emami ltd. | brand analysis

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    Submitted By,

    Group-04 | Marketing | Batch 2014-2016

    Kashyap Shah | Abhishek Rawal | Anubhuti Gupta |

    Vrinda Jain | Akash Dhar| Apoorva Namjoshi

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    Story Behind

    The inception of Emami Group took place way back in mid-seventies, in West Bengal, when

    two childhood friends, Mr. R.S. Agarwal and Mr. R.S. Goenka left their high profile jobs as

    Chartered Accountants, with the Birla Group to set up Kemco Chemicals, an Ayurveda

    medicine and cosmetic manufacturing unit in Kolkata, in 1974.

    It was an extremely bold step in the early seventies when the Indian FMCG market was still

    dominated by multinationals. Several such companies headquartered in Kolkata were

    considering shifting out of West Bengal due to labor unrest and political problems.

    A dream of reaching out to the Indian middle class; a target audience whom they thought will

    have increasing potential for consumption, the company started manufacturing cosmetic

    products as well as Ayurvedic medicines under the brand name of Emami from a small office

    (still retained) in Kolkatas business district of Bada Bazar. Their consumer insight is reflected

    today in the mission statement of Emami Limited: "Making people healthy and beautiful

    naturally".

    Differentiate or die. Innovate or perish

    This is what set the ball rolling when the partners launched Emami Talcum, Emami Vanishing

    Cream and Emami Cold Cream and glycerine soap, which were great favourite brands with the

    quality conscious consumers in the mid-seventies. The company soon became adept in selling

    beautiful dreams to Indian women interested in finding their own identity. The signature tune

    of Emami played over radio and TV became a household favourite.

    In the early days the two friends used to go around places and sell their cosmetics from shop

    to shop. They piled their goods on hand pulled rickshaws and went on distribution drives

    making their brand extremely popular, available and acceptable among consumers.

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    The first-rate quality of the products soon created a consumer pull and gradually some people

    were hired to work for them. A chain of distributors was established and the sale of Emami

    products spread from West Bengal to rest of Eastern India and gradually to other states.

    Acquiring Himani Ltd

    In 1978, Himani Ltd (incorporated as a Private Limited Company in 1949) had become sick

    unit and was up for sale. Himani, almost a 100 year old company with good brand equity in

    Eastern India and a well laid out factory in Kolkata, was producing a number of cosmetics. Mr.

    Agarwal and Mr Goenka realized the opportunity and acquired Himani though for their young

    organization it was a tough task to mobilize resources for buying a sick unit and even tougher

    to turn it around to a profitable venture. The degree of financial risk involved was enormous

    considering the small capital base of the company in those days. However they decided to go

    ahead with the deal which later on proved to be the turning point for the organization.

    Introducing power brands - Boroplus and Navratna

    Production of various health care items and toiletries based on Ayurvedic preparation had

    begun in the Himani factory. Ten years after commencement of the company, it launched their

    first flagship brand Boroplus Antiseptic Cream under the Himani umbrella in 1984. Many

    additional brands followed Boroplus including Boroplus Prickly Heat Powder which came as

    a brand extension of the mother brand. Emami brands started selling in all states of North, East

    and West India. Today Boroplus is not only the largest selling Antiseptic Cream in India but

    also in Russia, Ukraine, and Nepal.

    Nineties was very eventful for Emami. The next flagship brand of the company Navratna Cool

    Oil came in the nineties under the Himani Umbrella and the second factory was opened at

    Pondicherry to expand production. Navratna over the years has become market leader in the

    cool oil category. The introduction of new brands continued and the distribution network of

    the company was extended to South India with Navratna spear heading the process.

    Public issue

    In 1995, Kemco Chemicals, the partnership firm was converted into a Public Limited Company

    under the name and style of Emami Ltd. In 1998, Emami Ltd was merged with Himani Ltd and

    its name was changed to Emami Ltd as per fresh certificate of incorporation dated September1,

    1998.

    In 2000, with a view to concentrate on its core FMCG business, Emami's investment

    undertaking was demerged and Pan Emami Cosme Ltd. issued its fully paid up shares to

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    shareholders of Emami in the ratio of 1:1. In 2003 a new factory unit was set up at Amingaon,

    Guwahati. A Public Issue of 50 lacs Equity Shares of Rs2/- each at a price of Rs. 70 followed

    in 2005. The issue was oversubscribed within few seconds of its opening with an overall over

    subscription of 36 times of the issue size. The share price sold at Rs. 70 today is quoted in the

    stock market as over Rs.1250.considering all the aspects.

    Global footprint

    Taking one step at a time Emami went overseas and international business contributes around

    12% of the total revenue, growing at a CAGR of 19% over last five years. Emami has five

    international subsidiaries and its global reach extends to more than 63 countries including

    India, SAARC, GCC, UK, Sri Lanka, Bangladesh, Nepal, African and the CIS countries.

    Beauty secrets and amazing array of ambassadors

    In 2002 Emami roped in film actor Madhuri Dixit as brand endorser of a full range of its

    cosmetics including hair oil, sunscreen lotion, shampoo, fairness cream and talcum powder.

    The products were formulated after intensive research and inputs from both Madhuri Dixit.

    The actor had been collecting beauty secrets from across the globe, and the company decided

    to brand the cosmetics the Beauty secrets by Madhuri range. While it is yet another first in

    Emamis first list it is also the first time in brand history that an endorser co-owns a brand.

    Emami has successfully established its brands through strong celebrity endorsements. In a

    market where competition is intensifying, product lifecycle is shrinking and strategic

    management of a company is gaining pivotal position Emamis inclusion of celebrities as brand

    ambassadors established that it strictly relies on its own unique method of retailing.

    It is the only brand in the country to have both Amitabh Bachchan and Shah Rukh Khan as

    endorsers for the same brand, Navratna. The concept of brand endorsement by celebrities was

    successfully experimented in case of most of the brand launches. To name a few celebrated

    and acclaimed entertainment and sports personalities who have endorsed Emami products over

    the years-

    A pioneering story- launch of Fair and Handsome

    In 2005 Emami created a marketing history in India by launching Fair and Handsome, the first

    fairness cream for men. In a tropically harsh country like India, a fairness cream for men

    represented an unexplored opportunity. Emami created a completely new market segment by

    introducing Indias first fairness cream customised for men.

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    Travelling the region and by interacting with a host of retailers and intermediaries Emami

    discovered that 30 to 35 per cent of users of fairness creams are men, with a growing interest

    in personal grooming. The sales of Fair and Handsome in its first year had touched around Rs

    50 crore. Another feather on the cap was when Emami roped in Bollywood superstar Shah

    Rukh Khan to endorse the brand, targeting the male fairness cream market in India which

    immediately made the brand even more popular and trusted by the consumers.

    Consumer healthcare division

    In 2006 the company decided to introduce a Health Care Division and a number of new brands

    of Ayurvedic OTC medicines. The company has taken up the challenge of growing this new

    division with a dedicated and enthusiastic team working on this project.

    Acquiring a heritage brand - Zandu

    Emami Limited with an investment of Rs 730 crore acquired Zandu Pharmaceuticals Works

    Ltd on the basis of huge business synergy between Zandu and Emami. Post the acquisition of

    Zandu Pharmaceuticals, a century old household name in India, some of its prominent brands

    like Zandu Balm, Zandu Chyawanprash, Zandu Kesri Jeevan, Zandu Pancharishta, Sudarshan

    and Nityam Churna came under Emamis basket of brands.

    Sustainable growth and excellence

    In 2006, J B Marketing & Finance Ltd., the erstwhile marketing company of the Emami Group

    merged with Emami Ltd. and the total turnover of Emami including sales in domestic and

    export market stood at Rs 518 crores at the end of the fiscal year 2006-07.

    Within four decades, the company Emami Ltd has a turnover of Rs. 2217, the flagship company

    of the Rs.10, 000 crore Emami Group.Recently Emami Ltd acquired the 'Kesh King' brand of

    hair and scalp care products from SBS Biotech, one of the largest deals in the segment in recent

    times. It will include the Kesh King portfolio of hair oil, shampoo and Ayurvedic capsules.

    They employ 2600 people, reach out to 34 lakh retails outlets through a network of 2800

    distributors and have i

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