Mumbai: It’s a Diwali tradition among Maharashtrians to have a ritual bath, known as the abhyang snan, to purify the soul.
The festival season saw Marico Ltd introduce Parachute Advanced Ayurvedic Body Oil just for this occasion, the first time a top consumer goods company was launching what would ordinarily be a limited-use, niche product made at home.
Brand strategy: The owner (extreme right) of a retail outlet in Nellapatla, Warangal, stocks up on Cavinkare’s Chik shampoo sachets. Harikrishna Katragadda / Mint
This is not the first time Marico is catering to a region’s specific requirement. Over three years ago, it had acquired a turmeric soap brand called Manjal valued at Rs10 crore that caters to the Tamil Nadu and Kerala markets from SD Pharmacy Pvt. Ltd.
It also bought Nihar, a hair oil brand, for Rs240 crore from Hindustan Unilever Ltd (HUL), the market leader in India in personal and home care products, as it had a strong brand equity in eastern India.
Regional brands are rooted in beliefs or in consumer practices, said Sameer Satpathy, head, marketing consumer products business, Marico. “There is a strong emotional bond between a brand and the consumer, and this gives them a disproportionate share or gain in the market,” he said.
Marico is not alone. There are others such as HUL that are re-launching regional soap brands to regain market share.
Parachute has a 48% market share in the coconut oil market. Over the years, the brand has had many product extensions, such as Parachute Advanced Revitalizing Hot Oil for winter care, and various re-launches, besides the introduction of Re1 and Rs5 packs.
The reasons also include “size of opportunity, gross margins and uniqueness”, explained Vineet Trakroo, vice-president of marketing, personal care, at Cavinkare Pvt. Ltd, which has regional variants such as Jasmine of its Rs200 crore-plus Chik shampoo brand to cater to the various markets of Tamil Nadu and parts of Andhra Pradesh. The company also has another local brand, Karthika, in Andhra Pradesh that has reetha, or soap nut, that is traditionally used in washing hair, which caters to Andhra Pradesh.
“Our regional brands are our fastest growing brands,” said Trakroo.
Whether it is oils, soaps, shampoos, skin care, oral care or tea and beverages, brand preferences and consumer tastes and needs vary according to regions, say marketeers.
“Regional brands like Shakti Bhog Atta in Delhi, Wagh Bakri tea in Gujarat or Ghadi detergent in Uttar Pradesh have consolidated their strengths, got their positioning and proposition right and are now giving national players and MNCs (multinational companies) a tough fight,” said Vivek Gupta, senior vice-president, IMRB International, a market research company.