Godrej Consumer mulls greenfield soap brands

Godrej Consumer mulls greenfield soap brands

Author | Source: The Economic Times | Thursday, Jul 27,2006 7:16 AM

Godrej Consumer mulls greenfield soap brands

Looking at baby care, glycerine, healthcare segments

Growth plans

* The company mulls stretching Evita to new formats such as face creams.

* Fair Glow might get extended into a face wash and a liquid hand wash.

* Might stretch the existing soap brands into shampoos.

Tapping into new soap segments, Godrej Consumer Products (GCPL) intends launching soap brands in areas it is not already present in.

The FMCG major is mulling the possibility of getting into segments such as baby care, glycerine and healthcare.

Dr R.K. Sinha, Executive Vice-President - Marketing and Operations, GCPL, told Business Line, "We are absent in certain segments in the soaps category. Now we are considering greenfield brands and all efforts are being made to enter these new segments."

Considering the Rs 4,800-crore soaps segment continues to grow at 4 per cent with GCPL itself growing at more than 20 per cent in this category, there are plans to unleash new brands in different segments in this category.

Combination of brands

In the past, the company had launched an ayurvedic brand - Nimin - but has now decided to restrict the brand to certain States.

However, in spite of Nimin failing, Godrej decided to launch yet another new brand - Evita in the non-existing anti-aging segment of soaps. "Our strategy is to have a combination of brands to tap into new and existing segments within the soaps category."

While it is still early days for Evita to register significant volumes, the company is mulling over the possibility of stretching it to new formats such as face creams. At the same time, its existing skin care soap brand - Fair Glow - in spite of failing as a fairness cream might get extended into a face wash and a liquid hand wash.

Meanwhile, the company's decision to enter new segments such as glycerine and baby soaps is not expected to lead it to stretching the equity of its existing brands into this arena. Considering it already has babycare brand of diapers - Snuggy, in its portfolio, there are no intentions of stretching the brand to a soap format.

Explains Mr Sinha, "Snuggy will not work out as a baby care soap since the consumers cannot think of consuming a diaper brand in soap format."

While stretching its existing brands may not work in the soaps category, GCPL has kept it mind the strength of the equity of it soap brands as and when it decides to get into new categories such as shampoos.

Adds Mr Sinha, "Depending on the kind of proposition of our soap brands, there is a better chance of stretching our existing soap brands into shampoos, a segment which is already on our radar."

Dish wash

Meanwhile, GCPL is strengthening its portfolio in the dish wash category. It has decided to launch yet another brand - Glossy, to take advantage of the growing liquid dish wash category which already has established brands such as Vim (HLL) and Pril (Henkel).

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