Key Competitor:
Savlon:
It is the
key competitor in the antiseptic liquid market. It was launched with the
“no sting in savlon” campaign. It attempted to attract the consumers toward
itself with the promise of 'no-sting'. However, the strategy did not fare well with the customers and hence the brand’s share has remained stagnant over the years.
Savlon was launched in India by Johnson & Johnson in
1993 after it had acquired the brand from the pharmaceutical company ICI Ltd.
As an antiseptic liquid, it had numerous advantages over Dettol, for instance - better scent and non-stinging properties, and backing of a brand name like that of Johnson
& Johnson.
Savlon was positioned as an antiseptic that does not hurt
while healing, the main differentiator from Dettol being its non-stinging property and a
better odour. Initially, the launch was a success and attracted consumers to try out the new
product. But, after the initial phase,
Johnson & Johnson failed to nurture the brand.
Industry:
The Indian customers, accustomed to
using Dettol, considered the sting of the product as a proof of the fact that
it was killing germs. Savlon lacked the sting, and hence in the customer’s
mind, was ineffective. Savlon failed to break this mental barrier linking
stinging sensation to effectiveness, and the customers refused to adopt it over
the tried and tested Dettol. In the Industry structure Dettol still stands as the market leader with 80 % market share.
The success factors
for Dettol are listed below:-
1. First to enter the
market
2. Product
Diversification
3. Customer Loyalty
4. Continuous Innovation
5. Constant faith in the protection received.
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