Chennai: The Calcutta-based Emami Limited is planning to expand its presence in the South. It has doubled the strength of its sales team in the South and is in the process of appointing 200 additional distributors in the region, taking its direct retail reach to 75,000 outlets in the four states from the present 30,000 outlets. The company has earmarked a marketing spend of Rs 15 crore in the four states.According to Mohan Goenka, director, Emami Limited, the company is focussing on the South as it is a major market for both talcum powder and fairness creams. Among themselves, the four southern states account for 50 per cent of the Rs 575-crore talcum powder market and around 45 per cent of the Rs 500-crore fairness cream market. The company expects sales of Rs 75 crore for the year ending March 2001 from South alone out of its targeted turnover of Rs 250 crore for the fiscal ending 2001.
Goenka was in Chennai to launch Emami Naturally Fair Herbal Fairness Talc, formulated after one-and-a-half year's research at Emami Herbal Research Centre in Calcutta. The company claims that this talc works from within, revitalises the skin and gives it a radiant glow. The talc has been formulated with six herbs-Aloe Vera, Chamomile, Licorice, Comfrey, Sandal and Spanish saffron-all with skin soothing and protection properties. An in-house study on 700 girls in eastern India was conducted to find the efficacy of the product.
The talc is available in 100 gm pack, priced at Rs 33. As an introductory offer, the company is giving a 15 ml pack of Emami Naturally Fair fairness cream free on purchase of every pack of talc. The company is spending Rs 1.5 crore out of its total promotional spend of Rs 3 crore for the new brand in the South alone. Apart from massive print and TV advertising, the company is planning many localised events, cross promos, free gifts and store displays in supermarkets like Foodworld and Nilgiris. It is also planning a `mystery visitor scheme' whereby the brand model Diya Mirza will visit any house in Hyderabad, Bangalore and Chennai. The house where the fairness talc is found would be rewarded with a gift hamper.
With this launch, the company is targeting an additional two per cent share of the talcum powder market, dominated by Ponds which has around 60 per cent of the market share, followed by Johnson & Johnson at 10 per cent. It's current range of Emami talcs-Golden Beauty and Odissi-account for 2.5 per cent of the market share.
However, it's prickly heat brand has seen a 250 per cent growth last year and accounts for 40 per cent of the Rs 100-crore prickly heat powder market.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.