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Friday, November 02, 2001

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J&J targets premium end with Stayfree Sure -- Plans to pit P&G's Ultra, Maxi brands


Purvita Chatterjee

MUMBAI, Nov. 1

JOHNSON & Johnson (J&J), the leading player in the Rs 260-crore feminine hygiene market, has decided to phase out its Stayfree Silky Dry sub-brand in the wake of launching its latest offering in the premium end of the market -- Stayfree Sure.

Stayfree Silky Dry exists in the mid-segment of the market along with Stayfree Germishield. Stayfree Sure claims to be an upgraded version of Stayfree Silky Dry which will provide a thick `four wall stain protection' at a more premium price point of Rs 60 for a pack of 10. This launch comes close on the heels of the company's launch of its other premium Ultrathin sub-brand in April this year to take on P&G's Ultra.

Explains Mr Srikrishna Bharambe, Group Product Manager, J&J, ``We have decided not to support the Silky Dry variant of Stayfree, hoping that consumers would upgrade themselves in the future.''

This would entail no advertising spends on the brand but manufacture of Stayfree Silky Dry may persist for a while before the product is entirely removed from the market. Stayfree Sure would be J&J's second offering at the premium end of the market pitted against P&G's Whisper Maxi brand of napkins.

According to analysts, J&J tried to take on Whisper with its Stayfree Silky Dry variant but failed to do so. But Stayfree Secure was successful as a popular brand which helped in gathering volumes for the company. Stayfree Germishield was added to the Stayfree franchise more as a value-addition in the beltless segment. The company's oldest brand of Carefree continues to enjoy a dominant position in the belted category.

Highlights Mr Kingsuk Sikdar, President, Pathfinders, the market research division of Lintas, ``Today J&J has become a follower more than a leader. But, somehow, this strategy seems to work. As long as the market does not get too crowded it is possible for its brands to co-exist with competition.''

The Stayfree brand, which was launched in the late '80s, enjoyed a monopoly in the market place till P&G's Whisper came along. It was then that the Silky Dry variant was launched to compete with the superior technology of the Whisper brand. But the Silky Dry variant was not able to compete in quality with Whisper as consumers were unwilling to pay a premium for the product.

Hence, the company decided to beef up its premium segment with the launch of Stayfree Ultrathin (an imported product) and now Stayfree Sure with an attempt to again compete with P&G's Ultra and Maxi sub-brands. J&J claims to have attained a 0.7 per cent volume share of its Ultrathin sub-brand in spite of limiting its presence to 15 cities across the country.

Carrying the baseline `Confidence you can depend on', Stayfree Sure is expected to garner a five per cent additional market share for the company.

J&J even changed its ad agency from Lowe Lintas & Partners to McCann Erickson early this year to give impetus to its sanitary napkin brands.

The feminine hygiene market, which has been facing a flat growth rate for the past three years, has suddenly picked up a volume growth of 12.3 per cent. But urban penetration in this category remains a measly 20 per cent giving scope for all the players to exploit the potential of this segment.

As per ORG-MARG data, J&J has a value share of 45.4 per cent followed closely by P&G at 42.7 per cent. Kimberly Clark with its Kotex brand has a value share of 8.4 per cent. Volume shares are recorded at 59 per cent for J&J, 26 per cent for P&G and 10 per cent for Kimberly Clark.

 
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