Hey what is going on? Brother, Fogg is going on. What do you know about the cost of this one line? Sales of 1000 crores have happened behind this line. A valuation of 9000 crores has happened. Hindustan Unilever, ITC, Raymond. Gives tough competition to these big companies And, become No.1 in the market. This is the story of Fogg And the most proud thing. This is not the story of any foreign MNC company, This is the true Indian Gujrati businessman story. The story of Mr. Darshan Patel. He is the man who can create a brand as easily as a piece of cake. Move, Crack, Itch Guard, Ring Guard, D'Cold Total, Germi Cool. He has made it all.
History of Fogg.
The Fogg product belongs to Vini Cosmetics. Which was started by Darshan Patel in 2009, But it is very important to know what he used to do before 2009. Due to that, the 2009 change came Around the 1980s, a company was started - "Paras Pharmaceuticals". It was a family business in which Darshan Patel along with his two brothers used to do this business Around 1985, the turnover of this company was only ₹ 40 lakhs
However, after that, they have continuously launched more than products. In those, some of the top products are Crack, Move, Itch Guard, Ring Guard, D'Cold Total, Dermi Cool. If you look at all these products carefully, What is the special thing about it? It is a category leader.
Category leader means? It is not like that, There are 100 products similar to this available in the market and he launched 101. He launched the first product of its kind, There was no cream available before Krack cream which heals the heels. There was no powder available before Dermi Cool which gives coolness. There was no cream available before Itch Guard which cures itching. Everything product was unique and first in itself.
Behind the success of Fogg.
Three things had a very important role.
Firstly, their packaging was very good. If you see their packaging like the names and photos. They directly tell what they do.
Secondly, their distribution was very solid. Their availability was easily done everywhere And,
The third and most important, The thing that made it popular was its marketing "Remember Germi Cool Ad" After seeing the ad, an individual gets cleared in 1 minute, Like what does this product do? And provide instant solution. After seeing the Itch Guard Ad, You immediately came to know What is its work? Similarly, the Crack Cream Ad also cleared up what it does. So, with the right packaging, right distribution and best marketing, Mr. Darshan Patel Ji was managing this whole market department And while doing this, by 2002, The company's turnover reached ₹200 crores. However, there is a family, Where the family business has been running for a long time. Sometimes, troubles go on Around 2006, Darshan Patel left Paras Pharmaceuticals. He sold his 30% of his stake for 43 million dollars. Hence, it was around 200 crore according to that time And, after he left the company. The company also didn't go far Reckitt Benckiser bought the Paras Pharmaceuticals And its certain portfolio was bought by Marico. So, Reckitt Benckiser took over on their. Moov, Krack and D'Cold Total And Marico took over - Set Wet, Livon and Zatak. So, it was the past of our Darshan Patel Ji. Now, let's talk about the present
How was Fogg made?
In 2006, if you have 200 crores. Then, your life is set and you don't have to do something new. However, someone said to him. Look brother, don't sit idle. God has given you a wonderful mind. You bring a new product every one or 2 years. The public is served, why are you holding back? After 2 years of research, He started a company in 2009 called Vini Cosmetic And said, we will launch something in it. What was that something? For its research, it took them two more years. Now, he said said which product to launch? They said - Let's leave that Pharmaceuticals things there Let's launch something unique. So, what should be launched unique? So, they said, let's do one thing. In today's date, the perfume business is going good. It was gaining heights near 2000's. The youth was using this more. So, they said - Let's enter into this market. However, there are already leaders sitting in this market, Hindustan Unilever was sitting with Axe, Park Avenue belongs to Raymond, After that, ITC was sitting with "Engage". So, big elephants are sitting with big brands. It was a big task to enter such a market, But they said - We have old experience. Let's see by entering And, they launched their first product - "Fogg" "NO" And, they launched their first product - "GENESIS 18". The name of the product was "18 Plus" And it failed. Now, tell me, will it not cause down the morale of a person. Like, already there was such a serious competition. And after 4 years of waiting, launched something. That too failed, But, Mr. Darshan Patel didn't give up. This was the good thing about Mr. Darshan Patel. They did research, like how the product has failed? What is the thing? Then people said, that look, Your perfume fragrance is impressive, there is no denying this. However, everyone is giving fragrance. Tell us any new thing.
Second thing.. Like Sir, it is like that, What are our biggest problems in DEO? Like only gas comes out of the bottle And we buy a bottle for ₹ 200, ₹ 250 And the bottle is finished in 10-15 days. They took this feedback and said, Let me solve this problem And you want something other than fragrance. I will give you, After that, he again engaged in the research And came out with a great product, The product name was "Fogg". Sir, Why was it named Fogg? Do they love Fog? No, Brother. The full form of Fogg is - "Friends of Good Guys and Girls". Fogg was launched in December 2011 And within two to three years, It became the market leader. Hindustan Unilever also left behind, ITC, Raymond and everyone kept watching.
What did they do?
Followed four strategies. Listen carefully one by one. It is a mini MBA.
First USP - Unique Positioning.
What is this? Unique Positioning means, See ads of that time, Like a deo is Unisex. It means, males and females, both can use this. However, all the companies who were selling deo were doing one thing. Like this is the deodorant that a man purchases And their only aim is to attract women. Like if you spray Axe perfume, girls will come running to you. The Set Wet Gel ad says very very sexy Wild Stone ad says Wild by Nature. If you go to Google and see the ads of these three companies, At that time, you cannot sit and watch the ads with the family. Such ads used to come. Now, don't pause this video to watch those ads
Wait here! Hence, Darshan Patel Ji Said - It is like that. Everyone is doing the same thing in Deo Showing the same type of ads And till now, the boys have emptied 10-15 bottles and understood. Girls do not come with these ways. Hence, they said look, Fogg is not created to attract the girls. This is a value-for-money product. It's last a long time and it gives a good fragrance. It gives 800 sprays at a time And those previous botttles that were finished in 10 days, It will last for 20 days. It will give a good fragrance. So, they are not talking about the girls. You may talk about the girls like you do, We are talking about value for money, Like it is reasonable and good. If someone said something like that in such a crowd. It just caught everyone's attention automatically.
Strategy No. 2 - Unique Manufacturing
As they held a unique position in marketing. They also made manufacturing unique. Look at all the perfumes that were in the market at that time. They were gas-based, meaning there was perfume inside, But it was released with gas, when you press, the gas will come out And it will come out with the gas. Now you did that and a lot of gas came out, But you felt that the real material inside, It was just a little bit. So, you hit it again, Hit it so many times And you empty the whole bottle by hitting it like this And it ends soon. It is called as Aerosol Spray. However, Fogg launched Non-Aerosol Spray. It says that - gas does not come out in this. Press it directly, and mist will come out directly. The real thing will come out and there is no gas in it. So, they advertised it in this way, Like there is no gas in this. The real thing comes out. So, it is also unique. Hence, product has also become unique And its positioning has also become unique. What is the third unique strategy? -
"Unique Marketing"
How much Mr. Darshan Patel attention is on the marketing, Understand from this thing, In Paras Pharmaceuticals, where other people looks upon different things. Mr. Darshan Patel on watch upon marketing. He said - I like marketing, Why should I put my mind to other things? Hence, he outsourced fog manufacturing. Normally, people says that I will make product, And get marketing done from somewhere else. However, Mr. Darsh Patel said No! Get manufacturing done from somewhere else. I will do the marketing
Now, you see an ad which is showing, They put two glass here One sided spray one and other side that. Said - See, here the real thing come. Hence, he proved that things as well And, he is the best in marketing. As he proves in a minute how my product is better than other products.
And HUL, which is known for its advertising expenditure. They put more than them i.e. around 20% more money into advertising. As they knew that advertising was an investment. It will give a positive return to the company. And when he went to do a market survey after the launch of Fogg. So, went to the market. Said brother - What is happening these days? They said - Currently, your Fogg is going on nowadays So, he said - I went to 10 shops and out of those 10, 7 replied - Fogg is going on. So, Mr. Darshan Patel said if my thing is going on like this. Then it is a matter of information to tell the world. So, they launch an ad on it only. What is going on? Fogg is going on. The fourth thing that they make it best and unique
"Distribution"
This is very important. Remember one thing, Three things work for any product in retail especially in FMCG "Availability, Access and Awareness" Marketing helps in awareness like such product is available in the market. However, it is essential for that product to have it in your reach and access And, it is also necessary to be available. Like, you see an ad on TV and when you go to buy it, You don't get it at the shop. Then, what is the meaning of such a thing? So, he said that I am putting a lot of effort into the marketing, However, I need to pay attention to distribution as well. He follows one rule -
2 Shop Rule
What does this rule say? It says that you went to a shop to buy a product. If you didn't find it in the shop, you would go to another shop. If you didn't find it there, you would not go to the third. A customer then says - We will not buy it. He said - We will make it available in every shop. So, he made it available in every medical store. He made it available in every general store. He made it available in every departmental store. He made it available in every online place. Like we have many areas where a customer can buy our product And it is still available at more than 5 lakh shops. Mr. Darshan Patel's old network has now also become useful. Now,
What were its results?
HUL Axe - That was the market leader, However, Fogg holds the number 1 position With a 20% market share, leaving HUL behind it. Every fifth deodorant sold was one of theirs. Their sales have been more than ₹1000 crores. There is data of last 2020-21 in which sales were around ₹1097 crores. Latest data is not available. Their company's Valuation is ₹ 9000 crore. Because, there is a company named KKR (Parent Firm). They have taken a 54% stake in his company. Around 750 million, Their total valuation is 1.1 billion i.e. ₹9000 crore.
What is the learning from this whole study?
Well, you must have understood. However, now in the pointers,
First thing - Your product must be unique. So, 100 products are running in the market. If you launch 101, No one will notice. All the effort is wasted. Your product should be different.
Whether there is a difference in the product features, There is a difference in the manufacturing, There is a difference in the marketing, There is a difference in the positioning. Anywhere it be?There must be a difference.
Third - Focus on Marketing. It sells if it's visible, If you have made a good product. However, you don't know how to market, It will remain lying And, someone else will market it better than you And last, but not the least.
You spend crores of rupees on marketing. However, if your product is not good. So, the marketing money is also wasted. A product is sold once by marketing, If the product is good, it will be sold again and again. Hence, it is important for a product to be the best.
Hence, these were my three learnings from today's case study. Apart from this, what else have you learned? Tell me in the comment box. Who is this businessman that you want to know more about?