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HLL's buzzword for growth: Categorisation 

Namrata Singh  
Mumbai: The strategy behind Hindustan Lever's (HLL) aggressive brand introduction spree in deodorants-a nascent Rs 75 crore market-seems to be growth by categorisation.

Even as HLL has a strong brand in Rexona deodorant, being projected as the basic efficacy driver in protection, the multinational is not sitting pretty on a single brand portfolio. Instead, it rolled out Axe as an iconic youth brand for men in the age group of 16-21, early this year. Axe complemented Denim which is targeted at the more mature male.

That the multinational is not merely glancing at, but actually ogling the deodorant market with great interest is clear from the fact that after the hoarding-screaming launch of Axe, HLL has rolled out yet another international brand "Impulse". Impulse targets girls in the age group of 16-18 years.

The logic in introducing brands targeting each category-no matter how small in size the segment is today-is simple and understandable from what an industry observer has to say: ``Obviously HLL sees the deodorant category as one that will explode in terms of growth and prove to be a growth driver. HLL has established its presence at an early stage through heavy advertising and promotion, and this will pay off in the future as HLL is working towards maintaining its high market share even at a time when the category is big enough.''

Says Samsika Marketing Consultants CEO Jagdeep Kapoor: ``As the deodorant market evolves, you don't know which segment will grow faster. Thus it is imperative to have different brands targeting different segments. These segments can later be studied to identify the growth trends; to prune errors and concentrate on the growth points.''

In deodorants, HLL is doing just that. Brands are being perched on different segments with the primary aim of garnering maximum share in each segment of the market. The key word thus is to capture by categorisation.

According to HLL general marketing manager (deodorants) Vivek Mathur: ``The `smelling nice' area is largely driven by how you are being perceived by others. This awareness has dawned among consumers in a major way. It has led us to believe that there is immense potential for growth here.''

Consumer buying habits reveal that "fragrance" is the key attribute which a consumer seeks in the non-fragrance categories like soaps and skincare too. ``The deodorant market in the real sense was created only four years back. During this period it has grown to become a Rs 75-crore market-which is quite unexpected,'' says Mathur.

The need for a multiple brand strategy springs from the fact that the company has smelt the need to cater to the consumer segments driven by the `protection' and `attraction' factor.Unilever being the largest aerosol marketer becomes a crucial factor for the Indian subsidiary to perform a repeat act. At a 74 per cent market share, HLL leads the deodorants market with an aim to expanding it further through investing in brand launches and advertising. Pinning its hopes on Impulse, the company expects the brand to add a crucial 15 per cent share to its overall strength in a larger market, a year down the line.

To grow the market, the company is going all out to educate the consumer. ``For instance, the Rexona brand is being promoted on the efficacy platform. Through advertising, HLL is educating the consumer that this brand takes care of body odour "no matter what". Further, to inform them that in addition to the physical aspect of sweating being the cause of body odour, there is also an emotional aspect of sweating,'' says Mathur.

Unlike Axe, Impulse and Denim, Rexona cuts across all segments. In terms of pricing, Impulse is more affordably priced at Rs 80 for 75 ml, Rexona Rs 94 for 75 ml, Axe at Rs 119.50 and Denim at Rs 99.75. This creates a wide range of price points within the category. Says Kapoor -- ``When a market is surging, there are chances of new brands being launched. It is better to block the market at an early stage and corner the maximum share. HLL is pre-empting this by adopting a multiple brand strategy.'' The body odour market is expected to continue clocking a 40 per cent growth in the years ahead.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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