According to AMA “The brands that are considered as alternatives by buyers in a particular market segment; sometimes called the evoked set. Occasionally, it is used to mean a (smaller) set of products which a particular seller wishes to be competing with; more rarely; it means the full set of competitors in fact competing in a given market.”
In Vaseline's case which a brand of Hindustan Unilever Ltd. India, has Emami Vasocare, Johnson & Johnson as the competition.
With the Sunlight soap bars entering the Indian market in 1888, the era of FMCG began. Unilever sets up its first Indian subsidiary called Hindustan Vanaspati manufacturing Company in 1931, followed by Lever Brothers India Ltd. in 1933 and United Traders Limited (1935). These three company merged to form HUL in November 1956. Vaseline came to India around the same time and was one of the few in the personal care market space in India. Around mid 70s Emami came into being and their petroleum jelly called Emami Vasocare came around 2008. Johnson & Johnson came into India around 60s and along them came their offering of Petroleum jelly.
Vaseline Petroleum Jelly as mentioned above has two competitors with it competing in the skin care market. At present the skin care market in India stands at Rs. 3465 crore. HUL back in 2007 had 60% market share in skin care, 52.2% in 2008 and 47% at present. Vaseline has been facing a tough competition from the other two brands specially Emami. Emami has been revamping its product and advertising heavily with the idea that Vasocare is a herbal product with a unique blend of Aloe Vera, Tulsi and Chamomile. In these four years Emami has given good competiton to Vaseline which is a well renowned brand for years in Skin care market. Currently Emami has a market share of about 5%.
Despite the tough competition by Emami, Vaseline has been able to stay put with 47% of the market share. The reason being that Vaseline is still the preferred skin care product fro dry skins and chapped by the women over large demographics.
A reason behind Emami's rise to prominence can be attributed to its reliance on Ayurveda or herbal formulae, whereas Vaseline has a different approach. Also Vasocare is slightly cheaper compared to Vaseline, Vasocare sells for Rs.24 where Vaseline retails around Rs.34. On the other hand, Vaseline is also facing competition from the substitutes in the category like Vaseline Body Lotion, or lotions from different brand like Emami, Nivea, Dove etc. The issue here is Vaseline which is a HUL brand is facing competition from brands owned by HUL only like DOVE or Vaseline Body lotion.
Below is an analysis spelling out the weaknesses and strength of Vaseline petroleum jelly.
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Strength
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1.
Products available in over 60 countries for over 130 years
2.
Vaseline Petroleum Jelly is one of the most widely used products to
fight dry skin
3.
Strong brand recognition and high market share
4.
High Versatility of the product and good R&D
5.
Product range includes plain petroleum jelly and a selection of skin
creams, soaps, lotions, cleansers, deodorants and personal lubricants.
|
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Weakness
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1.
Lack of sustained budget for advertising of products
2.
Severe competition in the skin care and cream segment
3.
The drawback of a popular ‘brandname’ is other or fake products sell
under its name
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Opportunity
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1.
Populrise Vaseline Sheer Infusion contains
patented Stratys-3 technology and is the new body lotion that
infuses and suspends moisture across all layers of skin
2.
Vaseline Intensive Rescue is the latest innovation for dry and very
dry skin from Vaseline
3.
No significant direct competitive petroleum jelly products that
effect Vaseline Petroleum Jelly market share
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Threats
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1.
Lack of consumer advertising as Vaseline focuses more on trade
promotion
2.
Specific Use Products (like baby care or sun burn cream) can compete
against the versatility of the product
3.
Direct competition in the petroleum jelly market from other brands
like Johnson & Johnson
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