MOSQUITO REPELLENT INDUSTRY- OVERVIEW

Its sole reason for existence in the market is the omnipresent

mosquito, which makes life excruciatingly difficult for the average
Indian during summer and monsoon months. In many ways the
primary factor fuelling the explosive growth of this market –
characterized by low brand loyalty and low product involvement –
has been the availability of cost-effective, mosquito repellents.

The night-long noisy drone of mosquitoes that disturbs our sleep is

music to the ears of the Rs1, 100-crore mosquito repellent industry.
The various segments in this industry are coils, mats, vaporizers,
aerosols and creams. The two new segments are personal sprays and
gels.

The category-wise market shares:

Coils command nearly 50 per cent of the market share, vaporizer refills
at 20 per cent, with mats at 10 per cent followed by aerosols at 9 per
cent and the rest shared by creams, heating devices and other
products.

Segment Wise Market Share

The market for insecticides and repellents has grown by 20 per cent in
2003-04 and is estimated to grow at about 20%. The rural market for
mosquito repellents is reckoned at around Rs 173 million against a
mere Rs 79 million in urban centers. The market leader of the industry
is Godrej Sara Lee Ltd. with brands like Good Knight, Jet and Hit
enjoying a market share of 40%
THE EVOLUTION:

Coils were the first mosquito repellants to be introduced in the Indian

market. The first brand of coils was Tortoise, launched by Bombay
Chemicals Ltd. (BCL) in the 1970s. In the 1980s Good Knight was
launched and mats used with electronic mosquito destroyers became
extremely effective. In the mid 1990s Karamchand Appliances created
a new segment of vaporizers with the launch of All Out. .This segment
was almost completely dominated by KAPL. GSLL (Godrej Sara Lee
Limited) could no longer ignore this growing segment and launched its
own vaporizer under the Good Knight brand in 1996-97.

In the latter half of the 1990s, the market became much more
competitive, with the entry of GSLL, Reckitt Benckiser and HLL. GSLL
launched an array of brands (all coils) like Jet Fighter (1997),
GoodKnight Jumbo (1999) and GoodKnight Instant one after the other
The company's other brands included Banish (mats), Hit (aerosols), Hit
Lines (chalks), Mosfree (lotion) and Hexit (spray).while Reckitt also
launched its range of mats and coils. These new entrants resorted to
heavy advertising and aggressive sales promotion tactics. Recently
two new categories of personal sprays and gels have emerged.

MAJOR PLAYERS

KARAMCHAND APPLIANCES PRIVATE LTD. – ALL OUT

GODREJ SARA LEE LTD- GOOD NIGHT, JET, BANISH, HIT

RECKITT BENCKISER- MORTEIN

JYOTHY LABORATORIES- MAXO

TAINWALA PERSONAL CARE PRODUCTS- CASPER

BOMBAY CHEMICALS- TORTOISE

COMPANY’S SHARE SEGMENT WISE

 Mosquito coil market:

Market leader: Mortein (35%) from Reckitt Benckiser India Ltd
Market Challenger: Good Knight with a share of 30%
Market Follower: Maxo from Jyothy Laboratories' is rapidly
increasing its share.

 Vaporizer refill market:

Market leader: All Out brand from Karamchand Appliances Pvt Ltd.
(65%)
Market Challenger: Good Knight and Jet from Godrej Sara Lee Ltd.
together account for 24% of the vaporizer segment.
Market Follower: Mortein Vaporizer by Reckitt Benckiser has a
market share of about 5-7%.

 Mats and aerosol categories:

Market leader: Godrej Sara Lee leads the market with its brands
Good Knight Silver mat (68%) in mats and Hit (aerosol).

Market Follower: Mortein’s share in mats is estimated at roughly

15%.
KARAMCHAND APPLIANCES PRIVATE LTD.
ALLOUT

The name All Out is almost a generic name for Liquid Vaporizers
(vaporizers), a segment of Rs.22O crores in the mosquito repellant
industry in India. All out is the market leader in this segment with a 70
percent market share in 2001. KAPL was almost solely responsible for
creating this segment. Within a decade of its launch, All Out had
converted a large number of customers into vaporizer users.

Allout’s sales reached Rs 253 million in 1996-97. GSLL could no longer

ignore this growing segment and launched its own vaporizer under the
GoodKnight brand in 1996-97. Although the initial success of All Out
was largely due to technological innovation and first-mover
advantages, it was widely believed that what had kept the brand going
was strong marketing. KAPL decided to handle the advertising for All
Out on its own, surprising many industry watchers and drawing
criticism from some ad agencies. However, the company surprised
everybody with the launch of a campaign featuring an animated,
jumping frog (actually an All Out vaporizer) eating mosquitoes, which
proved to be immensely successful.

In 1998, KAPL came out with a Rs 99 pack consisting of the Pluggy and
a refill. The deal, called the 'deadly offer' was backed by heavy
advertising. . After KAPL's 'deadly exchange scheme,' GoodKnight's
share decreased by 9.3% in volume terms between September 1999
and February 2000.

KAPL's distribution network consisted of around 120 distributors across

the country. Of the 900,000 outlets across the country, that sold
repellants, KAPL was available in only 18%. As this was significantly
lower than the 55% figure for R&C and 54% for GSSL, KAPL is working
towards increasing its presence.
GODREJ SARA LEE LTD
GOOD KNIGHT

Godrej Sara Lee Ltd. is a 450 crore turnover company with brands
like Good Knight, Jet and Hit. It is the market leader in the mats
segment with a share of 68% in May 2000. Good Knight has
become the most preferred mosquito repellent solution in the
country. The Good Knight brand was launched by Transelektra
Domestic Products Ltd (TDPL) in 1984. The product was innovative
and perfectly priced. Good Knight worked on a long term strategy
that would capitalize on its long-established equity.
In the mid 1990s, Good Knight faced growing competition from new
coil and vaporizer products. To counter this thrust, Good Knight re-
launched its mat first as Super mat and finally as Good Knight Silver
mat in 2003, with contemporary packing, superior technology and
using a high decibel campaign. Today Good Knight Silver mat is a
market leader with 62% market share.

By 1999, Good Knight also joined the battle for the coils by
launching its red coil variant. Since Good Knight was seen to be a
hi-tech brand and coils were regarded as an entry-level product, the
company made sure that it did not suffer a downgrade in consumer
perception. It branded its version as a value-added product, which
lasted ten hours (compared to eight hours in the case of most
others). The color red was meant to convey power. . The red coil
category created by Good Knight is growing and has cornered 50%
of the coil market.

Good Knight entered the vaporizer segment in 1995 by launching

Good Knight liquidator and Liquid Mosquito Destroyer (LMD)
machine, together as a combo-pack. In a short span of three years,
Good Knight liquidator managed a share of 24% of the vaporizer
market and 32% of LMD market based on the strength of the Good
Knight equity. The Good Knight Vaporizer lasted 30-45 days and
just had to be plugged in. Good Knight Turbo refill, a technologically
superior product, was launched in 2004. It was the right time for
Good Knight to take the plunge and gun for market leadership.

The most important USP for Good Knight is its brand equity, built
over a decade by its products and brand communication.
RECKITT BENCKISER

MORTEIN

Rs 585-crore Reckitt Benckiser in India is high profile particularly

because it has a range of popular products. Reckitt launched
mosquito repellent coils and mats under the brand name Mortein in
1994. Mortein is also available in liquid and aerosol spray forms.
Mortein is the number two pest-control brand in the country Mortein
sales grew by 9.2% in F12/01, as against market growth of 9%.
Mortein Coil sales grew by 14.5% despite stiff competition in the
category. For Mortein the strategy is to increase penetration of
coils, enhance brand salience of other variants and tap niche
segments through a stream of innovations. Another target for 2001
is to gather a legitimate share among vaporizers -- from 1.5 per
cent to a double digit figure. Mortein's share in mats is estimated at
roughly 15 per cent.

WHY WE CHOSE TO LAUNCH A VAPORIZER?

1) Market Growing: The market for vaporizers has grown from 5% in

1999 to 20% in 2004. It is expected to grow even further since
vaporizers are becoming economical and people are realizing the
disadvantages of using coils and mats.

2) Safer And Convenient: Vaporizers are safer than coils since they
just have to be switched on. They are far more convenient as well.
Many people complain of breathing problems with coils which is
eliminated through vaporizers.

3) Economical: Vaporizer is considered to be a premium product but

if you compare the prices of the coils and vaporizers today than there
is not much difference. Consumers have to bear the initial cost of a
machine which is a one time cost and the per day cost of the refill is
even lower than the coils.
PORTERS 5 FORCE MODEL

1) Threat of competitors
The threat of competitors is high because there are a lot of players in
the market and two new segments that is personal sprays and gels
have come in which will increase the existing competition. Also
existing players are entering new segments which increase the
competition like Casper entering the vaporizer segment and Good
Knight the personal spray and gel segment.

2) Threat of New Entrants

New entrants to an industry can raise the level of competition, which
depends mainly on the barriers to entry. In case of mosquito repellent
industry the entry barriers are low since the costs to set up the plant is
not very high. The exit barriers are low and thereby firms can enter
and exit easily.

3) Threat of Substitute Products

The presence of substitutes can dilute the attractiveness of a particular
industry. The threat of substitute products is low. The substitutes for
mosquito repellent would be agarbattis and dhoop that are used in
villages. There are not many substitutes available.

4) Threat of Buyers Bargaining Power

The buyer’s bargaining power is low since they cannot influence the
prices to such a great deal. They have to purchase the product at
whatever prices available.

5) Threat of Supplier’s Bargaining Power

The cost of items bought from suppliers can have a significant impact
on the company’s profitability. The threat of supplier’s bargaining is
moderate. We can get our raw materials since they are herbal and can
be easily available. But certain oils are not available everywhere which
increases the supplier’s bargaining power.
FUTURE
According to industry reports, the Indian mosquito repellant market
was expected to grow rapidly. Analysts said that with improvement
in literacy and health consciousness in rural areas, the use of
mosquito repellants was expected to increase substantially in these
areas. As the per capita usage of repellants was very low in the
country, there was considerable scope for the market to expand.
LAUNCH OF A MOSQUITO REPELLENT- FIGHTER

ABOUT FIGHTER
Our product is a mosquito repellent vaporizer machine and its refill.
The machine has an added feature of being operated with AA battery.
This battery if used everyday will work for about 45 days. So it can be
used even without electricity and can be used outdoors as well; for
example tents, cars, etc. The refill will be available in 25ml pack which
will last 30 nights, 35ml which will last about 45 nights and 45ml
lasting 60 nights subject it is used for 8 hours every night. The liquid is
light green in color. The vaporizer liquid is herbal. It is very economical.
Some of the benefits of our product are:
1) Effective evacuation of mosquitoes
2) No irritation of eyes
3) No hoarseness of throat,
4) No headaches and
5) No allergies.
Due to complex structure of herbal extracts in our vaporizer liquid,
mosquito do not develop immunity/resistance towards it like synthetic
toxicants.

USP: The USP of our product is that it is the most effective herbal
vaporizer which has an added feature of being operated with a battery.

INGREDIENTS: The ingredients of our product are:

• Eucalyptus extract containing 50% p-methane-3 and 8-diol(PMD)
• Lemongrass oil
• Citronella oil
• Tulasi oil
• Clove extract
• Palmarosa oil

MANUFACTURING PLANT: Our manufacturing plant will be set up in

Daman because we will be exempted for sales tax for a period of 15 yrs
as well as it is in the centre which will save our transportation costs.