Introduction A brief History of the brand and company HISTORY of the company profile Darshan Patel founder and CEO of Vini Cosmetics Patel launched Vini Cosmetics in 2009 and started selling Fogg Friend of Good Guys Girls in 2011 he knew he had to stand out in a crowded market What he did is a testament not only to his marketing brain but also to the contrarian call he took as an entrepreneur While everyone was marketing their deodorant based on smell he decided to sell its longevity The move worked Not only did he dethrone Hindustan Unilever's Axe India's largest selling deodorant at the time in two years but he also took Vini Cosmetics of which he is the founder and CEO past Rs 610 crore in revenue by March 2016 He s even making a profit he claims but declines to disclose the numbers In the FMCG business you have to make mistakes Unless you do that you ll never know what succeeds says Patel in his office in Ahmedabad Patel joined Paras Pharma his family business A chemistry graduate he had no marketing qualifications except for an interest in understanding what the consumer wants It was primarily his marketing success that took Paras from Rs 50 lakh a year company in 1985 to a Rs 100 crore firm in 1999 In 2006 following differences with his family he sold his stake in Paras Pharma Patel returned to business with Vini and Fogg in 2009 but its sales stuttered for a year
He realised that selling Fogg on its smell alone isn't working His market research agency Ormax with whom he had worked for 25 years surveyed over 1 000 respondents in the eight most populous cities of India As predicted by Patel consumers showed no loyalty towards a particular brand but complained that their deodorant cans got over very fast Patel decided to play on this insight It took him nearly six months to get it right but sitting in his office one afternoon he realised that if he was able to show consumers that his deodorant had less gas it would sell Most advertising is 90 percent entertainment and 10 percent knowledge I have always done the opposite with my advertising he says One day in his office he brought two glasses and sprayed them with deo from two cans Fogg and another brand While the glass with Fogg visibly filled up with each spray the other glass barely did indicating the vapour that dissipated It was a simple yet effective way of telling Fogg consumers that they were getting more bang for their buck On December 16 2011 Fogg was launched with a new commercial that demonstrated this This time the product was an overnight success and went on to become India s largest selling deodorant brand in two years Fogg s success has made Patel hungrier for more His face powder brand White Tone is already clocking Rs 50 crore in sales He is planning four distinct product lines look good powders feel good declined to disclose smell good deodorants and do good anti ageing and insists that he has at least 6 7 products up his sleeve
Tagline Slogan Bina gas wala body spray USP Doesn't get blown away like other deodorants lasts longer Target Segments customer profile Value proposition and Positioning STP Segment Outdoor oriented Fashion oriented Trendy Target Group Young urban upper middle class Positioning A body spray without gas which hence lasts longer Fogg identified distinct group of buyers as fashion oriented and trendy It segmented the people who are willing to try new products with a common notion of getting more for less The target group of Fogg was similar to other deodorant brands as young and middle class The brand even targeted women by selling large varieties of women deodorants The market share of Fogg in women deodorant segments has garnered share of around 10 It positioned its product as a deodorant with only liquid and which lasts longer than any other deodorant in the market Product and Pricing Strategy promotion and distribution Product and Pricing Strategy Product Variety wide range of fragrances Quality no side effects dermatological testing Sleek design of metallic can Price Substitute for expensive cologne and perfume Price around 180 275 Pricing done considering upper middle-class people s income which helps in gaining market penetration Promotion Focused about its only extra feature No gas only spray
Extensive television advertisement Distribution Two level channel or traditional channel producer wholesaler retailer customer distribution network spanning 0 75 points of sale by 5000 wholesalers with 500 strong sales force margins provided to wholesalers would be between 18 to 25 and for retailers it ll be around 22 Market share Sales Profit Fogg remains the leader with a value market share of 20 and volume market share of 22 Fogg as a brand contributes more than 80 of the RS 700 crore revenue Industry Competition and challenges Category Deodorant Sector FMCG Competition Axe Deodorant Zatak Fuel Deodorant Manhunt Deodorant Set Wet 18 Deodorant Challenges The most obvious risk for Vini is that the company remains concentrated on one product Patel points out that the deodorant category is so under penetrated 7 8 percent in India that growth for another decade should not be a challenge either for him or for others Marketing insights from analysis and recommendation for growth Success of Fogg in such as short span of 2 years can be focused on two clusters market performance and brand performance The impact of the product can be realized by a simple fact that it surpassed the product which was launched more than a decade before Fogg came into the market They could leverage upon Fogg to diversify the basket and want to ride the wave of a successful brand Will be launching more products in skincare and haircare
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