Dabur to relaunch Vatika brand, will target urban youth

Dabur to relaunch Vatika brand, will targeturbanyouth

New Delhi: Mid-tier consumer goods company Dabur India Ltd is all set to relaunch the Vatika brand, which is used for soaps, shampoos and hair oil.

“We are relaunching the Vatika brand with a fresh brand image, a new logo and overall new brand proposition. We will also be expanding the brand portfolio," said Rana Banerjee, deputy general manager, marketing, Dabur India. “We are changing the brand proposition to suit the urban youth by highlighting the naturalness of our products."

Another senior executive of the company, who didn’t want to be named, added: “Dabur Vatika is looking at launching new variants in the shampoo and hair oil category and also plans to enter the medicated soap segment by the next year."

The moves come 12 years after Dabur first launched Vatika hair oil in 1995. Vatika shampoo was launched in 1999 followed by soap in 2005. Vatika contributed some Rs170 crore to Dabur’s revenue of Rs2,234 in the year ended March, with shampoos contributing Rs80 crore, followed by Rs70 crore from oil. The firm plans to add a new leaf logo to the Vatika brand to signify the “naturalness" of the products. “We would like to keep pace with the trends in this segment, which are pointing towards conditioners and hair serums" eventually, says Banerjee.

According to data by ACNielsen, a market research firm, Vatika shampoo and hair oil account for 5% and 6% of the annual shampoo and coconut hair oil market, valued at Rs1,500 crore and Rs1,200 crore, respectively. The competing brands in these segment include Parachute hair oil from Marico Ltd and herbal product range from Ayur, a New Delhi-based herbal product brand. Dabur has rolled out an advertising campaign for its Vatika anti-dandruff shampoo and will soon start one for a repackaged shampoo. “The market has changed with the entry of modern trade. For a brand to stay ahead of competition, it is important for the products to stand out on the shelves and to connect with consumers at all levels," said Banerjee. “Our communication to consumers will get more specific as we will emphasize on sub-branding initiatives," he added.

Dabur is trying to move Vatika out of the overcrowded mass market and carve a niche for it in the fast growing urban market, says Rajeev Ramchandani, manager, research, at HDFC Bank. “There’s nail-biting competition with firms launching quality products at highly competitive prices."

ITC Ltd “recently entered the shampoo space at very low prices. Rural consumers, who account for almost 70% of FMCG sales, don’t look at brands, but prices. With ITC trying to capture the market Vatika has been present in, it will be important for Vatika to look at a new growth strategy."