ITC believes in building its own brands. However, to strengthen its foothold in the personal care business in India, ITC Ltd. has entered into an agreement with Johnson & Johnson to buy Savlon and Shower to Shower for use primarily in India. The two are relatively small brands (with a combined turnover of around Rs.100 crores) but the segments in which they operate – antiseptic products and prickly powder segments – are quite large, highly competitive and have a potential to grow in a hot, tropical country like India. Dettol, for example, has become a ‘powerbrand’ by extending from its traditional antiseptic liquid to a multi-use hygiene liquid, soaps, liquid hand washes, kitchen gels and multi-use wipes. Indians, who still prefer talcum powders over deodorants, do use prickly heat powders in the summer months.

In addition to these two acquisitions, the ITC personal care range would include brands like Essenza de Wills, Fiama de Wills, Vivel, Engage and Superia. Frankly, I am not a great fan of ITC’s branding strategy in personal care products. And that is because I have never been able to make out a clear differentiation between Fiama and Vivel. Sure, Fiama talks of the ‘gel’ advantage but in the marketplace, I really can’t see the difference. Moreover, both the brands have been extended into too many categories and don’t have a clear positioning, at least in my mind. May be, there is some method in the madness but I have serious doubts that ITC will be able to make a significant dent against established players like Unilever, P&G, Reckitt Benckiser and others.

Of course, ITC has an advantage – it has hordes of cash that it generates from its cigarette and tobacco business. It has an overwhelming market share in cigarettes and a host of very well established brands. It has also got a fantastic distribution network that will allow it to penetrate deep into the Indian market.

But will all this be enough to make ITC a really serious player in personal care. Till it sorts out its branding strategy, I have my doubts.

 
Visual courtesy : https://www.flickr.com/photos/smashn/