rural marketing by emami ltd

7/29/2019 rural marketing by emami ltd

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EMAMI LTD. NAVRATNA OIL

COMPANY PROFILE

Emami Limited is one of the leading and fastest growing personal and healthcare businesses in India, with an enviable portfolio

of household brand names such as Boroplus, Navratna, Fair and Handsome, Zandu balm, Mentho Plus balm and Fast Relief.

Established in 1974, we have a portfolio of over 300 products based on ayurvedic formulations. Our current operations

comprise more than 60 countries including India, GCC, UK, Sri Lanka, Bangladesh, Nepal, African and the CIS countries. Over

100 Emami products are sold every second. Emami Limited, the flagship company of the Group, recorded a turnover of

Rs 1699 crore, 2012-13.

Emami acquired the heritage brand Zandu on the basis of huge business synergy between the two brand portfolios.

Emami employee more than 4000 people , reach out to 40 lakh retails outlets through a network of 3500 distributors and have

invested in seven plants , five regional offices and 32 distribution centres across India.

Navratna oil

'Thanda Thanda Cool Cool' brand Navratna has been the most trusted and preferred brand in the therapeutic cooling oil

segment for a very long time. It is the undisputed leader in its category providing multi-purpose benefits to its set of satisfied

and ever growing consumer base. It has been meticulously prepared from a combination of nine unique ayurvedic herbs. Its

everyday massage gives enjoyable cooling which provides relief from daily mental and physical stress- and its related

symptoms like headache, fatigue, tension, insomnia etc. It not only solves specific hair and body related ailments, but delivers

superlatively on all desired benefits, like beauty & nourishment, traditionally sought from hair oils.

It also has a extra thanda oil in the category of navratna oil in green colour. Navratna Extra Thanda is a

stronger variant of Navratna Cool Oil with extra cooling effect for those consumers who prefer to have a more

strong experience. It is dark green in colour with coolness unmatched in its category.

Rural India would be a major growth catalyst going forward. Emami expects

its revenue share to go up further through focus on value for money

products, increase in brand promotion (with the help of celebrities as brand

ambassadors) & distribution and rise in rural household incomes.

the land and gold value driven wealth effect in rural India will keep rural demand

unscathed.

Growth in the cooling oil market is especially prevalent in the rural areas of India & competition is

less intense than in other

FMCG segments in India. The category, which had most of its presence in north-eastern states, is

now gaining traction in

states like Maharashtra, Andhra Pradesh and Gujarat as well. Emamis Navratna is a market leader

with 57.9% market share.


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Emami continues to market its products aggressively. While huge resources are spent on new

launches, existing power

brands are marketed through endorsements from celebrities like Amitabh Bachchan, Shah Rukh

Khan, Chiranjeevi, Kareena

Kapoor, Govinda and Dharmendra. Distribution is also being strengthened and new channels of sales

are being established to

take care of rural markets and emerging new retail stores. The company has a strong nation-wide

domestic distribution

network. Its products are available in over 40 lakh retail outlets across India through its network of

3500 distributors and a

team of over 2500 front line sales force in India covering every region of the country.

Focus on rural India to accelerate the growth

Emami derives more than half of its sales from rural India. The management expects this to go up

further going forward

through focus on value for money products, increase in brand promotion (with the help of

celebrities as brand ambassadors) &

distribution and rise in rural household incomes. To increase its penetration in the rural India, Emamicreated a new segment

ruralcovering towns/villages with a population of less than 50,000 under Project Swadesh. The

Company adopted a huband-spoke model in these areas by appointing super-stockists and sub-

stockists. By the end of FY12, the Company had 160

superstockists and 4000 sub-stockists. Around 24% of the business was recorded directly through

this model. The move has

helped the company to cut costs and reduce dependency on wholesalers. The company has

strengthened its rural presence

and enhanced the availability of its products across 40 lacs retail outlets. The company has also

reached out to rural

consumers through participation in events like Kumbh Mela, Saawan Mela, Jatras and wall paintings.

The sales force has

increased from 300 to 1600 over the last five years. The direct rural business has shown a strong

growth of 31%, which is now

contributing around 25% of the total revenues. To further penetrate rural areas, the company plansto expand its direct


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distribution outlets from 6 lacs at present to 8.5 lacs in the next three years

rural marketing by emami ltd

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