Manikchand started as a gutka producer and is now a large conglomerate with interests in tobacco, packaging, mills, real estate, and water. It targets men over 18 with its tobacco and pan masala products, positioning them as mouth fresheners. While it faces political pressure due to health concerns, it has high brand recognition through extensive advertising. However, it also faces threats from regulations and its association with the underworld.
2. History and products
• started out as a Gutka or chewable tobacco producing company.
Today, Manikchand is one of the country’s largest and most respected
business conglomerates – Manikchand Group.
• RMD(Tobacco, Pan Masala and Mouth Fresheners), Manikchand
packaging, Manikchand roller floor mills, Manikchand promoters and
developers Pvt Ltd, Dhariwal Industeries Ltd (Wind Energy Solutions),
Oxyrich (Packaged Drinking Water), JRD Designs (Wedding cards, gift
boxes, etc), JRD Printpack (flex printing)
3.
4. STP of Manikchand
• Segment: tobacco, pan masala and mouth fresheners.
• Target audience: men above 18 years
• Positioning: Mouth freshener, after meals or celebrating joy.
5. PEST analysis
• Political: In 2009, A division Bench has directed M/s Dhariwal Industries,
manufacturers of RMD Gutkha, not to produce, distribute or sell the
product. The Bench gave the direction after perusing a report of the Public
Health Institute.
• Economic: the tobacco industry, irrespective of the tax rate, would have a
neutral effect due to the implementation of GST.
• Social: People get addicted to it as gutka is reported to have stimulant and
relaxation effects. It is considered harmful to health.
• Technological: According to doctors, gutka is a combination of 4,000
chemicals, of which at least 40 are carcinogenic. It still has a loyal
consumer base as it is an addictive product.
6. SWOT Analysis
Strength:
High quality ingredients
High quality laminated packaging
Pan India distribution
Available at any pan store.
Weakness:
High raw material and packaging cost
Contains harmful chemicals
Opportunities:
Product for young Indians
Growing business outside India
Threats:
Ban on tobacco products, gutka in some states
Company is associated with underworld
SWOT
Competitors: Pan Vilas, Pan Parag, Rajnigandha pan masala, Traditional pan and
supari, Not branded gutka, tobacco, etc
9. ATL and BTL techniques
• Manikchand RMD uses many ATL marketing channels such as TV
commercials, Banners and flexes, newspaper advertisements, etc to
promote products.
• BTL techniques by reaching target customers is usually done at pan
shops by vendors only.
10. Brand positioning and perception
• Tagline of Manikchand pan masala is ‘Oonche log, Oonchi pasand!’
• People perceive it as a premium brand for mouth freshner, pan
masala or gutka
• It is generally associated with luxury, high social status, etc due to its
superior quality product and packaging.