Marketing I

Assignment 1

BHAVSARS HERBAL SMOKING DEVICE - NIRDOSH



From:
Group 1, Section B
A Logesh
Debraj Das
Lopes Raoul Reginald
Piyush Gulati
Roshan Anand
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 commonly
known or universally divided in a similar
manner)
Data must be gathered
(Market Analysis needs to be done to
identify 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


Product
Education Beedi Cigarette Bicets
Secondary
education and
higher
Primary education
Less than primary
No formal
schooling
As seen in the grid above, for the target groups listed, only people in the secondary and higher education
group and consuming cigarettes have been identified as the potential consumers.


Geographic
Distribution
Channel Local Domestic Exports
VPP (value payable
post)
Pan walas
Use of govt. stores
Ayurvedic
Pharmacy
Shipment
For local customers, pan walas serve as an easy and convenient source of distribution. On the
domestic 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 group
Quit
Smoking
Medicinal
Usage
Start
Smoking
>60
30 to 60
18 to 30
<18
For the Age groups listed in the grid shown above, the appropriate product usage has been
identified. For age group of 60 yrs. And above, generally with health problems, Nirdosh can be used
for medicinal purposes. For the age group of 30-60 yrs., it could be used for both medicinal use as
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.


Product
Occupation Beedi Cigarette Bicette
Manual
Small Traders
White Collar
While 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 Rate
Quit
Smoking Start Smoking
0-5 a day
1 packet a day
More than 1 packet
The 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
Attributes
Quit
Smoking Start Smoking
Strength
Flavor
Taste
Filling
Satisfaction
Draw
Smoothness
Pack Design
For 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.

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 level
Segment\Marketing
Mix
Product Place Promotion Price
Org.ability to
provide mix
Upper/Middle
Class
Nirdosh
marketed
as a
harmless
Cigratte
Pharmacies,
Retail
Outlets of
Nirdosh
Television,
Newspapers,
Magazines
Rs 5, since
manufacturing
cost is Rs. 2.24,
we can sell it at
premium to
upper class
Retails outlets
and Promoting it
in Newspapers,
Television and
Magazines not
possible seeing
the finances of
the company
Lower Class
Tobacco
Beedi
Substitute
Panwala,
Pharmacies
Radio,
posters &
Door-to-
Door
promotion
Around 3.5
considering
cigarette data
given
Only Door-to-
Door promotion
is possible


According to Education
Segment\Marketing Mix Product Place Promotion Price
Org.ability to
provide mix
Secondary education
and higher
As a
cigratte
for style
statement
with no
side
effects
Panwala
and
Pharmacies
Television,
Newspapers,posters
Should be
between
Rs. 3 to
3.5
comparing
the avg.
cigarette
price of
other
brands
Television
and
newspaper
ads not
feasible
keeping in
mind the
finances of
the company




According to Distribution Channel
Segment\Marketing Mix Product Place Promotion Price
Org.ability to
provide mix
Pan walas
As a
cigarette for
style
statement
with no
health side
effects
Panwala
Posters and
word of
mouth
Rs. 3
per
packet
This marketing
mix is quite
feasible but the
reach will be
limited
Use of govt. stores
Medicinal
product
Govt. stores
and
Pharmacies
Television,
Radio,
posters
Rs. 3.5
per
packet
Finances of the
company are
limited and
getting access to
government
stores won't be
easy
Ayurvedic Pharmacy
Medicinal
product
Pharmacies
Ayurveda
doctors,
newspapers
Rs. 3.5
per
packet
Ayurveda doctors
would promote
but putting ad on
newspapers
would be costly
Shipment
Ayurvedic
Medicine in
the form of
cigarettes
Collaborating
with foreign
firms
Magazines
Rs. 10
per
packet
Magazines ads are
expensive and
also foreign firms
would give bulk
orders which
Maans Products
would not be able
to deliver

According to Age
Segment\Marketing Mix Product Place Promotion Price
Org.ability to
provide mix
>60
Medicinal
product
Pharmacies
Television,
Radio,
Newspapers,
Ayurveda
doctors
Rs. 3.5
per
packet
Advertisement
would be
difficult
30 to 60
Both as
substitute
for cigarette
and also as
medicinal
product
Panwalas,
Pharmacies
Posters, word of
mouth,
Television,
Newspapers,
Rehabilitation
centers
Rs. 3
to 3.5
per
packet
Finance issues
limiting their
promotion
strategies
18 to 30
Style
statement
Panwalas
Posters,
billboards
Rs. 3
per
packet
Posters and
billboards
promotion
would be costly
for the company

According to Occupation
Segment\Marketing Mix Product Place Promotion Price
Org.ability to
provide mix
Manual Workers
Beedi
Preference
for cheap
product
Panwallahs
Word of
Mouth,
Radio
Rs 3.5
per
packet
It is the core
competency of the
organization,
however
promotion by
electronic media
can be an issue
Small Traders +
White collar
Cigarette
form, as a
substitute
for tobacco
cigarettes
Panwallahs
Newspapers,
Billboards
Rs 10
per
packet
Still no paper
wrapped cigarette
developed, no
automatic
machinery,
organization would
have a tough time
providing this

According to Usage Rate
Segment\Marketi
ng Mix
Product Place
Promotio
n
Price
Org.ability to
provide mix
Quit Smoking or
Start Smoking
Beedi,
Cigarettes
form
Packet size
could vary
from single
pack to
cartons
Panwallahs -
Rs 3.5 for
beedi, Rs
10 for
cigarette
Company already
provides Beedi,
Bicet forms in
packets, plastic
packs and
cartons





According to Attrbutes
Segment\
Marketing
Mix
Product Place Promotion Price
Org.ability to
provide mix
Quit
Smoking

Beedi,
Cigarettes

Panwallahs
The focus should
be on strength,
filling,
satisfaction, draw
and smoothness,
to campare with
the cigarettes
Rs 3.5 for
beedi, Rs
10 for
cigarette
Company as of
now has limited
resources for
promotion.
Focus should be
on word of
mouth, regional
newspapers
Start
Smoking
Beedi,
Cigarettes

Panwallahs
The focus should
be on taste, flavor,
pack design as
new customers
would be more
swayed by them
Rs 3.5 for
beedi, Rs
10 for
cigarette
Company as of
now has limited
resources for
promotion.
Focus should be
on word of
mouth, regional
newspapers


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 the
cigarette 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