Ujala - The Supreme Whitener

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Background Note Contd...

Meanwhile, the market saw more action with the Pidilite group of Industries6 (Pidilite) purchasing the Ranipal brand, which had a market share of around 1% from IDI7 for Rs 40 million. Pidilite relaunched and repositioned Ranipal with a new logo and new packaging. The company also pioneered the concept of selling fabric whiteners in sachets. In 2000, Jyothi transformed itself from a proprietary concern to a corporate entity.8 In 2001, the blue market was estimated to be about Rs 4 billion, of which around 75% was dominated by the liquid variety. The market for blue powder was shrinking. Interestingly, Ujala's market share kept rising in spite of the fact that it was priced higher than Robin.9 It was able to capture more than 60% of the market, while Robin Blue, lagged behind with a mere 6% market share (the remaining 34% was in the hands of local manufacturers). Ujala's impressive success was clearly the result of a well-planned and executed marketing plan coupled perhaps, with a bit of luck and good timing. The whitener became one of the few small-time brands to become so popular in the intensely competitive Indian FMCG market.

Marketing Ujala

Ujala was lucky in that the Robin brand did not receive sufficient marketing support from R&C. By the time Ujala entered the market, Robin had become an old-fashioned brand that lacked 'visibility, readability and proximity' in spite of its initial popularity and strong performance. Although at one point of time, Robin had become a generic name for blues, its brand equity was nearly dormant. This gave Ujala ample scope to become strong enough to be able to transfer the value of 'blue' to the color violet.

Ujala also owned its success to Jyothi's management style. After comparing the management style of Jyothi with that of its nearest competitor R&C, analysts commented that the former, with 'no share price worries' and 'no foreign parent to please,' was able to connect with the ground realities. As a result, Jyothi's products were more suited to local and regional markets.

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6] Pidilite is India's largest manufacturer of consumer and industrial adhesives and sealants. Its other product lines include art materials, construction/paint chemicals, industrial and textile resins, and organic pigments and preparations. Its largest brand Fevicol is synonymous with the adhesive category. The company has 40 brands spanning 400 industrial and consumer products.
7] Indian Dyestuff Industries (IDI), a Mafatlal Group company.
8] In 2000, Jyothi sold 10% of its stake in the company to ING Barings, which is a part of the ING Group, a global financial institution of Dutch origin offering banking, insurance and asset management to over 50 million private, corporate and institutional clients in 65 countries.
9] While a 75ml pack of Ujala was priced at Rs 8, Robin sold the same volume at Rs 7.