotion 250 ml 145 Rs 25 off

BOROPLUS advanced winter lotion

6 ml 5 100 ml 39 emami pure skin swiss apple 45 gms free300 ml 115 emami pure skin swiss apple 75 gms free

BRAND POSITIONINGBRANDS SPECIFICATIONS REASON TO

BELIEVEEMOTIONAL CONNNECT

PONDS Glycerin , triple vitamin

Triple vitamin B,C,E gives a glow to skin

Woman needs to be beautiful

VASELINE Glycerin , retinol , grape seed extracts , soya,oat protein

Total protection for 24 hours

Healthy skin ; happy skin

BOROPLUS Glycerin , badam , saffron , milk cream

2 X softer and silkier skin

Testimonials from men: soft skin to drive your man crazy

BOROPLUS PRICKLY HEAT POWDERBRAND SNAPSHOT

• Brand extension of the FLAGSHIP BRAND “ boroplus”

• Launched in 1992• The PHP category is a

specialized category valued at more than Rs.240 crore

• PHP segment contributes about 20% to the total talcum market in India

• BPPHP has just a 11% share in the PHP pie

BRAND SNAPSHOT

• MARKET VALUE AT Rs 180 crores•Grew by 34% in FY10•Grown at a CAGR of 13% in Last 3 years

MARKET GROWTH

Aag bujha de thandak la de

Target consumer

AGE :15-44 SEC : A,B,C

BRAND POSITIONINGConsumer insight : consumers desire a sensation of cooling toMigrate the feeling of burning & pricking caused by prickly heat

“Cooling” thus emergedas the major differentiator for the new brand

Key distinguishers of the launch communication:

•By highlighting the acute burning sensation suffered during an attack of prickly heat

•By creatively exploiting the instant and unique cooling sensation that BPPHP provides

for relief

RESULTS:BPPHP quickly garnered 4 % of the total market share and became the 3rd

largest in the category after “NYCIL” & “DERMI COOL”

TACKLING COMPETITIONThe then only competition

present was dermi cool

KEY ISSUE:Customer conversion from “dermicool “To BPPHP very low

Boroplus in its launch offer gave a 1+1 scheme& continued with that offer till 2007

However, Nycil & DermiCool were perceived to be delivering better than BPPHP on ‘relief from pricking / burning and itching / scratching’ To get further

Conversions

BPPHP changed their “REASON TO BELIEVE” from cooling To “INSTANT RELIEF WITHIN 10 SECONDS”

To increase market share the company perceived customer benefits ; absorption of sweatwith fragrance , ‘relief from prickly sensation’ remaining the core equity

TACKLING COMPETITION

• Diversifying their portfolio Launch of 2 new non ice variants :

“FRENCH SANDAL” & “FRENCH LAVENDER”

Results End 2001

BPPHP ‘s share remained stagnant despite new launches and the 1+1 free scheme

•Company research showed that customers perceived the 1+1 offer to be low class brand image

•Sales of non-ice category was also dropping since to the users PHP category had become synonymous with cooling

47%

38%

14%

market share in % (end 2009)

nycil dermicoolBPPHP

COMPETITOR SNAPSHOT

BRANDS VARIANTS SKU MRP EMOTIONAL CONNECT

NYCIL

excel150 gm 58 child emerging as winner

deo fresh150 gm 58 husband-wife connect

lavender 150 gm 58

DERMI COOL

regular150 gm 57

sweltering heat dermi cool's coolness equal to freshness

sandal150 gm 60

lime150 gm 57

cucumber slice 150 gm 60

BRAND COMMUNICATION POST 2007• 2008 saw 1+1 free scheme being taken off from

the market and Rs. 7 price off schemes were launched on the icy cool variants

• To trigger impulse purchase , a 20 gm variant of the icy cool powder was launched

• “REASON TO BELIEVE” statement was changed in 2008 form cool relief to the “5 power formula”

• In 2009 , the non ice variants were taken off from the market ; since fragrant cooling was the demand for the summer

• 2010 saw BPPHP targeting children with its hugely popular “ALL IZZ WELL” ad

BIRTH OF THE BRAND

• With not-so-good sales turnover of BPPHP , the company thought of diversifying in the talc category under its flagship brand “NAVRATNA”

KEY IDEA :To introduce the idea of coolness along with sweat absorption & Fragrant deo properties

Year 2006 saw the launch of “NAVRATNA COOL TALC”

Emami banked on the fact that navratna being a market leader will attract that segment of customers towards this product

BRAND HIGHLIGHTS 2009-10• The brand registered an astounding growth of

over 100%• An extensive all-India TV campaign with

commercials of Shahrukh Khan and Mahesh Babu for A.P. was launched in April 2009

• commercial launched in Tamil Nadu featuring superstar Surya in March 2010

• launch of a new `Sandal' variant in Maharashtra and the southern states of A.P., Tamil Nadu, Karnataka and Kerala

• New 50g SKU was introduced across India in `Regular' and `Active Deo' variants

• Talcum powder is a Rs 6 bn category

• NRCT sales crossed Rs 500mn in FY10 registering 80% growth YoY

• HUL is the major competitor having 65% share but has not renovated in the recent past

• Another large player is Johnson & Johnson with 15% market share but operates mainly in the baby care segment

PONDS65%

J&J15%

NRCT

4%OTHERS

16%

MARKET SHARE (%)

NRCT HAS AROUND 20% SHARE IN THE PHP CATEGORY WHERE ITS MAJOR OMPETITOR IS DERMICOOL

BRAND POSITIONING

FILLING THE NEED GAP

A offering what the body really craves for in the sweltering heat - icy cool breeze, a long lasting freshness and the feel of a slight drizzle

The cool talc category was the first of its kind in the market & “cooling factor” is the Core equity and differentiating factor for this brand

The brand banks heavily on the success of its flagship product “Navratna oil” and the Launch aim was to get the thanda oil users to use this product

NRCT’s launch saw a revamp in the packaging of NRO & promotion of the NRCT through navratna oil packs

By 2006 end the brand had given a YoY growth of 20% and was a 10 cr. brand

Duniya ka sabse chota AC

BRAND POSITIONINGDuniya ka sabse chota AC

Southern states like AP , Tamil Nadu and western states like Maharashtra prefer the application of sandal after bath as “sandal “ is believed to have a cooling effect on the body & keeps the mind relieved

With this in mind Emami has launched a “navratna cool sandal talc”And positioned it as “coolness with the goodness of sandal”

COMPETITOR SNAPSHOT

BRANDS VARIANTS SKU MRP EMOTIONAL CONNECT

PONDS

magic 100 gm 36

smell drive the men crazy

400 gm 97

sandal 100 gm 40

300 gm 93

orange extract 100 gm 36

400 gm 97

dreamflower20 gm 5

100 gm 36

400 gm 95

NIVEA

musk talc 100 gm 39

pure talc 100 gm 39

400 gm 99

AXEdenim 100 gm 50

400 gm 99pulse 100 gm 50

BRAND DIFFERENTIATION

• Market leaders like PONDS were connecting to the customers with “ khushboo jo deewana bana de”

• Emami in order to gain further market share in 2007 launched a new variant

“NAVRATNA COOL TALC 24 hrs ACTIVE DEO”

CORE EQUITY

Cooling + freshness + fragrance

KEY ISSUE

•The talcum powder industry growth in India has been stagnant now

•With the huge penetration of deodorants , customers are slowly upgrading themselves and warming up to the use of deodorants to battle odor

RUBEFACIENT CATEGORY SNAPSHOT

2006 2007 2008 2009

sales (in Rs.cr)

158.5 187.7 199.1 201.4

25

75

125

175

225

sales (in Rs.cr)

Axi

s Ti

tle

2006 2007 2008 2009

69.6 68 67.7 70.6

30.4 32 32.3 29.4

URBAN MARKET SHARE(%)RURAL MARKET SHARE(%)

HIMANI FAST RELIEF

• Market share increased from 11% to 13%• Grew by 6% in FY10.• However, the Brand has grown at a CAGR of 20%

in last 5 years.• Brand revamped with enhanced formulation in

new packaging as Himani Fast Relief ultra fast formula

• New TVCs got wide appreciation and won 3 awards, including Silvers for Best film and best direction and Bronze for Music in Goa Fest 2009

• Amitabh Bachchan is the Brand Ambassador• Widely accepted in the states of Delhi, UP and

Punjab Source: annual report 08-09

COMPETITION

2006 2007 2008 2009

HFR 18 21.2 24.9 28

MOOV 75.6 85 90.3 93.2

IODEX 89.8 90.3 90.7 91

5152535455565758595

BRANDWISE SALES (Rs cr)

Axi

s Ti

tle

Source: prateek kanodia IBS HYDERABAD, dissertation report 09

13%

40%

45%

2%

MARKET SHARE(%)

HFR MOOVIODEX OTHERS

Despite growth , HFR has still a very low market share in the rubificient category

Himani Fast Relief currently has a single ointment form product for pain relief solutions available in different sizes.

The competitors in the pain relief category have different forms of products available such as Sprays and Gels

HFR’s presence across all pain relief verticals is lacking

To capture market share of IODEX , The 10 gm SKU was launched in 2008

KEY MARKETS: BIHAR , MAHARASHTRA , MP , UP

PRODUCT

HIMANI FAST RELIEF

MOOV IODEX VOLINI

ConceptAyurvedic Pain Relief Ointment

Ayurvedic Pain Specialist

Ayurvedic Pain Balm

Pain Reliever Gel

CompositionPudina ka Phool Gaultheria ka Tel KapoorNilgiri ka Tel Tarpin ka Tel Ointment base – Waxes, Color & Oils

Oil of wintergreenPudina ka PhoolNilgiri ka Tel Tarpin ka Tel

Oil of wintergreenPudina ka PhoolNilgiri ka Tel Tarpin ka Tel Lavang ka Tel

Linseed OilDiclofenac SodiumMethyl SalicylateMentholGel Based

Sizes Available2 gm5 gm10 gm15 gm25 gm50 gm

Ointment:5 gm15 gm25 gm50 gmSpray: 35 ml, 80 ml

Balm: 10 gm, 20 gm, 50gmPower Cream: 5gm, 10gm

Gel: 15gm, 30gm, 50gmSpray: 35ml, 55ml

Positioning The Fastest & Most Effective Pain Reliever

Backache Specialist “Quick Action, Fast Relief”

“Asli Aram, i.e. Real Pail Reliever”

COMPETITION

OINTMENT GEL SPRAY

LINE EXTNSION

HFR in July 2010 , came up with a non sticky product formulation“fast relief MAX” but was still unable to cater across the categories

KEY ISSUE

Lack of differentiation with its competitors in presence across all forms/categories

GROWING WITH CONSUMER CONNECT

• Rubificient is a category across which product formulations and the feel more or less remains the same

CONSUMER ATTENTION

•Trade schemes•advertisements

While other brands harp upon their “reason to believe” as relief from painHFR projects a unique concept of man becoming a machine & hence the usage of the product to keep the machine going

You are in pain You cannot work Use XYZ product & you are free from pain

You work & work like a machine

You break down in pain Use HFR to cope with increasing pressure

More rational

More emotional connect

NEW PRODUCT LAUNCHES

EMAMI VASOCARE PETROLEUM JELLY

CATEGORY SIZE: Petroleum jelly has a market share of Rs. 264 crore

HUL’s Vaseline has a virtual monopoly in the petroleum jelly segment with annual sales of Rs 1.2 bn

The brand owing to its monopoly had not renovated in years

October 2008 added a new competitor to the segment

Sales in FY10’ : Rs 70m-80m , registering a 100% growth in volume in sales YoYCurrently has a 2.6% market share

HUL VASELINE EMAMI VASOCARE

CONCEPT for dry, chapped lips ; cuts & burns

for dry, chapped lips ; cuts & burns

COMPOSITION 100% petroleum jelly Petroleum jellyAloe veraChamomiletulsi

SIZES 8 gm ; 25 gm ; 50 gm ; 100 gm 8 gm ; 25 gm ; 50 gm

POSITIONING Taking care of your skin Herbal ingredients make vasocare five times more effective in healing and lubricating

KEY DIFFERENTIATING

FACTOR

•Usage of herbal ingredients

•Distinct green colour of the petroleum jelly gives it an ayurvedic feel

•Pleasant fragrance enhances usage experience

VASOCARE’S RTB: 5 X more effectiveThe brand is marketed to a wide demographic, while emphasizing everyday usage

EMAMI PURE SKIN GLYCERINE BAR

•Launched in 2008 in line with the winter season

•Glycerine soap category is a Rs 4 billion segment

•Sales in FY-10 : Rs 40m-50m

TARGET GROUP:18-35 years SEC A1, A2, B1, B2

FOCUS MARKETS

AP , WB , Gujarat , Kerala ,Maharashtra, Orissa

BRAND POSITIONING & ESSENCE

Pure skin made from all natural & pure ingredients like swiss apple , almonds, olives ,saffron etc.

Fruity fragrance and undertone smell

Superb transparency available in 3 mood uplifting fragrances• Swiss apple & almond• Saffron &turmeric• Olive & aloe vera

The brand points out on contemporariness with its “DO THE GLISS” campaign

BRANDS VARIANTS SKU MRP

PURE SKIN

SWISS APPLE & ALMOND

75 gm, 45 gm 27,16SAFFRON & TURMERIC

OLIVE & ALOE VERA

PEARS

PURE & GENTLE

125 gm 40

80gm 26

45gm 13

GERM SHIELD 80gm 27

OIL CLEAR 80gm 27

SANTOOR 125gm 29

SAVLONGENTLE MOISTURISING 125gm 32

NATURAL MOISTURISING 125gm 32

CHASME 100gm 16

VIVEL

MILD DEW 115gm 30

CLEAR SPRINGS 115gm 30

CREAM WITH GLYCERINE 100gm 18

•Pricing of pure skin is at par with pears

Competitors other than pears are resorting to market penetration

strategy

Various promotions offers from competitors like santoor has a 1+1 free

scheme

Pure skin is coupling itself with its flagship brandto get the boroplus user segment to use this soap

BRAND POSITIONING

Pure skin as mainly concentrated itself on the fragrance factor and usage of natural ingredients

Pears on the other hand has varied itself across various benefit points:•OIL CONTROL• GERM SHIELD

POSITIONING DIFFERENTIATION EMOTIONAL CONNECT

SANTOOR younger skin sandal+glycerine father-daughter-mother equation

PEARS innocence pure glycerine mother-daughter equation

VIVELmoisturisation with

protection milk cream+glycerineno tvc as of yet , prints show milk cream to

lock moisture in body

PURE SKIN YOUTH "do the gliss"glycerine , swiss apple , aloe

vera, olives be young

CHASME ,SONALI beauty pure glycerine

no tvc's ; hoardings just have a picture of beautiful woman

COMPETITIONBRAND EXTENSIONS

PEARS

SANTOOR

Hand wash Face wash

Shower gel

deodrants

PURE SKIN Since newly launched , its absent in all these categories ; pure skin could bank On its fruity fragrance & natural ingredients to expand in these categories