Case Study Santoor
The soap market in India is one of the most competitive segments in the FMCG sector. For every brand that succeeds, approximately 10 to 15 brands fail. In 1995, the total soap market size was around 420,000 tons per annum, valued at about 27,000 million rupees. The market was growing at a rate of 5% annually, with the rural market (which accounted for about 40% of the total market) growing at a much faster pace of 7-8%.
Soap Market Pyramid (1995)
The soap market in 1995 was segmented based on pricing, and the market share distribution looked as follows:
- Economy: 34% of the market
- Sub-Popular: 10%
- Popular: 40%
- Premium: 16%
This segmentation was based on the pricing of soaps and the target consumer demographics.
Major Soap Brands in 1995
During the 1990s, several brands dominated the soap market, each catering to specific consumer segments with their unique value propositions:
- Lifebuoy (Economy): Focused on health and germ protection (99.9% germ kill).
- Lux (Popular): Associated with beauty, backed by endorsements from Bollywood film stars.
- Rexona (Popular): Promoted for good skin, highlighting its use of coconut oil.
- Hamam (Popular): Emphasized purity, focusing on natural ingredients.
- Cinthol (Premium): Positioned as a deodorizing soap, catering to the deodorant segment.
- Liril (Premium): Known for freshness, it used lime as a key ingredient and was famous for its iconic ads featuring a girl in a waterfall.
- Palmolive (Premium): Focused on skincare, highlighting its moisturizing properties.
These brands targeted different consumer segments and provided various benefits through their value propositions. For instance, Lux capitalized on the beauty segment, while Lifebuoy focused on health and hygiene.
Consumer Profile (1995-96)
Data from NCR (1995-96) categorized households into five different segments based on annual income:
- Destitute: Annual income less than 16,000
- Aspirants: Annual income between 16,000-22,000
- Climbers: Annual income between 22,000-45,000
- Consuming Class: Annual income between 45,000-215,000
- Very Rich: Annual income greater than 215,000
In 1995, the total number of households in India was around 160.6 million, with the Consuming Class making up 28.6 million households, while the Very Rich segment accounted for just 1 million households.
Santoor's Entry into the Soap Market
Santoor, introduced by Wipro in 1985, aimed to enter the popular soap segment, which represented 40% of the market. The company wanted to target the segment with a unique proposition based on sandalwood and turmeric. The name "Santoor" is derived from these ingredients, where San stands for sandalwood, and Tur comes from turmeric.
Initial Success
- Test Marketing: Santoor was first tested in Bangalore, and the results were encouraging.
- Launch: Santoor was officially launched in 1985 and quickly gained momentum, reaching 1,500 tons per annum with a 1.5% market share.
- Pricing Strategy: Santoor was attractively priced, and due to its unique ingredients, it positioned itself as a quality product in a competitive market.
Price Increase and its Impact
In the late 1980s, due to rising costs of vegetable oil, packaging, and excise duties, the price of Santoor had to increase. This price hike affected the brand more significantly compared to established brands like Lifebuoy, Lux, Palmolive, and others.
Why Santoor Was More Affected by the Price Hike:
Santoor was a relatively new brand with no significant brand loyalty or trust among consumers at the time. Without a unique selling proposition (USP), consumers often purchased Santoor out of innovative behavior or boredom with their regular soap brands. When the price increased, there was no emotional attachment to the brand, and consumers easily switched to other brands, which had already established loyalty.
Stabilization and Marketing Campaigns (1988-89)
By 1988, after initial challenges, Santoor stabilized its volume at 2,400 tons per annum. However, there was no real growth in the brand during this period. Consumers were switching brands, and trial rates were declining. To address this, Wipro launched two major advertising campaigns.
Santoor's Advertising Campaigns
Santoor launched two advertising campaigns during this period as part of its positioning strategy. These campaigns focused on the following:
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Target Segment:
- The primary target was the middle-income segment, which formed a large part of the popular soap category (40% of the market).
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Value Proposition:
- The key value proposition was value for money and beauty care through the natural benefits of sandalwood and turmeric.
- These ingredients were positioned as not just traditional but as offering health benefits, which set Santoor apart in a crowded soap market.
The advertising campaigns sought to create an emotional connection with consumers by highlighting the soap’s natural ingredients and the feeling of freshness and care. Santoor positioned itself as a beauty care soap that also provided health benefits, offering both affordability and quality.
Campaign Overview
During the stability phase, Santoor Soap ran two prominent campaigns: one in Hindi and another in English. These campaigns focused on a traditional Indian woman as the target segment. The woman depicted in these ads was shown as conventional—often involved in household activities, performing puja (prayers), and dressed traditionally. This representation suggests she values tradition and uses traditional ingredients like sandalwood (chandan) and turmeric for beauty and skincare. The campaign highlighted sandalwood for its aroma and turmeric for healthy skin.
Target Segment
The target segment in these ads was clearly conventional Indian women, likely from the middle-class segment. These women were depicted as caring about traditional beauty practices and using sandalwood and turmeric—ingredients that are considered tried and tested for their beauty benefits. The ads resonated with an audience that values heritage, natural ingredients, and the traditional wisdom passed down through generations.
However, despite this focus, there was a noticeable gap in the brand’s ability to drive significant growth. Santoor’s volume remained stagnant, and its top-of-mind awareness was low. Despite communicating the benefits of sandalwood and turmeric, the brand was not able to generate strong consumer interest or differentiation.
Problem Identification
By the mid-1990s, Santoor faced several challenges:
- Top-of-mind awareness (TOMA) for Santoor was as low as 0.8%, and the brand aimed to increase this to 4.5%.
- The product was perceived as conventional and lacked aspirational value.
- Despite emphasizing its ingredients (sandalwood and turmeric), there was low correlation between the brand name and its ingredients in the minds of consumers.
- The brand’s ambassador and overall communication failed to connect emotionally with the target audience.
- Santoor was becoming a niche product for consumers obsessed with sandalwood, but it struggled to appeal to the broader market.
Consumer Insights
To understand the reasons behind the brand's stagnation, FCB Ulka conducted consumer research, revealing the following insights:
- Ingredient Story: Despite repeated emphasis on sandalwood and turmeric, the story did not resonate with the broader target group. Many consumers did not notice or connect the ingredients to the soap’s benefits.
- Middle-Class Image: Santoor was perceived as a middle-class brand, and its image lacked any aspirational qualities. The brand failed to communicate a strong benefit to differentiate itself in the market.
- Niche Market: Santoor had found a niche with those who were specifically interested in sandalwood, but this limited its growth potential in the broader soap market.
Psychographic Analysis
The psychographic analysis revealed a significant shift in consumer attitudes in the mid-90s:
- Women increasingly wanted to be admired and loved. Beauty and good looks became desirable attributes.
- There was a growing focus on self-image and personal care. People were paying more attention to how they dressed and presented themselves, rather than just adhering to traditional roles like being a homemaker.
- Urbanization, disposable income, and the desire for modern lifestyles led to a greater emphasis on self-care and beauty, with many women seeking products that made them feel good about themselves.
In this evolving context, Santoor, which had a traditional middle-class appeal, was struggling to connect with the modern, aspirational woman. The brand needed to evolve its positioning to resonate with the changing consumer values.
The Repositioning Strategy
To address these issues, FCB Ulka proposed a repositioning strategy to differentiate Santoor in the market. The primary goal was to retain existing customers while attracting new ones, with the ultimate target of increasing market share.
Key Strategic Insights:
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Differentiation through Ingredients:
The traditional ingredients of sandalwood and turmeric would remain at the core of the brand’s story. However, instead of focusing solely on skin care, the new positioning would emphasize younger-looking skin—a more aspirational benefit for consumers. -
Focus on Youthful Skin:
The USP of Santoor would shift from simply being good for the skin to offering younger-looking skin. The idea was to position Santoor as a soap that not only cares for the skin but also helps maintain a youthful, radiant appearance. -
Experiential and Social Value:
By focusing on the idea of youthful skin, the brand aimed to shift its value proposition from functional benefits (like fragrance and skin care) to experiential and social benefits. The new message was that Santoor would make users feel younger, and others would notice and admire their youthful appearance. -
Modern and Aspirational Outlook:
Santoor needed to break free from its middle-class image and appeal to a more modern, urban audience. The brand would no longer be limited to traditional women; instead, it would aim to connect with women who cared about beauty, self-care, and personal empowerment.
The New Positioning
The repositioned Santoor soap would stand for youthful, glowing skin, leveraging the established benefits of sandalwood and turmeric while addressing the evolving aspirations of modern Indian women. The goal was to create an emotional connection with the consumer, focusing on how using Santoor would make them feel younger and how others would notice their radiant skin.
6.6.3 Santoor's Repositioning Story : Using Ads Journey
The challenge for any advertising agency is not only to create a strong product but also to communicate its value to the consumer. The positioning of a brand is the key to achieving this communication and creating a lasting image in the mind of the consumer. Let's explore how Santoor Soap has evolved its positioning over time.
What is Positioning?
Positioning refers to creating a distinct image of a brand in the mind of the consumer. It's about how the brand is perceived relative to other brands and the values it communicates.
The Early Campaigns: Establishing the Core Positioning
Initially, Santoor's campaign targeted traditional values, focusing on the image of a "younger looking woman." The classic approach used a "mistaken identity" scenario, where a married woman with children was mistaken for a younger, unmarried woman. This message was reinforced by showcasing ingredients like sandalwood and turmeric and emphasizing the benefits of youthful skin.
Example 1: Family Function
In one of the campaigns, during a family function, two elderly women observe a young-looking woman. They comment on her beauty, thinking she is unmarried. When the woman runs in and introduces herself as a mother, they are surprised by how youthful she looks. The brand emphasized how Santoor soap helped maintain youthful skin.
Example 2: Village Fair
Another commercial featured a rural fair where a woman buying bangles is mistaken for a young unmarried girl by an older vendor. Again, the surprise comes when the woman reveals she has a child, and the ad reinforces the message of youthful skin.
These campaigns all conveyed the same core message: that the Santoor woman is youthful, with the help of its ingredients—sandalwood and turmeric.
Evolving the Campaigns: Expanding to Modernity
As the brand grew, its target segment evolved to include women who are not only traditional but also modern in their outlook. This shift was reflected in the campaign's setting and tone.
Example 3: Bookstore Setting
The tone of the campaign changed when Santoor introduced a modern setting—a bookstore. In this ad, a group of college girls mistakes an older woman for their peer. The ad’s modern and progressive tone suggested that the brand was no longer just about traditional values but also about personal development and a modern outlook.
Example 4: Aerobics and Fitness
As the campaign matured, Santoor moved into the realm of personal health and fitness. In one ad, a woman is shown participating in an aerobics class, highlighting the importance of self-care and maintaining youthfulness. Here, the product was not just for the family but focused on individual empowerment and health.
Key Changes:
- The product’s packaging dropped the “new” label, reflecting its established place in the market.
- The communication shifted from a woman stating she looked young to others noticing her youthfulness, signaling market acceptance.
- The target segment expanded to include modern, independent women balancing multiple roles—traditional and contemporary.
Repositioning: The Growth Phase
Santoor’s messaging transitioned from being purely functional (youthful skin) to also being social and experiential. The product’s value proposition was repositioned, reaching a broader audience of modern, confident women.
Outcome:
- Santoor achieved 5000 tons per annum within 18 months of these changes.
- The brand retained its popularity, while competitors like Swastik faded, showing the effectiveness of the campaign.
Celebrity Endorsement and Expanding the Persona
The brand continued to evolve its image, bringing in celebrity endorsements and focusing on empowerment. Now, women in the Santoor ads were shown as career-oriented, breaking through traditional barriers.
Example 5: Using Celebrities
Madhavan featured in an ad that highlighted a woman’s unconventional career choice, such as a choreographer. Santoor portrayed modern women who were succeeding in non-traditional careers. This empowered message appealed to a more modern, career-driven audience.
The use of celebrity endorsements allowed the brand to maintain relevance and appeal to contemporary consumers.
Addressing Social Causes and Shifting Gears
In later campaigns, the brand began to address social causes, like encouraging children to play physical games rather than spending time on mobile phones. A mother is shown taking an active role in making her children play outdoors.
This shift showed the evolving role of mothers—not only as caregivers but as active participants in their children's lives, helping them lead a balanced and healthy lifestyle.
Key Insights:
- Santoor’s message now focused on a modern mother balancing family care and youthful energy.
- The product positioning remained the same, but the context in which it was presented had evolved.
- Santoor had successfully expanded into multiple consumer segments, reinforcing its core brand message.
Transition to Premium Segment: Luxury and Innovation
By now, Santoor had successfully transitioned into the maturity stage of the product life cycle. It began introducing premium variants with ingredients like honey and apricot, aiming for the luxury market.
Example 6: The Premium Shift
In one ad, the product targets modern, young men who find the Santoor woman appealing. The mistaken identity theme persists, but now the woman is positioned as someone who can appeal to a more luxurious, sophisticated audience.
- The new luxury packaging and premium ingredients helped Santoor resegment the market, targeting a more affluent consumer base.
Product Line Extension:
Santoor extended its product range by adding honey and apricot soaps, moving away from its original sandalwood and turmeric focus. This was a clear indication that the brand was now aiming to be a quality leader in the premium market.
Conclusion: A Journey of Brand Evolution
Through its many campaigns, Santoor's evolution illustrates key marketing concepts:
- Positioning: Creating a clear image in the consumer’s mind, starting with a traditional, youthful woman, then evolving into a modern, empowered woman.
- Segmentation and Targeting: Adjusting to meet the needs of different segments, from traditional to modern, career-oriented women.
- Product Innovation: Expanding the product line to include premium variants like honey and apricot soaps, appealing to a more affluent consumer.
- Campaign Strategy: Evolving from a functional message to a more social and experiential one, incorporating celebrity endorsements and addressing social causes.
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