MORTEIN CASE STUDY"Marketing is not a Battle of Products. But it is a Battle of Perceptions"- Jack Trout & Al RiesGrappling with the omni-present, damned mosquitoes day in and day out has become an integral part of everyday existence here in this ruthless world. Numerous number of" mosquito repellents exists in the market. However, the brand name Mortein stands out uniquely. The domestic insecticides market is dominated by four major categories - coils, mats, vaporizers and aerosols.Reckitt & Colman of India (RCI) introduced Mortein in India way back in 1992. the brand existed in Australia, Latin America and other parts of Asia. Mortein, means 'dead one' German words Mori ('dead') in ('one'). Mortein entered the pest-control category at a time when the market was disorganized and Hooded with a whole lot of small players. The big players included Transelektra Domestic provides Ltd. (Good Knight Mats), Bombay Chemical's (Tortoise Coils) and Bayer (Baygon).

TEST MARKETINGIn 1992 RCI Test marketed its mats, coils and liquid sprays. Thus, positioned itself as a complete pest control brand. Before launching national, the company wanted to concentrate on south India which accounted for about 30 per cent of the national sales. Approximately, half of the sales came from Tamil Nadu alone. As such, the company zeroed in on Tamil Nadu as the ideal test marketing ground. The state has a rather prolonged "Mosquito season' that lasts about eight months. In addition to the trial purchases, the period would allow for repeated purchase. However, Banish mats from Transelektra having well entrenched in the state giving stiff competition to RCI.Brand Differentiation'Differentiate or die' is the watchword in today's market. A study revealed that most products came in red, green, or yellow. Along with Ad agency O&M. RCI designed superior packs for Mortein with black back ground, and yellow and red chevron grill,' with a few of its international elements also incorporated. The pack explained, through illustrations the usage and benefits of Mortein.' The target market included those who were conscious of health and cared to use quality pest control devices. As a matter of fact, the Mortein mats were priced 25 per cent above others, targeting higher income groups. Initially, the company placed Mortein on retail shelves across most southern markets. While Kerala was dominated by Rooster Coils, it was Godrej, Hi-Care's Jet Mats that dominated Andhra Pradesh.RCI took another strategic decision around 1993. Before that, most companies had been contracting the production to third party manufacturers. But RCI set up a multi million dollar plant in Hosur, near Bangalore. It wanted to control the production and subsequently lap the potential of the domestic pest-control market. That year, Mortein had recorded sales of Rs.l crore. The urban mats market then was just worth Rs.61 crore, which coils were a third of that.

The following year. RCI extended its range to include aerosols and mat machines. Priced at Rs.130 when most others came for Rs.1.00, the machines had to contend with a resistant consumer. Besides, they didn't have an indicator light. The company went the other way for aerosols, which constituted just about 5 per cent of the pest-control market. At Rs.69 for a 250 ml. can, these were priced lower than the other brands because RCI wanted to popularize aerosols. In 1945-95. Godrej Soaps Ltd. acquired Transelektra with Good Knight and Hit brands.Even though Mortein was not operating nationally, it had managed a 4 per cent market share in 1994. Encouraged, Mortein extended its reach to three key markets - Maharashtra, Uttar Pradesh and West Bengal - early next year.RCI then decided to concentrate on regional markets separately. From 1995, it began running region-specific campaigns to coincide with festivals. The logic: that's when most household cleaning happens. It has, for instance, ads for Pongal, Holi and so on. By now, Mortein could be bought off shelves in Gujarat, Bihar, Orissa, the North east and Madhya Pradesh. But since these markets had varying seasons, synchronizing to (heir seasonally was the real challenge.In 1996 came a potential disaster for the country. Almost the entire North India was reeling under the dreaded dengue fever. For pest-control marketers, it was a great opportunity to cash in on. While Good Knight and some others ran schemes, RCI refrained from such "gimmicks." Unlike most brands that hiked prices, Mortein remained affordable to all.RCI's emphasis on mats got Mortein an additional 4.5 percent share that year. Coils, being a mass market product, were in short supply, and RCI had to hike production substantially.At present, it is distributed through over five lakh outlets across the country. Mortein has subsequently ventured into the markets of Rajasthan, Haryana and Punjab. It is also eyeing the rural consumer, and has commissioned special projects to expand reach. In rural areas . competition exists in the form of traditional pest-control options such as cow dung, dhoop (incense) and neem leaves. Other efforts include creating print ads using identifiable symbols (such as a coil with two swords crossed; lemon, red chillies and coil tied together). Radio as a medium is being used too.The subsequent three years have seen pest-control emerge as one of the fastest growing FMCG categories, averaging growth of 30 per cent a year. Among these, mats have grown the fastest (by over 50 per cent to Rs.llO crore). perhaps because of their convenience.In the rural market, the sales of mats have more than trebled while the mat machine sales have dropped (from Rs.2 crore to Rs.l crore). This disparity, believes the company, is because of the increased usage of mats and the introduction of low-priced machines. Meanwhile, aerosols are also growing, but the size of the market - at Rs.16 crore - continues to be small.For all that, marketers would like the category penetration levels to expand. While in urban India it is about 12 per cent, in villages it is less than I per cent. Mortein. with 36.1 per cent market share in terms of value, reported a sales increase in recent times. The brand, initially introduced as a coil, is now also available in the liquid electrical refill and aerosol variants.Today, Mortein's 11 per cent share makes it the second largest brand in the Rs.1600 crore pest control market. Godrej Hi-Care, with its Good Knight, Hit and Jet brands, is leading with a collective 45 per cent share. But according to RCI, the leader might see a battle among its own brands (say. Good KnighT versus Jet in mats), from which it could benefit. On the other hand, Sara Lee's considerable stake in Godrej Hi-Care has put RCI on alert. Meanwhile, Baygon continues to be strong in liquids, though low-key on advertising. Lever Johnson Consumer Products, a joint venture between Hindustan Lever and S.C.Johnson, has just seen the entry of Raid. Like the rest of the world, the market has been cleaned up of small players and the battle between the Big Four ensues (RCI, Lever Johnson, Bayer and Sara Lee),For years, especially in the case of coils, the dealers approached companies for supplies. Even damages and breakage had to be borne by dealers themselves, which led to rampant black marketing. RCI took it upon itself to better the logistics of the business. U began by emphasizing on supply, followed by a direct distribution system, and instituted a return policy that would take care of damages.

BRAND COMMUNICATIONInternational Mortein, now in India, announced the launch ads. The advertising went about projecting the brand as powerful and modern. These were accompanied by the mnemonic Morty, a vague entity of smoke and vapour, complete with fangs and devilish appearance. Cinema stars like Prabudeva and Rati Agnihotri were used as brand ambassadors to endorse the brand. Qualitative consumer research has given most significant insights about consumer needs. The brand has always paid heed to user wants and needs.Brand PortfolioMortein Target - VaporizerWith the launch of Mortein Target, one can now control pests that were earlier hard to reach, hidden in cracks and corners. New ''Mortein Target" has a unique, far-reaching nozzle which targets even the most hard to reach insects and kills Mosquitoes, Cockroaches and Flies. With its "target nozzle', Moriein Target can now kill pests that earlier escaped - like mosquitoes in the far-off corners of the room and cockroaches hidden in cracks.Mortein Vaporizer Combi-packMortein Vaporizer Combi-pack, a vaporizer with power booster, is now available with an extra refill. It gives 30 nights continuous protection against disease-causing mosquitoes. It is the best solution to protect one's family from mosquito borne diseases. It is the smart way of saving some money.Mortein Power Booster'sMortein Power Booster Vaporizer protects family from malaria, dengue, and filaria causing mosquitoes. It contains Prallethrin 0.6% more than mats, which make it an effective insecticide. Mortein Power Booster's unique hexagonal shape is thicker at corners providing a power boost, which knocks down the toughest mosquitoes and ensures you, a peaceful night. Mortein Power Booster (Hexagonal) Coils are now available in 10 hours and 12 hours format Packs.Mortein Deep Reach Action: Around coil that kills even the hidden mosquitoes. Its Deep Reach Action keeps mosquitoes away from home.12 Hours Pack Hexagonal coil. Available in 8 and 10 hour packs.Its unique hexagonal shape is thicker at corners which releases power boosters in every half an hour ensuring a peaceful night. It contains chemical d-transallethrin that is effective in killing pests in homes. Each pack contains twelve coils.MOSQUITO REPELLANT MARKET SCENARIO

The Mosquito Repellents market is valued at Rs 1600 crores and is growing at the compounded annual growth rate (CAGR) of 15%. As people are aware of the diseases (like yellow fever, dengue hemorrhagic fever, and many forms of encephalitis) caused by mosquitoes, the demand will keep on increasing, which is a positive sign for the manufacturers, entrants as well as the existing players. According to Vikas Hajela, Vice President of Godrej Sara Lee, Mosquito Repellents segment has 54 manufacturers with 72 brands. With over 255 species of mosquitoes - believed to be responsible for spreading diseases such as malaria and dengue fever. India has a large and growing market for mosquito repellents. Many methods are used in households for dealing with the mosquito menace. The following Table lists some of the more common ones.

How People Keep the Mosquitoes at BayTraditional methods

Burning of incense sticks, fumigation using Neem leaves, use of mosquito nets.Mosquito repellant CreamsCoils MatsSprays Vaporizers

Applied directly on the body, the creams contain chemicals, which repel the mosquitoes- not very popular, as the creams are rather sticky and inconvenient to use.Made by mixing chemicals with substances like coconut shell powder, sawdust, color, perfumes and synthetic or natural gums; the coils burn slowly, releasing the chemicals.Have a composition similar to coils: the mats are placed in a small heater, which is plugged into an electrical socket. When the mat is heated, the chemicals are released.Chemicals in liquid form, sprayed in the area infested with mosquitoes - not very popular because of the strong smell of the chemicals.Use small containers of a chemical solution, which is heated gently in electricity - operate apparatus, maintaining a constant temperature.Increasing CompetitionGodrej Hi Care took over TDPL in August 1994 along with another brand, HIT Aerosol which had been launched in 1990. Other brands like Jet and Banish were also acquired in 1995. This was followed by the strategic alliance with Sara Lee, a Fortune 500 Consumer product giant.The low price strategy helped Good Knight grow and sustain its leadership till 1995. From then on, two factors changed ihe competition of the mosquito repellent market. In 1995, Mortein launched for the first time a coil containing allethrin. The coil narrowed the efficacy gap with Good knight mats and worked out cheaper for a user since there was no hardware cost to it, Mortein became a leader in the coils category. Users saw no reason for paying a premium for mats over coils and shifted loyalties to the latter. Good Knight with its cutting edge advertising and sales promotion started wooing consumers and consolidating its position in the mosquito repellent market through constant product innovations.The availability of a number of products forms with specific benefits has led to an increase in the number of dual users - who use more than one mosquito repellent at a time. Good Knight has regularly upgraded its technology and product formats based on consumer input and feedback.Reckitt merged itself with Benckiser's household products business in December 1999. Reckitt Benckiser has operations in more than sixty countries and sells its products in more than 180 countries.Themajor domestic players and their products in this category are: Good Knight, Banish and Hit from Godrej Sara Lee Ltd Odomos Cream from Dabur Autan Lotion from Lever Johnson Pvt Ltd Repelmos spray from Camlin Limited Maxo from Jyothy Laboratories Tortoise from Bayer India Ltd. Mortein from Reckitt Benckiser India Lid All Out brand from Karamchand Appliances Pvt LtdIn the wake of an increasing number of cases of dengue and chikungunya, the sales of mosquito repellents have seen a huge surge in the recent past.Dabur's Rs 30-crore brand, Odomos, and leader in the cream and gel segment has reported a hike in sales .Attributing the raise, primarily, to the spread of the two mosquito-related diseases, dengue and chikungunya, Mr V. S. Sitaram, Executive Director, Consumer Care Division of Dabur India Ltd, said, "Odomos has seen a significant growth in sales wherever there are health-related issues."Explaining the reason for the hike in sales of Odomos, Mr Sitaram said: "There are many products in the market to protect people when indoors, but the problem arises once they step out, the only major personal mosquito repellent brand has been Odomos cream, However, the cream suffered the disadvantage of being greasy. In order to rectify this, Odomos gel was launched. The other personal repellent is Autan lotion owned by Lever Johnson Pvt Ltd, part of the US-based SC Johnson group. This is where Odomos scores hugely. By far, it is the only product that can protect when outside, as it comes in the cream and gel format that people can apply before they go out and has no side-effects on skin.Godrej Sara Lee Ltd, an old player in the category, with an estimated market share of 40 per cent, including its three brands - Goodnight, Banish and Hit, reported increase in sales. The competition in the mosquito repellent industry just got tougher with the launch of newer forms of repellents like personal sprays and gels. The two new categories make their entry, though belatedly, in a market dominated by coils, vaporizers and creams. Market leader Godrej Sara Lee Ltd recently extended its product range with the launch of a spray, gel and a lotion under the Good Knight brand.The Rs. 193 crore Camlin Limited known for its ubiquitous school geometry sets, pens, pencils and erasers entering the mosquito repellent segment with its Repelmos spray. Meanwhile, Godrej Sara Lee and Camlin hope to take advantage of the problems associated with the older products like the smoke and fumes from coils, mats, and vapourisers becoming ineffective during power cuts and creams being greasy. Except for the cream, all other repellents are effective only in the area they are used in.In the mosquito coil market, Jyothy Laboratories Maxo is rapidly increasing its share. The market leader is Mortein from Reckitt Benckiser India Lid while Tortoise marketed by Bayer India Ltd is going down. After the entry of red coils, the green coils are slowly losing customer patronage, The red coils seem to burn longer than the green ones.In the refill, vapouriser market Karamchand Appliances Pvt Ltd with its All Out brand leads the market followed by Godrej Sara Lee"s Good Knight and Jet. In the mats and aerosol categories Godrej Sara Lee leads the market with its brands Good Knight and Hit.While Mortein has done exceedingly well-growing by 87 per cent in 1999 - it can hardly be expected to continue growing at that pace. Growth is already down to 26 per cent in 20QO.The market for coils and mats is slowing down, offset by 35 per cent growth in the vapouriser segment. Although Mortein has a presence in-all segments, it has a dominant share only in coils t.35.60 per cent), moderate in mats (14.2 per cent) but negligible in vapourisers (1 per cent). All Out, the brand leader in vapourisers and refills, enjoys a 60 per cent share, while Godrej Sara Lee's Good knight controls a 29 per cent share.Rural PenetrationGood Knight mosquito repellant brand of Godrej Sara Lee is ahead of market leader Mortein in the rural markets. The company says that latest figures show that GSL coils lead the sector with a market share of 33.2 per cent (in value) in the rural markets. Good Knight's success has been largely due to the launch of a new product the mini jumbo coils which offer higher value at a particular price point and goes down well with value for money conscious consumers says the company.Apart from this category innovation like introducing the Good Knight Electric Gel, which served as a substitute for mats at a lower cost have helped the company do belter. At an all India level, Mortein Coils is still the market leader with 35.6 per cent market share. This is marginally higher than Good Knight's 35.5 per cent.QUESTIONS(1) What are the strategies that Reckitt and Benckiser should use to increase the market share ofMortein?(2) Examine the brand differentiation strategies adopted by Reckitt and Benckiser(3) Explain the strategies adopted by different players in the market(4) How can Mortein rural market share be increased?[98]