Wednesday, November 29, 2006

Amrutanjan : It's Gone !

Brand: Amrutanjan
Company: Amrutanjan Ltd
Agency: Dentsu

Brand Count: 168

Gayab,
Poye Poch,
Poyallo,
Its Gone !!!!!
Remember the brand ?

Amrutanjan is one of India's heritage brands. This 113 year old brand is still young and rocking. Amrutanjan is still one of the largest players in the Rs 250 crore balm market.Etched firmly in the mind of the consumer, Amrutanjan sustained competition, generations and maintained its relevance in the Indian market. The brand has a huge equity in the Indian market and all along has been trying to extend its equity to various categories.

Amrutanjan was founded in 1893 by Mr. Nageshwara Rao Panthulu Guru. The company became public in the year 1936 and currently commands 21-23% market share in the category. The yellow colored formulation and the glass bottle has been a part of Indian households. Although a pain balm , the brand was used for cold and head aches. The brand has a huge cache of loyal users especially in South India. Although the balm market including cold rubs and cold reliever market is Rs 250 crore, the balm market is estimated to be around Rs 100 crore.

Although Amrutanjan is famous for its pain balm, the company has successfully diversified into categories like Diabetes cure and bio technology. The company has now a portfolio of brands like Daikyur, Amrutanjan strong, Dragon liquid balm, Cold snap etc.
In the pain balm segment, the company faces tough competition from Zandu Balm which is the market leader. While the overall balm market (including cold) is dominated by Vicks. Vicks commands a market share of over 60% in the cold balm/rub category.
Amrutanjan has positioned its pain balm on its quick relief attribute. The old and famous " It's Gone" campaign is still recalled by most people. Even though many brands have tried to convince the customers about quick relief, Amrutanjan still retains its equity.

In its portfolio of brands, Amrutanjan's Cold snap is an interesting case .The brand was launched in 1997 with much fanfare. The cold snap was pitted against Vicks. The brand was the first gel product in the category. The differentiators for the brand was that it is non greasy . But the brand was not successful. The simple reason is that Cold snap should not be applied to the nose. It should be applied to the chest and the back for Cold relief. This caused lot of confusion in the consumers. Traditionally when we have cold, we rub the balm all over the nose and even apply the balm inside the nose ! Now the brand says not to do it and warns the customers that it is dangerous to apply Cold Snap on nose. I believe that it is the single factor that prevented Cold Snap from being successful. Cold & Nose have strong association and the brand went against that association.

The pain balm has been riding on the equity and the heritage. Although I am not making any judgement about the future of the brand, I feel that the campaign " It's gone" has immense potential. The brand could come out with new series and versions on this platform and keep the brand alive and relevant in the consumer's mind.

source: businessline,amrutanjan.com,superbrands,sify,domain b