Herbal Cigrattes Case

Topics: Marketing, Tobacco smoking, Distribution Pages: 5 (1350 words) Published: November 3, 2011

SUBMITTED TO: Prof. Rajesh Aithal
Abhishek KumarPGP27135
Gagan KshirsagarPGP27145
Harsh BansalPGP27150
Abhishek JoglikarPGP27152

Table of Contents
1.1Pros and Cons3
2.Alternative Selected4
3.Implementation Plan4
3.1Highlights of Marketing Implementation Plan4
3.2Marketing Plan5
4.Distribution Channels6

1. Alternatives
Considering all the possible alternatives in order to launch Nirdosh in Indian market, there are 3 main options for Maans Products, India to market their product “Nirdosh”

[Ref. http://www.indiamart.com/maansproducts/ ]
1.1Pros and Cons:
Alternative Markets| Pros| Cons|
Tobacco Smoking Industry| (1)Huge market potential worth Rs.250 crore.(2)As the company is the sole producer of herbal cigarettes, it can create a monopoly in the market facing no competition.(3)Easy distribution of Nirdosh if distributed at the Pan stalls where tobacco cigarette smokers visit quite often.| (1)Impact on non smokers will be less.(2) It would be quite difficult for Maans as they would be indirectly competing against biggest tobacco brands in India.(3)Lack of satisfaction from smoking Nirdosh cigarettes might create problems in tobacco smokers| Herbal Remedy Market| (1)Acceptability must increase as it will be introduced as an herbal remedy.(2)Target market is quite considerable worth Rs 100 crore.| (1)Availability might become an issue as consumers can get it only in Ayurvedic stores.(2)Perceived as cigarettes, consumers will be reluctant to use.| Tobacco Industry and Herbal Remedy| (1)Huge revenues(2)Almost every segment of consumers will be targeted in order to get greater gains.| (1)Greater capital requirement.(2)Some other form might have to be invented so that consumers find inhaling smoke in good manner.| 2. Alternative Selected:

With our analysis we selected to launch Nirdosh as a non-tobacco cigarette and target the Tobacco Smoking Industry for the sales. The reasons behind selecting this alternative are as below: * It is a unique product which is similar looking to cigarette having positive impact on people’s health which will help its positioning in the cigarette industry. * Total Market potential of Cigarette (250 Cr) was large in comparison to herbal remedy market (100Cr) making Tobacco Industry as an obvious choice to enter into. * Maans Production had been in the industry of Beeri from long, so health remedy product from this industry will not have easy acceptance from the society. Still, on the backdrop of Ayurveda and Nirdosh’s proven effects, Maans have great chance to get out from the sterotype of being Beeri manufacturers and enter into a new spectrum of business. * Considering the Herbal market, the design of Nirdosh was similar to Cigarette, so marketing it in Herbal market as health remedy would not work well as people who don’t smoke, woman and children will be reluctant to use it as a health remedy. 3. Implementation Plan

3.1Highlights of Marketing Implementation Plan

* Consumers have been segmented based on demographic and geographic factors. This has been done to figure out buying patterns of consumers on the basis of amount of money they spend on cigarettes and factors like occupation, income, geographic location etc. * Consumers working in white collar jobs have been targeted because they buying premium cigarettes and it will be easier to reach to them and communicate then the advantages and feature of Nirdosh. Switching the buyer habit will be easier for them. * Consumers in metros like Ahmedabad and Mumbai have been targeted first because presence of white collar job people is higher and company has some amount of infrastructure in terms of distribution in these cities. Moreover smoking population density is higher so...
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