Understanding hyperlocal marketing with Cycle Agarbatti

India’s agarbatti market, estimated at ₹10,000 crore, is a complex mix of organised and unorganised players, with the latter still accounting for 30-40% of sales, according to available market data. Within this landscape, Cycle Pure Agarbatti holds a significant position, accounting for approximately 20% of the organised sector. The brand’s parent company, N. Ranga Rao & Sons, was founded in 1948 by N. Ranga Rao in Mysuru and has since grown to sell around 12 billion incense sticks annually.

The company's initial strategy was a departure from the norms of a then-fragmented industry. As Amarnath Dutta, Chief Sales and Marketing Officer, explains, the founder identified fragrance as the key to establishing credibility. “He realised that you know if we have to disrupt the market, disrupt the industry, fragrance is the core to this industry and that's the reason why people will shift,” Dutta says. This focus on fragrance science, which began with importing perfumery books from France, remains central to the company's operations.

Today, with a library of 600 fragrances and a vast distribution network reaching 8 lakh retail outlets directly, the challenge is to maintain this legacy while adapting to a modernising India. In a conversation with Amarnath Dutta, we discuss how the brand is balancing its traditional foundations with new commercial realities.

National unity and hyper-local connection

Cycle's marketing approach operates on two distinct levels: broad national campaigns and specific, regional initiatives. Cricket has long served as its national platform, a space where the brand connects with a collective sentiment. However, a central element of its strategy is its recognition of the country's diversity. “We treat India as multiple Indias,” Mr. Dutta states, a philosophy that translates into a hyper-local product strategy.

This is demonstrated by products tailored for specific cultural contexts. For instance, Godhuli, a fragrance named after the Bengali word for dusk, is a major brand in the eastern region. Similarly, the company launched a Bihu-branded product for the festival in the Northeast and many more all over India. “Going hyper-local into each community, into understanding what connects with the consumer and how this brand can be part of those emotions,” Dutta notes, is key to its approach.

Navigating a complex market landscape

The incense market contains strong regional brands and a large unorganised segment often driven by trade promotions. Cycle reports that it avoids heavy discounting, focusing instead on product quality to build consumer loyalty. “We have always believed in quality,” says Dutta. “We believe that you earn a consumer's trust, and once you earn a consumer's trust, that consumer is there for you for life.” The company also states that it is certified 100% carbon and plastic neutral.

This focus on fragrance has allowed the company to expand into the competitive air care category with sub-brands like Lia for functional products and Iris for lifestyle home fragrances. In the car freshener segment, Dutta confirms that Lia is the number two brand nationally.

Adapting to new channels and media

While television and print remain important for reaching its mass consumer base, digital now constitutes about 30% of Cycle’s media mix. Digital platforms are used for targeted communication and as a feedback mechanism through the company's D2C website, Cycle.in.

Dutta explains, “Anything we launch in the general trade or in the mass market, we first pilot it on our website. We take feedback from the consumers very strongly, personalised feedback one-to-one using the digital network, and then we make those tweaks and then launch it in general trade.”

This digital presence has become critical with the growth of quick commerce. Dutta views the 10-minute delivery model as a significant disruption. “The per square feet area of a dark store for a quick commerce platform in a city becomes very very critical, and hence they are also looking for brands which have very very strong pull in general trade and modern trade,” he says. The strategy involves listing fast-moving products and investing in platform-specific search and advertising to ensure discoverability.

The future: AI and authentic partnerships

Cycle is pragmatically integrating Artificial Intelligence into its operations to guide decision-making. The company reports using AI for hyper-targeting consumers with fragrance suggestions and for analysing trends to drive product innovation. This has led to launches like Thinscents, a Japanese-inspired incense catering to minimalist preferences, and Darbari, a premium product developed by using AI to research traditional fragrance codes.

The brand’s strategy also includes cultural partnerships, such as its recent association with the film Kantara. Dutta describes the collaboration as an "organic fit." He explains, “Everything that the movie stood for is what this brand stands for.

It's beliefs on trust, it believes on devotion, and beliefs on being part of our roots, so it became a very natural association for us.”

An unchanging principle

Amid changes in technology and consumer behaviour, Dutta maintains that the brand's core purpose remains constant. He frames it not as selling a product, but as participating in a consumer's life moments.

“We are not in the business of selling Agarbatti. We are there to be part of consumers' prayers. We are part of the hope that we give to the consumers of India when they fold their hands and look for a better future. I think those fundamentals will not change,” he says  “Prayer plays a central role in life’s key moments — from exams and first jobs to times of personal struggle and recovery. It serves as both a grounding force and a source of resilience. For Cycle, being part of these deeply personal and universal moments of prayer reflects its purpose and identity as a brand.”