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Emami eyes larger pie in light hair oil category with '7 Oils-in-One'

Repositions the value proposition in order to reach out to the youth; names Katrina Kaif brand ambassador

Emami logo. (Photo: Wikipedia)
Emami logo. (Photo: Wikipedia)

Backed by a change in brand positioning and an aggressive marketing approach, Emami is aiming to turn the 7 Oils-in-One brand of light hair oil into a Rs 200 crore product within the next three years.

The brand, which has been growing at a 30 per cent CAGR in the past three years, is worth Rs 80 crore. 

While the packaging of the product has been changed to give it a more upmarket and trendy look, the brand’s value proposition has now changed from hair-fall prevention towards making hair strong and ‘set all day’. 

“We already have a brand in the hair-fall prevention space (Kesh King). We are now repositioning 7 Oils-in-One as a value proposition that not only makes hair strong but keeps it set all day,” said Priti A Sureka, director at Emami Ltd.

The brand has also roped in Katrina Kaif as its ambassador for the next three years, which Sureka feels will not only boost its image and help it connect better with the consumers, but will also help “attract attention” towards this brand and improve its positioning among the youth. 

“We wanted an icon for this brand and after a lot of research narrowed down on Katrina Kaif. Advertising campaigns will be rolled out shortly, which we hope will help us grow this brand,” Sureka said.

Apart from Kaif, Emami has other superstars such as Amitabh Bachchan, Shahrukh Khan and Juhi Chawla as its ambassadors for various other brands. 

The light hair oil category, to which the 7 Oils-in-One belongs, comprises around 30 per cent of the Rs 10,000 crore hair oil market in the country. Bajaj Almond Drops is the category leader and Parachute from the Marico stable is the overall market leader.

“This year (2019-20), we hope to have a revenue of around Rs 100 crore and in the next three years, the target is to reach Rs 200 crore”, she said.

Emami has been registering an overall growth of 15 per cent in its hair care portfolio, consisting of Navratna hair oil, 7 Oils-in-One and the Kesh King brand of oil and shampoo.

Each of its hair care brands are positioned in different segments; while Navratna aims to provide relief from stress and heat, Kesh King is positioned to help restore and regrow damaged hair. On the other hand, the 7 Oils-in-One brand, which is registering a growth rate better than the category growth rate of 25 per cent, is positioned to help maintain lustrous and healthy hair.

Hair care accounts for 25-30 per cent of the company’s annual revenue.

Apart from maintaining its focus on the rural trade channels, Emami is focussing on pushing certain upmarket brands like 7 Oils-in-One via modern trade and e-commerce channels. It has roped in Boston Consulting Group (BCG) to advise it on strategies to drive future growth through brand equity and emerging channels.

The cumulative contribution of online and modern trade offtake to total sales is expected to grow from 7-8 per cent to 12-15 per cent in three years, catalysed by content-driven social media campaigns.

While e-commerce contributed only 0.4 per cent to FMCG sales in 2016, it grew to 1.3 per cent in 2018. On a comparative basis, Emami reported a 112 per cent improvement in online sales in the last fiscal year as compared to the 2017-18 fiscal year. It is expected that e-commerce’s contribution to the total FMCG sales could reach 11 per cent by 2030.