RURAL MARKETING OF MEDIMIX SOAP

NAME : RITESH ASHOK PORWAL

REGISTRATION NO : 200725831

SYMBIOSIS CENTRE FOR DISTANCE LEARNING

BATCH : 2007

TABLE OF CONTENTS

Executive Summary………………………3

Facts & Figures …………………………………..4

History ……………………………………4

Product Information …………………………….5

Current Market ………………………………7

SWOT Analysis…………………………………9

Analysis, Observation & Findings ……………………….10

Conclusion………………………………17

Executive Summary ::

Chennai - based group is a Maverick marketer that got its product and

marketing mix just right the company success is reminiscent of Nirma’s in the west

company having there great income from south side of country. Its ayurvedic soap

medimix rose meteorically from Rs.65crore in 1999 to Rs.225crore in 2003.

The soaps are made manually , without the use of power even the bars are cut into cakes

with hand-operated hydraulic cutters. However, the company plans to set up a state-of-

the-art unit in Goa that that will make 1,000 cases per month and it plans to establish a

supply chain to 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 family proprietary,

the company managed to develop a brand on its own terms. It all started with Dr. V.P.S.

Sidhan ,who focused on finding cures through ayurveda.

So Medimix soap was born. Sidhan’s soap was made with 18 herbs in a coconut oil base

in the back ard of his Chnnai Choolamedu house. In 1969 , Sidhan launched Medimix as

total skin care ayurvedic soap with just Rs 500 as seed capital and a fraternity of

chemists.

Recently, the company increased its advertisement expenditure, both in urban andrural

markets. In the urban markets, it is targeting youth by promoting its products on MTV

and hoardings in strategic locating in all metro cities. It is playing the herbal game by

positioning its products on the nature and health platform. Company want to increase its

penetration of rural product.

Facts and figures ::

i } Ayurvedic soap medimix rose meteorically from Rs.65crore in 1999 to Rs.225crore in

2003.

ii } Medimix got an ORG rating of nine among soap categories on a national basis with

minimal advertisement

iii } The group’s six plants make 1.5crore 75mg cakes of soap, and

30lakh cakes of 125gm which is very good and healthy income for company.

iv } Medimix soap was born with 18 herbs in a coconut oil.

v } medimix launched ayurvedic soap with just Rs.500 as seed capital and a fraternity of

chemists.

vi } soap was priced at 85 paise at the time of launch and today sell for Rs 15.

vii } According to the July-September 2001 ORG figures of volume in tonnes of the top

25 brands of soap on a national basis. Medimix at 2625.3 tonnes is way above Mysore

Sandal, Margo, Nirma, Jai, Cinthol Fresh, Pears, Lux International skin care, Liril and

Dettol. In the south zone alone it is the sixth-highest seller with 1,873 tonnes.

History ::

Cholayil is one of the most famous and respected Ayurvedic families of Kerala, which

has been practicing Ayurveda, the ultimate holistic health care system for many

generations. It was Dr.V.P.Sidhan, who successfully converted this traditional wisdom of

the Cholayil family found in ancient palm leaf manuscripts with a combination of

modern enrichment to give birth to a unique soap, Medimix that is the flagship brand of

Cholayil. It happens to be the world’s largest selling ayurvedic soap. The ayurvedic

variant is made from 18 different herbs. It is highly effective for skin problems and is

available in 3 varieties - the classic Medimix, Medimix with Glycerine and Medimix with

Sandal.

The Cholayil logo derives its origins from the lotus form, the quintessential padma, in

full bloom, rising from the waters of life.

The lotus symbolizes purity and the attainment of wholeness. It is identified with the

epitome of creation, the womb. One of the richest and the most evocative of Buddhist

symbols, the lotus also signifies the emergence of purity from the primeval waters of

creation.

Cholayil creates products that are of the purest form, binding the native elements into

the most contemporary forms to deliver products that are essentially pure, naturally

inclusive, traditionally rich and ideal for today.

Ayurvedic Bath Soap

Medimix Ayurvedic Bath Soap was launched in the year 1969 with eighteen powerful

Ayurvedic herbal ingredients not only to fight and cure skin disorders but also to

maintain healthy and glowing skin at an affordable price. Started with a meager capital,

Cholayil has registered an impressive growth of over twenty times its turnover from

what it was ten years ago, to become a player to reckon with in the Indian FMCG

industry.

Cholayil came into existence over three decades ago with a global vision rooted in Indian

values. Cholayil aimed to touch everyone's life with a range of quality products that

enhance the quality of life. Cholayil has business interests in Toiletries, Personal Care

and Health Care.

Product Information::

Discover freedom from pimples, body odour and skin

infections…. with the goodness of the world’s largest selling Ayurvedic Soap.

A traditionally hand made soap with a time tested and unique formulation that combines

the goodness of 18 herbs, Medimix is clinically proven to act effectively on many kinds of

skin problems.

The flagship brand of the Cholayil group, Medimix is your complete hair-to-toe-care

solution. Hide no more. Seek your freedom with Medimix, now in an all new look.

Available in 125gm, 75gm, 45gm, 18gm

Introducing the New Medimix Transparent Green bar

with natural fresh fragrance and superior lather, effective for dry skin.

Medimix for dry skin contains a unique combination of purest and finest grade vegetable

Glycerine and the time tested Ayurvedic formulation of Lakshadi oil. These effectively

Moisturizes dry skin making it soft and supple and helps reduce itches and cracks caused

by dryness . It is also effective for people with dry skin and for dryness caused by winter

and adverse seasons. A traditionally Hand Made Ayurvedic soap to effectively prevent

dryness of skin. Available in select outlets only. Available in 125gm, 75gm,

Introducing New Medimix with Sandal and Eladi oils,

effective for skin blemishes. Contains a unique combination of Sandal oil and the time

tested Ayurvedic formulation of Eladi oil. Works effectively on blemishes, dark spots and

other pigmentation marks leaving you with clear, blemish-free skin. Luxurious sandal

bar with rich fragrance and lather. Traditionally hand made. Available in select outlets

only. Available in 125gm, 75gm,

Current market data ::

The venerable Medimix soap has been launched in a new packaging after 36 years. The

company has made the changes in order to increase the soap's appeal to the younger

generation and also to make it amenable to variants and extensions.

In essence, the changes are peripheral and the company has not altered the ingredients

or its fragrance. The new pack contains information about the ingredients and its

clinically-proven benefits, information that the new consumer does not gather from the

old pack.

The company said that research revealed that consumers wanted a change even in a

traditional, ayurvedic soap. In addition the packaging had alienated the younger

generation of consumers who did not want to be seen using the soap even though it was

convinced of its efficacy.

Lux, Lifebuoy, Godrej No 1, Breeze and Nirma are the top five brands in the country

that command 51-per cent market share. Medimix sells more in the South and the West.

Cholayil came into existence over three decades ago with a global vision rooted in Indian

values. Cholayil aimed to touch everyone's life with a range of quality products that

enhance the quality of life. Cholayil has business interests in 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 company makes Soaps, Talcum Powder and

Pharmaceutical Products under successful brands like Medimix and Cuticura.

Dorcas Market Makers Pvt. Ltd.

DMMPL is the marketing arm of Cholayil with a full-fledged team to market all

Cholayil brands all over the world. DMMPL has exclusive divisions to cater to the

diverse needs of international and institutional needs.

Commitment to deliver quality products that surpass the expectations of the consumers

and adherence to business ethics has earned a name for Cholayil and propelled it to

become one of the leading FMCG companies in the country.

Cholayil Ayurvedic Health and Research Academy Formerly Sowparnika Ayurvedic

Foundation for Research, Health and Education (SAFRHON) renamed as Cholayil

Ayurvedic Health and Research Academy

Cholayil Academy (formerly Sowparnika Ayurvedic Foundation for Research, Health

and Education) was born with the sole aim to develop and provide a better quality of life

through Ayurveda. Main objectives of the Foundation is the propagation of the basic

principles of Ayurveda to the whole world, to encourage the younger generation to study

and practice Ayurveda, the science of life, to give impetus to research activities in the

field of Ayurvedic medicine, to conduct seminars and conferences for the benefit of the

practitioners, students and researchers of Ayurveda, to bring modern scientific

techniques in all possible fields of Ayurveda and to provide free medical treatment to the

downtrodden through medical camps.

Cholayil Medicinal Plant Conservation Park

Situated near Uthukottai in Chennai is the Cholayil Herbal Garden, a 120-acre well-

developed farm having plain forestland on one side and a 50-acre water reservoir on the

other. Apart from orchids and ornamental plants, Cholayil Herbal Garden houses

hundreds of medicinal plant species.

The Cholayil Medicinal Plant Conservation Park, houses rare and endangered medicinal

plant species that are preserved and reared under controlled conditions in the green

houses with a view to study their growth pattern for mass propagation. Apart from

hundreds of medicinal plant species, Cholayil Herbal Garden also houses orchids and

ornamental plants.

SWOT Analysis ::

Strengths: attributes of the person or company that are helpful to achieving the

objective.

Weaknesses: attributes of the person or company that are harmful to achieving

the objective.

Opportunities:  external conditions that are helpful to achieving the objective.

Threats:  external conditions which could do damage to the business's

performance.

STRENGTH:

1) The strength of Medimix soap is that. It has rose meteorically from 65 crore in

1999 to Rs. 225 crore in 2003.

2) It also got an ORG rating of nine among soap categories on a national basis with

minimal advertising.

3) Medimix has grown to become a Rs 140 crore brand.The brand was targeted

mainly at SEC BC segment.

4) Medicated soap that is 100 per cent handmade is exempt from tax

WEAKNESS:

1) The weakness of the product is that it has not established 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 a opportunity to captured the global

market.

2) A medimix spends less on advertisement so its saves 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 their organisation to a Rs 1,000-crore

entity in the next five years

Q. 1 ) Suggest an effective media mix for rural markets on a budget of Rs.6 crore for one

year.

Analysis :: Medimix has a large user base among the SEC B and C segments and in

rural areas in the 30-plus age group. They are trying to widen its usage by bringing the

SEC A segment into their fold. They want to make it a mass, urban and young brand.

This is because it has takers among rural consumers who have seen through the myth of

instant and cosmetic results. They know the long-term benefits of Ayurveda. But this

needs to be communicated to a younger audience and they have succeeded in doing that

with the recent campaigns.

The company's aggressive communication strategy has been 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 exposure and

increasing literacy levels, people in rural India are now demanding a better lifestyle.”

The educated “rural yuppie” (males in the 15-34 age group) is moving out to work in

nearby towns and cities, and sending money home to his family. This has created an

indirect increase in disposable incomes and a surge in demand for consumer goods. The

rural youth are slowly evolving as “opinion leaders” in influencing brand and product

decisions in a market that was swayed by village elders for centuries.

Designing the Campaign

The results of the research should provide all the information needed: the key

practices to target; who the target audiences are; what the barriers, habits, and

environment are; and details about appropriate channels of communication.

Experienced soap industry marketing professionals can provide expertise and assist with

all the activities described in this section.

Applying the Marketing Mix

The marketing mix, often presented as the Four P’s –Product, Price, Place,

and Promotion – provides a framework for how to design a comprehensive medimix

soap program.

Changes.

1. Price refers to monetary and nonmonetary incentives, such as the cost of soap.

Pricing (e.g., lobbying a government to reduce a sales tax on soap),

2. Place refers to the distribution of products and conveniences, such as availability of

soap. place (e.g., soap dispensers in schools).

3. Product refers to the tangible good or service that can facilitate behavior change; it

can include environmental

4. Promotion refers to persuasive communication and includes key messages, media

channels, and environmental prompts. While this document largely concerns the

fourth P, promotion, a country program may also aim to influence product.

Developing the Promotion

Target Audiences and Segmentation

Segmentation refers to the process of dividing the target audiences into

groups with similar behaviors and needs. Segmentation is done so that promoters can

address the needs of each segment of the target audience. Each segment will require

different marketing strategies.

Primary target segments programs include

(a) Mothers of children less than five years. Children at school and in other settings.

There are also secondary target segments, audiences that can be expected to support and

influence behavior change among the primary group. These might include (a) fathers of

children under five years; (b) mothers-in-law; (c) teachers; and (d) healthcare workers.

Households or is it focused primarily on urban, rural, or low-income households?

Once the campaign target has been identified, a strategy is developed to identify a

random sample of persons within the target audience

The Media Mix

Modeling the impact of different communications routes on target audiences

is the next step. With finite resources it is essential to work out which mix of

communications channels will be most cost-effective. This is a science well understood by

industry. Models of media consumption and contact patterns in the target populations

are built by professionals. The capacity of TV, radio, and other channels to reach the

whole target audience is calculated.

Monitoring and Evaluation

The object of monitoring and evaluation (M&E) is to ascertain the extent and

effectiveness of the program. Monitoring serves to diagnose and help fix problems

during program execution. Evaluation is the process of measuring outcomes both during

and after the Intervention, to determine how successful the program was. The media

mix is revised to give better coverage of target audiences, to reflect what channels reach

people, and which channels are most influential.

On the budget of 6 crore for advertising then the company must be used some selected

media for advertising. 80% sale of medimix soap in south zone so company must spend

more in south states. Remaining amount spend on other states. in low budget company

must use effective media channel for advertising.

1. TV:

Tv has potential to become the primary medium for rural communication with

the increasing coverage and increasing TV owners studies reveal that as much as 77% of

villeges in India receives TV transmission and 27% rural people actually watch TV.

In rural area mostly people seen regional channel like

1. In Maharashtra E TV Marathi, ZEE Marathi.

2. In Tamil Nadu Sun TV.

3. Asianet in Kerla

So company should be given their advertisement on specific regional channels.

2. Radio:

It is well established medium in rural areas. A big expansion in broadcasting facilities

has taken place in country over the years. There has been expansion in availability of

radio sets. Radio reaches large population in rural areas at a relatively low cost. So

company can use radio for advertising.

Q:2) Identify the media vehicle that will be appropriate , taking into consideration non-

conventional media.

Analysis ::

In urban market company is targeting youth by promoting its product on MTV and

hording in strategic locations in all metro cities. I would like to suggest a company to

promote the product in rural market through AVP vans (audio visual publicity vans )

this method will be appropriate in rural markets AVP is one of the effective tools for

rural communication. The van having facilities for screening films, slides and mike

publicity. Portable exhibition kit carried in the van and an exhibition of the product

could be put up as and when required. During the day the unit is used mike for publicity

in which the person gives information by speech about the product. And pasting of

posters in public with the help of local dealers, distributors& opinion leaders. Film shows

are organized in different villages as per the plan the van reaches in villages at suitable

place such as village ground, schools $ panchayat. A song is played to attract the

attention of the villagers. The salesperson makes brief talk about the situation about the

products and benefits, at the end of the show the distributor handbills and answers

queries of the customers.

And there are many non conventional media that company can concentrate to

increase its penetration of rural markets

1) GROUP MEETING: group meeting is very convenient media in which company

is able to pass on the message regarding benefit of the product to a large no of

customers. Through meeting.

2) Opinion leaders : villagers place more emphasis on the opinion of others who have

used the products to make purchase decision. Doctor could be the best opinion

leader who will give the right information about this type of products.

3) Melas : India is a country of mela and it is estimated that over 200000 melas are

conducted every year.the no visitors to melas is very high the melas can be

successful used to give information about the product

Example : screening of popular films along with advertisement by pesticides

companies

Cholayil Ltd., a purveyor of the herbal soap “Medimix,” campaigned in mobile

vans to promote its brand. “We run a van campaign which visits the interior

villages where there are no distributors. We halt the van at specific points [where

village folks congregate and watch videos shown on these vans] and give out

product samples.” However, contrary to claims of Medimix’s success, Malhotra

believes that “van campaigns can be very expensive. [Alternatively, promoting

one’s brand] in large congregation points like village markets and fairs has a far

wider reach, and is more cost effective.”

3.Outdoors :

Medimix company can use outdoor medium in their rural communication

mix such as hoarding, wall paintings, Tree boards, illumination and othr display in rural

area. Genrally rural people prefer bright colours so company also use bright colour in

ads.

6.Haats:

Traditionally on certain days in the week , seller and buyer meet in villege to

buy and sell the goods. The medimix company can send large quantity to the seller and

motivate them to promot their medimix soap.

Q.3) if the medimix has to select a celebrity to endorse its product in rural areas, who

according to you would appeal to the rural consumer ?

Analysis ::

A celebrity is a person who is famously recognized in a society or culture. There are

different degrees of celebrity status which vary based on an individual's region or field of

notoriety. While someone might be a celebrity to some people, to others he may be

completely unknown. A global celebrity on the other hand is someone who is known by

most people or is a mainstream celebrity such as Robert Deniro, Mariah Carey, Ted

Ochsen, etc. Another high profile categorisation of celebrity status is the A-list, based on

the marketability of celebrities.

Generally speaking, a celebrity is someone who seeks media attention and most

frequently has an extroverted personality. The desire to be notable is implied by some to

be a part of Western culture and more specifically the American Dream as a measure of

success. A celebrity that shys away from the public eye or keeps a very separate private

life is called a reluctant celebrity. At the other end of the spectrum, a celebrity that seeks

out publicity for him- or herself is often called a media tart, whereas one that uses his or

her private life as a vehicle for enhanced celebrity status, sometimes desperately, is

referred to as a media whore

There are a wide range of ways people can become celebrities, from their profession,

appearances in the mass media, beauty or even by complete accident or infamy. Instant

celebrity is the term that is used when someone becomes a celebrity in very short period

of time. In some places, someone that somehow achieves a small amount of transient

fame through hype or mass media, is stereotyped as a B-grade celebrity. Often the

stereotype extends to someone that falls short of mainstream or persistent fame but seeks

to extend or exploit it.

The rise of international celebrities in acting and popular music is due in large part to

the massive scope and scale of the media industries, enabling celebrities to be viewed

more often and in more places.

Deviating its tradition of roping in Bollywood Divas , this time none other than Asin

endorsed Medimix. The ads created instant controversy with marketers discussing

whether the brand has suddenly become FEMALE. Whatever be the controversy, the

brand’ll again succeeded in creating excitement in the market. Another variant which I

like personally is the Medimix with Orchid which looked cool in terms of packaging and

looks.

Over these years, the positioning of Medimix also evolved. Earlier the brand used the

positioning " Beauty soap of Film stars" . But as the customer evolved, the positioning

lost its charm because customers began to doubt whether the film stars actually used this

brand. Taking a cue from the customers, Medimix changed the positioning appealing to

the need for becoming a star. The new positioning is communicated with the tagline "

Bring out the star in you". Although worldwide the brand is being endorsed by film

stars, the actual package usually contains picture of international models and not film

stars.

While Medimix beauty soap is sticking to the age old positioning, Medimix international

has moved from being a soap brand to a skin care brand. Medimix International has the

tagline " Not Just Soap, Its Skin Care

Thus accordingly Asin wil be celebrity to endorce medimix product in rural product.

Conclusion ::

While Medimix has done well, the company's brand extension, Vrinda Tulisi Soap failed

and is being relaunched with a changed perfume and translucent appearance.

Meanwhile, Manian is focusing on the Indian community in the Middle East, where he

believes Medimix can command loyal customers. The product is exported to Brazil and

Italy, as well. "Even in the Indian market, there is a 50 per cent untapped potential," he

says. "We have plans for sandal soap, Viha, and a herbal Ziva shave cream. People are

turning to ayurveda in a big way.”

"We have the research and knowledge capabilities to turn out more ayurvedic products

and build on our current marketing strength. In the past five years our ad spend has

grown to Rs.30 crore. We conducted an ayurveda Congress in Hyderabad and got an

impressive response."

Medimix has proved that it is not always glitz and glamour that sells products... a back-

to-your-roots plank that espouses natural products appeals to the average Indian.