Wednesday, 11 September 2013

Market Structure And Competition

Vicks VapoRub has been in India for 60 odd decades, in the Fast Moving Health and Goods category. It pioneered the Over-the-Counter Cold rub in India and is currently the leader. At the time of its entry, precription medicines, balms and home remedies were Vicks' competitors:

Today Vicks competes against against the following cold rubs:


Amrutanjan offers a range of cold and flu products, including cold-relief balms, nasal sprays, cough syrups and mints.

Zandu Balm

Zandu balm presents itself as a composite Ayuredic treatment for cold. It helps relieve not only colds but headaches and body aches.   

Aside from these (and lesser known products) all other competition to Vicks VapoRub is indirect. The other products offer a different set of values to the customer. 

These products range from medicated skin treatments, cough syrups and drops, digestives, health supplements to Ayurvedic treatments and home remedies. 
It is often the case that Vicks is used as a supplement to all alternative treatments. 

Vicks Success:

Vicks is claimed to be the largest market share in the cold rub category. Indeed it is the largest penetrated cold medicine in rural India.[1] This is an interesting point to note as it is intuitive to think that rural India would take to ayurvedic treatments and home remedies over a premium product. Vicks' decision to make small tins (of 5g) allowed more people to buy these without spending a lot in one purchase - making it a value-added good for the rural population. 

The first real success of Vicks in India is on account of the following:

1. Introduction of the Cold Rub category (until then all other balms were multi-purpose)
2. Category pioneer
3. Change in customer loyalty
4. Gives the same quality relief over the years, or has improved
5. Same product offers many benefits

No comments:

Post a Comment