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 being
Current 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 health

Two 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 pricequantity 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.htm
Emami 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 salespersons 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)
Trade shows etc
Customer contact and Demonstrations
Conversions
Customer base

Percent

Personal care and well being

Criteria (based on effort req)
Visibility (shelf space, POP)
New markets
Consumer Education (events etc)
Customer base
Market share/ sales

Percent

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
Buyers needs:
Occasion: Regular and variety seeking purchase
Place utility: Variety, Status Orientation of outlet
Outlets satisfying: Supermarkets
Occasion: Trial
Place utility: Reputation, Knowledge of salesperson
Outlets satisfying: Chemist, Shop-n-shop in Supermarket

Retailers need: Time utility

Quick replenishment
Channel Members: Stockist at all important markets, wholesalers
Legal Requirements
CST Interstate movement
Channel 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
Education background
Past business activities

Essential criteria
Reputation

Situational criteria
Location
Knowledge