VICKS VAPORUB - MOTHER’S TOUCH THERAPY: A CASE STUDY
FMHG industry in India is worth around `4500 crores. This market is dominated by products like Rubs & Balms, medicated skin treatments, cough syrup and drops, digestives and health. Vicks is a leading brand in the Fast Moving Health goods (FMHG). An exceptionally trusted brand - generations and generations of cold sufferers have used it for almost 100 years. Recognized all around the world - Vicks is available in more than 66 countries. Globally Vicks brand is worth around `3000 crores. Vicks commands a market share of over 60% in the cold balm/rub category1.Vicks is the 25th most trusted brand in India2. .Yes, there are some controversies regarding usage of vicks vaporub but there is no doubt that it is the no 1 cough & cold brand in India. The case study basically focuses on market position of Vicksvaporub. It describes the reasons for Vicks Vaporub to be a no 1 brand in cold rub market & the controversies regarding it. Some brands are not easy to forget. They setup in the minds of customers in such a way that as the related problem comes, immediately they strike in mind. There are number of examples, Like Vicks (for cold & winter), Itch guard (for heel cracking), Johnson & Johnson (Baby products), All-out/Good night (Mosquitoes) etc. As such above problem we face, the related product immediately strike in our mind. It is not that these products do not have competitors, but actually they have a very strong position in the market & it is not easy to wash these products from public mind & one among them is Vicks Vaporub, a very strong brand in cold rub market. VICKS VAPORUB: BETTER THAN ANY COLD RUB EVER USED
icks was launched in 1890 as Vicks Corp and Pneumonia Salve for babies by Lunsford Richardson in North Carolina. . In 1918, the brand become famous as the world was suffering from enfluanja, that prove to be a big dream for the company & its demand increased so much that the company was not able to meet market demand even after the company started to work 24 hours. It was entered in India in 1951. In 1964, a public limited company, Richardson Hindustan Limited (RHL) was formed which obtained an industrial licensed to undertake manufacture of menthol & peppermint oil, the main elements of vicks vaporub. Vicks vaporub is colourless, but it is blue. The blue container means that the main colour for the vaporub thing is blue, but the rest of the vaporub in it dilutes the blue. Basically the blue colour represents spituality, peace & happiness. Vicks is India’s No.1 Cough & Cold Brand. In the pain balm segment, the company faces tough competition from Zandu Balm. But now the overall balm market (including cold) is dominated by Vicks. Vicks commands a market share of over 60% in the cold balm/rub category. Vicks VapoRub has been the market leader in the vaporub industry in India for long. It has ensured that competition does not creep up by considerably reducing its cost of marketing and distribution. However, there is still a considerable share of the market that needs to be tapped by the company. In 2009-10 the company P&G earned revenue of (in healthcare business) at `381 crores (vs. last years `344 crores) posted a growth of 11% this year across Vicks VapoRub, Vicks Cough Drops, Vicks Action 500 and Vicks Inhaler3. Vicks VapoRub had a record year posting the highest ever market share. The growth in the brand was driven primarily through continued focus and augmented media spends on the successful blanket of warmth advertising and on our ongoing strategy of upsizing consumers to drive consumption - viz. the timely promotions on jars which help in encouraging consumers to purchase larger packs. “NO WINTER MEAN NO VICKS”
The total business of Vicks Vaporub depends upon the winter season. If there is no winter, there is no requirement of any product of Vicks. The brand focus on special features, always prove to...
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