nilgiri herbs
TRANSCRIPT
NILGIRI HERBS
Fazil Parappurath A
Herb Market Study
Untapped and growing at steady pace !
Nilgiri Herbs is
Hypothetical Initial stage Based in Eugene, Oregon Imports sustainably sourced
herbs Sells herbs and herbal products
Decision Problem As an initial stage company, main
objective is to improve sales. Strategy-oriented decision problem Are marketing efforts to the right target
market? Is product variety in-line with consumer
demands?
Decision ProblemReven
ue
Spend Per ClientNumber of Clients XCustomer Awarenes
sTrial+ Repeat
BusinessSpend
Per Visit
Customer Satisfacti
on
+
Promotion &
PricingPromotion &
Word of Mouth
Research Problem Investigate the total market size for natural medicine
in Pacific North West. Determine prevalence of natural herbs and medicine
use among adults in Pacific NW. Investigate customer awareness of companies which
provide natural herbs. Determine the characteristics of the customers
who make up the target market. Determine which informational outlets
customers rely on for informed decision making. Determine customer satisfaction with using natural
herbs or medicine.
Secondary Data Research
Year Revenue $ million Growth %
2015 12,657.5 3.92016 13,273.2 4.92017 13,644.3 2.82018 14,074.8 3.22019 14,647.6 4.12020 15,198.2 3.8
Revenue OutlookData from http://ibisworld.com
Secondary research conclusion There is an increasing usage of natural herbs North-West is a good market for natural
herbs Multiple sales channels FDA and regulatory environment is opening
up for the natural herbs industry. This industry consists of many small players
and there is no major player in the industry.
Primary Research: In-depth interview
In-depth interview conclusion Age group, New user: 20-30; Returning
user: 30-60 Variety of purchase channels. More regulatory standards by FDA Internet – Mixed bag of information Informal channel and in-store
experience. Better branding required. Customer education is the biggest
hurdle for increasing sales. “people think it is hocus pocus type
stuff”
Survey design and sample Target:
North West Natural herbs users Herbal product users
Sampling through the questionnaire First 3 questions to filter the users Usage and purchase pattern Factors for purchase Information flow Demographics
Survey results Filter question: 88.4% Product: Tea and spices (69%) Sales Channel: Grocery Store (80%) Loyalty to brand – 12% Factors: Price, Store Location &
Ingredient list Information intake: Internet (63%) Information outflow: Friends & Family
Information Source
Magazi
nes
Intern
et
In-sto
re bo
oklets
Communi
ty
Meetup
s0%
10%20%30%40%50%60%70%
MaleFemale
Magazi
nes
Intern
et
In-sto
re bo
oklet
s
Communi
ty
Meetup
sOthe
r0%
20%40%60%80%
100%120%
20 or younger21-3031-4041-5051 and older
Factors for purchase
Price
Brand
Store
locati
on
Usage d
irecti
on
Ingred
ient li
st
Organic
Fair T
rade
Certifi
cation
sOthe
r0
1
2
3
4
5
FemaleMale
Price
Brand
Store
locati
on
Usage d
irecti
on
Ingred
ient li
st
Organic
Fair T
rade
Certifi
cation
sOthe
r0
1
2
3
4
5
6
< 2021-3031-4041-50> 51
Herb Cloud
Conclusion Main factors during purchase are: Price,
Ingredient list & Store location. Users make decision based on information
from internet and through community. People share usage experience with their
friends and family. Most users buy at stores, especially grocery
stores. There is almost no brand loyalty among
customers.
Recommendation to decision problem
Research provides some insights and building blocks to make better decisions.
Increase online presence and educate customers online.
Create brand awareness among customers. Focus marketing efforts on building a community. Compete with a balance of price and ingredients. Increase promotion through coupon sharing with
friends and family. Choose retail store locations strategically. (Outside research) Easier to market herbal
products than herbs.
Biases and Limitation Location filtering on qualtrics (IP
address). Random error. Sampling error. Not proper(probabilistic)
of population, age-groups, and ethnicity. Ambiguity around the terminology of
natural product or herbal product.
Questions?
Factors for purchase
< $20k 20k-29k 30k-39k 40k-49k 50k-59k 60k-69k 70k-79k 80k-89k 130k-139k
> 150k0
1
2
3
4
5
PriceBrandStore locationUsage directionIngredient listOrganicFair TradeCertificationsOther