Thursday, November 15, 2007

Chandrika : Best Soap Nature Can Offer

Brand : Chandrika
Company : Wipro
Agency : FCB Ulka

Brand Analysis Count : 290


Chandrika is a heritage brand. The brand came into existence in 1940. This hand made ayurvedic soap owes its existence to the founder C.R Kesavan Vaidyar who identified the potential for an ayurvedic soap way back in 1940.
From a humble beginning, the brand has come a long way withstanding the test of time. Its a brand that has survived all these years without changing any of the marketing mixes. Now after 6 decades, Chandrika is changing .

Chandrika is a 28 crore brand and has a loyal customer base in the southern states like Kerala and Tamilnadu. The brand was manufactured and marketed by SV Group till 2004. In 2004, Wipro acquired the marketing rights of this brand after a protracted battle with other suitors like Marico.
Chandrika all through these years has been positioned as a traditional ayurvedic soap gifted by nature. The brand differentiates itself from other ayurvedic soaps with its 7 essential oils
Orange oil
Patchouli
Cinnamon leaf
Wild ginger
Sandalwood oil
Lime peel
and Coconut oil.
The brand boasts of being made from pure coconut oil which comprises of 70% of its ingredients.
Chandrika is a handmade soap which is 100 % vegetarian. The brand faces competition from the likes of Medimix and Jeeva together with host of natural soaps and its variants.
The brand has been promoted reasonably well through various media in South India, but the campaigns were ordinary . In the marketing front, Chandrika never was an aggressive player. I think that the company was happy with the sales and loyal customer base it had. Moreover ayurvedic soap market was small and was not growing enough to warrant a change in any of the marketing mix elements. The brand did not even bother to change the packing for a long time.

However 2000 saw a rejuvenation in the ayurvedic soap market. There was a sudden interest from consumers towards green products. Now the ayurvedic soap market is estimated to be Rs 227 crore( Businessline). The increased customer interest has bought in many new players in the ayurvedic soap market. New brands like Jeeva began aggressive promotion which forced older brands like Medimix to sharpen their marketing strategy. This market also made some big companies looking for acquiring brands to gain a foothold in the ayurvedic soap market.

The owners of Chandrika chose to sell out this brand than to fight the competition. The sale of Chandrika was a messy affair with legal battle between Marico and Wipro. At the end the war, Chandrika was acquired by Wipro. The one factor that made Chandrika attractive to suitors was its quality product properties. Wipro felt that Chandrika had qualities which are scalable to a national market.
There was a visible change in the brand after Wipro took over the marketing . Although
Wipro was careful not to tamper the product attributes, the brand changed the shape and packaging. Original Chandrika was in the cake form ( rectangular) while the market was moving towards the oval soap form . Chandrika changed to oval form and the packaging was made more contemporary. The oval shape helps the soap to dry quicker thereby lasts longer. These moves were of important significance because most of the time traditional brands fail because it does not change with times. Hence the first task of Wipro was to make the brand contemporary.
Along with the cosmetic changes , the brand was relaunched with a new positioning.
Watch the ad here : Chandrika
The challenge before Wipro was to make this traditional brand contemporary without losing its core values. The brand was stagnant hence had to attract new users especially the new generation. Then came the big idea. Chandrika took the two qualities : Natural and Exotic as its core brand values. Then came the challenge to communicate this values to the customers. The brand chose to use the brand imagery of a SPA to convey the new positioning. The big idea is to equate the bathing experience with Chandrika to an oil bath at a SPA.
The experience of a SPA is unknown to majority of Indian consumers. Most of use have seen it in TV but may not have visited a SPA. Hence the new equation with SPA takes this traditional brand to an aspirational level. In order to communicate this new positioning, the new ad had to have an ideal imagery. The agency chose the luxurious Pangkor Laut Spa Resort in Malaysia as its location for the ad.
Along with the new campaign , Chandrika also introduced a line extension - Chandrika Amrutham. The variant has an innovation in the form of an aromatic oil that comes with the soap. The soap and the oil opens the pores of the skin and gently cleanses the skin and thus creates a feeling of freshness. The brand which claims to have 18 herbs is positioned as a soap that gives complete freshness for body and mind. Although the variant sounds interesting, it has not clicked in the market because aromatherapy is not yet popular in India. Further the combination of soap and oil is new . But after reading about the variant, I feel that there is lot of potential for this variant if heavily promoted.

In the early nineties, the ayurvedic soap market was in shambles because of price offs and cheap products. A shift in consumer tastes has bought in more serious non- price attributes to gain importance in this market. Wipro has " applied thought " on this brand and the result is evident in way this brand is promoted. Within a few years, Wipro was able to rejuvenate this brand and made it more contemporary. The brand has already running a new campaign these days. Its happy to see a traditional brand morphing to a new young brand.

23 comments:

  1. Hi.. coolness is the word to be used for this product!! and yah.. Brand needs to be promoted heavily.. I've seen the Ad.. its pretty decent n neat!..

    & may be a well known "Star", brand ambassador will do it for Chandrika..( brand ambassador should be women).. why? coz i felt the name "chandrika" is more feminine .. I agree changing the name of a brand is a headache, moreover a brand which is not promoted well!!& so by any chance is it targeting only women and not men? i dnt think so.. :)
    I think people still use it coz its nominal and they still trust the product as its since 1940!! the word "AYURVEDIC" plays a great role too!! :)

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  2. Nowadays Ayurveda is of great demand and even popular among people in North India. People have a perception of 'freshness' when they think about Chandrika.
    Therefore they could also look forward to promote the products into more states in India...rather than focussing on southern part...Also they need to change the strategy that they are following to sustain the competition.

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  3. Anonymous11:49 PM

    I agree that chandrika is repositioning itself and it is trying to target the youth. changing from its old positioning of a traditional ayurvedic soap to a new age beauty soap with only vegetarian contents and ayurvedic properties is an excellent make over if it can able to get the new target customers by this.
    The problem with chandrika is it is always behind times. Catching up with times through product innovations was not seen all these years.
    The other problem is the name chandrika itself. It seems like a very old name and even new age mallu girls who knows the name means moon doen't care to try it out. They thinks it's their grand ma's soap, so why should they buy it??? And no body wants their faces like moons. it' a very old concept. they all wants their faces luk like film stars or models..
    that's the case in south india. If the company want to roll out the soap in other parts of the country it should definitely try to change the name. A brand new name that depects the ayurvedic properties and the present beauty concepts will definitely push its sales to a greater extent.

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  4. 'Chandrika' soap is certainly a product to reckon with with regard to ayurvedic products.The brand will surely but slowly reach its peak having been part of a strong corporate brand like 'Wipro'. Moreover,the company should further focus on buiding goodwill which the Chandrika brand has created for itself over the last six decades.Also the brand should stop competing with other high priced soaps in the FMCG segment and rather focus on building its own mark in the market with a state of differentiation.

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  5. Anonymous11:07 PM

    change of brand image is a difficult thing for the brand manager in toaday's competitive world. but in case of chandrika it is very essential as it has to survive in national market. As some bloggers have mentioned that the name "chandrika" sounds traditional but i believe it is it's USP. gals today are reviting back to grandma's secret to look
    beautiful and chandrika can take advantage of this thought of gals.

    the ads are not frequent on TV and it needs to be more agressive in its marketing strategy.

    i wish the brand a good look. To end my thought a "Change should be for good".

    By Subhrajeet jee

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  6. Sumi

    Chandrika should target other parts of India rather than focussing only on south India.It should change the name since the name 'chandrika'is very traditional and not accepted by the youth segment of today.Marketing strategies should be changed and should be more aggressive type. They can also go for 'Celebrity Endorsement' to promote the product better.Rather than concentrating only in ayurvedic properties it can also be positioned as a beuty soap which has an additional ayurvedic property.

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  7. Anonymous3:45 PM

    Face it or not…’AYURVEDA’ is back with a bang… and today every product ..right from cosmetics to health care -the green effect’ has played a major role in propagating the brand value of a product….Chandrika is no exception. Though initially the soap failed to change with time….the sudden take over by wipro coupled with the change in promotional measures has given chandrika a totally new face…
    By way of repositioning and adopting the new look… chandrika has effectively targeted today’s modern youth without compromising the traditional ‘ayruvedic touch’ of it..
    The improved package...the stylized model in the spa using the green soap. has not only changed the perception of seeing chandrika as the ‘soap for the old’ and attracted today’s youngsters ..but it has also consequently made the soap shoot up it’s sales by manifolds.
    Thus we can say that in the rat race today people are going back ‘ayurveda’ and chandrika with it’s powerful strategy of combining ‘traditional’ soap for the modern youth has hit the bull’s eye and is definitely here to stay….

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  8. chandrika, a well known ayurvedic soap with its immense success has proved that the power of herbs and natural oil can attract health concious people.It is even more effective as it uses a model instead of a film actress and emphasises on the fact that the herbal power of the soap can even make an average indian women look fresh and glamorous. The new ad campaign of the soap was made to give it a new look and convey the message to its customer that the soap is not only for traditional indian women but also for the modern indian women. The sucess that this brand has shown clearly points out the fact that if the product satisfies the consumer needs it can fight even fight against the major players in the market.

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  9. sanjay said
    The concept of ayurveda is very old to our country and everyone admires it but the problem is that almost all the ayurveda soap ads too focus in the same attributes like chandrika is doing. The valuable question is that where is it differentiated then??? The advertisement shown is more or less the same as other brands and I think wipro has hardly applied any thought to it because it is a very common method of advertisement for any ayurveda or even a normal soap that focuses on its attributes. The advertisement has the spa factor overshadowing tha brand as such. Because everyone knows what a spa is and a soap can never actually be equated to the skin care in a spa so the concept is dull indeed. It hardly attracts any attention or neither does it looks alluring. The advertisement should have been eye catching had it shown how an average Indian girl or woman has been benefited by using this soap rather than using some model who already looks beautiful and showing a location like Malaysia which is nothing but a wastage of fund. Any person after viewing this ad can say just one thing that this advertisement is a an expenditure and not an investment. And the concept of oils shall actually turn off the consumers having an oily skin.

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  10. Anonymous9:29 PM

    Chandreyi said
    Ayurveda (Science of Life), aims to promote perfect health by ensuring balance in all aspects of life. This word adds a sense of protection to our skin, body and mind.
    A pure, deep cleansing soap from Wipro made from vegetable oils and ayurvedic herbal extracts, with no chemicals or animal fats. It has the additional point of being ‘Highly recommended for problem skin.’ Along with other attributes, Chandrika Soap is free from any kind of animal fat or artificial additives. It is 100% natural and has never been tested on animals and has been trusted by millions of people for sixty years now. All these attributes nourishes the brand now with the 21st century selling approach of Wipro. Again the brand differentiates itself from other ayurvedic soaps with its 7 essential oils. Compared to other systems of medicine, this natural approach to health care caught appreciation of the world as safe and scientific.
    Even if we see the website of Chandrika, it gives a fresh feeling delivered with the colour ‘enchanting green’ or ‘lively green’. The brand has worked hard to rejuvenate itself and we can see the result. Wipro is capturing the target market by understanding the inclination of the people to green products again. This can be taken from any sense, catering to women whether house wives or working women who wants to look fresh and glowing all the time.
    The brand, its company, its selling strategy and its every move are really admirable from the point of view of a marketing student.

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  11. Anonymous10:44 PM

    avinash.....
    Despite being a quondam brand Crandrika has staggeringly clinched a impregnable position in contemporary soap segment.It has predominantly captured a substantial market share particularly in ayurvedic soap segment.
    But at the same point of time there are ample number of newfangled soaps in the market which allure the youth most.There are various snob lobby who don't prefer aurvedic soaps.No doubt that ayuveda has generated a kind of attraction in the minds of youth but still the concept/product has not become the article of faith.
    I do feel that in terms of a Brand and product Chandrika has done a commendable job but, when it comes in alluring the youth segment ;it would have to go a long mile ....

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  12. Anonymous11:06 PM

    I really like this soap brand though it has began its journey when the consumers were not aware that the ayurveda would be fruitful for them but it was the vision of Mr.C.R Kesavan Vaidyar who launch ayurveda soap successfully in the market but now era has been changed one would be successfull in the market only when it has right mix of marketing as you rightly pointed out in the brand analysis.In the early days adding 100% vegetarian was not as such a differentiating factor but now a day it has become a USP of the company to sell their products especially when we talk about personal care products that i think is one of the strong reason to opt for this product and it will lead chandrika in a niche market for particular segment.The brand could not change itself....may be because the company could not be having a positive cashflow to support it.

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  13. Rajesh Gupta.......

    I really like this soap brand though it has began its journey when the consumers were not aware that the ayurveda would be fruitful for them but it was the vision of Mr.C.R Kesavan Vaidyar who launch ayurveda soap successfully in the market but now era has been changed one would be successfull in the market only when it has right mix of marketing as you rightly pointed out in the brand analysis.In the early days adding 100% vegetarian was not as such a differentiating factor but now a day it has become a USP of the company to sell their products especially when we talk about personal care products that i think is one of the strong reason to opt for this product and it will lead chandrika in a niche market for particular segment.The brand could not change itself....may be because the company could not be having a positive cashflow to support it.

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  14. Taking into the consideration of "Chandrika soap" as a ayurvedic product,it has not that much successful in the market,because of i think very less number of customers like ayurvedic product.But to show its benefits it is essential to promote the product effectively.Brand name also matters while in the case of product differentiation.The name Chandrika i didnt hear before coming to Kerala.But i Know the name Wipro,hence i think if there will be a strong association between Wipro and Chandraka,then customer can feel the trustworthiness about the product,as Wipro has a strong brand value.If in a particular market like Kerala it is suessful,then they can focus to other market by showing the success story of this product.

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  15. Anonymous6:05 PM

    The ayurvedic market is definitely making the mark especially at this point of time when every one is becoming more health concious. This brand is worth Rs 31 crore (economic times 14 july 2007) and the ayurvedic market in india is worth 700 crore which makes one wonder there is definitely a long a head for the brand to travel.

    The brand was launched in 1940 and has been in existence for 67 years. i agree with you when you say it requires better promotional strategy. The soap clearly all the healthy ingredients for a person to believe that it is a quality soap however i think there is problem in its packaging. the brand name of course ,i believe, is no appealing so that to attract crowd from rest of the country other than south India. I think even if they would like to stick to the same brand name they should change their promotional strategy make it more in line with other big soap brands like lux though it does not fall in the category of lux.Afterall wipro is a big brand name and would not find it tough to rope in bollywood actors.

    the reason for me to belive this is that it has been very long time and now there is going to be huge competition in theis sector therefore chandrika has to revamp its strategies. I beleive it wont be tough for them to move a head faster because the crowd is already moving to the health concious zone and so this should be the perfect time.

    Akshatkumar kabra

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  16. Anonymous6:12 PM

    From being a life long resident of Kerala, the brand of soap called Chandrika is not at all alien to me as it would be to many!. Its true that from the earlier days on this particular brand has not been an aggressive advertiser of its product. I still remember seeing those tacky ads in local vernacular mags and TV. Its now nice to see this brand getting a make over and being promoted nationally. But now what I doubt is whether Wipro would be able to maintain the product attributes like being "HANDMADE"..etc intact when its trying to take this particular brand to a national level!..more over we also have to remember that "Chandrika" as a brand name is only known in South India while its a stranger to the rest of India.

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  17. Sanjeev Kumar......

    Chandrika is very famous brand in the southern region it has got different identity in the market as it was first ayurveda soap in the country. As far as the combination is concerned it is ingredients with lot of ayurvedic elements and 100% vegetarian. I as a management student believe that the above cited factor can make the all difference in the market place as its unique selling proposition as a niche marketer in the particular segment. As this brand was facing lot of competition issues regarding advertising and promotion which is consider to be very crucial factor for the success of the brand. I recommend this brand to promote in other part of the country.

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  18. Anonymous10:15 PM

    Chandrika is a excellent product in the ayurbedic soap segment.But i am not satisfied with the growth story of chandrika because it is a 67 years old brand but its presence is only confined within two states of south india.So in my opinion it is the time for chandrika to go for a national campaign and made it as a national brand.So for promotionit could take a famous old acterss like Rekha or Hemamilini,who all are still looking more beautuful even after crossing age of 50.I think they may fit for this type ayrbedic soap ad campaign.

    SANTOSH

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  19. Anonymous7:31 AM

    I am sure that both the original Chandrika soap as well as the new variant-Chandrika Amrutham, will thrive in the market. This will be possible only if the company comes up with some aggresive marketing strategies, provided it does not tamper the products' positioning. Wipro will also have to work harder in terms of more differentiation to face a strong contest from Palmolive products that already offers the attributes that Chandrika is now into: the Spa experience and Aroma Therapy. Palmolive offers three variants of Aroma Shower Gel - Sensual, Relax and Vitality; and two variants of Thermal Spa Body Wash - Firming and Massage. But these products are in a liquid form. I believe there are no soaps from Palmolive at present that offers these attributes. Thus, chandrika can capture this open space in the soap category. If these two products from Chandrika are aggresively advertised and promoted, the company will be able to have a strong foothold in the ayurvedic soap market.

    -Dhaval A.

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  20. Vishal B4:41 PM

    I have been using Chandrika soaps since 2001 and believe me i find it much better and way ahead than other soaps.

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  21. I think Medimix Ayurvedic soap from cholayil group is the best soap according to me because it has 18 herbs.


    http://www.cholayil.com/medimix-ayurvedic-herbal-soap.aspx

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  23. Chandrika is very good ayurvedic soap rich of essence of ayurvedic herbs and natural oil. Initially chandrika failed to attract youngsters and modern women of today but after Wipro’s acquisition new advertisement campaign of the soap has change scenario. Although being enrich of quality properties it’s previous owner could not capitalized on it, but Wipro new it can attract more customers on national level. Wipro changed its look and become successful in targeting youngster in its marketing campaign.

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