Anju Pharmaceuticals: riding the herbal wave

Abstract

Subject area Marketing management, consumer behaviour, digital marketing. Study level/applicability This case can be used for students studying marketing management courses and also for elective courses on consumer behaviour, digital marketing and strategic management in an MBA programme. Case overview This case is about Anju Pharmaceuticals which dealt in the manufacture and sale of ayurvedic/herbal products such as Panchsudha, Zalim Lotion, Ruz, Vama, Mekado etc. in Madhya Pradesh, India. Started in the year 1983, the company had still not been able to make a mark in the market. For quite some time now Mitesh, the third-generation proprietor of the company, was continuously reading articles which discussed how there has been a positive shift in the consumer preferences for products having herbal ingredients. Indian fast-moving consumer goods (FMCG) companies such as Patanjali, Dabur, Marico were banking on herbal components in their various key products such as toothpaste, shampoo and hair oil to expand their market share and some of these Indian companies seemed to be growing faster than bigger multinationals including Hindustan Unilever and Procter & Gamble. With the changes in consumer perception towards herbal products, Mitesh was hopeful that if he could gear up his distribution it would result in improving the bottom-line of the company. He had also started receiving queries from interested clients for third-party manufacturing and packaging of the ayurvedic products under the desired brand name. Mitesh was very much aware that to improve his bottom-line, just relying on efficient distribution would not suffice and he would need to come up with strategic alliances and newer ways of doing the business rather than just following what had been the norm for the last few years. The idea of becoming a third-party manufacturer somehow did not excite Mitesh because he felt that by going in for third-party manufacturing he would never be able to establish the brand identity of Anju Pharmaceuticals. He wanted his company to ride the FMCG herbal wave but how and at what cost were the big questions facing him. Expected learning outcomes After the successful completion of this case, the readers would be able to accomplish the following: gain insights into the problems faced by small businesses when they want to scale up their business. Get insights into the challenges/difficulties of adopting e-commerce by a small organization. Be aware of the changing consumer preferences for herbal and ayurvedic products and how companies are gearing up to cash on to the changing market opportunities. Comprehend the problem situation. Suggest ways of taking advantage of the current scenario to expand and grow the business. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS 8: Marketing.

Trends in Ayurvedic FMCG Market

“…The household sector is developing in the last 5 years. 15 The local and chaotic firms were headed entire volume (maximum share) of household market. Household care division is characterized by strong competition and high level of dissemination.…”

Analyzing the post-harvest supply chain enablers of vertical integration for rural employability and marketability

“…There is an example of a herbal products manufacturing organization, that has opted not to adapt/continue third party manufacturing (i.e. working under a popular brand name) to establish their own brand identity and to expand their market share with strategic alliances (Shelman et al , 2016; Attri, 2017). Such practices can motivate the rural entrepreneurs with the exposure of hurdles encountered by small businesses while expansion (Attri, 2017).…”

“…working under a popular brand name) to establish their own brand identity and to expand their market share with strategic alliances (Shelman et al , 2016; Attri, 2017). Such practices can motivate the rural entrepreneurs with the exposure of hurdles encountered by small businesses while expansion (Attri, 2017). There is also an urgent need to switch to e-commerce business portals to improve market prospects (Shelman et al , 2016; Attri, 2017).…”

“…Such practices can motivate the rural entrepreneurs with the exposure of hurdles encountered by small businesses while expansion (Attri, 2017). There is also an urgent need to switch to e-commerce business portals to improve market prospects (Shelman et al , 2016; Attri, 2017). The implementation of the level of vertical integration (i.e.…”