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".