ET BureauIt���s said the next world war will be fought for water. While this frightening scenario ��� a global battle between nations for the precious resource ��� is strictly hypothetical in proportions, a skirmish over water has already erupted in India. No, not the disputed Cauvery water nor the water sharing between India and its neighbours, but between brands in the water purifier market. And it���s between market leader Eureka Forbes (EFL) and Hindustan Unilever which has been for sometime trying to create a niche for itself in the market. Judging by the confrontations taking place in the market and in court as well, rest assured, the battle for supremacy in this segment won���t be relegated to just a few encounters here and there.
By the time you read the story, a third installment would have played out. That is the hearing of the defamation suit filed by HUL on EFL for showing the mascot for Pureit in a demeaning manner in its ad. According to sources HUL is seeking damages to the tune of Rs 190 crore from EFL for allegedly disparaging HUL���s product (read The Economic Times dated 28 September,2009.) One can hazard a guess that a compromise will be worked out, but the first salvo, not seen before in this segment and usually associated with CSDs and FMCG segment, has been fired.
And it���s not without any reason. For over the years, the below Rs 2,000 market has emerged as a hotly contested space. EFL with Aquasure, HUL with Pureit and even Kent and Philips are looking at a larger share of what constitutes more than 20% of the Rs 1,400 crore and growing domestic water purifier market. What makes the battle interesting is the opportunity comprising 81% of the target market made of urban and small towns who drink water directly from the tap, or purify it using candle water filters, muslin cloth and other methods. So it was only a matter of time that the market leader and the challenger���s roads crossed.
Aquasure���s range begins at Rs 1,950 while Pureit is priced at Rs 2,000 and both are targetting volumes at the bottom of the pyramid. While other players like Kent and Philips are yet to enter the ���battlefield��� , Kent is currently demonstrating Kent Gold, an Rs 2,500 product to interested consumers and even Philips India is eyeing this segment with interest . While EFL was doing its bit and more, but when HUL launched the Rs 1 crore safety challenge this year EFL couldn���t remain silent any more. The Rs 1- crore challenge of Pureit invites customers to compare Pureit with other brands in the market on three safety features. It was a provocation which EFL couldn���t ignore. And it���s the same ad involving Smriti Irani with a person in a yellow rain coat (hinting at the Pureit ad of Rs 1 crore safety challenge) in question from EFL which prompted HUL to take legal recourse. However, neither parties are talking about the case as the ���the matter is subjudice���.
But sources within EFL say Pureit���s communication was hitting EFL���s flagship product ��� Aquaguard which prompted the company to retaliate. Interestingly, both HUL and EFL claim they only have the consumer���s good at heart. Marzin R Shroff, senior VP, marketing, EFL says, ���EFL is health custodian of the consumer. We take our relation with them seriously. We have always listened to what the consumer wants and believe in educating them on all aspects related to their health,��� he says. Vikram Surendran, GM ��� water, HUL speaks the same language to some extent.
���The water market in India is still largely underpenetrated, which we want to grow. But a more important task is to educate the consumer about the need for safe drinking water and to help them evaluate purifier options,��� explains Surendran.
The Pureit-Aquasure tussle comes as players in this segment have upped the ante to woo consumers to its fold. Each and every P of the marketing book is being thrown in, from pricing below Rs 2,000 to gain volumes to star endorsement (Smriti Irani for Aquasure and Hema Malini and clan for Kent) to claims advertising with a huge financial carrot for consumers. But Aquasure���s reaction to Pureit has got rival players and even industry observers by surprise with many terming it, the ambush, as a knee jerk reaction considering the nascency of the segment and the space available for all to exist. ���Sure, it���s a significant price point for every player but the market is still evolving,��� remarks a marketer from a rival company, who���s also readying its arsenal to make further forays into the sub Rs 2,000 market . Shripad Nadkarni, director, Marketgate Consulting is surprised that EFL reacted to the Pureit ad. ���EFL is no.1 in the category and what Pureit did is a classic marketing initiative resorted to by newcomers. And EFL���s ad also looks like a one-off attempt,��� he says.
One off or not, rival players are watching the battle with interest and a certain amount of glee with the hope that it isn���t restricted to a one off ambush. HUL���s Pureit has been in the market battling the market leader for sometime, but the way it has opened up a front against the incumbent augurs well for the entire category, market observers state. ���Such kind of aggressive pricing and media advertising benefits the entire category for the entire ruckus transforms the passive consumers to become active and enter the category,��� says a rival marketer. And he hopes that his brand will be able to attract new consumers entering the segment into its fold. ���The need for pure water is an important . So to capitalise on the recent buzz, more aggressive moves on communication and dealer engagement to push our brands hopefully will enable to gain consumers,��� he states.
Truely the Pureit-Aquasure episode has all the ingredients to quench the near drought conditions prevailent in the ambush marketing arena in India. Who wins? Who loses? depends on which side of the fence one sits. But the fierce competition can best be summed up in one line; ���yeh pyaas hain badi.���
By the time you read the story, a third installment would have played out. That is the hearing of the defamation suit filed by HUL on EFL for showing the mascot for Pureit in a demeaning manner in its ad. According to sources HUL is seeking damages to the tune of Rs 190 crore from EFL for allegedly disparaging HUL���s product (read The Economic Times dated 28 September,2009.) One can hazard a guess that a compromise will be worked out, but the first salvo, not seen before in this segment and usually associated with CSDs and FMCG segment, has been fired.
And it���s not without any reason. For over the years, the below Rs 2,000 market has emerged as a hotly contested space. EFL with Aquasure, HUL with Pureit and even Kent and Philips are looking at a larger share of what constitutes more than 20% of the Rs 1,400 crore and growing domestic water purifier market. What makes the battle interesting is the opportunity comprising 81% of the target market made of urban and small towns who drink water directly from the tap, or purify it using candle water filters, muslin cloth and other methods. So it was only a matter of time that the market leader and the challenger���s roads crossed.
Aquasure���s range begins at Rs 1,950 while Pureit is priced at Rs 2,000 and both are targetting volumes at the bottom of the pyramid. While other players like Kent and Philips are yet to enter the ���battlefield��� , Kent is currently demonstrating Kent Gold, an Rs 2,500 product to interested consumers and even Philips India is eyeing this segment with interest . While EFL was doing its bit and more, but when HUL launched the Rs 1 crore safety challenge this year EFL couldn���t remain silent any more. The Rs 1- crore challenge of Pureit invites customers to compare Pureit with other brands in the market on three safety features. It was a provocation which EFL couldn���t ignore. And it���s the same ad involving Smriti Irani with a person in a yellow rain coat (hinting at the Pureit ad of Rs 1 crore safety challenge) in question from EFL which prompted HUL to take legal recourse. However, neither parties are talking about the case as the ���the matter is subjudice���.
But sources within EFL say Pureit���s communication was hitting EFL���s flagship product ��� Aquaguard which prompted the company to retaliate. Interestingly, both HUL and EFL claim they only have the consumer���s good at heart. Marzin R Shroff, senior VP, marketing, EFL says, ���EFL is health custodian of the consumer. We take our relation with them seriously. We have always listened to what the consumer wants and believe in educating them on all aspects related to their health,��� he says. Vikram Surendran, GM ��� water, HUL speaks the same language to some extent.
���The water market in India is still largely underpenetrated, which we want to grow. But a more important task is to educate the consumer about the need for safe drinking water and to help them evaluate purifier options,��� explains Surendran.
The Pureit-Aquasure tussle comes as players in this segment have upped the ante to woo consumers to its fold. Each and every P of the marketing book is being thrown in, from pricing below Rs 2,000 to gain volumes to star endorsement (Smriti Irani for Aquasure and Hema Malini and clan for Kent) to claims advertising with a huge financial carrot for consumers. But Aquasure���s reaction to Pureit has got rival players and even industry observers by surprise with many terming it, the ambush, as a knee jerk reaction considering the nascency of the segment and the space available for all to exist. ���Sure, it���s a significant price point for every player but the market is still evolving,��� remarks a marketer from a rival company, who���s also readying its arsenal to make further forays into the sub Rs 2,000 market . Shripad Nadkarni, director, Marketgate Consulting is surprised that EFL reacted to the Pureit ad. ���EFL is no.1 in the category and what Pureit did is a classic marketing initiative resorted to by newcomers. And EFL���s ad also looks like a one-off attempt,��� he says.
One off or not, rival players are watching the battle with interest and a certain amount of glee with the hope that it isn���t restricted to a one off ambush. HUL���s Pureit has been in the market battling the market leader for sometime, but the way it has opened up a front against the incumbent augurs well for the entire category, market observers state. ���Such kind of aggressive pricing and media advertising benefits the entire category for the entire ruckus transforms the passive consumers to become active and enter the category,��� says a rival marketer. And he hopes that his brand will be able to attract new consumers entering the segment into its fold. ���The need for pure water is an important . So to capitalise on the recent buzz, more aggressive moves on communication and dealer engagement to push our brands hopefully will enable to gain consumers,��� he states.
Truely the Pureit-Aquasure episode has all the ingredients to quench the near drought conditions prevailent in the ambush marketing arena in India. Who wins? Who loses? depends on which side of the fence one sits. But the fierce competition can best be summed up in one line; ���yeh pyaas hain badi.���
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