Friday, July 15, 2005

Ayush fails in Indian market

Hindustan Lever (HLL)’s ayurvedic brand Lever Ayush, launched with high expectations in 2002 is under review as the brands is not rising up to the expectations the in the traditional retail market, ironically a turf Hindustan Lever is master with. The brand has been withdrawn from retail shelves some time ago, and is not expected to return back in the market. Interestingly, the brand did comparatively well when marketed through its direct selling channel Hindustan Lever Network, a relatively newer distribution route for HLL. Hindustan Lever decided to market Ayush through its direct selling business last year, with a view to lift its sagging sales. Hindustan Lever tarrgeted annual sales of Rs 200 crore in a span of 2-3 years of its launch but the brand has not been able to notch up more than Rs 20 crore The brand was launched by the company at a time when the Rs 3,000 crore healthcare market was witnessing a robust growth of about 15%, almost 50% more than non-herbal products in the category. Ayush was pitched against entrenched competitors like Dabur, Himalaya Drug Company and Ayur. However, the brand failed to make any significant impact on the market and competition.