Amrutanjan Rebranding: It’s Gone

Amrutanjan, creator of the pain and congestion management category, has recently gone through re-branding, in an effort to reach out to more consumers across the globe.

Their flagship product Amrutanjan Pain balm is also falling. In 2006, Amrutanjan could has a market share of 25% in Rs 380 crores pain balm market in India but now in 2011, it just commands 10-11% market share.

According to the S Sambhu Prasad, managing director, Amrutanjan Health Care, “Many loyal users of our products including the yellow balm may not be there in the next 10 to 20 years. So we need to keep the product current even with the younger generations and the focus is on the brand makeover,”

Well the statement seems logical from Mr. Shambhu Prasad since the Amrutanjan Healthcare is diversifying into Health drinks, ready to eat food segments.

But does the Amrutanjan Pain Balm needs a makeover?  I have some concerns:

  • Declining share of Flagship Brand : Amrutanjan Pain Balm is the flagship brand of Amrutanjan healthcare. In the 380 Crore market Amrutanjan has a share of only 10% and declining which means that out of revenues of Rs103.41 crore, approximate 50% of revenue comes from Amrutanjan Pain Balm. So Instead of reviving the old dying heritage brand through advertising and promotion Amrutanjan is rebranding it.

Amrutanjan management should learn from Rohit Surfactant (Ghari Detergent). Three years ago, Ghari had a share of 10% which now stands at 17%, second largest in Indian market. Out of Rohit Surfactants’ (Parent Company) Rs 1,940-crore turnover in 2009-10, Ghari contributed as much as Rs 1,825 crore.  Ghari detergent is a cash cow for Rohit surfactant and it keeps reviving it time to time. For more information of Ghari detergent marketing strategy read my other post here

  • Neglecting the loyal Consumers: Amrutanjan bottle with green logo with yellow colored balm was one of the most recognized logo. With its “it’s gone” campaign it had become the household name and gained the set of loyal consumers.

I believe that targeting the youth generation was still possible without the rebranding effort. Amrutanjan could have launched the new brand exclusively targeted to youths

  • Playing with old well recognized logo: Amrutanjan is a 118 years old brand which is etched in the minds of consumers. In all these years it has gained the trust of the people in the pain management space. Green logo with yellow colored balm is synonymous with Amrutanjan and differentiates the product. Shedding the heritage brand logo with identity makeover is incomprehensible. Look at the Dabur how beautifully it has changed the old logo
  • Lack Financial Strengths to convey the new Message: For the year ended March 2011, Amrutanjan recorded revenues of Rs103.41 crore and a profit of Rs9.46 crore. With only profit of 9 crore I don’t believe that Amrutanjan will have the financial strengths like that of Vodafone and Airtel to effectively communicate the new identity of consumer.
  • Pure Healthy Essence: I don’t understand what this line conveys and what it means to the existing product line.

I believe that it’s a wrong decision made by the company to go for rebranding. We still have to wait and see the effect of rebranding on revenues of Amrutanjan Healthcare

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