Zandu Balm

Complete study of product Zandu Balm in the FMCG sector.

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Project
Marketing
Management
IFMR GSB

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Table of Contents

S.No. Topic Page No.
1. Introduction

4
2. History of the group 5
3. History of the company 6
4. Product Lines 7
5. Top Managers- Chairman's/CEOs 8
6. Current Share price of the group of company 9
7. PORTER Analysis 9
8. SWOT Analysis 10
9. Success and failure
Marketing mix
13-14
10. Product positioning 17
11. BCG Matrix 18
12. Competitors 19
13. Target Market
Segmentation
20
14. CEO Concepts 21
15. Bibliography 22

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ACKNOWLEDGEMENT

This Project has been developed on the basis of lectures delivered by “Prof.
Sathya Saminadan & Prof. Sathyanarayan” at IFMR GSB, Krea
University. We as a group would like to thank both of them wholeheartedly
for their noble guidance and teaching.
Our product for the Project is “Zandu Balm” which helped us in applying
core marketing concepts. The success and final outcome of this project
required a lot of guidance and assistance from many sources like secondary
data and primary data and we are extremely fortunate to do the analysis of
the marketing scenarios for completing this project report.

Thanking You

Group No. – 1
(Section-B)

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Introduction
History of the group
In the mid-70’s, the inception of the Emami Group took place in Kolkata's business district of
Burra Bazar. In 1974, Mr. R. S. Agarwal and Mr. R. S. Goenka set up Kemco Chemicals,
Ayurvedic medicine and cosmetic manufacturing unit in Kolkata, with a meagre capital of Rs
20,000. Before the inception of the Emami group, the two founders were working with the
Birla Group as Chartered Accountants.
They realised the potential in the personal care market and the importance of the herbal
revolution of Ayurveda and started manufacturing cosmetic products as well as Ayurvedic
medicines under the Emami’s brand name. They started with the launch of Emami Talcum
Powder, Emami Vanishing Cream, Emami Cold Cream, and Himani Glycerine soap. They
began selling the cosmetic and beauty products piled in the back of a hand-pulled rickshaw.
Imported French perfume fragrance and innovative packaging were introduced in laminated
plastic containers with chic golden borders and motifs which made the product an instant hit in
the market. Similar products were not available in the market and were considered to be
imported. Consumer responded well and products were able to generate good margins. The
products became popular and by 1978, Emami vanishing cream positioned itself as the market
leader with 22 % market share and Emami talcum powder became the No.2 brand in its
category.
In 1978, the Emami group acquired Himani, a 100-year-old company with good brand equity
in Eastern India and a well-established factory in Kolkata. It was producing many cosmetics.
The acquisition proved to be the turning point for the organization. They reinvented products
like Himani Snow, Himsar Tel, and Himani Glycerine Soap. They reaped a rich dividend from
this reinvention. In 1995, Kemco Chemicals was converted into a Public Limited Company
under the name of Emami Ltd. In 1998, Emami Ltd was merged with Himani Ltd and its name
was changed to Emami Ltd. In 1984, under the Himani umbrella BoroPlus Antiseptic Cream
was launched and in the 90’s Navratna Cool Oil came.
In 2005 Emami created a marketing history in India by launching Fair and Handsome, the first
fairness cream for men, who are closet users with a growing interest in personal grooming.
With the introduction of India’s first fairness cream customised for men, it created a new
market segment.
Emami Group is a diversified business conglomerate with presence in various sectors of
business such as FMCG, paper, edible oil, biodiesel, hospitals, real estate, retail, cement,
ballpoint tip manufacturing, power and art with a Group’s market valuation of Rs 60,000 cr.

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History of the company
Established in 1974, Emami Limited is the flagship company of the Emami Group and one of
the leading FMCG companies in India operating in beauty and healthcare spaces. The
Company offers products based on Ayurvedic formulations such as BoroPlus, Navratna, Fair
and Handsome, Zandu balm, Mentho Plus balm, and Fast Relief.
Growth through inorganic route

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Zandu Balm
Core benefit: Pain Relief
Basic Product: Pain relief of body muscle and joint
Expected product: Fast pain relief
Augmented product: Easy to use
Product Extension: Zandu Gel Balm Junior, Zandu Balm Ultra Power, Zandu Gel, Zandu
spray, Zandu roll on

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Product Life Cycle:
Product life cycle (PLC) is the cycle through which every product goes through from
introduction to withdrawal or eventual demise.


Introduction Stage
• Zandu balm available in medical stores.
• Box packaging
• Promoted as a pain-relieving balm
Growth Stage
• Zandu balm available in retail and medical stores.
• Innovative and brand-new packaging
Maturity Stage
• Product reinvented with non-sticky formulation
• Different shapes and sizes introduced
Decline Stage
• Product extension- Zandu Balm Ultra Power offering quick and long-lasting relief from
serious pain.

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Emami Product Line

Source: Investor Presentation
Top Managers-Chairman's/CEOs
• N H Bhansali - CEO - Finance Strategy & Business Development and CFO
• R S Agarwal - Founder and executive director
• R S Goenka - Founder and whole-time director
• AK Joshi - Company Secretary & VP - Legal
• Dhiraj Agarwal - Head - Media Planning
• Chandra Kant Katiyar - CEO Technical - Health Care Division
• Punita Kalra - CEO - Research & Innovation Strategy and Corporate Quality
Assurance
• Mohan Rajabhau Panchabhai - COO - Operations and Purchase
• Rana Banerjee- President - Health Care Division
• Vivek Dhir - CEO - International Marketing Division
• Venkata Rao Damera - President - IT
• Nihar Ranjan Ghosh - President - Human Resources

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Current Share Price of the group of company



PORTER ANALYSIS:
The following are the intensities of the five forces in affecting Zandu balm:
1. Competitive rivalry or competition (strong force)
2. Bargaining power of buyers or customers (strong force)
3. Bargaining power of suppliers (moderate force)
4. Threat of substitutes or substitution (Strong force)
5. Threat of new entrants (weak force)
➢ Competitive rivalry or competition (strong force):
Zandu balm has been the market leader in pain relief segment with 45% market share while its
competitor Amrutanjan enjoys close to 10% of market share. Zandu balm is constantly trying
to overcome its competitors to retain its position in the market. Major competitors Zandu balm
currently facing are Amrutanjan, Iodex, Tiger balm, Dragon balm, Moov, omni gel, and some

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local brands like Sandu balm etc. in pain relief category while Pain relief tablets are considered
as distant competitors vis-a-vis Zandu.
➢ Bargaining power of buyers or customers (strong force):
Zandu balm’s business environment depends on the behaviour of consumers to its products.
The influence of buyers on the industry’s business performance needs to be included in this
section of the Five Forces analysis. Emami must address the following external factors that
will lead to a strong force of the bargaining power of customers for Zandu balm:
• Low switching costs
• High quality of information
It will be easy for customers to switch to different product from Zandu with low switching cost
that contributes to the strong intensity of the bargaining power of buyers. Consumers also have
access to high-quality information about consumer goods, making it even easier for them to
decide whether it’s adding any advantage switching to different products. Based on this section
of the Five Forces analysis, the bargaining power of customers is one of the strongest forces
affecting Emami’s pain relief industry.
➢ Bargaining Power of Zandu balm’s Suppliers (Low Force):
Suppliers impact Emami’s pain relief industry environment by affecting the level of supply
available to firms. The following are the external factors that contribute to the moderate force
of the bargaining power of suppliers on Zandu balm:
• Large size of individual suppliers
• High overall supply
➢ Threat of Substitutes or Substitution (Strong Force):
Substitutes can harm Zandu balm’s revenues and the strength of firms in the pain relief
industry. The impact of substitution is determined by the Five Forces analysis. In Zandu balm’s
case, the following external factors are responsible for the strong force of the threat of
substitution:
• Low switching costs
• Low substitute availability
In the present scenario, Zandu Balm faces the challenge of addressing a generation of people
who perceive balm as old-fashioned, slow acting, messy to use, apart from being a ‘rural’
product. There is competition from other products which the youth can easily use like painkiller
sprays like “Volini” & “Moov”.

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➢ Threat of New Entrants or New Entry (Strong force):
This section analyses the influence of new firms on Zandu balm’s industry. The following
external factors create the strong force of the threat of new entrants against Zandu balm:
• Low switching costs
• High cost of brand development
The low switching costs enable new entrants to impose a strong force against Zandu balm.
Consumers can always decide to try new products from new brands. However, it is costly to
build strong brands like Emami. This external factor weakens the intensity of the threat of new
entrants against the company.

SWOT analysis
Strength
1. Zandu has been in the market for more than a century thus has a “Indianness” associated
with Zandu brand so it is very well accepted in the Indian market
2. Emami’s one of the most powerful brands and is the market leader in their product
category. It was ranked 3 in the personal care category by brand equity most trusted
brand.
3. Strong Supply chain of Emami with more than 3,500 distributors, 160 super-stockist,
4,000 sub-stockist, 5, 00,000 retailers and Availability in the more than 12 lakhs store
nationwide. Due to deep distribution channels market penetration is very good
4. Celebrity endorsements by people from diverse fields further strengthened the brand.
Post-acquisition by Emami & approximately 2 years after the famous ‘Zandu Balm’s
reference in the ‘Munni Badnaam…’ song, Malliaka Arora Khan became its Brand
ambassador. The same quarter net sales of Zandu Balm shoot up by 35% (Source:
Economic Times 2nd Nov, 2010) owing to the company’s surprising new jingle.
Adding glamour to this brand has definitely helped Zandu Pharmaceuticals expand its
reach as it commands 43% market share in its segment and remains the largest selling
balm in India.
Weaknesses
1. It doesn’t have any USP in functional aspects as many of its competitors claim to have
the same ingredients as Zandu balm have i.e. methyl salicylate and herbal ingredients.
2. Emami’s own brand Mentho Plus also caters to the same segment which may lead to
cannibalization.
3. Controversies over the Zandu brand used in the Dabang movies song “munni
badnaam….” negatively affected the brand image though it helped in publicity and
profit gains.

Opportunities

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1. Excise exemption for 10 years in Emami plant in Pantnagar (Uttaranchal). Starting
production of Zandu balm which is a high consumption and high production item will
be a good option as these exemptions will bring down the cost of production and
increase the profitability.
2. Huge emotional bonding with this product that every consumer survey on packaging
brings back a design which resembles the original packaging.
3. Inactive and lethargic lifestyles of today’s world have created ample opportunities for
Zandu balm.
Threat
1. Stiff competition from competitors like Tiger balm, Amrutanjan balm & Iodex Balm.
Increasing affinity towards analgesic spray has made things difficult for Zandu balm.
2. Balm is being perceived as rural product, messy to use and old fashioned has made
difficult to attract young generation.
3. Pirated products with low cost in rural areas pose a serious threat to brand’s
profitability.
4. With import restrictions being eased by the government, competition has increased
manifold from international competitors.














ZANDU BALM MARKETING MIX

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PRODUCT:
Zandu balm, has been a market leader in the category of balm for more than 100 years with a
market share of more than 40%. To cater customer needs, it has been innovating and launching
new products such as non-sticky balm, gel, roll on and spray. These products are tailor made
to act as effective and faster pain relief solution to body ache, headache and cold. It comes in
attractive packaging with varied availability in sizes to make it accessible for every section of
society. It is also available in small sachets for travel purpose. The products Zandu balm ultra-
power, Zandu balm ayurvedic and Zandu gel junior are available to cater various age strata
considering young to old and everyone in between.
PRICE:
Zandu Balm follows a pricing strategy that is affordable for all categories of income group.
The Zandu balm Ayurveda is priced as follows: 1ml – Rs. 2, 4.5ml – Rs. 10, 8ml – Rs. 32,
25ml – Rs. 85.
Zandu balm super power is also available for Rs. 38 for 8ml bottle and Zandu balm junior for
Rs. 30. There has been very little increase in the prices over the years and is sold in high
volumes which results in generating high revenues from the sale of products.
PLACE:
Zandu balm is distributed extensively in rural as well as urban markets. It is made available in
various supermarkets, departmental stores, general stores, retail outlets, ayurvedic counters as
well as chemist shops. With the trending growth in ecommerce sales, Zandu balm is also sold
on various online medical sites such as medlife, netmeds and other online portals. It is not only
popular in India but is sold across various countries.
PROMOTION:
Zandu balm has an aggressive marketing strategy and has made a demand for itself after the
quirky use of its name in the blockbuster movie Dabangg. Post that actor Malaika Arora Khan
has become the face of Zandu balm and was involved in various promotional advertisements.
It has also been clear with its taglines and jingles across ages which conveys the clear message
that this one balm can cure cough, cold and body pain.




SUCCESS & FAILURES

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A brand is a lot more than that of a marketing tool; it’s the way the company is perceived by
the world. The most successful brands create a powerful & defined identity for their companies.
The ultimate goal is not just to be recognizable, but to be so closely identified with your
company’s defining characteristic that you become known for it.

A successful brand has to be consistent in communication and experience, across various
dimensions:
• Environment (storefront or office)
• Print, signage, packaging
• Website & online advertising
• Content publishing
• Sales & customer service

Success of brands is also affected by the product’s uniqueness.
Zandu balm is successful because of its unique advertising and the product’s ability to stand
out among its competitors.
The Emami’s pain management category consists of pain relief solutions in the form of balm,
gel, ointment, spray as a remedy for headaches & body aches. Emami identified the
extraordinary potential in this segment way back in 1987 and introduced Mentho Plus Balm
followed by Himani Fast Relief. The acquisition of Zandu Pharmaceuticals (713 crores in
2008), century-old ayurvedic major, was yet another landmark and turning point in Emami's
history.
The acquisition enhanced the company's position in the category and is now market leader in
the balm as well as the overall pain relief solution category.
The Zandu business grew rapidly by 52% following the acquisition, and multiplied its profit
by five-fold between FY08 and FY10 and made Emami debt-free within two years of the deal.

Of the top 10 OTC brands in India, three are pain balms. Zandu Balm, which occupies more
than 40 per cent of the Rs 1,500-crore pain relieving market, according to the Emami Investor
June 2010.
Zandu has such strong emotional connect with its users that every consumer research on
packaging throws back a design that is closest to the original pack.

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Source Gartner Report
Key factors that led to success and growth of Zandu Balm are summarised below:
1. Trusted pain relief solution for more than 100 years, positioned as a multi-purpose
topical pain relief solution which was effectively captured in the Advertising campaign
‘Dard Ki bolti band’.
2. Product is perceived to be combination of “Science & Ayurveda” and resonates values
like nature, health, trust and assurance.
3. Market leader in India’s balm category with 45% market share
4. Market penetration in more than five crore Indian households, across geographies.
5. Brand positioned as ‘A Pain Relief Expert’ across age groups and pain intensities.
6. Emami’s pan-India distribution channel through retailers and whole sellers was
instrumental in speedy product movement and effective shelf filling.
7. Products were relaunched with improved packaging and communication every few
years.
8. Constant evolution of the brand backed by strong innovation has been instrumental in
consolidating and sustaining Zandu’s leadership in the face of changing times.

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Advertisements for Zandu Balm

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Product positioning
Functionality-
It has always been stressed in the advertisement about the function of the product, because this
is how the brand wants to create its image in the market. They leveraged the customer need by
repeatedly stressing on the core pain relief property. The company targeted customers suffering
from headaches, body pain, cold nasal congestion. Working population who generally undergo
lots of stress, Housewives, Children (Zandu Balm Junior) were also targeted.

Relevance-
“EK BALM TEEN KAAM” Zandu Balm” was associated with immediate relief from pain.
In certain situations, when visiting a doctor is not possible and there comes the relevance of
Zandu Balm.
The Balm would cater to the immediate need of relief from pain.

Differentiation –
The colour and smell are the major differentiating factors for the Brand along with its unique
formula. The white colour and smell of camphor are exclusive to Zandu Balm.

























BCG Matrix for Emami Ltd.

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BCG matrix of a company helps in analysing the product strategy in order to realise what
products are generating high revenue and which products are utilising companies’ cash and not
generating revenue under the influence of market growth.


➢ Stars
The products which generate a lot of revenue for the company are considered to be stars. These
are the product where company already has market share and also the market is growing. For
Emami Ltd. the products that can be treated as STARS are Fair & Handsome and Navratna
Oil.

➢ Cash Cows
Cash cow are the mature products of the group where they have a major market share with the
market growth at a relatively less pace. For Emami Ltd. The cash cows of Emami Ltd was only
one product BoroPlus cream. Under boroplus brand they have introduced products to cater
body cream, cool powder and moisturizers.

➢ Dogs
This category includes products which are not generating enough revenue as well as the market
is also not showing growth. This product chunks majority of company’s revenue without
generating enough profits. Vasocare is the only product for Emami Ltd under this category
which contribute to only 1% of group revenue.

➢ Question Marks
These products include the category in which the market is growing rapidly but the company
is not generating enough revenue with regards to opportunities provided by the segment.
However, the company continues to invest heavily in such products as they have the potential
to become Stars in the future. Mentho plus can be considered under this category as it is still
growing under the segment of pain-relieving balms.


COMPETITORS

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Some of the Close competitors of Zandu balm are -

Zandu balm has the market share of 45%.
Tiger balm has a market share of 40% (which is a tough competition).
Amrutanjan balm has market share of 10%.
Moov and Volini which has a market share of over 12% and 13 % respectively is a close
competitor with its different pain relief products.

Some of the Distant competitors of Zandu Balm are -


➤ Pain Killer tablets are effective and cheaper option available for a customer
➤Body massage is an expensive and non regular option which is generally adopted by
customers with higher disposable income.
Menthol- one of the brands of Emami is itself becoming its competitor by gaining a good
market share.
The customers find balms to be outdated and find it trendy using those products available in
spray form as these products are time saviours with no massage.





Target Market

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Every company has to analyse the segment which can be targeted for the sale of the product.
The company was regularly focusing on the middle aged and old people but the focus of the
product is gradually shifting towards youth generation due to continuous back problems and
headaches.

Segmentation
1. DEMOGRAPH IC
a) Age
Majorly it focussed on age group of 40-65
But now the focus of this brand is towards youth aged between 18-25 as this age group is
dealing with back aches and headaches
b) Sex
• Male
• Female
• Others
2. GEOGRAPHIC
“Zandu Balm” have a major focus in the cities of north and western part of the country. It
generates maximum revenue from this part of the country and is now targeting to expand the
market in the south side.
3. PSYCHOGRAPHIC
This product also focuses on this segment by targeting the people with muscular and physical
pains, by providing relief to the customers. The customers get psychological satisfaction by
using this product.
4. BEHAVIORAL
This product has created brand loyalty among the customers which affects their purchasing
decision. Every customer’s demand is affected by their life style which is majorly controlled
by this product as they at first place ask for it and are reluctant while using its substitutes.
5. BENEFIT– The benefit expected from Zandu Balm is quite obvious from the customer
point of view. So as long as the customers are satisfied with the product, they will keep buying
more as per requirement. In this case, the benefit factor reflects on behavioural and
psychographic segments. The Company clearly has taken this into consideration.











CONCEPTS WE WILL IMPLY AS CEO:

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✓ The Targeting of Zandu has been the same throughout the years and their
advertisements focusing on home makers have always led to some sort of stereotyping
of women. So, focus should be altering that image. We can focus on women centric
advertisements, working class women.
✓ Innovate on Packaging and try to explore other form factors.
✓ Focus should be on encashing the growing sports culture in India. We should try and
target the pain relief segment in sports by bringing in famous sportspersons for
increasing brand presence. We can also sponsor sports events (IPL, Kabaddi League
etc.) and increase the market for sprays and gels that are preferred by the sportspersons.
✓ People today are sceptical to use chemical dominated products and are substituting it
with those that have ayurvedic content. Increasing awareness about Ayurveda &
communicating the health benefits of Ayurveda can help increase the sales of Zandu
balm.
✓ Zandu balm should do more aggressive marketing of its recent launches of Zandu gel
and spray as the market in this segment is gaining popularity and it will prove to be a
huge competition for Volini and Moov due to the trust and popularity of Zandu.
✓ Zandu should make its presence visible on online portals and digital media platform.
Although Zandu has its own Facebook page as well as online portal, it is not updated
regularly and lacks mass marketing techniques. Its content should be creative and
appealing to create brand popularity among the current tech savvy consumers.










BIBILIOGRAPHY

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➢ https://www.google.com/search?q=market+share+proce+of+emami&oq=market+share+pro
ce+of+emami&aqs=chrome..69i57j33l5.9596j0j7&sourceid=chrome&ie=UTF-8
➢ http://www.emamiltd.in/brands/86/183/zandu-healthcare-otc-classical-ethical.php
➢ http://www.emamiltd.in/investor-info/
➢ https://en.wikipedia.org/wiki/Emami
➢ https://www.indiatoday.in/magazine/nation/story/20101108-is-zandu-balm-any-good-er-
no-744646-2010-10-29
➢ https://www.livemint.com/Home-Page/LI20iSen9h0lTvveHUSnIP/The-inside-story-of-the-
Zandu-takeover-battle.html
➢ https://www.thehindubusinessline.com/companies/emami-launches-new-zandu-balm-for-
faster-pain-relief/article8963984.ece
➢ http://www.emamiltd.in/images/presentation/20180604013904-pdf-340.pdf
➢ https://brandequity.economictimes.indiatimes.com/news/business-of-brands/emami-gives-
zandu-balm-an-all-new-avatar/53598526
➢ https://www.amazon.com/Zandu-Balm-30g/dp/B0046TJWNM
➢ https://economictimes.indiatimes.com/topic/ambassador-for-its-pain-relief-brand-zandu-
balm/8
➢ https://www.scribd.com/document/371337591/Facebook