Emami Shakes Honey Category
India: Emami has made an entry under its Zandu
brand in packaged honey category. Honey segment is said to be fast growing and
less cluttered and this entrant can fasten the growth of this segment which has
been growing in single digit so far.
Country’s
honey segment is estimated to be around INR 6.5 billion in category sales and
is dominated by Dabur with the market share of 60-65 %. The market has positive
outlook as Baba Ramdev’s Patanjali has created enough awareness in this segment
with competitive pricing while highlighting the health benefits of consuming
honey.
When
it comes to pricing, Patanjali prices its products at a 40 % discount over
Dabur while Emami’s Zandu has been priced at 35 % premium. This pricing
strategy will benefit consumers in terms of more chocies with different product
segments.
According to TechSci
Research, Emami’s entry
will make this a bigger market and its premium pricing will create new customer
segment. Emami claims that its products will be sugar free which no other
player has claimed ever. This move will put Dabur and Patanjali under pressure
and we expect to see some new product ranges from them. Emami also enjoys good
distribution and sales channel which comes at par with that of Dabur and
Patanjali, which will help the company to compete in this segment.