New Delhi: With an eye on expanding its consumer base in the price sensitive Indian market, Amway India is all set to remove its high price stigma with the launch of an all new low-priced `made-in-India' brand-Persona.``Persona has been developed in India for Indians at Indian prices,''Amway India's managing director & CEO William S Pinckney told The Financial Express in his first interview after taking over from the outgoing head Sudershan Banerjee.Starting with the launch of a toothbrush priced at Rs 25, the Persona brand-which will be rolled out to the distributors in June-will consist of a range of other low-priced products. The lowest price point in Amway's product portfolio, so far, was Rs 99. The toothbrush, incidentally, will be launched in a set of four-targeting a small family-at Rs 99. Other products such as a family bar soap and male grooming products will be added to the range, later this year.
Significantly, this is the first time Amway has developed a local brand in the company's operations worldwide. ``We've redefined our marketing focus. Apart from bringing in global brands, the key focus will be to develop local brands,'' Pinckney said . In the long term, Amway India also plans joint ventures with big brands for their distribution in the country.
Strategically, Persona-though not specifically targeted at low-income groups-has been brought in to act as a low-entry acquisition point. ``It's a door opener,'' Pinckney said. Positioned as a high quality product at a competitive price, Persona's brand promise is: delivering on all performance criteria at an affordable price point. According to Pinckney, Amway with its existing product range has succeeded in the value-for-money proposition without any compromise on quality parameters.
The Persona range, insisted Pinckney ``will be brought in to complement and not to compete with our existing Amway range.'' At present, Amway India's product portfolio comprises 18 products in the personal care category and the home care category. Incidentally, the launch of Persona is not the first attempt by the direct selling company to achieve deeper penetration. Early last year, Amway India attempted to change the rules of the direct selling industry with the launch of its shampoo-Satinque 2-in-1 shampoo and conditioner-in 4ml sachets, again marking a global first for Amway India among the company's operations worldwide.
...Ready to enter new categories
Come September and Amway India will dabble in two new product categories-nutrition and wellness and cosmetics-with its two global brands Nutralite and Artistry, respectively. The company is already present in the personal care and home care categories. The first product to be launched under the Nutralite range will be a protein powder to be followed by the launch of three herbal dietary supplements.
Initially, the company plans to import the products and will consider manufacturing these in India in the year 2001. However, it will be interesting to see how the company builds up the brand and creates a unique positioning in an overcrowded health food and nutrition market.
In January 2001, Amway India plans to enter the cosmetics market with its premium brand Artistry. To start with, the company will establish a niche for its brand with the launch of specialised products such as advanced daily eye-care cream, whitening essence, time defiance night cream and lotion. Having done that, Amway plans to launch its skin care and colour cosmetics range.
In personal care, Amway has a number of product launches lined up for this year including a prewash spray (will compete with Reckitt & Colman's Cuff-n-collar), a leather refurbishing product and a puff up furniture polish. Besides, it will also introduce its highly popular car wash in 5ml sachets. The company has earmarked an ambitious growth plan: it is expecting a 100 per cent growth in turnover-from Rs 100 crore to Rs 200 crore-during the current year. It also hopes to start making profits this current year. The company has invested over Rs 150 crore so far in the Indian operations.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.