Margo:lost in the Neem trees !

Brand : Margo
Company: Henkel
Agency: FCB Ulka


Margo is one of the oldest herbal soaps in India. The brand which is more than 85 years old is famous for its neem content. The product although famous for its positive effects to the skin is nowhere in the market. This is a brand which never changed with the customer. During its launch, the product had dedicated customer base and since the product was unique due to its medicinal value , customers tend to be loyal. The whole brand was having Neem as its core identity.

But Margo failed to understand the changing dynamics of Indian consumers, more and more choices began to unfold before the consumer and Margo was becoming a niche brand. Margo was positioned as a "complete skin care soap". When market became fragmented with lot of products positioning at different attributes, Margo was sidelined as a medicinal soap.

The product has inherent negatives, the fragrant was not attractive nor the shape. It was also less lathering compared to its competitors. Margo changed hands from Shaw Wallace to Henkel. Although Margo was relaunched in 2003 with a new fragrance and shape , it has not excited the market so far. The new positioning is " Margo skin clear skin". The brand had a following in AP, Tamilnadu and West Bengal ( am not sure about its present status). The single mistake the brand made was to miss the new generation. It failed to attract the young users.

With Lifebouy herbal variant and other established brands taking in the "neem" content away from Margo, this brand needs a hell lot of money to rejuvenate itself. May be a high decibel big celebrity endorsement may help this brand ( try Aishwarya for a change) . Can it change its avatar and fight lifebuoy in the health platform?

This is a brand that failed to change with the customer or changed very late.

Brand Update : Margo

Margo is set for a new life. The India's heritage brand is getting a brand ambassador in Rani Mukharjee. According to news reports, the Bollywood diva is set to breathe a fresh air into this brand.
In my blogpost on Margo two years back, I had recommended some heavy duty celebrity endorsement for the brand. Glad that it is happening .

Margo, which was in existence even in 1920s , derives its strength in the neem formula. But over these years, the brand failed to keep itself relevant to the changing consumers. But still the brand is popular in West Bengal and Tamilnadu.

The brand is now not in the radar of the new generation . The endorsement of Rani will increase the brand recognition among the target audience. According to reports, Margo is not changing its formulation and is being positioned on the Neem attribute.

But the brand may have to work on the fragrance. Without losing the neem essence, the brand may have to make the fragrance more attractive to the new consumers. The ads for Margo is yet to be aired , so I am not sure about the new positioning of this soap.
There is a silver lining for this brand. The soap market in India is increasingly cluttered and consumers to an extent is overloaded with new attributes and variants. In such a case, the common tendency of consumers is to look for a simple easy solution. Margo with its neem attribute can very well take that space.

Related Brand

Margo

Image courtesy : Sify

Brand Update :Margo

It has been a long time since I wrote about Margo. Margo was virtually silent all these years and I even thought that the brand was dead. Recently I was pleasantly surprised to see a television commercial for Margo. In the article I had recommended that the brand should take the help of a celebrity.

One of my readers had earlier pointed out that the brand had roped in Rani Mukherjee as the brand ambassador . It was the first time that I saw the ad of Margo featuring Rani.

Watch the commercial here : Margo TVC

I am not sure whether this is an old TVC . Reports suggest that Rani Mukharjee was roped in as brand ambassador in 2008.

I am glad that Margo is trying again for a comeback. I also appreciate the fact that the brand is relying on its heritage and the core advantage of " Neem " ingredient.
Margo faces two issues in this relaunch attempt. First is the product qualities. Margo is well known for its " Pungent Smell " and non-lathering properties. That perception is still there in the market. Hence the task for the brand is to change the product by changing fragrance and making it lather more. I have not used the new Margo , hence could not comment on the product features.

The second issue is with regard to the celebrity. Rani is not at her career best and that can have some negative influence on the current brand efforts. How ever, the fortunes of these bollywood celebrities are highly unpredictable. I had earlier commented that Aishwarya Roy is a better choice of a brand endorser than Kathrina Kaif. Further events have proved me wrong and now Kathrina Kaif is a hot property.

The message in the current Margo relaunch is also laudable. The brand is taking the risk of being branded as Mama's brand . The campaign is making this as the USP and banking on its heritage.

In a smart move, the brand has launched a Rs 5 sample pack which will enable lot of sampling for the brand. If the brand is able to prove its worth, Margo will once again will be on the growth path.

Let us wait and watch the response of consumers to the current relaunch.
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Margo