Marketing Strategy

Case Study - Dalmia Consumer Care

INSTITUTE OF MANAGEMENT
DEVELOPMENT AND RESEARCH

TUSHAR GHORPADE
 Question & Answer #01
1

 Discuss the marketing strategy followed by the company for launching

“Vardaan”
Answer
 Initially the team discussed the target market as Urban to offer filtered
cigarettes.

 Marketing Manager further proposed the Marketing Strategy based on

Market Research Study.
1. Focus on Bidi Market – Estimate of Market Rs15000 Cr. Focus on
Rural market.
2. Offered in different pricing, sizes, shapes and packaging as per
particular region.
3. Customer Centric Focus – Listening to customers and offering
superior price/value equation (Not only spend on advertising).
4. Use marketing mix of promotion – Events, fairs, exhibitions, melas.
 Question & Answer #01 (Conti..)
2

 Key Success Factors – Resources (Assets & Capabilities) for company to

compete in market.

Strategic Strengths Strategic Necessities

R&D – Ayurveda Taste and Pleasure was
Knowledge with modern similar to tobacco cigarette
science to solve health as confirmed by 81% of
problems like lung diseases, people surveyed.
asthma, chronic diseases.
Patented – Cigarette using Distribution – To launch
leaves of 8 trees that give nationally the company has
pleasure same as of tobacco. to cover 300 cities and 1.5
lac outlets.
 Question & Answer #01 (Conti..)
3

Competitive Advantage –
The product should qualify for below 4 points to have Competitive Advantage
•Difficult to Mimic – The product is Patented and hence it is difficult to use same
ingredients to make similar product.
•Unique – It is first of its product in market which is cigarette but does not have
harmful effects.
•Superior To Competition – It is superior in terms of non-nicotine attributes as
well as having competitive pricing region wise.
•Applicable to Multiple Situations – It can be used for cigarette and bidi which is
major market in India.

Core Competency -
•It provides wide variety of smoking markets like bidi, cigarette, pipe, cigars,etc
•It doesn’t have nicotine and other harmful chemicals of tobacco (Benefit).
•Due to patent it is hard to imitate.
 Question & Answer #02
4

 Do you approve of Market Segmentation & Targeting Strategy?

Answer
Yes we approve of Market Segmentation & Target Marketing.
Marketing Segmentation is done on basis of –

Table 2 – Age Groups from 12 to 60 years.

Table 3 & 4 – Differentiation of data according to Male and Female.

Table 5,6,&7 – Data related to Age, Economic, Social and Habitual (Psychological
Factors) related to smoking.
 Question & Answer #02 (Conti..)
5
Targeting Strategy according to DCC – GATS Report 2010.

Market Focus: Rural Market

(Bidi Market)

Distribution: Kirana Shops,

Pan Shops which are
controlled by wholesalers.

Growth Market: Consumption

in India is increasing. According
To research 55,000 are addicted
daily.
Extensive Market Coverage –
Using wholesaler distribution network for national presence in 300 cities.
 Question & Answer #03
6

 What was positioning strategy for “Vardaan”?

Answer
BENEFITS: Advantages that promote the well being of the consumer which in
Vardaan is nicotine free which means beneficial. Vardaan is substitute for
tobacco cigarette.
Functional Perception & USP – It is trying to create perception of usage of product
“Vardaan” which is nicotine free and doesn’t harm health like tobacco.

In 3 different statements MD says

1. “We believe smoking cannot be stopped atleast usage of tobacco can be
stopped” ,
2. “My main job in the company is to protect people from the harmful effects of
tobacco”,
3. “It doesn’t contain nicotine. It also doesn’t contain any chemicals and has no
adverse effects on health. It gives…”
 Positioning Suggestion
7

 USER: This deals with positioning a product keeping in mind a specific user or
a class of users.
 Focus – 40% user
Who want to quit.
 Campaign –
Experiential as 81% of
People say it tastes &
Gives pleasure same as
Cigarette.
Position Statement –
E.g. For all those who are
Trapped in addiction of
Tobacco smoking. Here
Is cigarette that cares for
Your life.
For People who are willing to give up tobacco but not the smoking habit
 More Factors To Consider
8

 More focus on Urban Population – According to data Quit Smoking Ratio is

more.

 The 25% of excise duty applicable on Tabacco Products is not for Vardhaan.
Hence Pricing can be kept competitive and the margins can be passed to
Wholesalers and Retailers, who will sell more due to higher profit margins.

 Push & Pull Campaigns – The Retailers (Panshops & Kirana) will push the
sample for free trail. Pull – Smokers will be educated by providing information
for benefits of nicotine free smoking (NGO Tie Up)

 Pink Power Campaign – Indian Women are on high rise for addition of
smoking which are perfect target market, special pink packaging, awareness of
specific harm on female health, smokers cough issues, and pre-pregnancy
market.
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Thank You