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7/8/2015 ViJohn:AlittleknowndesibrandemergesasaleaderwithaforeignsoundingnameTheEconomicTimes

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ByRajivSingh,ETBureau|8Jul,2015,05.19AMIST 3comments | PostaComment

ViJohn'svolumemarketshareinIndiastoodat29.2percentinMay,overthreetimesthatofDettol,almostfourtimesthatofAxeandoverseventimesthatofGillette.

927.60BSE

4.00(0.43%)Vol:320573sharestraded

927.65NSE

3.30(0.36%)Vol:1791889sharestraded

HindustanUnileverLtd.

Prices | Financials | CompanyInfo | Reports

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ViJohn:AlittleknowndesibrandemergesasaleaderwithaforeignsoundingnameREADMOREONVimalPande|Unilever|ShahRukhKhan|HarishBijoor

Dapper,withnotahairoutofplace,VimalPandeisperhapsanidealbrandambassadorforacompanyofwhichheisalsotheCEO.Forthepastdecade,he'sbeenaloyaluserof'Cobra'deodorant,'Splash'aftershave,'22degree'talcumpowder,even'BoroShield'antisepticcream,allbrandsofthelittleknownDelhibasedpersonalcarefirm,ViJohn.He'salsooneofthousandsofconsumerswhoannuallyconsumealmost45lakhkgofViJohn'sshavingcream,intheprocessmakingitthelargestlabelinthiscategory.It'aalsoacategorythat'sconspicuousbythepresenceofaclutchofmultinationalbrandsfromAxe(HindustanUnileverBSE0.43% )andDettol(ReckittBenckiser)toOldSpiceandGillette(Procter&Gamble).

"Inshavingcream,wearemuchbiggerthanGilletteinIndia,bothinvolumeandvalue,"asserts52yearoldPande.Andifbeingaheadofagloballeaderisn'tenough,hegoesontomakeanotherclaim."Infact,wearethelargestsellingshavingcreambrandintheworld."

AccordingtothelatestNielsenMATdatasourcedfromindustryofficials,ViJohn'svolumemarketshareinIndiastoodat29.2percentinMay,overthreetimesthatofDettol,almostfourtimesthatofAxeandoverseventimesthatofGillette.

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"Evenifyouputthenextfourbrandstogether,theywon'tbeabletomatchourvolumeandvalueshareinIndia,"affirmsPande,addingthatthebiggestplusforthebrandhasbeenits'affordability'tag.ViJohnisavailableacross2.5lakhretailoutletsandatover1millionothertradingchannelsacrossthecountry.Thebrandmakesover15lakhshavingcreampackseverymonth,saysPande.

AnemailsenttoHULandReckittBenckiserdidnotelicitanyresponse.

WhattheMNCsloseinvolume,though,isbeingpartiallymadeupinvalue.Consider:Gillette's3.9percentvolumegivesitaclosetodoublevalueshareof7percentAxe7.4percentvolumeconvertsinto12.9percentvalueshare.It'sonlyinViJohn'scasethatitsvalueshareislessthanthevolumeshare.Pandegrudginglyacknowledgestheproblem."WearequitevisibleonTV.Butourprofitabilityisnotashighasothers."

EvenasViJohncontinueswithitsaggressiveintenttofurtherwidenitsvolumeleadoveritsrivals,thepricewarriorhasstartedworkingonastrategytomatchitsvolumegrowthwithvalue."Whilethestrategytillnowwastoscalefirstandreachasoundscale,nowtheplanistoconvertvolumeintovalue.Sonowwewillgoinforthekill,"assertsPande.

Thecompanyismakingimprovementsinpackaging,qualityandmoreimportantlypricing,whichwouldbecrucialtopushitaheadinthevaluetrajectory.Whilein2011,its125gramshavingcreampackwasavailableforRs20,itnowcostsRs35.

WhathasworkedbrilliantlyforViJohnhasbeentheendorsementbyShahRukhKhan.Celebrityendorsementshasplayedasignificantroleinbrandawareness,helpingitmakearapidtransitionfromabusinesstobusinessbrandtoabusinesstoconsumerbrand,explainsAbrahamKoshy,professorofmarketingatIIMAhmedabad."Haditnotbeenforthecelebrityendorsement,thebrandcouldnothavepulleditthrough."

However,themostdiscerningelementofthestrategythathasworkedinthefavourofthebrandisthechoiceoftargetsegment.WhilebrandslikeGillettearetargetedatthehigherendofthemarket,ViJohnhaschosentotargetthemasssegment."Thisisanintelligentchoiceasthismarkethasbeenwaitingforabrandrelevanttoit,"addsKoshy.

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However,convertingvolumeintovalueatafasterclipwon'tbeeasy.It'sabrandgame,whichhastobeplayedwithfinesse,saysbrandstrategistHarishBijoor."Onecelebritywillnotturnthetideforit.Therearealotmorebrandparametersthatneedtobeaddressedandtweaked."

ThebiggestproblemforViJohn,accordingtoBijoor,isthatithasnotinvestedinbranding."Theproducthasworked,thebrandhasnot.Notyet.What'smissingisbrandimagery.Anditneedstoearnitfast."Oui,John?

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READMOREONVimalPande|Unilever|ShahRukhKhan|HarishBijoor

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rightlypointed...imageisnotyetpresentforViJohn..theynowhavetoscaleupandimprovebranding,cleverly.

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WhereeverMr,Vimalgoeschangesscenerio,luckytobeassociatedwithhimCongrats&bestwishesSir,Rajeev

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