Moov- Backache Baadshah

Dr Amit Rangnekar
NMIMS
 Paras Pharmaceutical Prods
 Estd 1959 by N A Patel, initial investment Rs 7000
 Shifted HQ to Ahmedabad in 1984

ar
 Stopache, only moderately successful product then

ek
n
 Unerringly located consumer’s pulse time & again

g
preferences
a n
 Innate gut feel for consumer’s requirements &

it R
 Current Chairman Girish Patel’s (GP) favourite

A m
spare time activity- To sit behind chemist counters
incognito & get hands-on feedback from
r
consumers.
D
July07 Dr Amit Rangnekar NMIMS
Current Status
 5P strategy- product, price, positioning,
ar
packaging & promotion
 “Most Paras products have been formulated
ek
based on the perceived needs and requirements
g n
of the common man” GP
a n
it R
 2006- 23% stake taken by Actis, Valuation of
Paras Pharma- Rs 750 crores,

A m
 No 3 Indian company in FMCG (Nirma, Dabur)

D r
 D’Cold, Itchguard, Crack, Dermicool, Livon - all
blockbusters
 2004- Moov 60 Crores, growing and with a
national presence
July07 Dr Amit Rangnekar NMIMS
Moov

 Moov launched in 1986

 Objective- Establish a national presence for PPL
ar
 Innovation- Moov rewrote the rules of the game
ek
by packaging in a contemporary, international
g n
a n
pack - a tube with a carton – and a feminine
colour to appeal to the Indian woman.

it R
A m
D r
July07 Dr Amit Rangnekar NMIMS
'Rubs' or 'Balms' Market

 Rubs and balms market in India Rs 470 Cr

ar
(ORG 2003).
ek
 Mid 1980s- Iodex, Amrutanjan, Zandu, Relaxyl
g n
dominate
a n
it R
 Positioning of top brands- as Multipurpose
products
A m
D r
July07 Dr Amit Rangnekar NMIMS
Research findings
 13% of Indian homes resort to 'Rubs' or 'Balms'
ar
 Majority of body aches- related to the back
ek
 Women more prone to backache
g n
a n
 Lower backache suffering- perpetual

it R
 People ignore backaches - believing it would go
away automatically
A m
 but backaches almost always return with more

D r
aggravating pain

July07 Dr Amit Rangnekar NMIMS

Moov- Strategy
 Vision- Ensure presence in every Indian home,
serve as a true friend
 Segment- Pain
ar
 Target segment- Backpain
ek
 Target audience- The middle-class Indian
g n
housewife
a n
it R
 Rationale- Decision-maker, key influencer

m
 Positioning- Focus, than follow the leader

A
 Occupy the vacant position- Backache
r
D
 Position as- 'The Backache Specialist‘
 Differentiation- Lamitube, Stain free, Counter-
irritant, More for same
July07 Dr Amit Rangnekar NMIMS
Promotion
 Invest in creating awareness about seriousness
ar
of backaches
ek
 Focus on the 'backache specialist‘
g n
a n
 1993- Advertising re-launch established it firmly

it R
as the backache specialist

m
 1997- Consolidation leadership
A
D r
 Consumer research into aches, pains & the
emotional trauma helped redefine & reposition in
sync with the changing times
July07 Dr Amit Rangnekar NMIMS
Result
 Niche backache market, grown into a major
ar
segment
ek
 Synonymous with relief from backache
g n
n
 Enjoys a sense of belonging with the Housewife
a
it R
 People reach out for Moov when pain strikes
 Acceptability led to extension into men’s segment

A m
 Moov grew by over 4000% (40 times), from MS of

D r
0.3% (1988) to 2%(1993) to 9% (1997) to
11%(1999) to 12%(2001) to13% (2004)
 Exports to 20 countries across the world
July07 Dr Amit Rangnekar NMIMS
Late 1990s
 Moov, perceived by consumers as a leader
ar
 Need to broaden its consumer base, without
diluting the ‘backache’ focus ek
 1999- Identify target consumer groups through
g n
research
a n
it R
 Gather further insights into the Indian housewife
& deepen understanding of its core consumer
A m
 Focus- Physically active adult

D r
July07 Dr Amit Rangnekar NMIMS
Moov 5 gm economy pack (2000)

 Concerns- Low household category penetration

ar
 Increase penetration to access large section of
society ek
g n
 Reach- Availability with 95% chemists nationally
including micro interiors
a n
it R
 2 years post launch, 18 million units of 5 gms
pack sold
A m
D r
July07 Dr Amit Rangnekar NMIMS
 2001
 Target- The physically active adult, but retain
the housewife as core
ar
 Research- fresh insights on a housewife’s
ek
values, routine, dreams, unmet needs
g n
a n
 New brand positioning- Strengthen the
housewife bond by becoming her inner voice

it R
 Research finding- Backaches driven by

m
 Sedentary & stressful lifestyles
A
D r
 Faulty postures while sleeping / riding bikes/
driving/ accessing computers
 State of the roads
 Backaches afflict all at some point in time
July07 Dr Amit Rangnekar NMIMS
 Advt
 'Rama ki aah' set in
ar
a joint family set-up,
ek
dramatised a
g n
a n
housewife’s tireless
it R
commitment

A m
towards her highly

D r dependent family

July07 Dr Amit Rangnekar NMIMS

 Moov spray (2002)

a r
2002- Moov spray (aerosol) launchedk

ne
 Communication target- Male
n g
'Jab koi na ho saath' Ra
 Exploited the occasion-based usage positioning-

i t and unattended, self

m
(When you are alone


r A
application of an ointment is inconvenient'),

D
Help overcome sense of helplessness, enhance

brand image
 Perceived as instant relief
 1 million cans in 2 years
July07 Dr Amit Rangnekar NMIMS
 2002
 Established Moov as a
means to reunite the
ar
family & an indispensable
ek
remedy for her backache
g n
‘Indispensable' captured
a n
in a new tagline,
it
 “Aapke ghar mein kaunR
rehta hai?”
A m
D r
Kamardard ya Moov?'
 (Who lives in your house?
Backache or Moov?)
 The communication graduated Moov from a pain
reliever to a housewife's soul mate
July07 Dr Amit Rangnekar NMIMS
2002

 Moov- synonymous with relief from backaches

ar
 Research revealed infrequent usage among
current users as women often tolerated ek
backaches
g n
a n
 Strategy- Make Moov a regular habit

it R
 Link communication to relief & rest and
encourage consumers to use Moov often
A m
D r
July07 Dr Amit Rangnekar NMIMS
2003

 Research revealed housewives using Moov on

ar
more occasions than earlier
 One pack of Moov sold every second
ek
g
 If all 25 gm packs of Moov sold since inceptionn
a n
were placed one on top of the other, they would

it R
be 1,935 times the height of Mount Everest
 The total tonnage of Moov sold to date is

A m
equivalent to the weight of twelve Boeing 747s

D r
 The total number of Moov packs sold to date
would cover the earth's diameter more than twice

July07 Dr Amit Rangnekar NMIMS

 Product

 Estimates- Between 50-80% of the world's

ar
population suffer from backache
 Backache, probably the most frequent cause for
ek
g n
discomfort & if left untreated, could become chronic
a n
 Specialised 100% ayurvedic medicine

it R
 Active ingredients- Oil of wintergreen, tarpin oil,
nilgiri oil & mint flowers to provide a 'soothing
A m
warmth' to relieve pain

D r
 Differentiate through innovation & packaging
 Range- 25gm regular pack,15gm up-graders pack,
50gm family pack for joint families, 5gm economy
pack, Moov spray
July07 Dr Amit Rangnekar NMIMS
 Promotion

ar
k
1993- Each element of brand & communication mix defined to

deliver a credible relief process
ne
g
 'Aah se aha tak', ('from pain to relief)

the relief process a n

 1997 Research- Consumers considered heat as integral to

it R
 Positioning- 'Chain ki garmahat' (soothing warmth)

A m
 Communication- slice-of-life situations
 One woman's brand conviction converts another to use

D r
 Highlight ‘non-staining’ as benefit in separate communication
 Incur large ad spends (50 crore / 20%+)
 Shrewd media buying
 Aggressive TV advertising, based on market research, & a
deep understanding of consumer
July07 behaviour
Dr Amit Rangnekar NMIMS
Branding
 Invest in branding, keep introducing new brands
 Effectively use key research insights on target
segment, consumers, trade & competition
ar
 Focused communication created brand loyal
ek
housewives in a market with fickle loyalties
g n
a n
 Illustrated how OTC brands can be built and
sustained through advertising where speed and
it R
agility lead to competitive advantage, and not size
and reputation
A m
D r
July07 Dr Amit Rangnekar NMIMS
Place
 Factory to depots (every state) to wholesalers
ar
/stockists to retailers, primarily chemists
e
 "Expanding coverage to grocery outlets / malls isk
crucial, otherwise there will be considerable
g n
a n
wastage in advertising“ Darshan Patel

it R
 1,200 additional stockists to broaden distribution
coverage in interior markets

A m
 Salesmen recruited to directly book orders from

D r
grocery shops to expand channel coverage
 2004- Reach of 700,000 retailers

July07 Dr Amit Rangnekar NMIMS

Packaging
 Innovative packaging- Lamitubes, 5gm
ar
 Focus on value, convenience and choice
ek
g
 Paras has successfully fought the onslaught of
n
a n
the market majors and emerged as a significant
R
player by investing in packaging innovation
it
A m
D r
July07 Dr Amit Rangnekar NMIMS
 Positioning Insights
3 pronged positioning approach
 Focus on key segment- Positioned as back pain
reliever, not for general pain
ar
 “Iodex & Boroline lost out on their market shares
ek
g n
essentially due to the complacency that had crept into
their marketing. Iodex introduced many new products
a n
worldwide, but in India continued as the smelly black
pain balm for years” GP
it R
 Offer better solutions than existing- specialised back

A m
pain relief in a non-messy and non-staining tube

D r
 “There is never a perfect solution, there can only be a
better one, which we strive to perfect” GP
 Value for money: “More for the same price” a strategy
followed with remarkable success
 Moov priced competitively but provided more quantity-
July07 Dr Amit Rangnekar NMIMS
 Differentiation
 Moov non-stain lami-tube cream forced Iodex (SKB)
to change decades-old avtaar of the gooey black pain
ar
k
balm, in an unattractive black bottle packaging to the
e
natty, happening- Iodex Power Cream
g n
a n
 Boroline (GD Pharma) the antiseptic skin cream
leader, a sticky formulation that detered regular use.

it R
Non-sticky BoroSoft & BoroNatural creams, leaders

A m
 Nycil’s medical plank-‘bacteria cause prickly heat’,
positioned as a long term cure, but research showed

D r
consumers looked for "instant relief“. DermiCool
positioned as a powder that offered instant relief thro
a perceptible cooling sensation

July07 Dr Amit Rangnekar NMIMS

Differentiation
 Krack cream introduced for burns but
ar
repositioned for cracked heels. Research
showed women had high tolerance levels ek
and used Krack only when the cracks g n
a n
bled. Advertising changed to a preventive
it R
approach and volumes increased. By
2004, the prefered choice
A m
 Vicks range increased prices and became

D r
unaffordable. D’Cold launched at the
same price but with more quantity.

July07 Dr Amit Rangnekar NMIMS

Moov- Brand Values
 Brand identity- Reliable family friend
ar
 Core brand value of an 'up-lifter‘
ek
 Functional value proposition- relief
g n
a n
 Emotional value proposition- trusted & dependable

it R
 Economic value proposition- more for less

A m
 Social driver- elevating the Indian housewife’s

r
current status
D
July07 Dr Amit Rangnekar NMIMS
Critical Success Factors (CSF)
 Successfully & innovatively tapped the potential of
ar
ayurveda through extensive R&D
 Research focus- Consumer pulse
ek
 Innovative packaging
g n
a n
 Product delivered on the promise of desired relief

it R
 Projected as a part and parcel of daily active life,

A m
reassuring users that an effective & immediate
pain-reliever was always within reach

D r
 Focused on backaches as specialist, others
addressed general body sprains, pains, aches
 The most preferred remedy for backaches,
extended to pains
July07 Dr Amit Rangnekar NMIMS
Quotes
 Paras CMD Girish Patel: "We've chosen
ar
markets where there is a strong no. 1 but no
strong no. 2“
ek
 HLL Executive, "Here's a marketing company
g n
a n
that really understands the Indian consumer

it R
market. Their ability to exploit niches is quite
fascinating. It's a reasonably simple formula for
m
success but surprisingly hard to imitate “
A
D r
 “OTC medicine marketers like Paras enjoy
higher profitability margins: 15-18% compared to
about 8-10% in ethical drugs” Dabur Executive

July07 Dr Amit Rangnekar NMIMS

Failures
 Stopache cream balm
ar
 Winter Shield, a petroleum jelly substitute
ek
 Freshia
g n
 D’Cold Clear
a n
it R
A m
D r
July07 Dr Amit Rangnekar NMIMS
2007
 1- Minute, Moov ki Maalish
ar
 From relief to preventive relief
ek
g n
n
 Increase use (from pain to prevention)
a
R
 Increase users (focus on family)
it
m
 Increase usage (from 1 finger tip-full move
A
r
to 10 finger tips-full maalish)
D
July07 Dr Amit Rangnekar NMIMS