Product life cycle

The Product life cycle is an appropriate discussion of what happens to a product over time. Zandu Balm is launched as a remedy for headache and body pains with an ayurvedic formula. They tried establish themselves as a trusted brand among customers. Also as it is a natural product and because of its effective perfomance people started adopting it.

Product life cycle explains the stage of the product in market.  Most products life cycle can be portrayed as a bell curve. Products undergo four stages from the time of its introduction into the market to the time of its exit from the product. They are

• Introduction

• Growth

• Maturity

• Decline

Th above PLC curve shows the relation between sales and profit with time. 

Zandu realty ltd established in 1910 is the first company in this category, who formulated Zandubalm and manufactured it. It went public in 1919 by issuing public shares. Zandu balm being first in its category gained popularity and trust over the years. Then it went through a rapid growth stage. People started seeing it as a personal product and got used to it and eventually became market leader with 43% market share. During this growth phase many other companies launched similar products resulting in high competition. Zandu balm managed to overcome its competitors by robust promotional strategy and distribution. 

Later Zandu pharmaceuticals was bought by Emami ltd in 2008. As it reached maturity phase being a market leader its trying hard to maintain its position. The advent of new products like pain relief sprays  pose a serious threat to its position. If it could not cope up with the changing trends soon will go into decline position.

Branding

Zandu balm is a very strong brand over 100 years. It created loyal customer through its consistent branding. Even its packaging with green colour is a part of its branding to depict its ayurvedic nature

They didnt change the packaging color since 100 years because even a small change in its packaging will effect its branding image

This is its old form

In its new packaging

Other form of SKU's

This logo of zandu balm is same on all SKU's

Introduction

                                                    Ek baam theen kaam

 Zandu balm, is one of the major products produced by the Zandu Pharmaceticals Ltd  which is  acquired by the EMAMI company, has 100 years of market history.

A nice famous jingle associated with it is 

"Zandu balm Zandu balm peeda hari balm"

Its composition : Menthol 14%, Oil of Gaultheria 10%

Zandu Balm is formulated as a remedy for Headache, body pains and also nasal congestion during cold. Its Ayurvedic formulation, which is a blend of natural active ingredients, made it an effective analgesic for muscular aches and pain. The packaging of Zandu balm with green color signifies nature, so as to convey people that its a natural ayurvedic product free from chemicals.

Pricing

Pricing is very important factor which affects consumer buying decisions. For elastic goods pricing is directly related to demand. For non-elastic product price effect is less. It is not just for earning profit margins. It is a strategy made by considering

• Market conditions
• Abilility to pay
• Target customers
• competitors
• trade margins
• total costs

Pricing also differs depending on the stage of product life cycle. These are different types of pricing depending on PLC.

For Zandu balm initially they launched only SKU's of 8ml and 25ml, then to enhance more market penetration they inroduced small SKU's like 1ml and 4.5ml. Th pricing is as follows

1ml - Rs2

4.5ml - Rs10

8ml - Rs28

25ml - Rs80

Competitors prices:

30ml - 65

55ml - 100

Instead of having premium pricing over its competitor Zandu balm has the highest market share because of the customer loyalty it earned over years. This is the psychological effect on pricing.

Analysing business markets

Zandu balm business markets

Business market is a conglomeration of all the organizations that acquire, produce, sell goods and servies.

Social factors:

Zandu balm belongs to pharmaceutical industry and it belongs ot pain relief balms category.
In this industry most of the buying takes place through necessity and impulse or as a precautionary measure. This industry benefits depends on providing better health to the customers. The demand is non-elastic most of the times as it is related to their well bein. The person will pay for it depends on his need overlooking its affordability. Because if affected he know it will affect his other works. Major criteria is to earn loyal customers. As most of the people wont take take chance as it pertains to their health

Demographic factors:

The business market for Zandu balm is all over india. Its wide distribution channels ensure the supply of the product even in remote areas. Irrespective of seasons there is demand for this product. The age ranges from children to old people irrespective of age.

Economic factors:

Economic factors also effect the industry interms of competetion. When economic crisis is there affordability affects its market share. People ternd to move towards other substitute products may be competetors who offer lower price products. As they cannot deny the buying they have to buy to satisfy their requirement.

Psychological factors:

In an industry loyalty is mainly due to psychological factors. When a customer get accoustomed to the product he will develop some sort of psychological bonding with it. Zandu balm successfully created that bonding over 100 years with its effective formula and branding.






  

Holistic or sustainable marketing

Sustainability is nothing but creating products to meet human needs without affecting future generations That is with out exploiting nature and preserving it for future generations. It is a balance between Economy, Society and Environment.

Economic: 
Doing fair trade
Considering Workers right
Following Business ethics

Social:
Environmental justice
Local and global natural resources stewardship

Environmental:
Energy efficiency
Incentives to use natural resources properly

Zandu Pharmaceutical Works Ltd, an India-based pharmaceutical company, manufactures ayurvedic health promoting products, chemicals and cosmetics. Using approximately 200 medicinal plants and their extracts, Zandu produces a range of over 300 health promoting products. The products are manufactured at several plants across India. Their manufacturing plants are located at Mumbai and Dongari in Maharashtra, Vapi in Gujarat and Silvassa in Dadra & Nagar Haveli.  Their products include ghritas, medical oils, churna, quath, tablets and pills. 

Zandu balm is formulating products with ayurvedic formulas only such that encouraging natural products and natural care for health.  

Marketing mix

The AMA definition of marketing mix is "The mix of controllable marketing variables that the firm uses to pursue the desired level of sales in the target market. The most common classification of these factors is the four-factor classification called the "Four Ps". The four P's are 

Product
Price
Place
Promotion

Product:

• This defines the requirement of the customer and how the product can meet their requirement
• Zandu balm is formulated to assuage the pains like headache, body pains and also for nasal congestion relief
• Zandu balm is an ayurvedic product with a blend of natural ingredients for pain relief with pungent assuaging smell.

Place

• Placing a product plays a major role in product access, as this caters to penetration of product
• The company have to decide where to lauch the product so that to make it easily available to the customers
• Zandu balm is made available in all pharmaceuticals and grocery stores as people are seeing it as a personal product than medical.

Price

• Pricing a product depends on various factors like costs, profit margins, competitors, market conditions etc.,
• Zandu balm pricing policy made it affordable for many people as it is a non durable product to promote repetitive buying beviour

Promotion

• Promotio activities has to be based on the time, in this case season and target group of customers
• Zandu balm is an non-seasonal product.There is requirement in every season. promotion activities are done in all seasons. It's famous tag line is "Ek balm theen kaam".

Segmenting, Targeting, Positioning

Zandu balm has positioned itself s the "peedahari" balm for nearly two decades now and this jingle has been an inseparable part of the brand

                               "Zandu balm Zandu balm peedhari balm Zandu balm"

Segmenting and Targeting :

Its target customers are people suffering from headache, bodypain, cold nasal congestion.

Distribution channels

Distribution channels: 

• Agent/Broker 
• Distributor 
• Wholesaler 
• and Retailer. 

The intermediaries involved in process of making a product available for use or consumption constitute to form distribution channels. These intermediaries such as merchants, agents and facilitators each of them plays an important role in success of the company.

In general BtoC business distribution channels may have these intermediaries

The firms have to choose its distribution channels cautiously based on several factors as it will affect all other marketing decisions. 

Until the 1980s, Zandu balm focused on pricing, logistics, rural van promotions and event sponsorship. In fact, in an effort to drive growth Zandu sponsored the 1982 Asian Games. Since 1986, however, the brand has taken a more market-centric approach. It has moved from rural predominance to urban prevalence. This is quite contrary to the urban to rural movement that most other brands traverse. This approach has worked quite well for the brand. Later the brand has also actively sought to tap regional markets. In this endeavor, too, Zandu Balm has succeeded in making significant inroads. The small SKUs were launched for effective penetration in rural markets. Here the company choose to do direct distribution where it does not involve wholesalers or agents. Direct distribution involves distributing stocks to retailers without going through wholesalers.

The Emami ltd is planning to increase its penetration by adding upto 200000 outlets to its distribution network. They are looking for effective tapping of rural health sector as there is a lot of scope for development. Also the distribution of products in villages with less than 2000 population is still a major issue. 

Integrated marketing communications

Integrated marketing mix elemts are

Advertising

Sales promotiom:

Events & Expereinces:

Zandu balm endorsed ipl team Delhi dare devils as a part of its promotional campaign. Cricketers like sachin sehwag and other team members did promotions for the brand 

Public Relation & publicity

Zandu balm got publicity unexpextedly from the song "Munni badanam bui" from the film Dabangg. later it made Malaika arora as its brand amabssador nad started regional campaigns.

Interactive marketing: It released its advertisng posters online

Word of mouth marketing:

ZAndu balm has lot of word of mouth marketing. Because of its value proportions it earned many loyal customers who did advocacy to the brand.

Sales management

A SALE is nothing but selling products or services for sake of money or other compensation. It is an act of completion of a commercial activity

 FMCG firm Emami Ltd said its consolidated net profit rose by 32.64 percent to Rs 72.37 crore for the fourth quarter ended 31 March 2012, mainly due to strong sales growth in its strong brands like Zandu Balm. Net sales of the company rose to Rs 1,453.51 crore for the 2011-12 financial year as compared to Rs 1,247.07 crore in the previous financial year.

Zandu balm is now the top selling brand for Emami contributingnearly 23% to its top line sales. Zabdu boosted the over-all companies sales.  

Net sales of the company rose to Rs 72.37 crore for the fourth quarter ended 31 March 2012, as compared to Rs 54.56 crore in the same period of previous fiscal. For the year ended 31 March 2012, the company posted a net profit of Rs 258.81 crore, compared to Rs 228.71 crore in 2010-11.

Zandu Balm takes Emami Q4 net up 33% at Rs 72 cr sale.

Product Mix

Marketers classify products as Durables and Non-durables and services. Zandu balm falls under the category of Non-durables. Non-durables are hte products which are consumed in few uses and are purchased frequently. 

The product Hierachy is as folows

The need family

The product family

Product class

Product lihne

Product type

Item

In case of Zandu balm it is as follows respectively

Product levels - Customer hierachy

Core benefit provided by the product is Pain relief and that creates the basic product 

The marketers prepare the expected product to cater to its customers. Zandu balm is formulatedas immediate pain relief balm.

To overcome the competition in the market they develop it into the augmented product. They made it in affordable prices and easily portable sizes to meet the demand of the customers.

All possible augmentations done will create a potential product for the market. Now they are struggling to come up with a new strategy to overcome the competetion from the pain relief sprays.

Competition

Zandu balm is the market leader in its segment with 43% market share, Its competitor Amrutanjan follows it with close to 10% market share. Its tough to retain as a market leader over  long period of time. It requires so much effort. Zandu balm is trying constantly to overcome its competetors to retain its position in market. 

Is main competitors are  Amrutanjan, Iodex, Tiger balm, Dragon balm, Move and some local brands like Sandu balm etc., in pain relief category. In the same category but in different form Pain relief tablets are considered as indirect competitors.

Emami company launched a balm in the same category which is MENTHO PLUS balm. This balm provides very small packages starting from two bucks. 

But the major threat now for Zandu Balm are the developing pain relief sprays which are promoted as time saviors as 'no need of massage' sprays. Also the present youth are becoming reluctant towards using balms as they felt them as old fashioned and time taking and its trendy to use sprays.Now the Emami Zandu Balm is facing a tough competition from these Pain relief sprays and trying to retain its market share. As a part of this they released a zandu balm tube for easy usage. 

Yet it need to do something in order to cater to the evolving changes in consumer behaviors and market competition to retain its position.

Buying Decision Making Process

Consumers/Customers when faced a problem will try to solve it  mainly by two ways. Either from their past experiences or by getting information from other sources like friends, internet, promotions of products etc., 

Then they evaluate the options and will decide what to buy. The post purchase behavior will decide whether he will become a repeated customer or not. The following table explains the step wise procedure of customer buying behavior 

Zandu balm is more of impulse buying or of precautionary measure. Customers when suffer with Headache, Body pains or Nasal congestion will look for some relief measures, which creates an urge to buy a relieving balm or tablets. 

Some main features which drives them towards Zandubalm are its

• strong scent, 
• immediate relief promise, 
• ayurvedic nature(so no side effects), 
• availability, 
• affordability. 

People also driven by its publicity and information from public sources like family, friends and others. Its brand name which now has 100 years of history made it the most trusted brand in its sector. Brand value also gave a push to people who are first time buyers.

The people who had a prior experience with the brand Zandu balm and used it for a while are opting for it again as it was effective and gave them immediate relief from their problem.. Even people became so accustomed to it packaging. 

So the company when  thought of making changes to its packaging  didn't change its green color. Satisfaction is the factor which enables the repeated buying behavior in the customers, If the product didnot meet customers expectations, he will be disappointed, If the product meets his expectations he will be satisfied, If it exceeds, he will be delighted and will become a loyal customer.

Zandu balm earned many such loyal customers over 100 years such that it became a part of their monthly groceries list.

Coustomer Value

Customers are the center point of modern organizational structure. The main objective of the company is to create value to customers profitably with its products/services.

Zandu balm is more perceived as a general day-to-day product than a pharmaceutical product by many of its customers. The value perceived by the customers is the difference between Total benefits and Total costs required to acquire it.

Benefits:

• Zandu balm is first in its category in the market. It has a 100 yrs of market history.
• It promises its customers immediate pain relief for headache, body pains, nasal congestion.
• As people started using it they started believing in its effective functioning and multipurpose usage as a pain relief balm, this got it huge word of mouth publicity.
• It became a very personal product later. People started using it not only as a pain relief balm but also as a stress reliever. Its effective and soothing smell is one of the reasons for it.

Costs:

• Zandu balm has a wide distribution network which made its acquiring costs less. It is available in most of the general stores, pharmacies, grocery stores etc.,
• Its attractive packaging and availability in small packages made it affordable to all types of people