nilgiri herbs

20
NILGIRI HERBS Fazil Parappurath A

Upload: fazil-parappurath-a

Post on 12-Apr-2017

144 views

Category:

Health & Medicine


1 download

TRANSCRIPT

Page 1: Nilgiri herbs

NILGIRI HERBS

Fazil Parappurath A

Page 2: Nilgiri herbs

Herb Market Study

Untapped and growing at steady pace !

Page 3: Nilgiri herbs

Nilgiri Herbs is

Hypothetical Initial stage Based in Eugene, Oregon Imports sustainably sourced

herbs Sells herbs and herbal products

Page 4: Nilgiri herbs

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?

Page 5: Nilgiri herbs

Decision ProblemReven

ue

Spend Per ClientNumber of Clients XCustomer Awarenes

sTrial+ Repeat

BusinessSpend

Per Visit

Customer Satisfacti

on

+

Promotion &

PricingPromotion &

Word of Mouth

Page 6: Nilgiri herbs

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.

Page 7: Nilgiri herbs

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

Page 8: Nilgiri herbs

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.

Page 9: Nilgiri herbs

Primary Research: In-depth interview

Page 10: Nilgiri herbs

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”

Page 11: Nilgiri herbs

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

Page 12: Nilgiri herbs

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

Page 13: Nilgiri herbs

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

Page 14: Nilgiri herbs

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

Page 15: Nilgiri herbs

Herb Cloud

Page 16: Nilgiri herbs

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.

Page 17: Nilgiri herbs

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.

Page 18: Nilgiri 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.

Page 19: Nilgiri herbs

Questions?

Page 20: Nilgiri herbs

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