Starting the fire

Image
Viveat Susan Pinto Mumbai
Last Updated : Jan 25 2013 | 2:53 AM IST

Along with urging smokers to kick the butt, Johnson & Johnson’s Nicorette is drawing consumers’ attention to this little-known category

Call it the domino effect. Johnson & Johnson’s (J&J) aggressive marketing of Nicorette, the sugar-free nicotine gum, has made smokers who want to kick the butt sit up and take notice. Even as smoking cessation or Nicotine Replacement Therapy (NRT) products were available in the market earlier, J&J’s campaign has generated much awareness about the category.

“The media blitzkrieg for Nicorette has drawn consumers’ attention to the product, in the process, the category itself has become quite visible,” the marketing head of a healthcare company says. “Enquiries are far more now because when consumers walk into a pharmacy looking for Nicorette, usually the counter manager also shows them other products in the same segment, highlighting their benefits,” he adds. 

The World Health Organisation (WHO) estimates there are over 120 million smokers in India, making it the second-largest market for tobacco consumption in the world. As the number of smokers in India rises steadily, the market for smoking cessation or NRT products is also growing.

While the market for nicotine de-addiction is small – pegged at Rs 15 crore- Rs 20 crore – players say it holds promise. Alok Saxena, director of Elder Pharmaceuticals that sells a smoking cessation product called Elder NRT, says, “We estimate the market size in India to be about Rs 720 crore.”

Besides Elder there are multinational players like J&J and Pfizer, and other domestic majors like Cipla and Birla Research & Lifesciences. The latter has a division called Birlaveda, which recently launched a herbal chewable called Quitobac.

Though tablets, pastilles (jelly-based pills) and patches are available in the market, chewing gums remain the most popular option. And players like J&J, Cipla and Birlaveda are pushing them hard to consumers who want to quit the habit. Their products are also available over-the-counter. This makes them far more visible as opposed to Pfizer and Elder, whose products are prescription-based (Cipla also has a prescription-based product).

Saxena says out of the Rs 720 crore estimated market, prescription-based products alone make up Rs 200 crore. “The balance is made up of non-prescription and over-the-counter products, some of which are also sold through unorganised sales channels like paan shops. This can affect the quality of products, which is not so when your model is prescription-based,” he says.

Gautam Suri, marketing manager, OTC, consumer products division, J&J, says, “The question is about awareness. We, for instance, are focusing on creating awareness about the need for a smoking cessation aid. That is how you will create an impact in the end.”

Executives at Cipla and Pfizer also admit that a combination of quality, safety and awareness is what will drive the category in India — attributes that have driven the international market for these products.

Worldwide, the global smoking cessation market touched a staggering $2.6 billion ( Rs 12,000 crore) in 2010. This is a growth of 62.5 per cent over the previous year, when the smoking cessation market stood at $1.6 billion (or Rs 7,360 crore), industry sources say.

“Nobody denies the need for awareness for smoking cessation,” says Harish Bijoor, chief executive officer of Bangalore-based Harish Bijoor Consults. “Quite often people make resolutions to quit the habit, but are at a loss on how to do it,” he says.

Suri agrees, “The large market that India is for tobacco consumption presents us with an opportunity to make an impact. Even if the craving for nicotine is high, there are people who want to quit the habit. That’s where we step in.”

Suri says the marketing campaign for Nicorette will be on for a while. Till then, the entire category can benefit.

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Feb 03 2011 | 12:38 AM IST

Next Story