Following its aggressive marketing strategy, Emami is planning to change the seven in one oil to a Rs. 200 crore product within three years.
In the past three years, the brand has been growing at a 30 per cent CAGR and has a total worth of Rs. 80 crores. The haircare portfolio of the firm including Navratna, Kesh King and 7 oils in one is worth Rs 1,220 crore.
With a huge market, light hair oil makes around Rs. 2000-2500 crores in India. However, Marico’s Parachute has been the market leader in the hair oil market since a long time now.
To help attract attention and improve its positioning among the youth, the brand has signed Katrina Kaif as its ambassador for the next three years. Sureka feels that this step will help the brand connect better with consumers and boost its image.
Sureka stated that they wanted an icon for this brand and after a lot of research finalized on Katrina Kaif. They affirmed that the advertising campaigns will be coming out shortly and they hope for a positive outcome.
Over the past few years, Emami products have been endorsed by Amitabh Bachchan, Shahrukh Khan and Juhi Chawla.
Besides focusing on rural trade channels, the firm is currently pushing some upmarket brands such as 7 Oils-in-One through e-commerce and modern trade channels. To get strategies to improve future growth via brand equity and emerging channels, they have roped in Boston Consulting Group (BCG).
The total contribution of online and modern trade offtake to total sales is expected to increase from 7 to 8 per cent in three years.
In 2016, e-commerce contributed 0.4 per cent to FMCG sales which rose to 1.3 per cent in 2018. Emami recently reported a 112 per cent improvement in online sales in fiscal year 2018 in comparison to 2017-18. As per reports, it is estimated that e-commerce’s contribution to the total FMCG sales could reach 11 per cent by 2030.