sectionb group1 assignment nirdosh

8/11/2019 SectionB Group1 Assignment Nirdosh

1/8


2/8

Bhavsars Herbal Smoking Device NIRDOSH

As Natwarlal Bhavsar reviews his experience with Nirdosh, he can look at the following market

characteristics which would have determined and would determine the sales of Nirdosh. These

market characteristics would become the market grid dimensions for identifying the target markets

for Nirdosh.

Characteristics:

Data As Usual(The market characteristics are commonlyknown or universally divided in a similarmanner)

Data must be gathered(Market Analysis needs to be done toidentify the market characteristics)

Education level of the buyers Usage Rate of buyers(of similar products like cigarettes)

Occupation of the buyers Attributes observed by users in the product(of Nirdosh and similar products)

Monthly income of the buyers Distribution

Geographic location The Product itself

Age and Demography Benefits derived

Advertisement Pack Size

The ones in italics have already been discussed in the class

The above market grid dimensions have been used to come up with target markets.

For upper and middle class people, advertisement can be done using Newspapers, Television and

Magazines and for middle and lower class through posters. For people of the lower class, television

and magazines may not be easily accessible. Hence, advertisement and promotion can be done

through radio, posters and banners.

Advertising Modes

Income group Newspapers TV Radio Magazines Billboards Posters

Upper Class

Middle Class

Lower Class


3/8

Product

Education Beedi Cigarette Bicets

Secondary

education andhigher

Primary education

Less than primaryNo formalschooling

As seen in the grid above, for the target groups listed, only people in the secondary and higher education

groupand consumingcigarettes have been identified as the potential consumers.

GeographicDistribution

Channel Local Domestic Exports

VPP (value payablepost)

Pan walas

Use of govt. storesAyurvedicPharmacy

Shipment

For local customers, pan walas serve as an easy and convenient source of distribution. On thedomestic level, pan walas, Government stores and ayurvedic pharmacies can be used as effective

sources of distribution. On the international front, distribution can be done only through shipments

when orders are received in bulk.

Benefit Derived

Age groupQuit

SmokingMedicinal

UsageStart

Smoking

>60

30 to 6018 to 30


4/8

well as to quit smoking. For the age group of 18-30 years, it could be used as a healthy substitute to

tobacco for people who wish to start smoking.

ProductOccupation Beedi Cigarette Bicette

Manual

Small Traders

White CollarWhile manual workers with low income levels would prefer the low cost beedi form of Nirdosh,

small traders and buyers with white collar jobs would prefer cigarettes.

Benefit Derived

Usage RateQuit

Smoking Start Smoking

0-5 a day

1 packet a day

More than 1 packetThe buyers who are trying to quit smoking, the target market would be those who could use any

number of Nirdosh a day, however for those who are beginning to smoke, the target market would

be those who smoke 0-5 a day. The number in the other two would be too inconsequential to

concentrate upon.

Benefit Derived

AttributesQuit

Smoking Start Smoking

Strength

Flavor

Taste

Filling

Satisfaction

Draw

Smoothness

Pack DesignFor those buyers who are looking to quit smoking, the attributes to target would be strength, filling,

satisfaction, draw and smoothness. These attributes would ensure satisfaction even after quitting

smoking. Pack design, taste and flavor can be used to draw new smokers towards the product.


5/8

Marketing Mixes

According to the various marketing grids shown above, the following marketing mixes have been

identified and shown in the tables below.

According to income levelSegment\Marketing

MixProduct Place Promotion Price

Org.ability toprovide mix

Upper/MiddleClass

Nirdoshmarketed

as aharmlessCigratte

Pharmacies,Retail

Outlets ofNirdosh

Television,Newspapers,Magazines

Rs 5, sincemanufacturingcost is Rs. 2.24,we can sell it at

premium toupper class

Retails outletsand Promoting itin Newspapers,Television andMagazines notpossible seeingthe finances ofthe company

Lower ClassTobaccoBeediSubstitute

Panwala,Pharmacies

Radio,posters &Door-to-Doorpromotion

Around 3.5considering

cigarette datagiven

Only Door-to-Door promotion

is possible

According to Education

Segment\Marketing Mix Product Place Promotion Price

Org.ability to

provide mix

Secondary educationand higher

As acigrattefor style

statementwith no

sideeffects

Panwalaand

Pharmacies

Television,Newspapers,posters

Should bebetweenRs. 3 to

3.5comparing

the avg.cigaretteprice ofother

brands

Televisionand

newspaperads notfeasible

keeping inmind the

finances ofthe company


6/8

According to Distribution Channel

Segment\Marketing Mix Product Place Promotion PriceOrg.ability toprovide mix

Pan walas

As acigarette for

stylestatementwith nohealth sideeffects

PanwalaPosters andword ofmouth

Rs. 3per

packet

This marketing

mix is quitefeasible but thereach will belimited

Use of govt. stores

Medicinalproduct

Govt. storesandPharmacies

Television,Radio,posters

Rs. 3.5per

packet

Finances of thecompany arelimited andgetting access togovernmentstores won't be

easy

Ayurvedic Pharmacy

Medicinalproduct

PharmaciesAyurvedadoctors,newspapers

Rs. 3.5per

packet

Ayurveda doctorswould promotebut putting ad onnewspaperswould be costly

Shipment

AyurvedicMedicine inthe form ofcigarettes

Collaboratingwith foreignfirms

MagazinesRs. 10

perpacket

Magazines ads areexpensive andalso foreign firmswould give bulkorders whichMaans Productswould not be ableto deliver

According to Age


>60

Medicinalproduct

Pharmacies

Television,Radio,Newspapers,

Ayurvedadoctors

Rs. 3.5per

packet

Advertisementwould be

difficult

30 to 60

Both assubstitutefor cigaretteand also asmedicinalproduct

Panwalas,Pharmacies

Posters, word ofmouth,Television,Newspapers,Rehabilitationcenters

Rs. 3to 3.5per

packet

Finance issueslimiting theirpromotionstrategies


7/8

18 to 30

Stylestatement

PanwalasPosters,billboards

Rs. 3per

packet

Posters andbillboardspromotionwould be costlyfor the company

According to Occupation


Manual Workers

BeediPreferencefor cheapproduct

PanwallahsWord ofMouth,Radio

Rs 3.5per

packet

It is the corecompetency of theorganization,howeverpromotion byelectronic media

can be an issue

Small Traders +White collar

Cigaretteform, as asubstitutefor tobaccocigarettes

PanwallahsNewspapers,Billboards

Rs 10per

packet

Still no paperwrapped cigarettedeveloped, noautomaticmachinery,organization wouldhave a tough timeproviding this

According to Usage Rate

Segment\Marketing Mix

Product PlacePromotion

PriceOrg.ability toprovide mix

Quit Smoking orStart Smoking

Beedi,CigarettesformPacket sizecould varyfrom singlepack tocartons

Panwallahs -

Rs 3.5 forbeedi, Rs

10 forcigarette

Company alreadyprovides Beedi,Bicet forms inpackets, plasticpacks andcartons


8/8

According to Attrbutes

Segment\Marketing

MixProduct Place Promotion Price

Org.ability toprovide mix

QuitSmoking

Beedi,Cigarettes Panwallahs

The focus should

be on strength,filling,satisfaction, drawand smoothness,to campare withthe cigarettes

Rs 3.5 forbeedi, Rs

10 forcigarette

Company as of

now has limitedresources forpromotion.Focus should beon word ofmouth, regionalnewspapers

StartSmoking

Beedi,Cigarettes Panwallahs

The focus shouldbe on taste, flavor,pack design asnew customerswould be moreswayed by them

Rs 3.5 forbeedi, Rs

10 forcigarette

Company as ofnow has limitedresources forpromotion.Focus should beon word ofmouth, regionalnewspapers

Various uncontrollable factors for Nirdosh have been listed below:

Local and national perception towards smoking being hazardous for health

Industry rivalry and pressure from huge players like ITC and VST which have been in thecigarette business for years

Supply variability of the 14 herbs which are used in production of Nirdosh

Political conditions of the state and central government to tax cigarettes.

Pressure from various conservative social groups

sectionb group1 assignment nirdosh

Documents