Mankind Rise : Consumer Health Segment & OTC Market in India
A sachet (Gasofast) providing relief to Satish Shah, Wasim Akram tasting a sweetener(Kaloree) , Sunny leone getting wooed to a guy sprayed with addiction and you can easily recall Sunny Leone in an extra sensitized and luscious advertisement of Manforce, Neil Nitin Mukesh holding addiction deodorant etc. These all are some snippets of TV commercials for a range of products of Mankind, a company which has shaken some rules of Pharma Industry, became a talking point among the students, board members, sales force, consultants, investors in the pharmaceutical industry and also beyond the industry circles.
Be it their product pricing , strategy of entering the markets(rural) with least competition first( exploring the bottom of pyramid), hiring the non science graduates as sales team , giving recognition to sales team( revenue generator) on the contrary, developing smallest district headquarters( beyond the survival rule of other pharma companies) , what they have followed and practiced is Differentiation…… Differentiation …….and Differentiation.
Mankind Entry into Over the counter Market in India
The company which ranks 6th in 76,000 crore Indian pharmaceutical market covering around 3 lakh doctors across the country, entered into OTC Market in year 2007. ( Read more about OTC Market in India)
Mankind entered into OTC Market through a different division with the launch of brands like Manforce, Unwanted 72(emergency contraceptives) and Prega news (home pregnancy kits).The recent addition in Mankind OTC portfolio is Heal-o-Kind , the first aid to treat multiple injuries like wounds, burns, bruises and cuts.
Now, OTC contributes about 8% to the overall revenue.
Today its products range includes Condoms, Emergency contraceptives, Pregnancy kits, Sanitary pads, Cosmetics, Deodorants, Sweetener etc.
Mankind heavily advertised these products on TV. Till date, Mankind has spent Rs 350 crore on advertising OTC products. This massive investment not only created awareness for the company beyond the pharmaceutical industry but also led to an increase in brand equity of brand Mankind. (How does OTC Market Differ from Prescription Market??)
Investment in Consumer and OTC Marketing in India
Parallel investment in OTC: With a strong focus on its core strength of Pharmaceuticals, mankind parallely invested in OTC product launches and brand building. Till date Mankind has spent 350 crore on advertising of these OTC and consumer health products, which certainly has taken the brand awareness and brand recognition to a different level and has also done a paradigm shift in altering the perception level of company and its products. This level of investment has broken all the myths that Mankind is a short term player in this segment. The division is expected to make Rs 10-15 crore profit for the first time in this year. One can imagine the level of investment and for last 7 years in OTC brand building.
Advantage for Mankind due to OTC Marketing:
- Perception shaping: Since its inception in the Indian Pharmaceutical industry, Mankind has always faced a quality perception amongst doctor’s mind due to its less costly medicines which might be escalated due to competitive ecosystem around. This perception is getting replaced with Mankind being a popular name across the medical fraternity and among the masses.
- Brand recognition in the country by becoming a household name.
- Opportunity to build bigger brands: With a continuous investment in OTC advertising and marketing, Mankind is in the process of building brands at a mass level.Not only in India, the company will launch such products in its expanding base of International markets in the near future.
- Positive rub-off effect in Rx Business: With an image makeover and higher brand recognition of Mankind, the impact will certainly be seen in team motivation at ground level, higher brand acceptance in doctor’s clinic and ultimately impacting the overall business.
- Corporate image building in pharmaceutical industry.
- Increased overall brand awareness
Strategy Adopted by Mankind
- A separate OTC and consumer health unit with continuous investment
- Creative direction and execution looked after some top advertising agencies
- Distribution: selling their products in unconventional places like paan shops has helped product sales of products like Manforce. They hold a strong distribution network with 62 C&F agents & 6000 Stockists.
- Aggressive promotion: Through TV, radio, Print and outdoor media. Sunny leone as a brand ambassador for their Manforce range have successfully contributed to the brand success. Presence in Social Media is also driving up the brand exposure and the engagement. Roping in celebrities have helped them further in increasing the easy message delivery aligned to their overall brand proposition.
- Rural presence has attributed to phenomenal growth of brands like Manforce
- Introduction of variants in their flagship brands like Manforce: Ex: Manforce flavors being introduced every 6-8 months.
With a growing OTC and consumer health market in India coupled with Mankind’s ambitious plan of investment in the segment, Mankind not only holds an opportunity to gain substantial market share and growth in Indian Market but also step into the global markets for increasing its footprints in consumer health space. I believe the model can be replicated in other markets too. Let’s wait and watch!!!!!
- Forbes India
By: Kumud Kandpal