CHENNAI: FMCG major Henkel India plans to relaunch its detergent brand Henko to face growing competition. With product packaging acting as an instant salesman in new format stores, the company is betting big on its new brand positioning strategy.
“With competition hotting up in the detergent segment, we realised that our packaging is looking a little stale. Besides, our surveys revealed that consumers wanted both fragrance and stain removing ability in the product, but these were the primary requirements in the launch stage,” Henkel India vice-president, marketing and sales, Ranju K Mohan told ET.
But now, the company has worked on the formulations, as the idea is to offer better and more effective Henko Stain Champion. “The use of lighter blue colour is to make the product stand out of the shelf. It has a simpler and upfront story. The improved oxygen power formulation is an attempt to cater to this demand,” he added.
The Rs 6,000-odd crore detergent market is segmented into two product categories, namely powder and detergent bars. With sales picking up in both the segments due to a large number of modern retail stores gaining momentum, companies are betting big on visual merchandising.
On whether the company is scouting for a Henko brand ambassador, he said the demo-oriented campaign will have Bollywood actor Juhi Chawla for the northern market while Khusboo will endorse the brand in southern India.
“We are also looking at communication through activities,” he said, adding the commercial will soon go on air soon. The Rs 150-crore plus brand Henko has a significant presence in Andhra Pradesh, Kerala and Tamil Nadu.
Asked about the brand spend on the relaunch activity, he said the Henkel India would be spending over Rs 10 crore on this brand alone. Henkel India managing director A Satish Kumar said, “the company is looking at newer product categories and will soon enter the handwash category under 'Margo' brand.”
On raw material pricing and cost-cutting mechanisms, he said currently the raw material prices were stable and any increase would mean that the product prices will also shoot up. However, he said the company is further improving the supply chain management to cut cost and improve efficiency.