Hair oil and edible oil maker Marico will enter the . 4,500-crore skincare market in the country by extending its two-decade-old coconut hair oil brand Parachute to body lotion and other skincare products, an official directly involved with the development said.
First off the block will be a body lotion at entry-level pricing to compete in the mass segment, the person said on condition of anonymity. The company has carried out a low-key test exercise in the east and a wider rollout in select cities is expected in a few weeks from now.
“The strategy is aimed at reducing dependence on Parachute hair oil,” the official said. “In this case, the company hopes to ride on Parachute’s purity and value-for-money attributes.”
Marico CEO (Consumer Products Business) Saugata Gupta declined comment.
The company will enter the cluttered skincare market under Parachute Advansed umbrella and compete with Hindustan Unilever’s Vaseline and Pond’s, German company Beiersdorf ’s Nivea, L’Oreal’s Garnier and Johnson & Johnson’s Neutrogena among others.
TOUGH CHALLENGE Analysts and industry watchers say the success of the move will depend on how much marketing and distribution muscle Marico can infuse in the brand.
“Success of brand extensions are generally linked closely to the parent brand’s attributes; and depends on how closely these are aligned to the consumer’s perception of the brand,” says consulting firm AT Kearney Partner and VP Debashish Mukherjee.
Extensions of strong brands are not always certain. While Reckitt Benckiser’s Dettol is a classic succession of an antiseptic medicinal liquid to antiseptic soap, cereal maker Kellogg’s extension to biscuits flopped. Marico so far has had limited success with its brand extensions.
First off the block will be a body lotion at entry-level pricing to compete in the mass segment, the person said on condition of anonymity. The company has carried out a low-key test exercise in the east and a wider rollout in select cities is expected in a few weeks from now.
“The strategy is aimed at reducing dependence on Parachute hair oil,” the official said. “In this case, the company hopes to ride on Parachute’s purity and value-for-money attributes.”
Marico CEO (Consumer Products Business) Saugata Gupta declined comment.
The company will enter the cluttered skincare market under Parachute Advansed umbrella and compete with Hindustan Unilever’s Vaseline and Pond’s, German company Beiersdorf ’s Nivea, L’Oreal’s Garnier and Johnson & Johnson’s Neutrogena among others.
TOUGH CHALLENGE Analysts and industry watchers say the success of the move will depend on how much marketing and distribution muscle Marico can infuse in the brand.
“Success of brand extensions are generally linked closely to the parent brand’s attributes; and depends on how closely these are aligned to the consumer’s perception of the brand,” says consulting firm AT Kearney Partner and VP Debashish Mukherjee.
Extensions of strong brands are not always certain. While Reckitt Benckiser’s Dettol is a classic succession of an antiseptic medicinal liquid to antiseptic soap, cereal maker Kellogg’s extension to biscuits flopped. Marico so far has had limited success with its brand extensions.
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