Arun Jaitley National Institute of Financial Management
Master of Business Administration
(Financial Management)
2022-24
Paper No. 104: Marketing Management
ASSIGNMENT
FORMULATING MARKETING STRATEGY FOR A NEW
HERBAL ANTI DIABETIC MEDICINE
Group:
1. Shri Diptiman patra
2. Shri Hari Kishore
3. Shri Imtiyaz Ahmad Kamal
4. Shri Lipoksungkum Imsong
5. CA Mayur Chandan
6. Ms. Punam Kumari Ram
Objective of the presentation
To devise a marketing strategy for promoting a new herbal
formulation for Type-II diabetic (Insulin Independent) patients.
The sole aim is to emphasise on product attributes and positioning
in pharmaceutical market adopting collaborative and innovative
marketing strategy.
In two broad categories:
A) 1. Segmentation of market for diabetic
medicine.
2. Selecting target segment for our product.
3. Positioning the herbal product at target
segment.
B) Use of marketing mix to carve the market
Potential
Diabetes is fast growing chronic disease in India, often
referred to as the 'Diabetes Capital of the World’.
By year 2030 India will have 79.4 million individuals affected
with diabetes.
What is more worrying is that the disease is now seeing an
onset amongst young people in who are in their 20s and 30s
mainly change in lifestyle.
Why Ayurvedic have more
potential
Cause of rising Diabetes:-
Artificial Intelligence Less
Physical Activity
Habitual Drinker
More habitual sweet beverage
drinking.
Air, Water , and other Pollutant
Solutions are :-
Ayurvedic treatment
along with healthy
lifestyle.
Why Ayurvedic have more potential
The preferences are growing for herbal ayurvedic products as allopathic drugs
have
major side effects
chemically synthetised one
Long term use affects body physiology and supress Immunity.
Costly
Mostly specific for particular disease.
Rational behind Herbal diabetic formulation:
Adverse and negative alternate effects of Allopathic drugs on
body physiology and immunity.
Rise of pollutants, allergens and uncommon microbial diseases
causing multi organ damage associated with diabetes
Life style changes as globalisation progresses.
Growing concern among people for health consciousness.
To segment our consumers - we divided market into
Based on Area
1. Rural Retail stores
2. Semi Urban drugs market
3. Urban pharma market
4. International market
Based on Age Group
1. 0-18 year
2. 18-40 year
2. 40-60 year
3. Above 60 year
Our segment is concerned with Semi urban and Urban
market targeting all Age Groups above 18 year of age.
.
Rational behind segment selection
Literate, knowledgeable and professional buyer
Well diverse middle class having ample buying capacity
Awareness with augmented product knowledge
More of Rational buying
Urban life and pattern of life style
No compromise in Health consciousness even at a high
premium
More event of stressed environmental working.
Diabetes prevalence in all age group .
Strategy taken in Different Segment
For semi urban area - We adopted push strategy as most of the consumer’s
buying behaviour is driven by the availability of product in chemist
shop/retail pharmacy outlet in the locality.
For Urban area - Push and Pull both strategy
Urban pharmaceutical retailing is subdivided into -
Residential colony chemist shops
Govt. colony quarters
Hospital Clinics aggregated area
Daily market, market complexes
Cause of different Buying Behaviour
In different sub market segments of urban diabetic medicine
buying behaviour is different.
Geriatric patient population
Influential effect from surrounding, peers, relatives
Colleagues, office staff, functions events, associations
Seeing is believing
Ever growing and expanding user base
As there is a voluminous growth prospect in product selling, evidence
of high customer lifetime value.
Its our targeted homogenous diabetic patients within the
heterogenous market segment. To have We analysed our position in targeted
segment
Mindset of customer towards herbal diabetic product
Competitors in the product line and there market strategy. Main Competitors
are:-
are Patanjali, Dabur, Baidya Nath, Himalaya , Local or non branded
ayurvedic products.
Value maximisation for our product for customer in terms of our product
availability, effectiveness, offers, additional product & services and CRM.
Rationale for Product development:
Our products is for a chronic diseases and adopt good manufacturing
practices for capturing this potential market.
More attention to the product attributes which are more desired by the
consumers and doctors especially the ingredients should be standard ones and
the formula should be effective for the ailments.
The consumers and doctors feel difficulty in using the herbal medicines due
to the conventional forms & old methods of preparation. So we prepare our
products by latest technology and for the busy and mobile kinds of consumers
it should be acceptable and convenient to use.
PRODUCT DEVELOPMENT:
Its a new herbal formulation having product atributes as :-
Multi herbs having potential effect on reducing blood sugar
As there are combination of herbs,
There are multiple theurapeutic and nutritional effects are associated with individual
herbs
Having standard ingredients
Helpful for protecting and maintaining other organs of body as affected by diabetes.
Its naturally obtained, extracted and formulated .
The product has great nutritive and medicinal
Immunity enhancement and no side effects.
Clinically tested and animal trials made.
Approved by AYUSH
Its naturally obtained, extracted and formulated
The product has great nutritive and medicinal
Immunity enhancement and no side effects.
Clinically tested and animal trials made.
Approved by AYUSH
PRICING:
We adopted Market based pricing.
As its a new product we are not aiming for skimming or
penetration pricing.
We are going for alternate pricing i.e. placing our product
price as par with competitors price.
To cover up our production, distribution cost and margine
profit we kept the price as 60 capsules pack Rs.350/- for
two months dose.
DISTRIBUTION CHANEL
We focus on established chanels of distribution
The players are distribution channel are:
The distributer, wholesaler and the retailer.
Own sales force and their coverage area for maximum exposure of
products to
1. The physician (Doctor)
2. Distributors & Retailers(Areawise)
Distribution logistic System
The basic moto is to make available my product at retail chemist shops within my
target segment:
Mostly competitors are having interrupted supply and specific dealer based
supply.
We have adopted multi chanel distribution through screening distributors in
areawise,
Persuading the dealer association to penetrate our producty to specific area.
identifying potential and area specific retailers trading with my attached
distributors.
As herbal product has long self life, we negotiate to store the product with
distributors at regional level to make available the product to retailes at
anytime.
Collaboration with distributors and wholesellers of my targeted cities/regions
through engaging our dsales force.
To inform, educate, negotiate for promotion of our product enabling them to
push their tie up retailer pharmacies.
We will make availability of sampes and our allied products tfor supply to the
retailes.
We offer free packets in each lot as two extra packs(each pack of 60 capsules ) in
each lot(each lot having a pack of 20 tins)
Providing incentives on sales growth for wholesellers 10-12% margin on each lot
sale.
Facilitating distributors to keep a margin of incentive 5 to 7.5% on each lot sale.
We offer distributor additional support in product avsailability and transport of
medicine.
PROMOTION:
Why don’t you buy our product ?
why you buy our product?
The answer lies with my promotional strategy.
As Diabetic therapy is long term therapy so the patient
takes prescribed medication for a longer period. Our approach is to build long
term CRM through our medicsal representatives.
To assess the attitude of the cross-sections of doctors for trying the product.
To study the impression of the cross-sections of the consumers about
the prevailing prices of herbal remedies.
To tress out the stocking pattern and measure the movement rate of
the popular brands of herbal remedies in different types of stores in
different regions under study.
To study the regular supply position and to probe in
the problems of
stock outs for herbal medicines if any.
To assess the dealers margin given and accepted by
them for selling the herbal remedies.
To find the means and ways of promoting the
involvement of dealers
and investment in herbal medicines in their
distribution functions. At herbal mela, AYUSH
mission.
We propose the brand name as Glycocap to have
a position in mind of diabetic patients.
The promotional events include involving
physicians-
Aayush doctors at clinic, hospital level.
Considering and relationship build up with
Aayush doctors for our herbal drug formulation
product i.e. Glycocap. for brand loyalty.
Our sales team will visit explain and will be engaged for providing free samples,
product knowledge to doctors.
We will attach promotional events collaboration with doctors, Ayush
deptt and witrh chanel partners.
We promotes the products thorough their sales staff to the consultants and make
them prescribe their products .company also adopt the different strategies to
the consultants for prescription like, academic tour to the doctors, making them
advisor for the company, making them corporate consultant and fulfils the
requirements
Interactive platform in online App for patients about product knowledge, general
councelling, yoga therapy, diatary guidance.
We organise promotional events being part of Godeshi group, herbal mela at
central and state level events.
We organise yoga camps with free health check up and or with free testing of
blood sugar where we promote our product at our target areas.
We are offering additional service of one sugar test per month per customer
on purchase of our two paxs of product.
This will be made engaging the retailer with support from our sales force at
each segmental market.
Our medical representatives covering every stores areawise giving time to
visiting customers.
Elements of promotional mix in pharma
1. Personal selling : Medical representatives detailing the company’s products to
doctors, with help of visual aids, leave-behindliteratures, product monographs,
samples, gifts, etc.
2. Advertising : Preparation of visual aids, leave-behind-literature. product
monographs to assist medical representatives in their detailing effort-Advertising in
specialized media like medical journals and souvenirs, preparing advertising
material for seminars and medical symposia.
3. Sales promotion : Deciding on special bonus offers, free goods and gifts to
trade. Deciding on physicians’ samples and gifts, etc.
4. Publicity : Organizing medical symposia and seminars, conducting clinical
trails; conducting exhibitions, designing and executing product publicity
campaigns for truly innovative products.
CONCLUSION:
We finally aim to extend our product life cycle process to reach at growth
stage building brand loyalty, sales growth, better CRM to extend our product
to other areas of market segments with rich online and offline customer
support platforms.
They work on Product, Price, Place, Promotion and Prescription. Companies
focuses on the quality of medicine with advance feature to get maximum
result to the patient. Company determine the Low price to get maximum
share with good distribution. Company
