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THE AYURVEDIC MEDICINE INDUSTRY IN INDIA

Ayurvedic medicines are produced by several thousand companies in India, but most of them are quite
small, including numerous neighborhood pharmacies that compound ingredients to make their own
remedies. It is estimated that the total value of products from the entire Ayurvedic production in India is
on the order of one billion dollars (U.S.).
The industry has been dominated by less than a dozen major companies for decades, joined recently by a
few others that have followed their lead, so that there are today 30 companies doing a million dollars or
more per year in business to meet the growing demand for Ayurvedic medicine. The products of these
companies are included within the broad category of "fast moving consumer goods" (FMCG; which
mainly involves foods, beverages, toiletries, cigarettes, etc.). Most of the larger Ayurvedic medicine
suppliers provide materials other than Ayurvedic internal medicines, particularly in the areas of foods and
toiletries (soap, toothpaste, shampoo, etc.), where there may be some overlap with Ayurveda, such as
having traditional herbal ingredients in the composition of toiletries.

The key suppliers in Ayurveda are Dabur, Baidyanath, and Zandu, which together have about 85% of
India's domestic market. These and a handful of other companies are mentioned repeatedly by various
writers about the Ayurvedic business in India; a brief description is provided for them, arranged here from
oldest to newest.

MARKETING STRATEGY OG VARIOUS PLAYER

Dabur India Ltd. is India's largest Ayurvedic medicine supplier and the fourth largest producer of FMCG.
It was established in 1884, and had grown to a business level in 2003 of about 650 million dollars per
year, though only a fraction of that is involved with Ayurvedic medicine.
Dabur Chyawanprash (herbal honey) has a market share of 70% and chewable Hajmola Digestive Tablets
has an 88% share. Other major products are Dabur Amla Hair Oil, Vatika (Shampoo), and Lal Dant
Manjan (Tooth Powder).

Pricing Strategies of Dabur


Dabur has stepped up the pace of new product launches and is investing ad spend and marketing. The
entire product portfolio is also tweaked to include premium offerings such as more variants under almost
every category, like Dabur Vatika Hair Oil is available in 3 different versions.

PLACE & PROMOTIONAL STRATEGY


Place in the context of marketing mix refers to a set of decisions that need to be taken in order to make
the products available to the customers for purchase and consumption. Making the products available to
the customers require development of channels of distribution and physical distribution of products.

Promotional strategy
Dabur has created the huge brand image and a vast product following by associating mega-names like
Amitabh Bachchan, Rani Mukhurjee, Vivek Oberoi, Mandira Bedi etc. Dabur invested Rs. 150 crore just
on the advertising of Real Fruit Juice and Real Active. So far the company has been successful in this
mission as the people now know the brand and ask for its products by name.

2. Sri Baidyanath Ayurvedic Bhawan Ltd.


Pandit Ram Dayal Joshi established Shree Baidyanath Ayurved Bhawan Private Limited in 1917 to
combine the resources of AYURVEDA with modern research and manufacturing technology.
(Baidyanath for short) was founded in 1917 in Calcutta, and specializes in Ayurvedic medicines, though it
has recently expanded into the FMCG sector with cosmetic and hair care products.
Promotional strategies:

1. free trails and samples,


2. gifts,
3. coupons redeemable by product purchase,
4. packing with extra material or at reduced prices

3. Emami Group of Companies

In May 2008, Emami Limited brought the entire 23.62 % stakes of the Vaidya family, one of the co-
promoters of Zandu, taking its total holdings to 27.5% as they already owned 3.9% equity. The deal was
worth Rs 130 crore and share price of Rs 6900 per share was paid.
Attractive promotion strategies

Association with top Bollywood actors and product placement in songs and movies has been Emami's
hallmark marketing strategy for years. The company also utilizes the opportunity available of promoting
through regional stars. For example, when the song "Why this Kolaveri Di" became popular Emami
immediately signed a deal with Dhanush to promote their Navratna Oil with the movie "3".
Diversified Portfolio
The Emami Group has Pan-India presence with six regional sales offices and 29 depots. A strong network
of 3,500 distributors and 2,500 sub distributors, with a direct reach across over 4,50,000 retail outlets and
market presence across over 65 countries with subsidiaries in Bangladesh,
Egypt, Dubai and the UK.

4. Vicco Laboratories
It was established in 1958. It mainly produces topical therapies based on Ayurveda and is best known
internationally for its toothpaste product, Vajradanti, which has been marketed in the U.S. for more than
25 years.

Distribution strategy
The company is well established & has a good distribution of its products across metros & other
cities
Vicco has been sucessfully carving out a niche for itself in the field of dental & skin care globally
.
Vicco has a strong distribution chain nationally & internationally
Promotion strategy
Promotion campaign would be done extensively using all media forms i.e newspapers ,
television ad , outdoor hoardings
Providing small tube as free sample to masses and getting their views .
As the tag line as the company suggest this product should stand out from others in the market .
Tag line :- Vicco turmeric nahi cosmetic .... Vicco turmeric ayurvedic cream....
Giving other vicco products free on purchase on foam cream

5. Marketing Strategies of patanjali


Patanjali Ayurveda Kendra Pvt. Ltd was established on 27 September 2007 in Swoyambhu, Katmandu,
Nepal by Mr. Babukaji Shrestha, the President. It operates sales of Ayurvedic medicines and publication.
It was established with the main purpose of curing and preventing common ailments by Ayurveda and
importing all kind of Ayurvedic medicines, audio-visual materials and literatures of Divya Pharmacy,
divya Yog, Divya Sadhana and Divya Prakashan, Haridwar, India to distribute in Nepal.

Interestingly, Patanjali is the fastest growing FMCG company in India. Within two years of its scale up, it
has already crossed revenues of Rs 5,000 crore and the company claims it will end the current fiscal with
revenues upwards of Rs 10,000 crore.

Promotion strategy
Patanjali advertisements were displayed on TV channels for 7,221 hours across 161 channels. That
translates into an average of 19 hours 43 minutes of advertising time every day.

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