Alkem looks to ride the tiger
Legacy brand Tiger Balm is overhauling its image and positioning itself in a new alliance with the pharmaceutical major
The 100-year-old Singapore-headquartered pain relief brand is overhauling its image and refashioning the product to appeal to the young as it looks to expand its footprint with its new Indian partner, Alkem Laboratories. However this is not the first time that the brand has sought a larger presence in the country; its two previous partnerships with Cavin Kare and Elder Pharmaceuticals did not go too far, and the question is will the brand prove to be third time lucky in a country where it has had an iconic status for almost half a century.
Tiger Balm manufacturers, the Haw Paw Corporation has just launched a new cream that targets gadget wielding youth. The aim is to offer a solution for shoulder and neck pain that is an outcome of the generation’s and even other generations (for that matter) growing reliance on digital devices. While the problem is acute and there exists a demand for such products, the challenge would be breaking through the clutter of brands that are aiming to the do the same in the market. Think Zandu Balm, Volini, Moov, Iodex and Amrutanjan and several other local brands.
Also Tiger Balm, despite its huge recall and strong association with India (one story that Haw Par tells is that it was first introduced by Indian troops returning via Singapore that fought the World War II under their then British masters) has not been able to spread its label or launch its entire range of products in India. This is only the second product to be launched under the brand name in India in the last twenty five years.
Tiger Balm is being officially distributed in India since 1995 but has been sold in local pharmacies for several years prior to that as the medicine was imported by traders. Despite its heritage, the product portfolio in India has been limited. Earlier the company lacked strong distribution partners while copycat brands with similar names, product packaging and category positioning stepped into its space.
Haw Par Corporation now wants to accelerate sales in India and launch at least one product every year. The “tiger is ready to leap,” said A K Han, executive director of Haw Par Corporation. While previously Haw Par had tied up with Elder Pharmaceuticals and Cavin Kare, he believes that the new partner Alkem Laboratories gives the company a bigger reach.
Alkem is the fifth largest domestic pharmaceuticals manufacturer by sales and covers over 5,000 stockists across the country. Tiger Balm clocked retail sales of ~800 million last year and product sales rose 30 per cent on year on year basis, said Mukesh Tiwary, Alkem’s senior vice president (marketing and sales). “In two years we will make it a ~ two billion brand,” Tewari said pinning his hopes on new product launches. The brand portfolio includes sprays, gels, medicine patches and mosquito repellent sprays but the company hasn’t disclosed which products will be rolled out next in India.
Clearly there is a market opportunity as many Indians complain about the aches and pains caused by long hours on a laptop or continuous use of mobile phones. Han said the cream is fast acting, non-greasy and has a lavender fragrance which ought to appeal to young customers. “It is only natural and logical that we introduce our next new product, a neck and shoulder rub. We believe the timing is right and this product will appeal to the young consumers in India looking to relieve their neck and shoulder pains,” Han said. India is the 19th market to get the neck and should cream. The balm and cream sold in India is manufactured at a third party site in Hyderabad.
Incidentally, Tiger Balm is not the first brand to have a neck and shoulder pain variant. In 2009 Paras Pharmaceuticals had introduced Moov neck and shoulder pain spray but the product did not do well. In 2010 UK-based consumer product company RB (formerly known as Reckitt Benckiser) acquired Paras Pharmaceuticals. “This product (neck and shoulder pain spray) was a part of Paras portfolio but not RB portfolio,” a company spokesperson said.
An industry expert said that Tiger Balm’s neck and balm pain cream could succeed. “It is a crowded space but there is potential for a niche,” he said. According to Euromonitor International, the topical analgesic market in India had a size of ~27.6 billion in 2017. The topical analgesic market was pegged at ~21 billion in 2014 and has grown over 31 per cent in the last three years.
The market is dominated by ayurvedic and herbal products while other medicated products consisting diclofenac form a small share. Over 80 per cent of market comprises of creams and balms while the remainder consists of spray. Zandu Balm, Volini, Moov, Iodex and Amrutanjan are the top five products in the category and are bigger than Tiger Balm. Han is confident that the new cream will help it scale up the business and is banking on loyal customers. “Eight of our ten customers make repeat purchases,” he said. Tiger Balm’s global retail sales are pegged at $ 600 million and are expected to grow steadily with product extensions and foray in new markets like Brazil, Korea and Eastern Europe, said Vijay Arora, India head of Haw Par.