Marketing plan for immunity booster(in health products)


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Marketing plan for immunity booster(in health products)

  1. 1. INTRODUCTION India is the worlds second largest producer of food next to China, and has the potential of being thebiggest with the food and agricultural sector. The total food production in India is likely to double in the next tenyears and there is an opportunity for large investments in food and food processing technologies, skills andequipment, especially in areas of Canning, Dairy and Food Processing, Specialty Processing, Packaging, FrozenFood/Refrigeration and Thermo Processing. Fruits & Vegetables, Fisheries, Milk & Milk Products, Meat &Poultry, Packaged/Convenience Foods, Alcoholic Beverages & Soft Drinks and Grains are important sub-sectors of the food processing industry. Health food and health food supplements is another rapidly risingsegment of this industry which is gaining vast popularity amongst the health conscious. As Hindustan Lever Ltd (HUL) is test marketing its health food brand, Kissan Amaze, in threesouthern states in India, Godrej Hershey Foods & Beverages Ltd (GHFBL), a joint venture between GodrejBeverages & Foods Ltd and Hershey Company, is planning to introduce select brands from its internationalportfolio in the domestic market. HULs arch rival, ITC Foods, is planning to extend the product portfolio of itshealth food brand in the next few months. Porters Five Forces Forces Description Threat of Easy switch to the conventional retailers. Substitute Specialty stores built right in to their Products strategies. Largest food processors acquiring organicBargaining Power food producers. Only 1% of farmland used of Suppliers for organics.Bargaining Power For the most part, conventional retailers of Buyers determine what we pay. Intensity of Degree of commitment by the conventional Competition retailers will determine the intensity. Entrants are already there! Their intensity of Threat of New their pursuit of the natural/organic market is Entrants the question.
  2. 2. Submitted by F11116 Immunity boosters/ Chyawanprash The Indian chyawanprash market is roughly Rs 450crore, mostly dominated by Dabur with the highestmarket share. The other players include Himalaya, Zandu, Emami and Baidyanath and several players in theunorganised sector. The sudden craze for immunity and wellness among urban Indians and the degrading livingconditions including stress is leading to a revival in this category. Also Chyawanprash is mostly consumed inthe winters.Market share :Dabur : 60%Emami : 15%Baidyanath : 12 %Zandu : 10%Others : rest Dabur ChyawanprashThe 100 year old brand name plays an extremely great role. The ads endorsed by Amitabh Bachhan andVivelOberoi were successful to connect with the customers. The distribution network of Dabur helped achievingthe target over and over again. Still, in some parts of the country Dabur faces tough competition from the localbrands.SWOT ANALYSISStrength Weakness1.Strong Dabur brand name 1.Declining popularity in the urban areas2.Excellent branding and advertising3.Excellent distribution and availabilityOpportunity Threats1.Leverage successful brand Dabur 1. Threat from local medicinal herbs in rural areas2.Advertise more 2.People preferring international health brands3.Buy out competition
  3. 3. In 2010 the chyawanprash market saw a 25 % jump after almost single digit growth throughout thedecade. Dabur has banked on its name and launch of new variants like mango and orange. EmamisonachandiEmami’sstrong R&D and aggressive marketing capabilities enable it to identify emerging needs and aspirationsof consumers and convert them into opportunities.Thenew television ad commercial with Shahrukh Khanemphasized the benefits of sona and chandi was a great hit.In addition, door-to-door activity, wallpainting,dealer boards, rural vans andparticipation in fairs and festivals along withregular point-of-purchasemarketingcollaterals (posters, danglers, banners, among others) were being done.SWOT ANALYSISSTRENGTH1.Powerful brands WEAKNESS2.Pan-India presence Only weakness is that consumer perception of the3.Young and dynamic team brand that it really contains sona and chandi4.Efficient operations5.Celebrity brand ambassadors6.Innovative research7.Strong financialsOPPORTUNITY THREATS1.Lots of opportunity as it is ayurvedic with no side 1.Biggest threat is Dabureffect 2.Local brands2.Untapped rural market3.People now a days more concernedfor health ZanduKesariJivanZandu introduced chywanprash with a saffron element which was an improved formula and was positioned as ageneral tonic. Can be consumed with milk or bread, was the key feature. Its market share has increased to 10 %. BaidyanathThe herbal contents were mostly positioned for therapeutic use. They differentiated from the other players byintroducing 2 variants separately for adults and children.
  4. 4. Business plan for new entrant in chywanprash marketSegmentation, targeting and positioning: 1. Segmentation : age (growing kids, competitive youth, adults, old aged), income,psychographic 2. Target : Rural area Middle classIn the Indian FMCG sector, rural India accounts for more than 40% of the country’sconsumption. So a lot ofscope is there for getting higher profits from rural market as the existing players have not tapped completely. 3. Positioning : Not as a health supplement to boost immunity during winters especially, but all-season affordable regular daily tonic for all age-groups that can be consumed separately and with other food items as well. Making the consumers feel that its their health supplement from their own land – no connection with international elements at all. Have to differentiate from the local brand as well. Marketing Mix: 1. Product: As chywanprash usually is derived from herbal ingredients, its difficult to get of different flavours. Strawberry, kiwi, chocolate, etcflavors can be introduced to give different choices to the consumers. Although, Dabur had introduced mango and orange flavors, it was not a huge success. Different flavours can be associated with different motives for building connection with the consumers. Sachets can be introduced to tap rural market fast due to less income of rural customers. Attractive packaging for different segments can be used. 2. Price : To capture the market with already existing major players, less priced product would be helpful. To implement the same, strong R & D and distribution network is needed to cut cost. Rs. 85 per kg can be the proper price with no compromise with quality. Discount can be offered with certain terms and conditions applied. 3. Promotion : Internet marketing is the need of the hour. With major firms gaining huge market share due to internet markting is common these days. Some online event or game would light the spark. Endorsements by stars would also have a positive effect. 4. Place : Distribution channels would be strong to reach supermarkets, kirana stores, medicine stores. Strategy : *Creating a niche, strong R & D to come up with innovative ideas, to pursue growth by adopting both organic and inorganic routes. *The product ideology would be: build immunity, enhances memory, strengthens body- must to consume daily.
  5. 5. *Free samples for rural area can be a different way for product awareness. Organize competitionsor some events in schools, colleges.*Hire a leader from each village in rural sector for brand communication. This will giveopportunity to earn as well as awareness.*Incentive scheme can be introduced to shop owners in rural area along with promotional banners.*Local celebrity can be taken as an option for endorsement.