Ujala - The Supreme Whitener

            

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Themes: Advertising and Promotion
Period : 1983-2003
Organization : Jyothi Laboratories
Pub Date : 2003
Countries : India
Industry : FMCG

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Case Code : MKTG051
Case Length : 10 Pages
Price: Rs. 300;



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Background Note

The story of Jyothi can be traced back to M P Ramchandran (MPR), an accountant in a chemical company in the suburbs of Andheri, Mumbai (Maharashtra). MPR had developed a formula for fabric whiteners in 1960 since he was not satisfied with the products available in the market at that time. For many years, he looked for an opportunity to market his formula (his whitener, unlike the blue powders available in the market, was a violet colored liquid that dissolved easily in water). In 1972, MPR set up a small factory in Guruvayoor in Kerala, with the help of one of his acquaintances at the chemical company. The first batch of whiteners, named Ujala, consisted of only 500 bottles, and was sold mostly to MPR's friends. These customers found the whitener to be very effective and came back again and again to buy more. MPR continued to manage his small venture along with his job for more than a decade. Finally, in 1983, he left his job to concentrate fully on the whitener business. Jyothi was thus born with a capital of Rs 5000 and just five employees. In an attempt to create a market for Ujala in Mumbai, MPR continued to work from Andheri, although the factory was located in Kerala. The initial days were hard, with no demand in sight. At one point of time, MPR had even decided to close down operations. An unexpected order of 1000 bottles from a small shopkeeper near Guruvayoor changed it all. Ujala never looked back again.

Over the years, Jyothi registered a growth rate of 50% per annum. The factory in Kerala was expanded, and in 1991 Jyothi set up another factory at Pondicherry with a capacity of 5,00,000 bottles a day.5 By that time, Ujala had become the market leader in South India, thanks to its superior product characteristics. Jyothi concentrated on the southern market until 1998, when it went national. By then it had captured 90% of the market in Kerala and Tamil Nadu. Within a year it captured 25% of the Rs 2 billion organized sector fabric whitener market in the country.

This development brought Ujala on par with Robin Blue, which also had a 25% share of the market. Alarmed at the rapid erosion in Robin's market share and Ujala's growing popularity, R&C decided to reinvigorate Robin. In 1999, the company changed Robin's logo, launched a liquid variant of Robin Blue named Robin Dazzling, and invested substantially in promotion and advertising. However, Robin Dazzling had a low sales off take. R&C then came up with another variant, Robin Sunglow, which again received a lukewarm response in the market.

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5] By 2002, the company had nine factories with a total capacity of 2 million bottles per day.