Ayurveda in India

Possible approach for the Mid term

Marketing Plan

a) Classification of products based on requirement of Marketing and Selling i) Pharmaceuticals and Animal Health

Buying behaviour: Subcontracted and no change is being planned from Marketing activities (that is the behaviour would continue to be subcontracted)

ii) Personal care and Well beingCurrent Buying behaviour: Variety seeking/ Problem solving. Marketing activities need to move the products to loyalty

b) Attributes Since there is a need to change the perception of Ayurveda products from being low quality marketing should focus on increasing involvement by changing the way quality is evaluated.

The company should work on the following for personal and well-being:i) Search attributes denoting quality need to be improved. Since the company is

building credence attributes, the search and subsequent experience attributes should be leading to the credence attributes. So in addition to packing and colour the attributes which help focus on the fact that these are “natural and safe with no negative side effects as they are free of chemicals” should be built. For example attribute that they are natural and derived from herbs (see figure). At this point purchase involvement should be increased by increasing visibility.

ii) Experience attributes should also focus on reliability and link to the credence attribute. Product involvement should be increased by emphasizing the risk of side effects of chemical based products.

iii) Credence attribute that the products are “natural and not having side effects” should be derived from the search and experience attributes.

For pharma and animal products focus on search and experience attributes. Credence attributes should be part of the selling strategy as the products are being sold to experts and they can evaluate credence attributes.

Selling plan

c) For Pharma and Animal healthTwo levels of incentives for experts. First set of schemes should educate the experts (doctors) about the products and second set of schemes should help them recommend.

No schemes for consumers. Advertising should help them change their perception about Ayurveda products.

d) For Well-being and Personal care products.Even though the products are in Variety seeking or problem solving, since the company is planning to move to credence, the consumer schemes should not be seen as giving price-quantity benefit. So samples and gifts should be given to strengthen the positioning. That is initially bundling it with brands with high image and subsequently “positioning based schemes”.

http://www.indiaprwire.com/pressrelease/consumer/2010122272625.htmEmami Glycerin soap wants to give a gift. Here Boroplus is seen as a gift so it is free. Here the bundled product (Himani Boroplus) will gain the benefit of trial and help people to experience it.

Positioning based scheme Johnson baby soap bundling Johnson baby shampoo

Trade schemes should start by visibility schemes to increase purchase involvement. As product involvement is being built, the trade should be educated about the benefits and they should be given sale based incentives.

Not part of Mid-term- additional decisions

Process of target setting

Based on the marketing plan the salesperson’s effort and target matrix needs to be finalized and the percentages changed as the different attributes are built up in the marketing plan.

Pharma & Animal health (effort needs to be directed to doctors)

Criteria (based on effort req) PercentTrade shows etcCustomer contact and DemonstrationsConversionsCustomer base

Personal care and well being

Criteria (based on effort req) PercentVisibility (shelf space, POP)New marketsConsumer Education (events etc)Customer baseMarket share/ sales

Channel Design and Channel Members

e) Pharma and Animal products

Based on Product Outlet Association

Channel Members: Chemist outlets

f) Well-being and Personal care

Target group: Middle income upwards

Buyer’s needs: Occasion: Regular and variety seeking purchase

Place utility: Variety, Status Orientation of outletOutlets satisfying: Supermarkets

Occasion: TrialPlace utility: Reputation, Knowledge of salesperson

Outlets satisfying: Chemist, Shop-n-shop in Supermarket

Retailer’s need: Time utilityQuick replenishment

Channel Members: Stockist at all important markets, wholesalers

Legal RequirementsCST Interstate movementChannel members: C& F agent

Since chemists form part of channel requirement for both product groups, a common channel can be built taking the above requirements.

Suggested Channel Design

Company

C& F agent

Stockist

Wholesaler

Chemist Supermarket

Channel member selection. Few suggested criteria mentioned

Shortlisting criteria Essential criteria Situational criteriaEducation backgroundPast business activities……

Reputation……

LocationKnowledge…