afaqs!

First holistic win for JWT's NLX: Rs 50 crore Lambency

By , agencyfaqs!, New Delhi | In Marketing | September 24, 2007
The company is looking at a marketing communication spend of Rs 50 crore, which will be primarily print-led advertising and a whole chunk of below-the-line, retail and on-ground activities

NLX & #BANNER1 & # (New Life Xperience), the integrated marketing consultancy division of JWT, has bagged its first holistic business - Lambency, the cosmetic sandalwood brand of Surya Vinayak Industries Ltd (SVIL).

SVIL Mines Limited (part of Floriana Group) was incorporated in 1993. The diverse business interests range from essential oils, herbal oils, specialty perfumery compounds production and personal care products to marble mining and processing state-of-the-art patented Italian technology. Recently, the company announced a significant investment by funds advised by Citi Venture Capital International (CVCI), who have invested Rs. 150 crore into the company.

With a Rs 50 crore marketing budget, Lambency is looking at a 360 degree approach comprising a host of marketing options. The advertising is going to be heavily print-led and will be supported by below-the-line, customer relationship managament (CRM) and on-ground retail activities. The online medium will not be used significantly, says Ajay Girotra, senior vice-president, Lambency, because the Internet is not accessible to the common man. Television will come in at a later stage.

Charu Lata Ravikumar, managing partner and national head, Integrated Services- NLX, JWT, says, "We are to partner the client not only from the time of advertising, but much before that. The client was impressed by the initial roll-out plan we designed for them, as also the market segmentation and consumer findings. We plan to connect with the consumer's mind, and create new life experiences for them."

Charu Lata Ravikumar
Lambency has a range of sandalwood skin care products, priced in the premium strata. The range, which comprises 13 products, has been in the market for two years. The products include sandalwood oil, a face pack, cleanser, toner, moisturiser, sunscreen, cold cream, massage cream, all-purpose cream, scrub, body wash, rose water and anti-dandruff shampoo. Lambency was launched pan-India in 2004, across all state capitals, through various distribution points. Currently, the company has 650 distributors across the country, among them Vishal Mega Mart, Big Bazaar and Health & Glow (in the South). The company also distributes its products to local beauty parlours.

Ajay Girotra
The company plans to step into the spa business - it is looking at launching 300 spas within a year, beginning November. With an investment of Rs 450 crore, Lambency plans to change the concept of spas from luxury to affordable. The brand for the spa is still to be decided upon, but the cosmetic brand name Lambency will be integrated into it.

With its two offerings - the cosmetic brand, Lambency, and the spas - the company is looking at the SEC A and B+ markets as its target group. As far as the Lambency products are concerned, all people between 16 and 50 years are prospective customers.

Sudhir Sharma
When the cosmetic brand, Lambency, was launched in the market in 2004, it was on an experimental basis and as an observation of product behaviour. The creative duties for the brand were handled in-house at the time, though the company had appointed Starcom for its media duties. In 2005, Triton was brought on board to take charge of the brand's creative duties. Starcom was retained at the time, but currently, the business is off Starcom, and Lambency is looking out for a fresh media agency.

The last TVC that went on air for the brand was in September 2006 - for the cold cream. In terms of the advertising that has been done in the past for the brand, television advertising has been used for the face pack, sunscreen, rose water and cold cream. In print, corporate advertising has been used apart from product advertising.

Sudhir Sharma, general manager, marketing and sales, Lambency, says, "Sandalwood is still confined to puja rooms. People are aware of the cooling effects of sandalwood, but the cosmetic value is hardly known or tried. There is a need for educative and informative advertising, which unfortunately we did not take up in a very concentrated manner when the product was launched through mass marketing. Today, price is no longer a constraint; the consumer is very questioning and attaches a rationale and logic for the purchase and use of everything, which cannot be ignored in the kind of advertising that needs to be taken up for the brand."

Girotra adds, "We are the world's largest producer of sandalwood oil and take care of 90 per cent of the country's sandalwood oil requirement. Our product was placed in the market to check whether the Indian consumer readily accepts these products or not. The product was very well accepted and boosted our confidence. We are now here with our skin care range and spas (which shall be operational soon) to give the consumers a different experience altogether."

The strongest products of the Lambency brand include its rose water, all-purpose cream and scrub. The company has captured a market share of 5 per cent. It has garnered a market share of 2 per cent in the overall scrub market, which has a number of unorganised players. Lambency sandalwood oil is gradually picking up, too. The skin care market stands at Rs 4,000 crore, out of which Rs 3,000 crore is taken up by fairness creams - a product that Lambency does not offer due to FDA product guidelines.

The company is looking forward to expanding its product portfolio - it has plans to launch an antiseptic cream, a face wash, and conditioner-based shampoos.

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