Red, Rural and Raging: What’s attracting Dabur, Marico to the cooling oil category

Emami, based in Kolkata, debuted one of its main brands, Navratna Cool Oil, in 1989. Prior to then, unorganized regional firms controlled the Indian market for cooling therapeutic oils. Recognizing the market potential, Emami took the initiative to develop a brand that catered to the demand for cooling oils. In the year 2023, two FMCG companies entered the cooling oil market last month. Dabur debuted 'Cool King Thanda Tel,' while Marico debuted 'Red King Cooling Oil.

Marico's chief marketing officer, Somasree Bose Awasthi, notes, "We tasted success with the launch of a cooling oil in Bangladesh last year." We entered the Indian market by using our foreign knowledge and presenting a one-of-a-kind product with extraordinary features and component blend." According to industry experts, India's cooling oil business is valued at approximately Rs 1,000-1,200 crore (approx. ), accounting for approximately 8-10% of the country's entire hair oil market. Dabur saw the chance several years ago. Its research and development team created a product by utilizing ayurvedic and natural substances.

Ankur Kumar, head of marketing for hair care at Dabur India, comments on the brand's introduction into the area, saying, "Our product aims to address unmet consumer needs by delivering the promise of cooling oil while leveraging the trusted name of Dabur." We feel we entered the market at the perfect time, as customers are experiencing more mental and physical stress, resulting in a decline in quality of life." Dabur has released its products in India's northern, western, and eastern regions.

In the minds of customers, Navratna is synonymous with the words 'Thanda Thanda Cool Cool'. What will happen to Navratna's market domination with the introduction of these significant brands?

The early penetration in this category is around 10%," says Kaushik Vedula, AVP - marketing at Emami. Our accomplishments thus far have been the product of our individual efforts. The market will only grow as established brands enter the market and investments increase, benefiting everyone involved. Brands strive to catch the attention of both urban and rural customers since they are all stressed and looking for respite. They are aiming for a diverse group of people, including both males and women. However, advertising for cooling oil are frequently placed in rural locations. Consider the legendary Navratna advertising starring Amitabh Bachchan and Govinda, or, more recently, Nora Fatehi in a Dabur campaign. 

Cooling oil products are intended for the general public, both in urban and rural locations. So, why do they constantly take place in rural India? 

"It's critical to align ads with times," Vedula argues. Previously, when these advertisements were produced, India was undergoing major transformation. As communication channels evolve, we accept and embrace the changes by delivering solutions in an appropriate manner. We're considering a wide range of audiences. We are currently choosing media vehicles and aligning with the intended audience."

Wow Science and Seer Secrets are two smaller players in the category. Their products serve specialized markets, with prices ranging from Rs 300-500 (200 ml pack). Marico Red King, on the other hand, is priced at Rs 149 for 180 ml and Rs 199 for 280 ml. Dabur introduced six SKUs, ranging from Rs 1 for a bag to Rs 330 for a 470 ml pack.

Navratna also sells a Rs 1 sachet, a 100 ml pack for Rs 78, and a 500 ml pack for Rs 285. Marico intends to capitalize on its existing distribution network, whilst Dabur intends to distribute its products through merchants, modern trade and e-commerce outlets, and barber shops.