Case Study: Vicco’s 70 year old marketing tactics

When you hear Vicco, do you also sing this?

Vicco Laboratories was founded in 1952 by Nagpur’s Keshav Vishnu Pendharkar who started the business in Mumbai. Initially, the company did an annual revenue of INR 10,000; in 2022, however, it’s revenue was reported at INR 500 crores!

Currently managed by a third-gen entrepreneur, Sanjeev Pendharkar is the CEO of his grandfather’s company, taking his vision forward.

STP Analysis

Segmentation

• Demographic Segmentation:
  Vicco primarily targets middle-class families in India, particularly those who have a higher awareness of the benefits of Ayurveda.
  This segment tends to reside in urban and semi-urban areas, where consumers are exposed to a wider array of natural and organic products.

• Psychographic Segmentation:
  It appeals to consumers who are health-conscious and have a strong preference for products that are chemical-free, natural, and Ayurvedic.
  In recent years, there has been a notable shift towards more holistic and natural self-care solutions, which has been beneficial for Vicco.

• Geographic Segmentation:
  While Vicco’s core focus remains the Indian market, the brand has also made international inroads by expanding to over 45 countries.

Targeting

• Primary Target Audience:
  The brand primarily targets health-conscious individuals and families.
  These are people who prioritize their wellness and actively seek out products that offer natural alternatives to chemical-based healthcare and personal care solutions.

• Secondary Target Audience:
  A growing number of Millennials and Gen Z consumers have started gravitating towards organic, herbal, and sustainable products.
  By offering products that are rooted in tradition yet align with modern values, Vicco can tap into this expanding demographic.

Positioning

The brand seeks to differentiate itself from mainstream products by focusing on Ayurveda’s holistic and natural approach to health and beauty. Vicco positions itself as a traditional Ayurvedic brand that offers modern consumers a natural, chemical-free alternative to mainstream beauty and healthcare products.

Competitors of Vicco

Vicco operates in a competitive landscape, particularly in the Ayurvedic and personal care sectors.

• Patanjali:
  Patanjali has rapidly grown in the Ayurvedic market by leveraging a more aggressive pricing strategy and an expansive product line.
  Patanjali has also built its brand on the popularity of Baba Ramdev, capitalizing on his strong following.

• Dabur:
  Another formidable competitor, Dabur offers a broader portfolio of products that extends beyond personal care into healthcare and foods.
  Dabur’s strength lies in its diversified offerings and its ability to cater to both rural and urban consumers.

• Colgate-Palmolive & Hindustan Unilever:
  These multinational giants offer synthetic, chemical-based alternatives to Vicco’s natural products.
  Colgate, for example, dominates the toothpaste market with its strong modern positioning and widespread distribution.
  Hindustan Unilever poses a similar threat with its popular skincare brands.

Vicco’s niche focus on Ayurveda sets it apart, with a niche positioning in the Ayurvedic personal care segment. This allows it to retain loyal customers who value purity and traditional formulations.

While brands like Patanjali and Dabur have expanded aggressively, Vicco has remained focused on its core values as a time-tested Ayurvedic brand, giving it a unique advantage.

Vicco’s Marketing Mix

Product

Mr Pendharkar saw all the chemical-infused cosmetic products that were occupying the shelves and he wanted to create something that’s safe for the skin. So, with his brother-in-law, he immersed himself in Ayurveda and created the first product – an Ayurvedic tooth powder made of 18 traditional ingredients.

We’re talking about the 1950s here, when it wasn’t really possible to market the products as widely as today. So, he took the door-to-door approach to sell his toothpowder. The Swadeshi movement was also popular with independence and they used this concept for packaging – they packed the box of toothpowder in a cotton bag.

With time, word-of-mouth grew and people started trusting the product. In 1971, Keshav’s son Gajanan took over and introduced new products in the cosmetics segment. Since then, the product line has evolved to offer a good variety –

Vicco’s product line has remained strongly tied to its Ayurvedic heritage that highlight its natural approach. The brand’s most recognizable products include Vicco Vajradanti (a herbal toothpaste) and Vicco Turmeric Skin Cream.

These two have had highly memorable jingles of their own that you might remember as you read this as well. With the use of turmeric, however, people were a bit skeptical – they thought it would tint their skin yellow.

But the product was tested in front of the consumers on merchants’ cheeks to remove this hesitation. The appeal of Vicco products lies in their focus on natural and herbal formulations, which cater to consumers increasingly looking for chemical-free alternatives.

Price

Vicco employs a competitive pricing strategy, ensuring that its products remain affordable, especially in the Ayurvedic category. When compared to rivals like Patanjali and Dabur, Vicco’s pricing is in a similar range.

For instance, Vicco Vajradanti toothpaste is priced close to Patanjali Dant Kanti, appealing to a segment that values affordable, high-quality Ayurvedic products. Despite being a legacy brand, Vicco has avoided premium pricing, making its products accessible to middle-class consumers while still ensuring they’re made with natural, high-quality ingredients.

This affordability has helped Vicco maintain its presence, even as newer competitors have entered the market.

Place

Vicco’s distribution strategy ensures its products are widely available across both urban and rural markets in India. With a vast network of retail outlets, Vicco products can be found in pharmacies, supermarkets, and small kirana stores throughout the country.

The brand’s wide distribution has helped it penetrate deep into semi-urban and rural markets, where Ayurvedic products are highly regarded. In recent years, Vicco has also embraced the growth of e-commerce. Platforms like Amazon and Flipkart have expanded the reach of its products.

It is also available on quick-commerce platforms like Blinkit, making it available for last-minute needs.

Promotion

In Vicco’s initial decades, only Doordarshan channel existed on the television (our generation can’t even imagine the era). So, Vicco became the first company that sponsored a television show which helped them broadcast their jingle.

Vicco’s jingle, “Vicco Turmeric, Nahi Cosmetic,” is among the most recognized jingles in Indian advertising history. Imagine – everyone in the country who was watching the show, also watched the commercial.

Not only this, Vicco also adapted its jingles in local dialects and on video tapes as well. Apart from that, it has also heavily advertised in the ad breaks of movie theatres.

As media consumption has shifted to digital platforms, Vicco has successfully transitioned to digital marketing. The brand now uses social media platforms like Instagram, Facebook, and YouTube to reach younger audiences. The posts are mostly promotional, with some being educational and a use of moment marketing as well.

Over the last few years, Vicco has been working hard to attract younger generations, who are more inclined toward natural and organic products. However, the social media presence is not engaging enough – many of the posts have very low reach with 0 comments.

Challenges and Opportunities in the Future

Challenges

Outdated Brand Perception: 
Despite its attempts to modernize, Vicco is often perceived as an “old-fashioned” brand, particularly by younger consumers who gravitate toward more contemporary Ayurvedic brands like Forest Essentials.

Increased Competition: 
The rise of Patanjali and other modern Ayurvedic brands poses a significant challenge to Vicco. These newer players are more aggressive, capturing market share in both urban and rural areas.

Opportunities

New Market Expansion: 
Vicco has the potential to expand into the growing skincare and health supplements sectors. It could introduce new products tailored for the modern wellness movement.

Digital Presence: 
Vicco’s ongoing transition to digital marketing provides a significant growth opportunity. It could implement an engaging social media strategy to capture the younger demographics.

In a Nutshell

Vicco’s journey in the Indian market is one of brand longevity and adaptability. Moving forward, Vicco’s ability to embrace modern marketing tactics, expand its product offerings, and resonate with newer, health-conscious audiences will determine its success in the ever-competitive Ayurvedic market.

Key Takeaways from Vicco’s Marketing

Leverage traditional brand heritage while evolving to stay relevant with modern consumers.

Use affordable pricing strategies to compete in saturated markets without compromising product quality.

Adapt to digital and social media trends to attract younger demographics.

Expand product offerings based on current wellness trends and consumer preferences.

Build strong, recognizable brand elements, like memorable jingles, to create long-lasting consumer recall.