Friday, July 11, 2008

The slow but silent achievers

With a heady bandwagon of celebrity endorsers in their kitty, Emami may be relatively small, but is no pushover...

“Shah Rukh to give Emami a ‘Fair’ deal!” “Shah Rukh – Fair & Handsome for the first time!” As these – and similar news flashes – screamed across media a few months ago, the (ad) World in particular and howling mobs in general gasped at this startling move and went into a tizzy over King Khan’s encore (fans of the superstar will undoubtedly remember the storm-in-a-bathtub he created with his glamorous splash in a LUX ad a couple of years ago) in determinedly re-defining the very spirit of the term, Metrosexual!

Interestingly, the people behind this ground-breaking move, designed to offer a whole new “complexion” to this category, reside in Kolkata and continue to be relentlessly committed to deliver new paradigms in customer satisfaction. Sans the shrill hype, well-synchronised media blitz and insane noise-levels that accompany the publicity dhamaka of some of their better known competitors, this low profile, high result-driver blazes ahead, content to play out its role as a silent achiever.

The Emami story is quite fascinating and began in 1974 when two childhood friends – RS Agarwal and RS Goenka – decided to team up and undertake a voyage of discovery. Managing Director Adtiya Agarwal (son of RS Agarwal) explains that the duo started out by manufacturing talcum, vanishing cream and snow and very soon got into innovation mode. Adi goes into flashback. “In those days, the Kolkata-based multinational Metal Box was the unchallenged numero uno in the supply of quality tin containers. Emami was new, small, unknown and frequently given short shrift. This led to acute supply problems which in turn impacted business.” After being on the back-foot for a while, the duo decided to do their own thing – introduce (never before) plastic containers – instead of tin – for the products with paper labels and gold foil. “It took the market by storm! Gold became the trademark for Emami and everybody was happy.”


This attitude was driven by one simple line of thinking: The retailer was the key catalyst in market movements. The main focus was about manufacturing an attractive customer friendly product, pricing it right and motivating the retailer frat to pull out the stops while doing their number. The duo’s funda was crystal clear and they scored big…

In 1979, they bought out a sick company, Himani (which produced creams and glycerene soap) with plans to revive it. In 1983, they launched Boroplus, a hugely bold move because it dared to trespass the market leader’s – BOROLINE – territory! “It was quite amazing,” says Adi, “because Boroline had a hundred percent share of the market. Once again the duo’s ability to take risks and fly on shrewd thinking connecting with consumer psyche, won the day. Unique and attractive packaging powered by something the market had never ever experienced before – consumer schemes – totally broke new ground and rocketed the product into a whole, new stratosphere. Today Emami enjoys over sixty percent of this category market!!” Trailblazing appears to be an intrinsic part of Emami’s DNA. Today, there’s this big buzz about product-placement (in film) advertising. “Do you know,” says Adi “that we hit this button over two decades ago with a Rajesh Khanna-Rekha-Raj Babbar starrer, Agar Tum Na Hote?” Adi is convinced that the founding fathers had an uncanny ability to constantly connect with the consumer psyche.

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Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative