Monday, 11 August 2014

Competition & Industry:



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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