Group 7, Section A, PGP-I (2010-12)
1. Executive Summary:
“NIRDOSH”( a unique non-tobacco smoking device) branched out from the family business of Mr. Natwarlal Bhavasar who was into bidi manufacturing business. The main reason behind this was Mr. Bhavasar desired to introduce this new herbal product for a healthy cause. As of year 1989 he had a turnover of Rs 5 lacs and was looking to expand further into Gujarat and Maharashtra. He was also contemplating entering into the overseas market and had sent samples for approval to the regulatory authorities abroad. His targeted consumers are those who are looking towards quitting smoking. He also intends to capture the market share of people who begin smoking as a lifestyle. 2. Situation Analysis:
The Nirdosh case study is analysed using the 4 C method.
The customers targeted are, from the 2 major cities – Bombay, Ahmadabad during the initial stage.
Nirdosh is entering 7th year of sale and has major expansion plans. We are planning to target a consumer base across the two states. Nirdosh is an healthy alternative to smoking and will appeal to those looking to quit and need an alternative as well as people who take up smoking as a lifestyle choice. 2.2 Competitors:
There are established brands in the cigarette industry namely ITC, VST, GTC, and others. But our primary focus is targeting people who recently have moved into smoking, who think smoking is a lifestyle choice and those people who are looking to quit smoking. This is an innovative product in the health conscious lifestyle segment of smokers, and has no close competitors. Nirdosh has a competitive advantage on the front of herbal raw material procurement and composition.
As of now it is a small scale operation that has potential of expansion by venture funding. With the increase in sales, production capacity will also be up scaled, firstly by increasing the number of workers in current facility or adding a similar facility based on requirement. 2.3 Company:
Maans product, Ahmadabad (India), is a Bhavsar family owned proprietary organization. It was running since two decades. It is having experience of six/seven year of developing the product “NIRDOSH”. Nirdosh a unique non-tobacco smoking device was developed in 1982.Its made from 14 herbs which were turned into granular form and rolled into tendu leaves in the shape of cigarette. The sales of the company till 1988 were between 1.2 lacs and 1.5 lacs. In 1989, through packaging change and door to door campaign, and increase in price, took the revenue to 5 lacs.
The promoter of the company is working on developing this product with great devotion. 2.4 Context:
The cigarette market in India is growing year on year. Nirdosh is also getting popular in the market, as a substitute to the cigarette. The increased awareness of this product and anti-smoking campaign run by various organizations gives a major advantage for Nirdosh in the market. The product is also got positive feedbacks for its benefits. It can also be used in curing certain ailments such as cold, cough, fever, asthma, tonsillitis, graying of hairs, insomnia etc. 3. Market Opportunities:
Being a unique non-tobacco smoking device, Nirdosh can target the customers who all are willing to stop smoking and also to those young customers who all want to enjoy the smoking cigarette as part of lifestyle without getting addicted to it. Because of its competitive and prominent growth in 1986 to 1989 as per the below statistics, Nirdosh can be distributed in other city also. Targeted BrandManufacturing cost per packetSales( No. of Packets)Sales ( .Rs) 19862.12*600001,40,000
*considering 5% inflation rate year...