Innovation is of utmost importance in low-involvement categories. The ability to spot trends early on and adapt swiftly and effectively can be the difference between leading the pack and playing catch-up.
Godrej Consumer’s home insecticide brand HIT has made itself almost synonymous with the category by taking on the mantle of innovation — be it in format or formulation. The company recently revamped its bestselling Kala HIT mosquito spray with a formulation that promises greater efficacy, pricing it at Rs180 for a 400 ml pack. Market estimates indicate that HIT holds over 80% of the aerosol market in the home pest control segment, giving it a clear edge over competition like All Out (SC Johnson) and Mortein (Reckitt).
For its part, aerosols for mosquitoes contribute nearly 50% of HIT’s revenue, making them the biggest driver for category expansion. Shilpa Suresh, head of marketing – home care at Godrej Consumer Private Limited (GCPL), says that as a leading brand in the category, it is HIT’s responsibility to innovate and identify new solutions for its consumers. “Typically, aerosols in India have seen a better adoption in markets that have seasonal spikes in mosquito infestation rather than those that have consistent infestation. While HIT is strong across markets in the country, North and West are major contributors to the aerosol business,” says Suresh.
Consequently, the brand will adopt a stronger distribution strategy in the North and West.
India’s home insecticide market stands at Rs 7,500 crore and brand HIT is valued at around Rs 950 crore. The market is poised for significant growth, with an expected annual increase of around 7-9% over the next five years, says Nikhil Sethi, partner and national head, consumer goods, KPMG in India.
“The mosquito repellent segment stands out as the largest revenue generator, contributing over 50% of the total market share. This growth is driven by increasing awareness of health and hygiene and the rising prevalence of vector-borne diseases such as malaria and dengue,” explains Sethi. He adds that the expanding middle-class, with higher purchasing power and heightened awareness about health and hygiene, represents a significant consumer segment.
Clearly GCPL sees tremendous potential in the category, given that HIT’s latest innovation for its mosquito repellent aerosol is the third major innovation from the brand in a 12-month span. The other two were HIT Matic, a government-approved automatic mosquito control smart home device, and a`99 HIT Anti-Roach gel pack.
“The entire investment for the new launches in the HIT product line is perhaps the highest we’ve ever spent for the brand in the last decade, across product, packaging revamp, pricing and ad spending,” says Suresh, declining to share specific numbers.
Safety concerns
One of the major concerns that most consumers raise about home insecticides and repellents is their potential side-effects on health, especially for children and elderly people. Consumers are instead seeking more natural alternatives to avoid the health hazards that repellents cause.
Ankur Bisen, senior partner and head – consumer, food & retail, Technopak Advisors, points out that brands in this category need to do more to address these concerns. “The advertising for these products often showcases their effectiveness in swiftly killing insects, but make no mention of the potential consequences of long-term exposure. There have been no independent studies done on these products and the adverse effects they have on human health and wellbeing,” says Bisen.
Suresh argues that all GCPL’s home insecticide products undergo rigorous testing across age groups and ethnicities to make them safe for everyone, including infants. “Safety has been an important focus for HIT and it is seen in our advertising and messaging as well. Our effort is to continue to engage with consumers on this subject through mass media, social media, etc.,” says Suresh.
She adds that earlier this year, GCPL collaborated with the Indian Academy of Pediatrics to discuss safety aspects of household insecticide products, as well as best practices for responsible usage to protect family health.
GCPL’s home insecticide business includes Goodknight, besides HIT. Both brands account for approximately one-third of the company’s business.
Nisha Sampath, managing partner, Bright Angles Consulting explains that the two brands have had very different positioning in the market, enabling GCPL to dominate the market. “Goodknight is associated with gentle yet effective protection, while HIT, through its messaging, imagery and strong pack graphics, has always taken the position of the instant insect killer, which eliminates the threat of disease,” says Sampath.
She adds that while Goodknight has positioned itself as a child-safe brand, GCPL will need to leverage the Godrej equity well to position HIT as a safe bet for all.