Standing out in the FMCG sector
By Nabamita Chatterjee | March 12, 2013
Emami has stood the test of time to become a leading FMCG brand in the Indian market today. Point-Of-Purchase traced their success story to learn what helps them to stand out in this dynamic and competitive market.
Started by two childhood friends, R.S. Agarwal and R.S. Goenka, Emami began its journey way back in 1974 in Kolkata. The company has grown into a Rs 1800 crore entity within three decades. According to the company, the quality of the products, packaging and delivery system is the ultimate differentiator for Emami in this varied market. To revolutionise the Indian market with international standard of products with contemporary packaging has been achieved by Emami from the very beginning."Today most of our brands have become market leaders and have got their own niche. The chief aim of the group is to provide affordable products," shares N. Krishna Mohan, CEO- Sales, Supply and Human Capital, Emami Limited.
While speaking about the USP, Naresh H. Bhansali - CEO, Finance, Strategy and Business Development, opines, "Introducing the use of Ayurveda, using modern laboratory technology with contemporary packaging of the deliverables has been a positive effort which helped our products to target the specific consumer. In the context of our journey acquiring Himani Limited and later on merging it with Emami in 1998 has been a very crucial factor for the company."
N Krishna Mohan further says, "Each product of us has got their typical buyer, like for example, one who is out in the sun for long hours definitely wants to relax and have a fresh feeling and our Navratna Oil or the Cool Talc serves that purpose." In this regard, Naresh H. Bhansali states, "We feel that we should always give value for money. By creating a special segment of products suited to each category, Emami targets their typical buyer."
While talking about the challenges one faces in retaining the consumers, N Krishna Mohan shares, "We always try to connect directly with our consumer and it firstly depends on our relationship with the retailers. We ensure that the goods reach on time and simultaneously the retailer gets the money invested. When it comes to retaining our consumers, the most important factor is Emami's attractive packaging which is surely bound to grab the attention of the shoppers. Thus the products stand out themselves. In fact, celebrity endorsements in the packaging of the content has been a novel innovation from our part which we feel has got a huge impact on the minds of the consumers. Today, shoppers search for their favourite'brands' rather than the products, hence in-store positioning is very important. Currently the P-O-P industry is in the state of evolution with lot of opportunities to learn. From the company's point of view we need to understand the MT consumer better, while agencies need to understand the needs of the brands and how they want to put forward their product to the modern consumer better." Emami always considers the shopper insight or the output of their research while planning and positioning their brands both in GT and MT which helps them to be a pioneer in the FMCG vertical.
Speaking on the expected growth, Naresh H. Bhansali says, "We expect a growth of around 18-20% in the next two-three years, keeping the Indian demography in mind. It has been observed that Indian consumers are very conscious of what they are buying and from where. Though initially there has been an effect of MT on GT but both co-exist today catering to their specific buyer." In this regard, N. Krishna Mohan specifies that "there are many associative factors in India especially in tier II and tier III cities where the GT is the prime source of procurement and the retailer's engagement with the consumer is much higher, thus these factors also should be considered by any brand that is in the competition today."
When asked about anticipating the future of Indian retail market post FDI policy, N Krishna Mohan mentions, "the better the consumption - better for the business, so we are hopeful that it will have a positive result on the whole."
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