MORTEIN CASE STUDY "Marketing is not a Battle of Product !

But it is a Battle of Perce"tion " # $ack Trout % Al Rie Grappling with the omni-present, damned mosquitoes day in and day out has become an integral part of everyday existence here in this ruthless world. Numerous number of" mosquito repellents exists in the market. owever, the brand name !ortein stands out uniquely. "he domestic insecticides market is dominated by four ma#or categories - coils, mats, vapori$ers and aerosols. %eckitt & 'olman of (ndia )%'(* introduced !ortein in (ndia way back in +,,- . the brand existed in .ustralia, /atin .merica and other parts of .sia. !ortein, means 0dead one0 1 German words Mori ('dead') in ('one'). !ortein entered the pest-control category at a time when the market was disorgani$ed and ooded with a whole lot of small players. "he big players included "ranselektra 2omestic provides /td. )Good 3night !ats*, 4ombay 'hemical0s )"ortoise 'oils* and 4ayer )4aygon*. TEST MAR&ETIN' (n +,,- %'( "est marketed its mats, coils and liquid sprays. "hus, positioned itself as a complete pest control brand. 4efore launching national, the company wanted to concentrate on south (ndia which accounted for about 56 per cent of the national sales. .pproximately, half of the sales came from "amil Nadu alone. .s such, the company $eroed in on "amil Nadu as the ideal test marketing ground. "he state has a rather prolonged "!osquito season0 that lasts about eight months. (n addition to the trial purchases, the period would allow for repeated purchase. owever, 4anish mats from "ranselektra having well entrenched in the state giving stiff competition to %'(. Brand Differentiation 02ifferentiate or die0 is the watchword in today0s market. . study revealed that most products came in red, green, or yellow. .long with .d agency 7&!. %'( designed superior packs for !ortein with black back ground, and yellow and red chevron grill,0 with a few of its international elements also incorporated. T(e "ack e)"lained* t(roug( illu tration t(e u age and +enefit of Mortein .0 "he target market included those who were conscious of health and cared to use quality pest control devices. .s a matter of fact, the !ortein mats were priced -8 per cent above others, targeting higher income groups. (nitially, the company placed !ortein on retail shelves across most southern markets. 9hile 3erala was dominated by %ooster 'oils, it was Godre#, i'are0s :et !ats that dominated .ndhra ;radesh. %'( took another strategic decision around +,,5. 4efore that, most companies had been contracting the production to third party manufacturers. 4ut %'( set up a multi million dollar plant in osur, near 4angalore. (t wanted to control the production and subsequently lap the potential of the domestic pest-control market. "hat year, !ortein had recorded sales of %s.l crore. "he urban mats market then was #ust worth %s.<+ crore, which coils were a third of that.

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"he following year. %'( extended it range to include aero ol and ,at ,ac(ine . ;riced at %s.+56 when most others came for %s.+.66, the machines had to contend with a resistant consumer. 4esides, they didn0t have an indicator light. "he company went the other way for aerosols, which constituted #ust about 8 per cent of the pest-control market. .t %s.<, for a -86 ml. can, these were priced lower than the other brands because %'( wanted to populari$e aerosols. (n +,?8-,8. Godre# @oaps /td. acquired "ranselektra with Good 3night and it brands. Aven though !ortein was not operating nationally, it had managed a ? per cent ,arket (are in +,,?. Ancouraged, !ortein extended its reach to three key markets !aharashtra, Bttar ;radesh and 9est 4engal - early next year. %'( then decided to concentrate on regional markets separately. Crom +,,8, it began running region-specific campaigns to coincide with festivals. "he logicD that0s when most household cleaning happens. (t has, for instance, ads for ;ongal, oli and so on. 4y now, !ortein could be bought off shelves in Gu#arat, 4ihar, 7rissa, the North east and !adhya ;radesh. 4ut since these markets had varying seasons, -nc(roni.ing to )heir seasonally was the real challenge. (n +,,< came a potential disaster for the country. .lmost the entire North (ndia was reeling under the dreaded dengue fever. Cor pest-control marketers, it was a great opportunity to cash in on. 9hile Good 3night and some others ran schemes, %'( refrained from such "gimmicks." Bnlike most brands that hiked prices, Mortein re,ained afforda+le to all. %'(0s emphasis on mats got !ortein an additional ?.8 percent share that year. Coil * +eing a ,a ,arket "roduct, were in short supply, and %'( had to hike production substantially. .t present, it is distributed through over fi/e lak( outlet acro t(e countr- . !ortein has subsequently ventured into the markets of %a#asthan, aryana and ;un#ab. (t i al o e-eing t(e rural con u,er* and has commissioned special pro#ects to expand reach. (n rural areas . competition exists in the form of traditional pest-control options such as cow dung, dhoop )incense* and neem leaves. Ot(er effort include creating "rint ad u ing identifia+le -,+ol 0 uc( a a coil 1it( t1o 1ord cro ed E lemon, red chillies and coil tied together*. Radio a a ,ediu, i +eing u ed too. "he subsequent three years have seen pest-control emerge as one of the fastest growing C!'G categories, averaging growth of 56 per cent a year. .mong these, mats have grown the fastest )by over 86 per cent to %s.ll7 crore*. perhaps because of their convenience. (n the rural market, the sales of mats have more than trebled while the mat machine sales have dropped )from %s.- crore to %s.l crore*. "his disparity, believes the company, is because of the increased usage of mats and the introduction of low-priced machines. !eanwhile, aerosols are also growing, but the si$e of the market - at %s.+< crore - continues to be small. Cor all that, marketers would like the category penetration levels to expand. 9hile in urban (ndia it is about +- per cent, in villages it is less than ( per cent. !ortein. with 5<.+ per cent market share in terms of value, reported a sales increase in recent times. "he brand, initially introduced as a coil, is now also available in the liquid electrical refill and aerosol variants. Toda-* Mortein2 33 "er cent (are ,ake it t(e econd large t +rand in t(e
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R !3455 crore "e t control ,arket. Godre# i-'are, with its Good 3night, it and :et brands, is leading with a collective ?8 per cent share. 4ut according to %'(, the leader might see a battle among its own brands )say. Good 3nigh" versus :et in mats*, from which it could benefit. 7n the other hand, @ara /ee0s considerable stake in Godre# i'are has put %'( on alert. !eanwhile, 4aygon continues to be strong in liquids, though low-key on advertising. /ever :ohnson 'onsumer ;roducts, a #oint venture between industan /ever and @.'.:ohnson, has #ust seen the entry of %aid. /ike the rest of the world, the market (a +een cleaned u" of ,all "la-er and t(e +attle +et1een t(e Big 6our en ue 0RCI* 7e/er $o(n on* Ba-er and Sara 7ee8* Cor years, especially in the case of coils, the dealers approached companies for supplies. Aven damages and breakage had to be borne by dealers themselves, which led to rampant black marketing. %'( took it upon itself to better the logistics of the business. B began by emphasi$ing on supply, followed by a direct distribution system, and instituted a return policy that would take care of damages. BRAND COMMUNICATION (nternational !ortein, now in (ndia, announced the launch ads. T(e ad/erti ing 1ent a+out "ro9ecting t(e +rand a "o1erful and ,odern . "hese were accompanied by the mnemonic !orty, a vague entity of smoke and vapour, complete with fangs and devilish appearance. Cine,a tar like Pra+ude/a and Rati .gnihotri were used as brand ambassadors to endorse the brand. Fualitative consumer research has given most significant insights about consumer needs. "he brand has always paid heed to user wants and needs. Brand Portfolio Mortein Target # :a"ori.er 9ith the launch of Mortein "arget, one can now control pests that were earlier hard to reach, hidden in cracks and corners. New 00!ortein "arget" has a unique, farreaching no$$le which targets even the most hard to reach insects and kills !osquitoes, 'ockroaches and Clies. 9ith its "target no$$le0, !oriein "arget can now kill pests that earlier escaped - like mosquitoes in the far-off corners of the room and cockroaches hidden in cracks. Mortein :a"ori.er Co,+i#"ack Mortein :a"ori.er Co,+i#"ack, a vapori$er with power booster, is now available with an extra refill. (t gives 56 nights continuous protection against disease-causing mosquitoes. (t is the best solution to protect one0s family from mosquito borne diseases. (t is the smart way of saving some money. Mortein Po1er Boo ter2 Mortein Po1er Boo ter :a"ori.er "rotect fa,il- fro, ,alaria* dengue* and filaria cau ing ,o ;uitoe ! It contain Prallet(rin 5!4< more than mats, which make it an effective insecticide. !ortein ;ower 4ooster0s unique hexagonal shape is thicker at corners providing a power boost, which knocks down the toughest mosquitoes and ensures you, a peaceful night. Mortein Po1er Boo ter 0=e)agonal8 Coil are no1 a/aila+le in 35 (our and 3> (our for,at Pack .
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Mortein Dee" Reac( ActionD .round coil that kills even the hidden mosquitoes. (ts 2eep %each .ction keeps mosquitoes away from home. +- ours ;ack exagonal coil. .vailable in G and +6 hour packs.

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(ts unique hexagonal shape is thicker at corners which releases power boosters in every half an hour ensuring a peaceful night. (t contains chemical d-transallethrin that is effective in killing pests in homes. Aach pack contains twelve coils. MOS?UITO REPE77ANT MAR&ET SCENARIO "he !osquito %epellents market is valued at %s +<66 crores and is growing at the compounded annual growth rate )'.G%* of +8H. .s people are aware of the diseases )like yellow fever, dengue hemorrhagic fever, and many forms of encephalitis* caused by mosquitoes, the demand will keep on increasing, which is a positive sign for the manufacturers, entrants as well as the existing players. .ccording to Iikas a#ela, Iice ;resident of Godre# @ara /ee, !osquito %epellents segment has 8? manufacturers with J- brands. 9ith over -88 species of mosquitoes - believed to be responsible for spreading diseases such as malaria and dengue fever. (ndia has a large and growing market for mosquito repellents. !any methods are used in households for dealing with the mosquito menace. "he following "able lists some of the more common ones.

=o1 Peo"le &ee" t(e Mo ;uitoe at BaTraditional ,et(od Mo ;uito re"ellant Crea, .pplied directly on the body, the creams contain chemicals, which repel the mosquitoes- not very popular, as the creams are rather sticky and inconvenient to use. !ade by mixing chemicals with substances like coconut shell powder, sawdust, color, perfumes and synthetic or natural gumsE the coils burn slowly, releasing the chemicals. =a/e a composition i,ilar to coilsD the ,at are placed in a small heater, 1(ic( is plugged into an electrical ocket! @(en t(e ,at i (eated* t(e chemicals are released. 'hemicals in liquid form, sprayed in the area infested with mosquitoes - not very popular because of the strong smell of the chemicals. Bse small containers of a chemical solution, which is heated gently in electricity - operate apparatus, maintaining a constant temperature. 4urning of incense sticks, fumigation using Neem leaves, use of mosquito nets.

Coil Mat @prays Iapori$ers

Increa ing Co,"etition Godre# i 'are took over "2;/ in .ugust +,,? along with another brand, (" .erosol which had been launched in +,,6. 7ther brands like :et and 4anish were also acquired in +,,8. "his was followed by the strategic alliance with @ara /ee, a Cortune 866 'onsumer product giant.
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"he low price strategy helped Good 3night grow and sustain its leadership till +,,8. Crom then on, two factors changed ihe competition of the mosquito repellent market. (n +,,8, !ortein launched for the first time a coil containing allethrin. "he coil narrowed the efficacy gap with Good knight mats and worked out cheaper for a user since there was no hardware cost to it, Mortein +eca,e a leader in t(e coil categor-. Bsers saw no reason for paying a premium for mats over coils and shifted loyalties to the latter. Good 3night with its cutting edge advertising and sales promotion started wooing consumers and consolidating its position in the mosquito repellent market through constant product innovations. "he availability of a number of products forms with specific benefits has led to an increase in the number of dual users - who use more than one mosquito repellent at a time. Good 3night has regularly upgraded its technology and product formats based on consumer input and feedback. %eckitt merged itself with 4enckiser0s household products business in 2ecember +,,,. %eckitt 4enckiser has operations in more than sixty countries and sells its products in more than +G6 countries. "he ma#or domestic players and their products in this category areD K Good 3night, 4anish and it from Godre# @ara /ee /td K 7domos 'ream from 2abur K .utan /otion from /ever :ohnson ;vt /td K %epelmos spray from 'amlin /imited K !axo from :yothy /aboratories K "ortoise from 4ayer (ndia /td. K !ortein from %eckitt 4enckiser (ndia /id K .ll 7ut brand from 3aramchand .ppliances ;vt /td (n the wake of an increasing number of cases of dengue and chikungunya, the sales of mosquito repellents have seen a huge surge in the recent past. 2abur0s %s 56-crore brand, 7domos, and leader in the cream and gel segment has reported a hike in sales ..ttributing the raise, primarily, to the spread of the two mosquitorelated diseases, dengue and chikungunya, !r I. @. @itaram, Axecutive 2irector, 'onsumer 'are 2ivision of 2abur (ndia /td, said, "7domos has seen a significant growth in sales wherever there are health-related issues." Axplaining the reason for the hike in sales of 7domos, !r @itaram saidD ""here are many products in the market to protect people when indoors, but the problem arises once they step out, the only ma#or personal mosquito repellent brand has been 7domos cream, owever, the cream suffered the disadvantage of being greasy. (n order to rectify this, 7domos gel was launched. "he other personal repellent is .utan lotion owned by /ever :ohnson ;vt /td, part of the B@-based @' :ohnson group. "his is where 7domos scores hugely. 4y far, it is the only product that can protect when outside, as it comes in the cream and gel format that people can apply before they go out and has no side-effects on skin. Godre# @ara /ee /td, an old player in the category, with an estimated market share of ?6 per cent, including its three brands - Goodnight, 4anish and it, reported increase in sales. "he competition in the mosquito repellent industry #ust got tougher with the launch of newer forms of repellents like personal sprays and gels. "he two new categories make their entry,
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though belatedly, in a market dominated by coils, vapori$ers and creams. !arket leader Godre# @ara /ee /td recently extended its product range with the launch of a spray, gel and a lotion under the Good 3night brand. "he %s. +,5 crore 'amlin /imited 1 known for its ubiquitous school geometry sets, pens, pencils and erasers 1 entering the mosquito repellent segment with its %epelmos spray. !eanwhile, Godre# @ara /ee and 'amlin hope to take advantage of the problems associated with the older products like the smoke and fumes from coils, mats, and vapourisers becoming ineffective during power cuts and creams being greasy. Axcept for the cream, all other repellents are effective only in the area they are used in. (n the mosquito coil market, :yothy /aboratories !axo is rapidly increasing its share. "he market leader is !ortein from %eckitt 4enckiser (ndia /id while "ortoise marketed by 4ayer (ndia /td is going down. .fter the entry of red coils, the green coils are slowly losing customer patronage, "he red coils seem to burn longer than the green ones. (n the refill, vapouriser market 3aramchand .ppliances ;vt /td with its .ll 7ut brand leads the market followed by Godre# @ara /ee"s Good 3night and :et. (n the mats and aerosol categories Godre# @ara /ee leads the market with its brands Good 3night and it. 9hile !ortein has done exceedingly well-growing by GJ per cent in +,,, - it can hardly be expected to continue growing at that pace. Growth is already down to -< per cent in -6F7."he market for coils and mats is slowing down, offset by 58 per cent growth in the vapouriser segment. .lthough !ortein has a presence in-all segments, it has a dominant share only in coils t.58.<6 per cent*, moderate in mats )+?.- per cent* but negligible in vapourisers )+ per cent*. .ll 7ut, the brand leader in vapourisers and refills, en#oys a <6 per cent share, while Godre# @ara /ee0s Good knight controls a -, per cent share. %ural ;enetration Good 3night mosquito repellant brand of Godre# @ara /ee is ahead of market leader !ortein in the rural markets. "he company says that latest figures show that G@/ coils lead the sector with a market share of 55.- per cent )in value* in the rural markets. Good 3night0s success has been largely due to the launch of a new product the mini #umbo coils which offer higher value at a particular price point and goes down well with value for money conscious consumers says the company. .part from this category innovation like introducing the Good 3night Alectric Gel, which served as a substitute for mats at a lower cost have helped the company do belter. .t an all (ndia level, !ortein 'oils is still the market leader with 58.< per cent market share. "his is marginally higher than Good 3night0s 58.8 per cent. ?UESTIONS )+* 9hat are the strategies that %eckitt and 4enckiser should use to increase the market share of !orteinL )-* Axamine the brand differentiation strategies adopted by %eckitt and 4enckiser )5* Axplain the strategies adopted by different players in the market )?* ow can !ortein rural market share be increasedL
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