Analysis of Brand Performance of the newly launched
“Zandu Pure Honey” in Chennai Market
Karthik S | 15PGP044
Short Shelf Life
Sold quickly and
bought frequently
Strong presence of
unorganised sector
Low margin and
High volume
Purchased with
low involvement
Low Price
FMCG Industry
Key Statistics Key Players
Valued at $37
Billion in 2013
Contributes 2.5%
of India’s GDP
Set to Grow by
12% in 2016
FMCG Industry in India
Source : Nielsen
Estd. in 1974 by Mr. R. S.
Agarwal and Mr. R. S. Goenka
Part of the Rs.10000 crore
Emami Group with interests in:
Real Estate &
Construction
Edible Oil
Healthcare
Paper Art
Biodiesel
2660 Employees
2000 Frontline Salesforce
2800 Distributors
7 Manufacturing Plants
4 Regional Offices
HQ : Kolkata
Emami Ltd.
Emami’s Vision : Making People Healthy & Beautiful, Naturally
Brands of Emami
Launched in January 2016
Purest Packaged Honey available in India
Available in 100g, 250g and 500g SKUs
Premium Positioning Adopted (~ 30% higher than Dabur’s MRP)
About Zandu Pure Honey (ZPH)
SKU Size MRP
100 g Rs.75
250 g Rs.165
500 g Rs.270
Price Points Margin Provided to Retailers
18% to 21%
(VPS)
Lion Honey
Dabur Honey
Market Leader for Honey in India
(~60% Market Share )*
Available in 50g, 100g, 250g, 400g,
500g and 1kg SKUs
Provides margin of 18% to 20% to
retailers
2nd Highest Market Share in Chennai
Available in 50g, 100g, 250g, 400g and
1kg SKUs
Buy 1 Get 1 Free offer on 250g, 400g and
1 kg SKUs
Key Competitors of ZPH
* Source : Times of India
Manufacturing
Plant
Regional Warehouses
(Hyderabad &
Bengaluru)
Chennai Depot Distributors Retail Outlets
VP RSM ASM ASO Market Reps.
Distribution Channel and Sales Hierarchy
Issues encountered in Distribution channel:
 Distributors not receiving enough stocks of products Undercutting
Region Areas
Chennai 1 Northern Chennai
Chennai 2 South Chennai
Chennai 3 Western Chennai
Chennai 4 Central Chennai
Distributive divisions of Chennai
Beats Covered for Market Research
Beat – Route followed by a salesman on a
particular day. Every beat is visited once a
week
Total Retailers Surveyed = 292
Classification of Outlets
Based on Type of outlet
Medical
Shop
General
Stores
Wholesaler
Supermarket
(SM)
49% 34% 16%
Medical Shop General Store SM
9
34
69
120
60
0
20
40
60
80
100
120
140
A+ A B C D
201
50
35
0 50 100 150 200 250
< 6 KG
6 KG - 15 KG
> 15 KG
Based on Quantity of Honey sold
Based on Class of outlet
SKU
Brands
ZPH Dabur Honey Patanjali Lion Honey Others Total
50 g 0 2112 0 1110 195 3417
100 g 268 1462 4 755 125 2614
250 g 133 871 11 728 81 1824
400 g 0 166 0 107 0 273
500 g 29 261 8 71 22 391
1 kg 0 99 9 39 3 141
Total (kg) 74.55 765.45 16.15 430.3 56.5
62
277
3
157
39
BRAND
No.
of
outlets Brands stocked by Retailers
ZPH Dabur Patanjali Lion Honey Others
6%
57%
1%
32%
4%
Brand wise stockage
13%
19%
34%
15%
8%
11%
SKU wise Stockage
50 g
100 g
250 g
500 g
400 g
1 kg
36% of times, customers ask specifically for
Dabur Honey. Strong Brand Preference
exhibited by customers. [Figure 14]
Brand Preference of Customers
Customer Demand
66%
Margins Provided
23%
Presence of Advertisements
10%
Parameters considered by retailers before stocking a Product
[Figure 11]
Awareness Levels of ZPH
51%
Aware
49%
Unaware
1st Preferences : Overall vs
outlets that stock ZPH
ZPH vs Dabur :
Based on Type of outlet
Places of Buying Honey [Figure 23]
Sample Size= 174
Consumer Survey Analysis
Medical Shop
7 %
General
Stores
36 %
Wholesaler
Supermarket
(SM)
5 %
52 %
Reasons for buying Honey -
Highest to Lowest
[Figure 24]
Overall Nutritional Value
Cough Remedy
Sweetness
Rich source of Energy
Weight Loss
Cosmetic use
Awareness Level of ZPH
23.6 %
Aware
76.4 %
Unaware
Brands bought by Customers Parameters considered before
buying Honey
Consumption Frequency of Honey
Purity Price
Brand Name Taste
Presence of Ads
Packaging
Attractive Offers
Always
[Daily]
Very
Often
Sometimes Rarely Never
Greater percentage of Females buy
Honey from Supermarkets when
compared to men [Figure 35]
Women consume Honey more frequently
than men, with 20 % of women consuming
Honey daily as against 5 % of men [Figure 42]
People who are unaware of ZPH buy Lion
Honey. People who are aware of ZPH don’t buy
Lion Honey [Figure 38]
71.43 % of Respondents who consider
Brand name as “Extremely Important”
consume Dabur Honey. [Figure 35]
Other Key Findings
I. Create a new Brand Name and supress “Zandu”
Way Forward Actions :
 Emami Honey
 Creation of a unique “sub-brand”
 Rebrand it ZPH by supressing “Zandu”
Recommendations
II. Introduce 50
g SKU
III. Educate Retailers and
customers about the
purity of ZPH
IV. Ensure
availability of ZPH
 Purity is the USP of ZPH
 Placement in Retail outlets
depended entirely on MR. So,
educate MRs about purity of ZPH
 Customers give maximum emphasis
to purity while buying Honey [Figure
26]
 Educate customers about ZPH
through appropriate Market
Communication
 50 g SKU – Fastest
moving among all SKUs
[Figure 16]
 Due to high price of
ZPH, customers will
tend to try it in small
quantities
 Presence of 50 g SKU
of ZPH boost sales and
popularity of ZPH
 Distributors didn’t
receive enough stock
of ZPH from mid-Feb to
mid-April
 Caused some of the
Retailers to forget
about ZPH
 Few retailers asked for
ZPH but stock was not
available
V. Provide Display Options
 Display Options were provided in January, but soon discontinued
 Will help to increase awareness of ZPH (Current level – 25%)
 Display options near billing counters will induce impulse buying
Sample Display Scheme
T H A N K
Y O U

Summer Internship Presentation - Zandu Pure Honey

  • 1.
    Analysis of BrandPerformance of the newly launched “Zandu Pure Honey” in Chennai Market Karthik S | 15PGP044
  • 2.
    Short Shelf Life Soldquickly and bought frequently Strong presence of unorganised sector Low margin and High volume Purchased with low involvement Low Price FMCG Industry
  • 3.
    Key Statistics KeyPlayers Valued at $37 Billion in 2013 Contributes 2.5% of India’s GDP Set to Grow by 12% in 2016 FMCG Industry in India Source : Nielsen
  • 4.
    Estd. in 1974by Mr. R. S. Agarwal and Mr. R. S. Goenka Part of the Rs.10000 crore Emami Group with interests in: Real Estate & Construction Edible Oil Healthcare Paper Art Biodiesel 2660 Employees 2000 Frontline Salesforce 2800 Distributors 7 Manufacturing Plants 4 Regional Offices HQ : Kolkata Emami Ltd.
  • 5.
    Emami’s Vision :Making People Healthy & Beautiful, Naturally Brands of Emami
  • 6.
    Launched in January2016 Purest Packaged Honey available in India Available in 100g, 250g and 500g SKUs Premium Positioning Adopted (~ 30% higher than Dabur’s MRP) About Zandu Pure Honey (ZPH) SKU Size MRP 100 g Rs.75 250 g Rs.165 500 g Rs.270 Price Points Margin Provided to Retailers 18% to 21% (VPS)
  • 7.
    Lion Honey Dabur Honey MarketLeader for Honey in India (~60% Market Share )* Available in 50g, 100g, 250g, 400g, 500g and 1kg SKUs Provides margin of 18% to 20% to retailers 2nd Highest Market Share in Chennai Available in 50g, 100g, 250g, 400g and 1kg SKUs Buy 1 Get 1 Free offer on 250g, 400g and 1 kg SKUs Key Competitors of ZPH * Source : Times of India
  • 8.
    Manufacturing Plant Regional Warehouses (Hyderabad & Bengaluru) ChennaiDepot Distributors Retail Outlets VP RSM ASM ASO Market Reps. Distribution Channel and Sales Hierarchy Issues encountered in Distribution channel:  Distributors not receiving enough stocks of products Undercutting
  • 9.
    Region Areas Chennai 1Northern Chennai Chennai 2 South Chennai Chennai 3 Western Chennai Chennai 4 Central Chennai Distributive divisions of Chennai Beats Covered for Market Research Beat – Route followed by a salesman on a particular day. Every beat is visited once a week Total Retailers Surveyed = 292
  • 10.
    Classification of Outlets Basedon Type of outlet Medical Shop General Stores Wholesaler Supermarket (SM) 49% 34% 16% Medical Shop General Store SM 9 34 69 120 60 0 20 40 60 80 100 120 140 A+ A B C D 201 50 35 0 50 100 150 200 250 < 6 KG 6 KG - 15 KG > 15 KG Based on Quantity of Honey sold Based on Class of outlet
  • 11.
    SKU Brands ZPH Dabur HoneyPatanjali Lion Honey Others Total 50 g 0 2112 0 1110 195 3417 100 g 268 1462 4 755 125 2614 250 g 133 871 11 728 81 1824 400 g 0 166 0 107 0 273 500 g 29 261 8 71 22 391 1 kg 0 99 9 39 3 141 Total (kg) 74.55 765.45 16.15 430.3 56.5 62 277 3 157 39 BRAND No. of outlets Brands stocked by Retailers ZPH Dabur Patanjali Lion Honey Others 6% 57% 1% 32% 4% Brand wise stockage 13% 19% 34% 15% 8% 11% SKU wise Stockage 50 g 100 g 250 g 500 g 400 g 1 kg
  • 12.
    36% of times,customers ask specifically for Dabur Honey. Strong Brand Preference exhibited by customers. [Figure 14] Brand Preference of Customers Customer Demand 66% Margins Provided 23% Presence of Advertisements 10% Parameters considered by retailers before stocking a Product [Figure 11] Awareness Levels of ZPH 51% Aware 49% Unaware
  • 13.
    1st Preferences :Overall vs outlets that stock ZPH ZPH vs Dabur : Based on Type of outlet
  • 14.
    Places of BuyingHoney [Figure 23] Sample Size= 174 Consumer Survey Analysis Medical Shop 7 % General Stores 36 % Wholesaler Supermarket (SM) 5 % 52 % Reasons for buying Honey - Highest to Lowest [Figure 24] Overall Nutritional Value Cough Remedy Sweetness Rich source of Energy Weight Loss Cosmetic use Awareness Level of ZPH 23.6 % Aware 76.4 % Unaware
  • 15.
    Brands bought byCustomers Parameters considered before buying Honey Consumption Frequency of Honey Purity Price Brand Name Taste Presence of Ads Packaging Attractive Offers Always [Daily] Very Often Sometimes Rarely Never
  • 16.
    Greater percentage ofFemales buy Honey from Supermarkets when compared to men [Figure 35] Women consume Honey more frequently than men, with 20 % of women consuming Honey daily as against 5 % of men [Figure 42] People who are unaware of ZPH buy Lion Honey. People who are aware of ZPH don’t buy Lion Honey [Figure 38] 71.43 % of Respondents who consider Brand name as “Extremely Important” consume Dabur Honey. [Figure 35] Other Key Findings
  • 17.
    I. Create anew Brand Name and supress “Zandu” Way Forward Actions :  Emami Honey  Creation of a unique “sub-brand”  Rebrand it ZPH by supressing “Zandu” Recommendations
  • 18.
    II. Introduce 50 gSKU III. Educate Retailers and customers about the purity of ZPH IV. Ensure availability of ZPH  Purity is the USP of ZPH  Placement in Retail outlets depended entirely on MR. So, educate MRs about purity of ZPH  Customers give maximum emphasis to purity while buying Honey [Figure 26]  Educate customers about ZPH through appropriate Market Communication  50 g SKU – Fastest moving among all SKUs [Figure 16]  Due to high price of ZPH, customers will tend to try it in small quantities  Presence of 50 g SKU of ZPH boost sales and popularity of ZPH  Distributors didn’t receive enough stock of ZPH from mid-Feb to mid-April  Caused some of the Retailers to forget about ZPH  Few retailers asked for ZPH but stock was not available
  • 19.
    V. Provide DisplayOptions  Display Options were provided in January, but soon discontinued  Will help to increase awareness of ZPH (Current level – 25%)  Display options near billing counters will induce impulse buying Sample Display Scheme
  • 20.
    T H AN K Y O U