Case Study: NATURAL THRUST of Balsara Group - TONTUF Money

Case Study Questions

Balsara Hygiene products Ltd., which had some fairly successful household hygiene products introduced in 1978 a toothpaste, Promise, with clove oil (which has been traditionally regarded in India as an effective deterrent to tooth decay and tooth ache) as a unique selling proposition. By 1986 Promise captured a market share of 16% and became the second largest selling toothpaste brand in India. There was, however, an erosion of its market share later because of fighting back of the multinationals. Hindustan Lever’s Close Up gel appealed to the consumers, particularly to the teens and young, very welland toppled promise from the second position. 

Supported by the export import Bank of India’s export marketing finance (EMF) programme and development assistance, Balsara entered the Malaysian market with Promise and another brand of tooth paste, Miswak. 

The emphasis on the clove oil ingredient of the Promise evoked good response in Malaysia too. There was good response to Miswak also in the Muslim dominated Malaysia. Its promotion highlighted the fact that Miswak (Latin name: Salvadora Persica) was a plant that had been used for centuries as a tooth cleaning twig. It had references in Koran. Quoting from Faizal-E Miswak, it was pointed out that prophet Mohammed used Miswak before sleeping at night and after awakening. The religious appeal in promotionwas reinforced by the findings of scientists all over the world, including Arabic ones, of the antibacterial property of clove and its ability to prevent the tooth decay and gums. 

Market intelligence revealed that there was a growing preference in advanced countries for nature based products. Balsara tied up with Auromere Imports Inc.( AII ), Los Angeles. An agency established by American followers of Aurobindo, an Indian philosopher saint. Eight months of established R&D enabled Balsara to develop a tooth paste containing 24 herbal ingredients that would satisfy the required parameters. Auromere was voted as the number 1 tooth paste in North Eastern USA in a us health magazine survey 1991.The product line was extended by introducing several variants of Auromere. Asachharine free tooth paste was introduced. It was found that mint and menthol were taboo for users of homeopathic medicines. So a product free of such mints was developed. Auromere fresh mint for the young and Auromere Cina Mint containing a combination of cinnamon and peppermint were also introduced. When the company realized that Auromere was not doing well in the Germany because of the foaming agent used in the product, it is introduced a chemical free variant of the product.

Questions

• Explain the environmental factors which Balsara used to its advantage.

Following are the environmental factors which Balsara used to its advantage:

• The growing preference in advanced countries for nature-based products. This trend gave Balsara an opportunity to introduce its Auromere toothpaste, which is made with herbal ingredients. Auromere was a success in the US, where it was voted as the number 1 toothpaste in North Eastern USA in a US health magazine survey in 1991.
• The religious appeal of Miswak in Muslim-dominated Malaysia. Miswak is a plant that has been used for centuries as a tooth cleaning twig and is mentioned in the Quran. Balsara was able to tap into this religious appeal to market Miswak in Malaysia.
• The effectiveness of clove oil as a deterrent to tooth decay and toothache. Clove oil is a traditional remedy for toothache and has been shown to be effective in preventing tooth decay. Balsara used this to its advantage in marketing its Promise toothpaste, which contains clove oil.
• The support of the Export Import Bank of India. The Export Import Bank of India's export marketing finance (EMF) programme and development assistance helped Balsara to enter the Malaysian market with its Promise and Miswak toothpaste brands.

These are just some of the environmental factors which Balsara used to its advantage. By understanding the needs and preferences of its target markets, Balsara was able to develop and market products that were successful in both India and overseas.

• What is the strength of AAII to market ayurvedic toothpaste in USA?

The strength of AAII to market ayurvedic toothpaste in the USA are:

• The growing preference for natural and herbal products in the USA. Ayurvedic toothpaste is made with natural ingredients, which is in line with the growing trend of consumers in the USA who are looking for products that are free of chemicals and artificial ingredients.
• The partnership with Balsara Hygiene Products Ltd. Balsara is a well-established company with a strong track record in the toothpaste industry. This partnership gives AAII access to Balsara's expertise and resources, which will be essential for the successful marketing of ayurvedic toothpaste in the USA.
• The development of innovative products. AAII has developed a variety of ayurvedic toothpaste products that are tailored to the needs of different consumers. For example, they offer a sacharine-free toothpaste for people with diabetes, a mint-free toothpaste for people who use homeopathic medicines, and a chemical-free toothpaste for people with sensitive teeth.
• The strong marketing campaign. AAII has launched a strong marketing campaign to promote its ayurvedic toothpaste products in the USA. This campaign includes print ads, online ads, and social media campaigns.

Overall, AAII has a number of strengths that will help it to successfully market ayurvedic toothpaste in the USA. The company's focus on natural and herbal ingredients, its partnership with Balsara, its innovative products, and its strong marketing campaign are all factors that will give it an edge in the market.

Here are some additional points that AAII can consider to further strengthen its marketing efforts:

• Target the right audience. Ayurvedic toothpaste is not for everyone. It is important to target the right audience, such as people who are looking for natural and herbal products, people who are concerned about their oral health, and people who are willing to pay a premium for a premium product.
• Build relationships with key influencers. Ayurvedic toothpaste is still a relatively new product in the USA. It is important to build relationships with key influencers, such as dentists, health care professionals, and celebrities, who can help to promote the product to their followers.
• Attend trade shows and events. Trade shows and events are a great way to reach potential customers and distributors. AAII should attend relevant trade shows and events to promote its ayurvedic toothpaste products.
• Run online marketing campaigns. Online marketing campaigns are a cost-effective way to reach a large number of potential customers. AAII should run online marketing campaigns to promote its ayurvedic toothpaste products.

By taking these steps, AAII can further strengthen its marketing efforts and make ayurvedic toothpaste a success in the USA.