Case: Moov- Backache Badshah

Moov- Backache Baadshah

Dr Amit RangnekarNMIMS

July07 Dr Amit Rangnekar NMIMS

Dr Amit R

angnekar

Paras Pharmaceutical Prods Estd 1959 by N A Patel, initial investment Rs 7000 Shifted HQ to Ahmedabad in 1984 Stopache, only moderately successful product then Unerringly located consumer’s pulse time & again Innate gut feel for consumer’s requirements &

preferences Current Chairman Girish Patel’s (GP) favourite

spare time activity- To sit behind chemist counters incognito & get hands-on feedback from consumers.


Dr Amit R

angnekar

Current Status

5P strategy- product, price, positioning, packaging & promotion

“Most Paras products have been formulated based on the perceived needs and requirements of the common man” GP

2006- 23% stake taken by Actis, Valuation of Paras Pharma- Rs 750 crores,

No 3 Indian company in FMCG (Nirma, Dabur) D’Cold, Itchguard, Crack, Dermicool, Livon - all

blockbusters 2004- Moov 60 Crores, growing and with a

national presence


Dr Amit R

angnekar

Moov

Moov launched in 1986 Objective- Establish a national presence for PPL Innovation- Moov rewrote the rules of the game

by packaging in a contemporary, international pack - a tube with a carton – and a feminine colour to appeal to the Indian woman.


Dr Amit R

angnekar

'Rubs' or 'Balms' Market

Rubs and balms market in India Rs 470 Cr (ORG 2003).

Mid 1980s- Iodex, Amrutanjan, Zandu, Relaxyl dominate

Positioning of top brands- as Multipurpose products


Dr Amit R

angnekar

Research findings

13% of Indian homes resort to 'Rubs' or 'Balms' Majority of body aches- related to the back Women more prone to backache Lower backache suffering- perpetual People ignore backaches - believing it would go

away automatically but backaches almost always return with more

aggravating pain


Dr Amit R

angnekar

Moov- Strategy

Vision- Ensure presence in every Indian home, serve as a true friend

Segment- Pain Target segment- Backpain Target audience- The middle-class Indian housewife Rationale- Decision-maker, key influencer Positioning- Focus, than follow the leader Occupy the vacant position- Backache Position as- 'The Backache Specialist‘ Differentiation- Lamitube, Stain free, Counter-irritant,

More for same


Dr Amit R

angnekar

Promotion

Invest in creating awareness about seriousness of backaches

Focus on the 'backache specialist‘ 1993- Advertising re-launch established it firmly

as the backache specialist 1997- Consolidation leadership Consumer research into aches, pains & the

emotional trauma helped redefine & reposition in sync with the changing times


Dr Amit R

angnekar

Result

Niche backache market, grown into a major segment

Synonymous with relief from backache Enjoys a sense of belonging with the Housewife People reach out for Moov when pain strikes Acceptability led to extension into men’s segment Moov grew by over 4000% (40 times), from MS of

0.3% (1988) to 2%(1993) to 9% (1997) to 11%(1999) to 12%(2001) to13% (2004)

Exports to 20 countries across the world


Dr Amit R

angnekar

Late 1990s

Moov, perceived by consumers as a leader Need to broaden its consumer base, without

diluting the ‘backache’ focus 1999- Identify target consumer groups through

research Gather further insights into the Indian housewife

& deepen understanding of its core consumer Focus- Physically active adult


Dr Amit R

angnekar

Moov 5 gm economy pack (2000)

Concerns- Low household category penetration Increase penetration to access large section of

society Reach- Availability with 95% chemists nationally

including micro interiors 2 years post launch, 18 million units of 5 gms

pack sold


Dr Amit R

angnekar

2001 Target- The physically active adult, but retain the

housewife as core Research- fresh insights on a housewife’s values,

routine, dreams, unmet needs New brand positioning- Strengthen the housewife

bond by becoming her inner voice Research finding- Backaches driven by Sedentary & stressful lifestyles Faulty postures while sleeping / riding bikes/ driving/

accessing computers State of the roads Backaches afflict all at some point in time


Dr Amit R

angnekar

Advt

'Rama ki aah' set in a joint family set-up, dramatised a housewife’s tireless commitment towards her highly dependent family


Dr Amit R

angnekar

Moov spray (2002)

2002- Moov spray (aerosol) launched Communication target- Male Exploited the occasion-based usage positioning-

'Jab koi na ho saath' (When you are alone and unattended, self

application of an ointment is inconvenient'), Help overcome sense of helplessness, enhance

brand image Perceived as instant relief 1 million cans in 2 years


Dr Amit R

angnekar

2002

Established Moov as a means to reunite the family & an indispensable remedy for her backache‘Indispensable' captured in a new tagline,

“Aapke ghar mein kaun rehta hai?” 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


Dr Amit R

angnekar

2002

Moov- synonymous with relief from backaches Research revealed infrequent usage among

current users as women often tolerated backaches

Strategy- Make Moov a regular habit Link communication to relief & rest and

encourage consumers to use Moov often


Dr Amit R

angnekar

2003

Research revealed housewives using Moov on more occasions than earlier

One pack of Moov sold every second If all 25 gm packs of Moov sold since inception

were placed one on top of the other, they would be 1,935 times the height of Mount Everest

The total tonnage of Moov sold to date is equivalent to the weight of twelve Boeing 747s

The total number of Moov packs sold to date would cover the earth's diameter more than twice


Dr Amit R

angnekar

Product

Estimates- Between 50-80% of the world's population suffer from backache

Backache, probably the most frequent cause for discomfort & if left untreated, could become chronic

Specialised 100% ayurvedic medicine Active ingredients- Oil of wintergreen, tarpin oil,

nilgiri oil & mint flowers to provide a 'soothing warmth' to relieve pain

Differentiate through innovation & packaging Range- 25gm regular pack,15gm up-graders pack,

50gm family pack for joint families, 5gm economy pack, Moov spray


Dr Amit R

angnekar

Promotion

1993- Each element of brand & communication mix defined to deliver a credible relief process

'Aah se aha tak', ('from pain to relief) 1997 Research- Consumers considered heat as integral to

the relief process Positioning- 'Chain ki garmahat' (soothing warmth) Communication- slice-of-life situations One woman's brand conviction converts another to use 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 behaviour


Dr Amit R

angnekar

Branding Invest in branding, keep introducing new brands Effectively use key research insights on target

segment, consumers, trade & competition Focused communication created brand loyal

housewives in a market with fickle loyalties Illustrated how OTC brands can be built and

sustained through advertising where speed and agility lead to competitive advantage, and not size and reputation


Dr Amit R

angnekar

Place

Factory to depots (every state) to wholesalers /stockists to retailers, primarily chemists

"Expanding coverage to grocery outlets / malls is crucial, otherwise there will be considerable wastage in advertising“ Darshan Patel

1,200 additional stockists to broaden distribution coverage in interior markets

Salesmen recruited to directly book orders from grocery shops to expand channel coverage

2004- Reach of 700,000 retailers


Dr Amit R

angnekar

Packaging

Innovative packaging- Lamitubes, 5gm Focus on value, convenience and choice Paras has successfully fought the onslaught of

the market majors and emerged as a significant player by investing in packaging innovation


Dr Amit R

angnekar

Positioning Insights 3 pronged positioning approach Focus on key segment- Positioned as back pain reliever, not for

general pain “Iodex & Boroline lost out on their market shares essentially due to

the complacency that had crept into their marketing. Iodex introduced many new products worldwide, but in India continued as the smelly black pain balm for years” GP

Offer better solutions than existing- specialised back pain relief in a non-messy and non-staining tube

“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- consumer satisfaction


Dr Amit R

angnekar

Differentiation

Moov non-stain lami-tube cream forced Iodex (SKB) to change decades-old avtaar of the gooey black pain balm, in an unattractive black bottle packaging to the natty, happening- Iodex Power Cream

Boroline (GD Pharma) the antiseptic skin cream leader, a sticky formulation that detered regular use. Non-sticky BoroSoft & BoroNatural creams, leaders

Nycil’s medical plank-‘bacteria cause prickly heat’, positioned as a long term cure, but research showed consumers looked for "instant relief“. DermiCool positioned as a powder that offered instant relief thro a perceptible cooling sensation


Dr Amit R

angnekar

Differentiation

Krack cream introduced for burns but repositioned for cracked heels. Research showed women had high tolerance levels and used Krack only when the cracks bled. Advertising changed to a preventive approach and volumes increased. By 2004, the prefered choice

Vicks range increased prices and became unaffordable. D’Cold launched at the same price but with more quantity.


Dr Amit R

angnekar

Moov- Brand Values

Brand identity- Reliable family friend Core brand value of an 'up-lifter‘ Functional value proposition- relief Emotional value proposition- trusted & dependable Economic value proposition- more for less Social driver- elevating the Indian housewife’s

current status


Dr Amit R

angnekar

Critical Success Factors (CSF)

Successfully & innovatively tapped the potential of ayurveda through extensive R&D

Research focus- Consumer pulse Innovative packaging Product delivered on the promise of desired relief Projected as a part and parcel of daily active life,

reassuring users that an effective & immediate pain-reliever was always within reach

Focused on backaches as specialist, others addressed general body sprains, pains, aches

The most preferred remedy for backaches, extended to pains


Dr Amit R

angnekar

Quotes

Paras CMD Girish Patel: "We've chosen markets where there is a strong no. 1 but no strong no. 2“

HLL Executive, "Here's a marketing company that really understands the Indian consumer market. Their ability to exploit niches is quite fascinating. It's a reasonably simple formula for success but surprisingly hard to imitate “

“OTC medicine marketers like Paras enjoy higher profitability margins: 15-18% compared to about 8-10% in ethical drugs” Dabur Executive


Dr Amit R

angnekar

Failures

Stopache cream balm Winter Shield, a petroleum jelly substitute Freshia D’Cold Clear


Dr Amit R

angnekar

2007

1- Minute, Moov ki MaalishFrom relief to preventive reliefIncrease use (from pain to prevention)Increase users (focus on family)Increase usage (from 1 finger tip-full move

to 10 finger tips-full maalish)

Case: Moov- Backache Badshah

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