Margo Strategies

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Margo’s Strategies to Attract Customers: Failure to Understand Changing Customers In the herbal soaps category, Margo is a brand which is more than 85 years old. The product has neem features and is unique due to its medicinal value which led to the development of dedicated customer base. It has gained great positive results, but few years back, it saw a decline in its sales. The failure to understand the changing Indian demographics and their tastes led to Margo’s failure. When it was successful, it was considered as the “Complete Skin Care Soap.” But, the increasing soap choices, different soap features have sidelined Margo as a medicinal soap. It became as an irregular product because of its medicinal features and demanded only when it is required. The competitor soap’s came with new features such as different fragrances, shapes, more leather content, medicinal herbs. Margo lacked in fragrance, shape, and lather content. The reason for collapse of the brand was that it failed to attract the young users. It remained same for years and never changed with the changing customer and marketing environment. In 2003, Margo re-launched with new fragrance and shape. It targeted a younger age group aged between 20-25 years. It generated more lather and stuck to neem as the core ingredient. The marketers wanted to change the mindset of the customers by positioning it as a regular brand. The promotional campaign depicted a young woman communicating that the secret of her good looks is using Margo regularly. The tagline changed from “Complete Skincare” to “Margo skin, clear skin.” But still, it failed to regain its image. In 2008, it used a popular celebrity, bollywood actress, Rani Mukherjee, to endorse its product. According to the marketers, the use of celebrity helps the brand to reach greater heights. But still, Margo was considered as an irregular product and thus, was unable to capture the major Indian market, though it is a strong player in regions, such as...
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