The document discusses the Indian chyawanprash market, which is valued at roughly Rs. 450 crore. Dabur dominates the market with a 60% share, followed by Emami at 15% and Baidyanath at 12%. It analyzes the strengths and weaknesses of major brands like Dabur Chyawanprash, Emami's sonachandi, and Zandu Kesari Jivan. Finally, it proposes a business plan for a new entrant, suggesting strategies around segmentation, targeting rural markets, product differentiation, competitive pricing, and extensive promotion and distribution.

1. INTRODUCTION
India is the world's second largest producer of food next to China, and has the potential of being the
biggest with the food and agricultural sector. The total food production in India is likely to double in the next ten
years and there is an opportunity for large investments in food and food processing technologies, skills and
equipment, especially in areas of Canning, Dairy and Food Processing, Specialty Processing, Packaging, Frozen
Food/Refrigeration and Thermo Processing. Fruits & Vegetables, Fisheries, Milk & Milk Products, Meat &
Poultry, Packaged/Convenience Foods, Alcoholic Beverages & Soft Drinks and Grains are important sub-
sectors of the food processing industry. Health food and health food supplements is another rapidly rising
segment of this industry which is gaining vast popularity amongst the health conscious.
As Hindustan Lever Ltd (HUL) is test marketing its health food brand, Kissan Amaze, in three
southern states in India, Godrej Hershey Foods & Beverages Ltd (GHFBL), a joint venture between Godrej
Beverages & Foods Ltd and Hershey Company, is planning to introduce select brands from its international
portfolio in the domestic market. HUL's arch rival, ITC Foods, is planning to extend the product portfolio of its
health food brand in the next few months.
Porter's Five Forces
Forces Description
Threat of Easy switch to the conventional retailers.
Substitute Specialty stores built right in to their
Products strategies.
Largest food processors acquiring organic
Bargaining Power
food producers. Only 1% of farmland used
of Suppliers
for organics.
Bargaining Power For the most part, conventional retailers
of Buyers determine what we pay.
Intensity of Degree of commitment by the conventional
Competition retailers will determine the intensity.
Entrants are already there! Their intensity of
Threat of New
their pursuit of the natural/organic market is
Entrants
the question.

2. Submitted by F11116
Immunity boosters/ Chyawanprash
The Indian chyawanprash market is roughly Rs 450crore, mostly dominated by Dabur with the highest
market share. The other players include Himalaya, Zandu, Emami and Baidyanath and several players in the
unorganised sector. The sudden craze for immunity and wellness among urban Indians and the degrading living
conditions including stress is leading to a revival in this category. Also Chyawanprash is mostly consumed in
the winters.
Market share :
Dabur : 60%
Emami : 15%
Baidyanath : 12 %
Zandu : 10%
Others : rest
Dabur Chyawanprash
The 100 year old brand name plays an extremely great role. The ads endorsed by Amitabh Bachhan and
VivelOberoi were successful to connect with the customers. The distribution network of Dabur helped achieving
the target over and over again. Still, in some parts of the country Dabur faces tough competition from the local
brands.
SWOT ANALYSIS
Strength Weakness
1.Strong Dabur brand name 1.Declining popularity in the urban areas
2.Excellent branding and advertising
3.Excellent distribution and availability
Opportunity Threats
1.Leverage successful brand Dabur 1. Threat from local medicinal herbs in rural areas
2.Advertise more 2.People preferring international health brands
3.Buy out competition

3. In 2010 the chyawanprash market saw a 25 % jump after almost single digit growth throughout the
decade. Dabur has banked on its name and launch of new variants like mango and orange.
Emamisonachandi
Emami’sstrong R&D and aggressive marketing capabilities enable it to identify emerging needs and aspirations
of consumers and convert them into opportunities.Thenew television ad commercial with Shahrukh Khan
emphasized the benefits of sona and chandi was a great hit.In addition, door-to-door activity, wallpainting,
dealer boards, rural vans andparticipation in fairs and festivals along withregular point-of-purchase
marketingcollaterals (posters, danglers, banners, among others) were being done.
SWOT ANALYSIS
STRENGTH
1.Powerful brands WEAKNESS
2.Pan-India presence Only weakness is that consumer perception of the
3.Young and dynamic team brand that it really contains sona and chandi
4.Efficient operations
5.Celebrity brand ambassadors
6.Innovative research
7.Strong financials
OPPORTUNITY THREATS
1.Lots of opportunity as it is ayurvedic with no side 1.Biggest threat is Dabur
effect 2.Local brands
2.Untapped rural market
3.People now a days more concernedfor health
ZanduKesariJivan
Zandu introduced chywanprash with a saffron element which was an improved formula and was positioned as a
general tonic. Can be consumed with milk or bread, was the key feature. Its market share has increased to 10 %.
Baidyanath
The herbal contents were mostly positioned for therapeutic use. They differentiated from the other players by
introducing 2 variants separately for adults and children.

4. Business plan for new entrant in chywanprash market
Segmentation, targeting and positioning:
1. Segmentation : age (growing kids, competitive youth, adults, old aged), income,psychographic
2. Target :
Rural area
Middle class
In the Indian FMCG sector, rural India accounts for more than 40% of the country’sconsumption. So a lot of
scope is there for getting higher profits from rural market as the existing players have not tapped completely.
3. Positioning : Not as a health supplement to boost immunity during winters especially, but all-season
affordable regular daily tonic for all age-groups that can be consumed separately and with other food
items as well. Making the consumers feel that its their health supplement from their own land – no
connection with international elements at all. Have to differentiate from the local brand as well.
Marketing Mix:
1. Product: As chywanprash usually is derived from herbal ingredients, its difficult to get of different
flavours. Strawberry, kiwi, chocolate, etcflavors can be introduced to give different choices to the
consumers. Although, Dabur had introduced mango and orange flavors, it was not a huge success.
Different flavours can be associated with different motives for building connection with the
consumers. Sachets can be introduced to tap rural market fast due to less income of rural
customers. Attractive packaging for different segments can be used.
2. Price : To capture the market with already existing major players, less priced product would be
helpful. To implement the same, strong R & D and distribution network is needed to cut cost. Rs.
85 per kg can be the proper price with no compromise with quality. Discount can be offered with
certain terms and conditions applied.
3. Promotion : Internet marketing is the need of the hour. With major firms gaining huge market
share due to internet markting is common these days. Some online event or game would light the
spark. Endorsements by stars would also have a positive effect.
4. Place : Distribution channels would be strong to reach supermarkets, kirana stores, medicine
stores.
Strategy :
*Creating a niche, strong R & D to come up with innovative ideas, to pursue growth by adopting
both organic and inorganic routes.
*The product ideology would be: build immunity, enhances memory, strengthens body- must to
consume daily.

5. *Free samples for rural area can be a different way for product awareness. Organize competitions
or some events in schools, colleges.
*Hire a leader from each village in rural sector for brand communication. This will give
opportunity to earn as well as awareness.
*Incentive scheme can be introduced to shop owners in rural area along with promotional banners.
*Local celebrity can be taken as an option for endorsement.