Chyawanprash

Marketing Plan – Phase IAyurvedic Health Drink

Marketing Managers:Amit Choudhary (FT11406) Anand Narayanan (FT11407)Anshul Saxena (FT11408)Apurva Sandilya (FT11409)Archith Goverdhan (FT11410)

Power of Chyawanprash, Nourishment of milk

Emami Ltd- Ayurvedic Health Drink

•Fastest growing Ayurveda-focused, health, beauty and personal care product companies in India•Flagship company of the Emami Group, a 755 crore business entity– Promoted by industrialists Mr.R.S. Agarwal and Mr.R.S. Goenka•Established since 1974, headquartered in Kolkata•Proven ability to launch winning products in Niche gaps


Emami Ltd- Brand Presence


Brands:Boroplus Antiseptic creamNavratna OilSona Chandi ChyawanprashAmritprashMenthoplus BalmFast ReliefFair & HandsomeBoroplus Prickly Heat Powder

Brand Presence:1) Strong rural foothold in India.2) Strong domestic distribution channel comprises 2800 distributors & 4 lac retail outlets.3) Internatioanlly products available in 60 countries

Sona Chandi Chyawanprash- Status Quo

•Himani Sona Chandi Chyawanprash - provides its consumers an effective immunity builder that fortifies the entire system and an ideal rejuvenator for body and mind•Sona(Gold) – Known to fight toxic elementswithin the body and boosts the immunesystem •Chandi – Excellent Toner of Brain and Nervoussystem.


Sona Chandi Chyawanprash- Market Share

•Market size of Rs.2010 mn•Market share increased to 10%•Endorsed by Shah Rukh Khan, Sunny Deol and Dharmendra•Grew by 17.2% against category regrowthof 3.2% (As per CAN Report for 2007-08)


Ayurvedic Health Drink- Derived from Chyawanprash

Need for the innovation:• Chyawanprash markets reached a Saturated level & hence Emami acquired Zandu for expansion•Zandu brought 2 categories of Chyawanprash

•Zandu Kesari Jeevan•Zandu Chyawanprash

• Further penetration of the market requires finding and filling gaps.• A Chyawanprash based milk beverage will cater to the sparsely populated ayurvedic health drink market


Segmentation, Targeting and Positioning

We have segmented the markets according to the following Variables :

1. Demographic2. Psychographic3. Behavioral

The following target consumer group has been identified :

Youth below 30 years of age which include : School-goers ( Age<16) College-goers (Age 17-22) Office-goers (Age 23-30)

Demographic Segmentation

Indian Population : 1.15 billionAround 54% of population is below 30 years of age.Fast urbanisation :urban Indian population projected

to increase from 28% to 40% of the total population by 2020.

Working population >40%Annual increase in Salary highest all over the World.Facts :• Consumer Data :

Youngster of 13-21 years of age – over 174 million, 15% live in metros

Youngsters of 22-28 years of age – over 129 million, 8% live in metros

• Number of upper middle class and high income households has grown by a staggering 270% from 30 million households to 81 million households

Demographic Segmentation

Generation : High retainers of witty ads. Highly informed group due to advent and easy access of Internet. Biggest influencers of the youth are friend-circles. Office-goers are financially independent. Today, children are active in all the five stages of adoption of durables as well as

FMCGs. (awareness, knowledge, preference, conviction, and adoption) In the new urban Indian family, children were influencers/co-deciders at the time

of purchase of personal products, consumables, financial products, vacations, educational products, and family automobiles while they were buyers of family toiletries and initiators or gatekeepers for purchases of household durables.

Nuclear family system fosters more influence of children/adolescents in decision making.

Taking lunch to School/College/Office is seen as an “uncool ” thing whereas eating out at fast food outlets has become the “in” thing

Facts : Average TV viewership by kids and college-goers 2 hrs on weekdays and 3 hrs on weekends. Average time spent outside home by college-goers and kids : 7 hrs on movies, eateries, tutions, malls 25% of school and college goers spend time on video games

Lifestyle :a) Pressure for performance in School and College leading to neglecting food.b) Intense pressure at Work and long hours at Office.c) Bad eating habits among youth :

Youngsters Skip breakfast citing time-constraint, school work, busy schedule. The next unhealthy food habit teens have is increased foods from 'other' food

group. Increased eating outside of the home is another bad food habit youngsters have. Last, but not least, in this list of bad food habits is soft drink consumption

d) Kids and College goers have better social lives which includes watching movies, going out to fast food eateries.

e) At Homes, they are confined to TV, movies and video games. Physical activity is minimal.

f) Working youth are mostly confined to sedentary life style. g) Only few cities having a staggering growth due to which there is mass migration of

youth in these cities.h) Youth are time-constrained which prevents them from preparing healthy food. They

rather prefer ready-to-eat food.

Psychographic Segmentation

Lifestyle Well paid job leads to feeling of independence, carefree attitude, energy

and enthusiasm. College goers and office goers get benefitted by the experience gained by

seeing the expenditure pattern of their parents. They are inclined towards saving money. Most in these segments are impulse buyers. No-time for Gym. Youngsters get time only at night post work. Efficiency and convenience influences shopping decisions for office-goers. Customized, easily-accessible products with minimum hassles in

preparation are most preferred.

Psychographic Segmentation

Facts :• Over 60% of Office-goer crowd gets married in their age group• Over 90% of College-goers get converted to Office-goers within their age group•Average time spent on work by office-goers is 10 hours and 2 hours travelling

Psychographic SegmentationFacts : 85 percent of school children between 10-14 years, diagnosed with diabetes are obese owing to their improper eating habits 62 percent children like eating junk food like burger or pizza to green vegetables and 47 percent take at least 1 cold drink daily. 25 percent of children do not exercise at school. At home this number reduces to half, with 13 percent not playing outdoors at home. Over and above this, 35 percent of children spend more time watching TV and playing on the computer. 12% of Indian schoolchildren face hospitalisation, compared to 3% of adults 62% eat irregular, untimely meals, snacking mindlessly through the day 34% children are in poor health 37% physically unfit 34% children pop pills every day compared to 31% adults 37% gorge on sweets every day 32% eat junk food as a major meal three times a week 43% do not eat veggies and fruits daily 49% have low protein intake 31%drink less than two cups of milk a day 19% feel they are at breaking point, unable to cope with studies ,33% of children wear glasses ,30% children have dental problems, compared to 22% adults 40% of children are seriously overweight 40% feel that they can not confide in their parents 36% can't keep pace with their peer group 30% have poor muscle strength and shape 16% crave for love and affection from extended family 63% become breathless when climbing stairs 54% sent off to coaching classes after school 36% of the children get little solace from home 30% do not have the time to play outdoor games 65% face personal, academic or family problems, to which they see no solution 30% watch television for 4 to 6 hours daily

Income/Economy

Meteoric rise of BPO and IT sector (huge influx of youth) :1. Easy money2. Company benefits : Recreation, Pay on performance, company

accomodation.3. High discretionary money. (High Purchasing power)4. Other lucrative job providers are media, retail, telecom,finance

etc.

Facts :

India's software and business process outsourcing (BPO) exports are expected to grow 5.5 per cent to around $ 50 billion or Rs 2.35 lakh crore in the current fiscal (2009-10) According to a recent NASSCOM-Everest survey, India’s outsourcing sector will earn $11 billion in export revenues next year and is poised to be a $50 billion-enterprise by 2012. Montly discretionary income has increased manifolds : • Children income is just the pocket money which comes from

parents • Youngsters between age (13-21) : Rs. 1500-3000 (mostly

allowance/part-time jobs)• Youngsters between age (22-28) : Rs. 5000-8000 (mostly

allowance/part-time jobs) Annual purchasing power of Indian youth : 2200 crore.

India’s rise as an Economic Superpower :

Behavioral SegmentationDisadvantages of aerated/soft drinks :

• Tooth Decay, Obesity, Laziness, Malnutrition• Other Stomach Problems: The phosphoric acid present in soft drink competes with the hydrochloric acid of the stomach and affects its functions. When the stomach becomes ineffective, food remains undigested causing indigestion, gas or bloating (swelling of stomach).• Effect on Kidneys, Skin, Bones, Caffeine

Disadvantages of Fruit/Flavored drinks :

Facts : From a 70:30 cola to other drinks ratio three to four years ago, it is now down to 40:50

Behavioral SegmentationAdvantages of Chyawanprash based Ayurvedic drink

Facts :

Income/Economy

Between 2010-2030, India will add 241 Million people in working-age population

Documents

Chyawanprash