Prickly competition to beat the heat
It ranks a close second to heritage brand Nycil in the prickly heat powder market but Ahmedabad-based Paras Pharmaceuticals believes its ‘stay cool, think cool’ campaign for ‘Dermicool’ will give it the desired edge.
“We have allocated 15 per cent of our sales for advertising and brand promotion. While our advertising budget has been similar to last year, our sales are expected to increase 40 per cent over last year due to the increased heat this summer. We know that in summers, people lose their cool easily. Through this campaign, we want to tell people they can be cool mentally when they are physically cool,” says S Raghunandan. managing director and chief executive officer, Paras Pharma.
The company has also launched three new variants – ‘cucumber slice’, ‘citrus blast’ and ‘watermelon’. “Dermicool is both, a prickly heat powder and cooling talc. We do not look at Ponds or the like as competition as we combine prickly heat and cooling under Dermicool. For us, brands like Boroplus, Navratna and Nycil are the competitors. In fact, we are second yet very close to Nycil in the prickly heat powder market segment. And I can say confidently that we are growing faster than competition as just five years ago, we were half of Nycil and today we are 75 per cent of Nycil,” says Raghunandan.
Dermicool enjoys a 30 per cent market share in the Rs 200 crore prickly heat and skin care segment. Nycil, from Heinz India has a 37 per cent share while Emami’s Boroplus Ice accounts for 20-25 per cent of the market.
Paras Pharmaceuticals, which was a sponsor in the recently-concluded ICC World Cup Twenty20, has also launched Dermicool in 50 gm packs available at Rs 20 for rural markets. The strategy appears to have worked with the brand contributing almost 15 per cent to its sales this year. The original ‘thanda-thanda, cool-cool’ Dermicool brand is expecting a sales target of Rs 75 crore this year.
Nycil, however, is not sitting tight. Says Sundip Shah, Vice President - Marketing & Business Development, Heinz India Private Limited: “Nycil, with more than 40 years of legacy, is a market leader with a 37 per cent market share.” The company recently launched Nycil De-o Fresh Skin Care Talc, extending the brand equity of Nycil. “Our research indicated the need for a skin care talc that ensures sweat absorption, protection from body odour and a de-odorizing fragrance which keeps skin fresh and healthy. Hence, Nycil De-o Fresh which is undergoing consumer tests in Andhra Pradesh & Kerala.”
| THE MARKET IS HOTTING UP > The prickly heat powder is a Rs 200 crore market > Nycil from Heinz India is the market leader with 37 per cent marketshare > Dermicool from Paras enjoys a 30 per cent market share > Emami’s Boroplus Ice accounts for 20-25 per cent of the market > Nycil recently launched Nycil De-o Fresh Skin Care Talc > Emami is targeting kids > Sundeo Summer Powder, a new entrant from the Vini group, is also vying for attention |
Kolkata-based Emami, on its part, is targeting kids as its prime consumers to increase its market share for Boroplus Ice prickly heat powder, which currently enjoys a market share of 20-25 per cent. The brand is currently promoted by the glamorous Kareena Kapoor along with some kids enacting the ‘All izz well’ song from the movie ‘3 Idiots’.
“We are at number three after Nycil and Boroplus and plan to handle competition through the ad campaign. In fact, the theme is a popular one among kids and that takes care of our aim. We have a budget of Rs 10 crore for advertising and promotion of Boroplus Ice and Rs 8-10 crore as advertising budget of Navratna Cool, which is an increase of 25 per cent over last year,” says Harsh Agarwal, director, Emami Ltd. The company is expecting a growth of 20-25 per cent for Boroplus Ice and at least 50 per cent for Navratna Cool Talc, which has a market share of 10-15 per cent, according to Agarwal.
A new entrant into the market, the Sundeo Summer Powder is also vying for attention through its TV ads. “We launched the product in April, by when 60-70 per cent of the peak season for the product had already passed. For the sun to shine on us, it will take another season to guage the consumer reaction to our proposition. The new-born baby has been given Rs 6-8 crore for advertising and promotion,” says Darshan Patel, managing director of Vini Group and former co-promoter of Paras Pharma.