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CASE ANALYSIS BHAVSARS HERBAL SMOKING DEVICE NIRDOSH

PGP -1 Section H
Group 8
The NIRDOSH case deals with Maans Products Ltd., which is primarily involved in manufacturing and
marketing of biris in Ahmedabad. The company has been in this business for the last 20 years and
generates revenues of approximately Rs. 10 lakh a year. Mr. Natwarlal Bhavsar, the owner of the
business, has conceptualised a new product- a non-tobacco smoking device called NIRDOSH and the
case looks forward to improve the prospects of this new product.
It is important for any business to generate and maintain long term sustainable profits and thus, we
define this as the objective for the business involving the production and marketing of Nirdosh. A
SWOT analysis of the company has been presented as follows:
Strengths:
Flexibility in running the business as it is
a family owned business
20 year experience in the tobacco
business
Nirdosh is the first ever product of its
type in the market

Weakness:
Limited funds
Small Scale of Business
Conflict of Interests between Mr.
Bhavsar and his sons regarding the
prospects of Nirdosh
No established distribution and supply
network
Lack of infrastructure and machinery
The herbs required were prone to
seasonal availability
Opportunities:
Exports Market
Sufficiently large market of smokers to
tap

Threats:
Not competitive in terms of prices of
various pharmaceutical products
available


FINDINGS
1. Lack of focus: Mr. Bhavsars strategy in terms of deciding the target market for NIRDOSH
was not very clear. NIRDOSH would have targeted the existing smokers, having health
problems, who were willing to quit smoking. Targeting a group of smokers would yield no
benefit, as there was neither enough awareness of the ill-effects of smoking nor the
willingness on the part of regular smokers to quit cigarettes for Nirdosh.

2. Failure as a medicinal product: NIRDOSH failed as a medicinal product because of two
reasons: one is that the prices were not as low as compared to the competing medicines
available and second is that the doctors would not recommend it to non-smokers like
children, women etc to treat ailments like cough, cold, asthma etc.

3. Shifting from biri to cigarette: Though the market for biri was larger than the market for
cigarette, yet Mr. Bhavsar chose to shift to the cigarette market which offered no incentive
to the smokers neither in terms of price nor pleasure. Also people are very brand conscious
in case of cigarettes so they would not easily switch to NIRDOSH.



CONCLUSION:
Though the idea was quite innovative in itself but could not be a success. As a marketer, we
need to create value, communicate and then deliver it. Mr. Bhavsar was successful in
creating the value but could neither communicate it at the national level nor could he
ensure delivery since the distribution and communication work together.