Mumbai :Godrej Sara Lee, which is the overall market leader in the Rs 500-crore household insecticides market, has taken over leadership position in the coils category of the market as well.Godrej Sara Lee's marketshare in the coils segment has increased to 37.7 per cent in value in November 2000, as per ORG All India (Urban plus Rural). The marketshare has been on the rise over the last three years since the company made an entry into the coils category. Godrej Sara Lee's marketshare has gone up from 17.9 per cent in November 1997, to 22.2 per cent in November 1998, and to 25.7 per cent in 1999.
Till the previous year, Reckitt & Colman's Mortein was the market leader in coils. The marketshare of Reckitt & Colman's Mortein coil has increased from 28.6 per cent in November 1997 to 35.9 per cent in November 2000.
Tortoise of Bombay Chemicals, which has traditionally led the coils market in India, has suffered a dent in marketshare from 35.4 per cent in November 1997, to 21 per cent in November 1999, to slump further to 11.2 per cent in November 2000, as per ORG estimates.
Interestingly, compared to the television spend of Reckitt & Colman at Rs 11 crore during April 2000-December 2000, Godrej Sara Lee's spend was lower at Rs 9.4 crore. The same was higher in the case of Godrej Sara Lee (Rs 8.5 crore) in the corresponding period last year against Reckitt & Colman's Rs 7.6 crore.
The total television expenditure on coils among the three major players had increased from Rs 17.8 crore in April 1998-March 1999, to Rs 35.4 crore in April 1999 to March 2000. There was a decline in the total expenditure to Rs 25.2 crore in April 2000-December 2000.
The growth in expenditure on advertising of the overall household insecticides market also is expected to slow down this year. The total expenditure on advertising stood at Rs 75 crore in 2000, and at Rs 50-60 crore in the previous year.
According to industry observers, the manufacturers are likely to bring about some correction in the growth levels of adspend in this category in order to bring about a marginal reduction in prices of products in absolute terms."The aim is to give the right proportion and value for money products to the consumer," says Godrej Sara Lee managing director Mr A Mahendran.
The industry has been impacted by its price-sensitive nature, which has dampened the consumer's willingness to purchase these products, point out industry analysts. A downward revision of prices will augur well for the overall growth of the industry, they say.
The household insecticides market is dominated by multinationals like Bayer, Lever Johnson and Reckitt & Colman and Sara Lee.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.