Business Strategy

Formulation, Modelling &

Planning
Winning Business Strategy
Formulation Case Study I
Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
 Purpose
The purpose of the module is to help you practice
formulating Winning Business Strategy

At the end of this lecture you will learn the following

• Case Situation

Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
 Case Situation
ASHL is a sister company of ASPL, formed recently in 2018 with an objective to launch in OTC market
the successful ayurvedic product range of ASPL prescribed in their clinics in India and many countries
overseas.
Led by the ASPL Managing Director, ASHL set us a vision to become a 100 Cr OTC company in
Ayurvedic products and started its operations in Mumbai with the launch of PM pain relief tablets and
KFNO cough syrup. Under the guidance of a newly appointed General Manager Sales & Marketing,
ASHL appointed sales team and distributors in Mumbai and supplied these two products to the about
2500 chemist through these distributors on consignment basis. Initial sales to distributors were very
encouraging and they were able to sell Rs 1 Cr worth of products in first two months of launch
supported by advertising in Hindi Newspapers in Mumbai.
The honeymoon ended very soon when ASHL started asking its distributors to make the payment
made for the products taken. The distributor complained of no payment coming from the chemists and
asked company to wait for that to happen. Further enquiries with Chemists indicated poor offtake of the
products. ASHL also did a lot of sampling to generate product trials but with no improvement is offtake
from chemists. After six months of starting the Mumbai operations, AHL MD hired a seasoned
consultant to help review its business strategy and suggest required changed.
Please go through the conversations of the consultant with the team and suggest a Winning Business
Strategy for ASHL.
Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
 Conversations of consultant with ASHL Team
Question
How was the quality of the products?
How were the products price relative
to competition?
What are the key competitive
products?
How many distributors did we supply
our products in Mumbai?
How many sales people did we have
in Mumbai?
Where did we make the source the
products?
How did we get the best from the
sales team?
Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
Response
Both the products were effective in relieving pain and
cough. As claimed in the advertising they were better
than the products available in the market
Rs 130 for PM Cream 35gm vs 65 for Moov 15 gm and
Rs 137 for 40gm Iodex
Rs 170 for KFNO 200 ml vs Rs 112 for Benadryl 100 ml
vs Rs 83.65 for 100 ml
Crocin, Moov and Iodex for Pain
Benadryl, D Cold, Glycodin for cough
Approx. 25
Six sales people managed by one sales manager
From ASPL Factory in Palghar near Mumbai
Reviewing their performance every week
 Conversations of consultant with ASHL Team
Question Response
Who were the most successful players Crocin and Benadryl respectively
in the pain and cough category?
What did they do to become that Crocin became successful by introducing quality tablets
successful? and syrup and getting them prescribed by doctors in the
beginning and later advertising in mass media

Benadryl became successful by introducing quality syrup

and getting them prescribed by doctors in the beginning
and later advertising in mass media

They made their product available at all the chemists in

Mumbai
How were the ASHL products better Both the products were free from any side effects that
than the competitive products? regular user of Crocin and Benadryl would face
How good were ASHL in creating ASHP had very limited experience in creating effective
effective adverting? advertising when compared to Crocin and Benadryl
How many chemists keep Crocin and 15000
Benadryl in Mumbai?
Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
 Conversations of consultant with ASHL Team
Question
How does ASHL fund its business?
How do MD of ASHL control the
business?
How does ASHL plan to develop new
products?
What are the successful products at
ASPL?
Who are the main buyers for
Ayurvedic products and what will they
be doing in future?
Who are main suppliers of materials
for Ayurvedic Products?
Who are competitors for Ayurvedic
product?
Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
Response
Own capital generated by ASPL
Closely supervising all the activities
Will take the successful formulations at ASPL and adapt
it for ASHL
For treating chronic ailments like Blood Pressure,
Arthritis, Asthma, Diabetes etc
Main buyers of Ayurvedic products are the chronic
sufferers of Blood Pressure, Diabetes, Arthritis and
Asthma. They are looking for more lasting cure of their
health problems without any side effects
Small scale Herbs and packing materials. They are
becoming bigger and getting organized
All the Pharma Companies making allopathic products
that provide temporary relief the health problems faced
by the patients. They are going more and more OTC
 Conversations of consultant with ASHL Team
Question
What are people in society doing and
will do in future?
What is Government doing in Natural
Health Care?
How does ASPL buy the materials
required for ASHL products
How do you intend to reach your
vision of becoming a Rs 100 Cr
company
How has been the feedback from
customers who have bought PM
Cream and KFNO Syrup
How is the awareness and trials of
both of your products?
Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
Response
Using more and more natural products for their health
problems
Supporting more and more though variety of initiatives of
AYUSH Ministry
Buy from the existing suppliers of ASPL
By establish ASHL as a major player in Mumbai in Pain
and Cough categories and expanding all of over India by
advertising in mass media like Press and TV and
extensive coverage of chemists
Feedback has been quite positive in line with the
feedback received from patients at ASPL. Customers
have found lasting relief from PM Cream and better
experience in cough with no drowsiness
We has just started so very little awareness and trials of
our products. That is what we are trying to improve with
advertising and sampling but it is not working
economically
 Conversations of consultant with ASHL Team
Question
What are you communicating in your
advertising?
How are promoting your other
products to your customers?
How are your cost and quality of
products and materials compared to
competition?
How do you hire new employees?
What organization do you intend build
in next 3 years
How will you improve the quality and
cost of your products?
Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
Response
That we are better than others as PM provides longer
lasting relief from pain and KFNO cures cough without
drowsiness
By inserting leaflet of our other products in the packs
Our quality at ASPL is better at 4sigma level and costs
are competitive. We buy materials with similar level of
quality and better costs by partnering with few Herb
Producers
Using reference and ASPL base of people
Will build a team of Area Managers in each state
reporting to me directly. That will save costs
By comparing our quality and cost to competitors and
making improvements required at ASPL
 What is in it for you in next module?

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 Thank You
for watching the

Winning Business Strategy

How to get calls for an
Formulation Case Study I
Interview for desired role
of
Deep Dive
Business Strategy Formulation,
Modelling & Planning
Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years