Emami's Bold Moves: Reviving Kesh King and Fair & Handsome Amidst Declining Sales
August 4, 2024, 4:57 am
Emami Ltd is on a mission. The Kolkata-based FMCG giant is determined to breathe new life into its struggling brands, Kesh King and Fair & Handsome. Both brands have seen a decline in sales, with Kesh King down 15% and Fair & Handsome down 5% in the first quarter of the fiscal year. This is a wake-up call. Emami's leadership is not just sitting back; they are rolling up their sleeves and getting to work.
The company plans to be "extremely aggressive" in its advertising and promotions. They are not just throwing money at the problem; they are crafting a strategy. The brand team is diving deep, analyzing what went wrong and how to fix it. The goal? A bounce back in sales. The message is clear: Emami is not ready to give up on these brands.
Kesh King, an ayurvedic hair care brand, was acquired by Emami in 2015. It has become a ₹300 crore portfolio. However, competition is fierce. Brands like Indulekha and Patanjali are nipping at its heels. Fair & Handsome, a leader in the male grooming category, is also facing challenges. The market is evolving, and Emami must adapt.
Line extensions are on the horizon. This means new products under the existing brand umbrella. It’s a strategy to attract new customers and retain existing ones. Emami's executives have expressed their dissatisfaction with the current performance. They believe the recent decline is a temporary setback. The focus is on revitalizing these brands.
Advertising budgets are increasing. Emami has ramped up spending by 21% over the last two quarters. This is a significant investment in brand visibility. The company understands that in the crowded FMCG space, visibility is key. They are ready to launch new products and make a splash in the market.
In addition to aggressive marketing, Emami is exploring inorganic growth. The company has a "strong balance sheet" and is looking for acquisition opportunities. The focus is primarily on India, but they are open to specific markets abroad. This dual approach—reviving existing brands while seeking new acquisitions—shows a commitment to growth.
In the past, Emami has made significant acquisitions, such as Zandu Pharmaceutical in 2008 and Dermicool from Reckitt for ₹432 crore. These moves have shaped the company’s portfolio. Currently, around 45% of Emami’s revenue comes from acquired brands. This strategy has proven effective, and the company plans to continue down this path.
Emami's leadership emphasizes agility. They want to remain a strategically driven company. The FMCG landscape is changing rapidly. Consumer preferences shift like sand. Emami must be ready to pivot and adapt. Their focus on core portfolios is a step in the right direction.
Meanwhile, in a different corner of the consumer goods market, Lysol is making waves. The brand, under Reckitt, is launching its HERE for Healthy Schools initiative. This year, they are donating Lysol Minilabs Science Kits to Title I schools across the nation. This initiative is about more than just cleaning; it’s about education.
Lysol understands that hands-on learning is crucial. The Minilabs Science Kits are designed with input from teachers and students. They aim to teach children about hygiene and the importance of cleanliness. This initiative is a blend of education and health, reinforcing the idea that a clean environment fosters better learning.
The kits will be available to eligible teachers, providing them with resources to engage their students. Each kit includes lesson plans and activities tailored to the classroom. This is Lysol’s way of giving back, ensuring that children learn healthy habits while having fun.
The connection between cleanliness and education is vital. Lysol is not just selling products; they are promoting a lifestyle. Their commitment to curbing the spread of germs in schools aligns with their broader mission of health and safety.
Both Emami and Lysol are navigating challenges in their respective markets. Emami is focused on revitalizing its brands, while Lysol is enhancing educational experiences. These companies are responding to consumer needs in innovative ways.
As Emami pushes forward with its aggressive strategies, it remains to be seen if these efforts will yield the desired results. The competition is fierce, and the market is unpredictable. However, with a robust plan and increased investment, Emami is positioning itself for a comeback.
On the other hand, Lysol’s initiative is a reminder that brands can play a role in community well-being. By investing in education, they are fostering a healthier future.
In conclusion, both Emami and Lysol are taking bold steps in their journeys. Emami aims to revive its brands through strategic marketing and acquisitions. Lysol is committed to enhancing education while promoting health. The landscape of consumer goods is ever-changing, and these companies are determined to thrive amidst the challenges. The road ahead may be rocky, but with resilience and innovation, success is within reach.
The company plans to be "extremely aggressive" in its advertising and promotions. They are not just throwing money at the problem; they are crafting a strategy. The brand team is diving deep, analyzing what went wrong and how to fix it. The goal? A bounce back in sales. The message is clear: Emami is not ready to give up on these brands.
Kesh King, an ayurvedic hair care brand, was acquired by Emami in 2015. It has become a ₹300 crore portfolio. However, competition is fierce. Brands like Indulekha and Patanjali are nipping at its heels. Fair & Handsome, a leader in the male grooming category, is also facing challenges. The market is evolving, and Emami must adapt.
Line extensions are on the horizon. This means new products under the existing brand umbrella. It’s a strategy to attract new customers and retain existing ones. Emami's executives have expressed their dissatisfaction with the current performance. They believe the recent decline is a temporary setback. The focus is on revitalizing these brands.
Advertising budgets are increasing. Emami has ramped up spending by 21% over the last two quarters. This is a significant investment in brand visibility. The company understands that in the crowded FMCG space, visibility is key. They are ready to launch new products and make a splash in the market.
In addition to aggressive marketing, Emami is exploring inorganic growth. The company has a "strong balance sheet" and is looking for acquisition opportunities. The focus is primarily on India, but they are open to specific markets abroad. This dual approach—reviving existing brands while seeking new acquisitions—shows a commitment to growth.
In the past, Emami has made significant acquisitions, such as Zandu Pharmaceutical in 2008 and Dermicool from Reckitt for ₹432 crore. These moves have shaped the company’s portfolio. Currently, around 45% of Emami’s revenue comes from acquired brands. This strategy has proven effective, and the company plans to continue down this path.
Emami's leadership emphasizes agility. They want to remain a strategically driven company. The FMCG landscape is changing rapidly. Consumer preferences shift like sand. Emami must be ready to pivot and adapt. Their focus on core portfolios is a step in the right direction.
Meanwhile, in a different corner of the consumer goods market, Lysol is making waves. The brand, under Reckitt, is launching its HERE for Healthy Schools initiative. This year, they are donating Lysol Minilabs Science Kits to Title I schools across the nation. This initiative is about more than just cleaning; it’s about education.
Lysol understands that hands-on learning is crucial. The Minilabs Science Kits are designed with input from teachers and students. They aim to teach children about hygiene and the importance of cleanliness. This initiative is a blend of education and health, reinforcing the idea that a clean environment fosters better learning.
The kits will be available to eligible teachers, providing them with resources to engage their students. Each kit includes lesson plans and activities tailored to the classroom. This is Lysol’s way of giving back, ensuring that children learn healthy habits while having fun.
The connection between cleanliness and education is vital. Lysol is not just selling products; they are promoting a lifestyle. Their commitment to curbing the spread of germs in schools aligns with their broader mission of health and safety.
Both Emami and Lysol are navigating challenges in their respective markets. Emami is focused on revitalizing its brands, while Lysol is enhancing educational experiences. These companies are responding to consumer needs in innovative ways.
As Emami pushes forward with its aggressive strategies, it remains to be seen if these efforts will yield the desired results. The competition is fierce, and the market is unpredictable. However, with a robust plan and increased investment, Emami is positioning itself for a comeback.
On the other hand, Lysol’s initiative is a reminder that brands can play a role in community well-being. By investing in education, they are fostering a healthier future.
In conclusion, both Emami and Lysol are taking bold steps in their journeys. Emami aims to revive its brands through strategic marketing and acquisitions. Lysol is committed to enhancing education while promoting health. The landscape of consumer goods is ever-changing, and these companies are determined to thrive amidst the challenges. The road ahead may be rocky, but with resilience and innovation, success is within reach.