Medimix

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Channai-based group is a maverickmarketer that got its product and marketing mix just rightthe company success is reminiscent

of Nirmas in thewest company having there great income from southside of country. Its ayurvedic soap medimix rosemeteorically from Rs.65crore four years ago toRs.225crore in 2003

The soaps are made manually , without the use of powereven the bars are cut into cakes with hand-operatedhydraulic cutters. However, the company plans to set upa state-of-the-art unit in Goa that that will make 1,000cases per month and it plans to establish a supply chainto serve the northern market.

Medimix is a story of a home-grown product. Everything-from idea to research to manufacture, packaging,distribution and marketing-was done by a familyproprietary, the company managed to develop a brand onits own terms. It all started with Dr. V.P.S. Sidhan ,whofocused on finding cures through ayurveda.So Medimix soap was born. Sidhans soap was made with18 herbs in a coconut oil base in the back ard of hisChnnai Choolamedu house. In 1969 , Sidhan launchedMedimix as total skin care ayurvedic soap with just Rs500 as seed capital and a fraternity of chemists.Recently, the company increased its advertisementexpenditure, both in urban andrural markets. In the urbanmarkets, it is targeting youth by promoting its productson MTV and hoardings in strategic locating in all metrocities. It is playing the herbal game by positioning itsproducts on the nature and health platform. Companywant to increase its penetration of rural product.

Current market data ----:: The venerable Medimix soap has been launched in a newpackaging after 36 years. The company has made thechanges in order to increase the soap's appeal to theyounger generation and also to make it amenable tovariants and extensions.In essence, the changes areperipheral and the company has not altered theingredients or its fragrance. The new pack containsinformation about the ingredients and its clinically-provenbenefits, information that the new consumer does notgather from the old pack. The company said thatresearch revealed that consumers wanted a change evenin a traditional, ayurvedic soap. In addition the packaginghad alienated the younger generation of consumers whodid not want to be seen using the soap even though itwas convinced of its efficacy. Lux, Lifebuoy, Godrej No 1,Breeze and Nirma are the top five brands in the countrythat command 51-per cent market share. Medimix sellsmore in the South and the West.Cholayil came into existence over three decades ago witha global vision rooted in Indian values. Cholayil aimed totouch everyone's life with a range of quality products that enhance the quality of life. Cholayil has business interestsin Toiletries, Personal Care and Health Care.Cholayil comprises of : Cholayil Pvt. Ltd. Manufacturer of quality products using indigenously developed processes,engineering designs, tools and

machinery. The companymakes Soaps, Talcum Powder and PharmaceuticalProducts under successful brands like Medimix andC u t i c u r a . D o r c a s M a r k e t M a k e r s P v t . L t d . D M M P L i s the marketing arm of Cholayil with a full-fledged team tomarket all Cholayil brands all over the world. DMMPL hasexclusive divisions to cater to the diverse needs of international and institutional needs.Commitment todeliver quality products that surpass the expectations of the consumers and adherence to business ethics hasearned a name for Cholayil and propelled it to becomeone of the leading FMCG companies in the country.Cholayil Ayurvedic Health and Research AcademyFormerly Sowparnika Ayurvedic Foundation for Research,Health and Education (SAFRHON) renamed as CholayilAyurvedic Health and Research Academy CholayilAcademy (formerly Sowparnika Ayurvedic Foundation for Research, Health and Education) was born with the soleaim to develop and provide a better quality of life throughAyurveda. Main objectives of the Foundation is thepropagation of the basic principles of Ayurveda to thewhole world, to encourage the younger generation tostudy and practice Ayurveda, the science of life, to giveimpetus to research activities in the field of Ayurvedicmedicine, to conduct seminars and conferences for thebenefit of the practitioners, students and researchers of Ayurveda, to bring modern scientific techniques in allpossible fields of Ayurveda and to provide free medicaltreatment to the downtrodden through medicalcamps.Cholayil Medicinal Plant Conservation ParkSituated near Uthukottai in Chennai is the Cholayil HerbalGarden, a 120-acre well-developed farm having plainforestland on one side and a 50-acre water reservoir onthe other. Apart from orchids and ornamental plants,Cholayil Herbal Garden houses hundreds of medicinalplant species.The Cholayil Medicinal Plant ConservationPark, houses rare and endangered medicinal plantspecies that are preserved and reared under controlledconditions in the green houses with a view to study theirgrowth pattern for mass propagation. Apart fromhundreds of medicinal plant species, Cholayil HerbalGarden also houses orchids and ornamental plants.

STRENGHT: 1)The strength of Medimix soap is that. It has rosemeteorically from 65 crore four year ago to Rs. 225crore in 2003.2)It also got an ORG rating of nine among soapcategories on a national basis with minimaladvertising.3)Medimix has grown to become a Rs 140 crorebrand.The brand was targeted mainly at SEC BCsegment.4)Medicated soap that is 100 per cent handmade isexempt from tax Weakness: 1)The weakness of the product is that it has notestablished itself in normal market well. People of normal market are not much aware of the product. 2)Medimix was marketed heavily in South India. Opportunity: 1)As medimix is a well known product it has aopportunity to captured the global market. 2) A medimix spends less on advertisement so itssaves more. 3)

The saving can be utilized for improving the quality of product & capturing more markets . Threats : 1)Their financial targets would be to build theirorganisation to a Rs 1,000-crore entity in the nextfive years Q. 1 ) Suggest an effective media mix for ruralmarkets on a budget of Rs.6 crore for one year.Analysis :: Medimix has a large user base among theSEC B and C segments and in rural areas in the 30plusage group. They are trying to widen its usage by bringingthe SEC A segment into their fold. They want to make it amass, urban and young brand. This is because it has takers among rural consumers who have seen throughthe myth of instant and cosmetic results. They know thelongterm benefits of Ayurveda. But this needs to becommunicated to a younger audience and they havesucceeded in doing that with the recent campaigns. The company's aggressive communication strategy hasbeen one of the key factors behind the growth.In recent times, rural India has witnessed a wave of change. Dinesh Malhotra, general manager of Linter land(rural arm of Lintas), points out, With media exposureand increasing literacy levels, people in rural India arenow demanding a better lifestyle. The educated ruralyuppie (males in the 15-34 age group) is moving out towork in nearby towns and cities, and sending moneyhome to his family. This has created an indirect increasein disposable incomes and a surge in demand forconsumer goods. The rural youth are slowly evolving asopinion leaders in influencing brand and productdecisions in a market that was swayed by village eldersfor centuries. Designing the Campaign The results of the research should provide all theinformation needed: the key practices to target; who thetarget audiences are; what the barriers, habits, andenvironment are; and details about appropriate channelsof communication. Experienced soap industry marketingprofessionals can provide expertise and assist with all theactivities described in this section.

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