The company said it would soon release a nationwide campaign with Ganguly that would talk up the all-new parentage of Complan
while driving home its core benefits. At the same time, it has put in place a large web of consumer touch points for the brand.
The acquisition of the Heinz brands came about in 2018, with the final deal being signed in January 2019 and since then, the company said that the reach of the brands in the portfolio has nearly doubled. There are nearly 500,000 sales touch points now.
How did this come about? By pooling in the advantages of the Zydus Wellness
portfolio with the new brands. “We have increased touch points and reduced costs. We are now also looking at improving the quality of distribution. For example, pre-acquisition we were strong with chemists and cosmetics retailers and also with modern trade and e-commerce. The acquired business had a strong presence in the grocery chain. We have been able to work with each of the segments now,” says Tarun Arora, CEO, Zydus Wellness, a wholly owned subsidiary of Zydus Cadila.
He explains that Nycil was largely present in grocery and medical stores. “But being a talc brand, we thought it could also be there at cosmetics outlets, where EverYuth already has presence,” Arora says. Zydus wants to draw these synergies in tighter. For instance, Sugar Free that is strong within the chemists and e-commerce network and an old Zydus brand has found new wings with Complan’s grocery chain connections.
Will the company reposition and refresh the new brands too? Arora does not foresee a revamp in the near future. Nycil, he claims, has gained 2.5 per cent in terms of market share in its category last year on account of a larger distribution network. Currently it has 34.5 per cent share of the Rs 767 crore category of functional talcs. The company is looking at new variants. Arora says that Nycil Aloe Vera, already tested out in some towns in the South, will soon roll out nationally.
For Complan, the company has an advertising push in mind with Ganguly. It has also been working with studios to partner with popular movie franchises such as Disney for Frozen 2 and with toy companies
such as Mattel, for Barbie and Hot Wheels. In 2021, Zydus is likely to bring in more variants of Complan
and explore sub categories such as adult health drinks. The company is also leveraging its relationships with the doctor community to push Complan
as a health drink. For Glucon D that currently has 59 per cent share of the market, the company is looking at brand extensions to increase the frequency of its purchase.
It is not just the newly acquired brands that are under focus at Zydus Wellness, old staples such as Sugar Free are too. With a closer grasp of the consumer mindset with its new portfolio, the company has cut prices for a Sugar Free Green variant. It is also pitching the brand as more than a sugar substitute for diabetics, hoping to expand its scope since Sugar Free is already the largest player in the category.
“The biggest challenge we face is the myth around sugar substitutes. Even after authorities say that these are safe, we are still fighting perceptions,” Arora says. The company currently spends around 15 per cent of its revenues for advertising and marketing, which is likely to stay unchanged.