Musli Power Extra

University Degree Business and Administrative studies

Executive summary

MUSLI POWER EXTRA- A HERBAL APHRODISIAC FOR MEN AND WOMEN

Musli Power X-tra is a unique formulation of ingredients consisting of the highest quality extracts from world’s most exotic herbs. This is one of a kind, potent and extraordinarily effective natural sex enhancer helps to increase libido (sexual desire) and works as a powerful male and female sex stimulant .Emerged in a small state of Kerala, India from, a first generation entrepreneur company kunnathu Pharmaceuticals in 2005, the product quickly and subsequently expanded to other states in India and abroad especially in the Middle East during the next 3 years. A unique Herbal product which has no negative side effects and can be used by any age group quickly beat to the punch. The Company is now expanding the product to the international market. In the past 5 years the company’s growth rate was nearly 200% every year. At present the company is preparing to enter three international markets in Australia, Russia and The United States. Now at present Musli Power X-tra is being introduced in the Australian domestic market which was previous used to available through internet. This reports summaries the product qualities, marketing strategies, target market user awareness, Product pricing and launch plans.

Table of Contents

Company Description and Product

Kunnath Pharmaceuticals was started by Mr. K.C. Abraham in the year 2005 to develop unique ayurvedic medicines and food suppliments. KC Abraham, a first generation entrepreneur from the Indian state of Kerala, started out as a farmer and was forced into entrepreneurship when a huge crop of ‘safed musli’ (a herb thought to reverse erectile dysfunction) found no takers. He experimented many formulations with safed musli for efficacy and finally hit upon the formula which has nine different herbal extracts and minerals. Mr. K.C. Abraham and his small team then created Musli Power Extra, a concoction of nine Ayurvedic drugs including safed musli and followed it up with one of the loudest ad campaigns that the ayurvedic segment has seen in recent years.

Musli Power X-tra, a herbal medicine, is used to boost sex drive, enhance health and treat infertility. The company follows WHO-GMP standards in production and has secured ISO 9001-2000 for quality.The musli power Extra was introduced into Kerala state market in India and was subsequently expanded to other states in India and abroad especiallly in the Middle East during the next 3 years. Kunnath Pharmaceuticals is selling more than 20 million Musli Power Extra capsules a month. A sale of single capsule generates an income of 0.65 AUD for the company.The Kunnathu pharmaceutical is engaged in the research, development and manufacture of high quality, result giving ayurvedic medicines and food supplements. The founder of the company Mr. K. C. Abraham is well known in the ayurvedic world as a supplier of herbs.

These herbal capsules are made from time tested herbs, which help cure various sexual dysfunctions in both males and females. Safed Musli one of the key ingradiant is also gaining increasing acceptance as a vitalizer and health-giving tonic, a curative for pre-natal and post-natal problems, a restorative for immunity-improvement and as a remedy for diabetes and arthritis.Alongside, the recent discovery of Safed Musli as a natural and safe aphrodisiac agent has also opened up new channels of application and new demand for it.

Strategic plan and focus

This Section covers three aspects of corporate strategy that power the marketing plan:

The Mission and Vision
Goals
Core Competence

Mission and Vision

Kunnath Pharmaceuticals is engaged in the research, development and manufacture of high quality, result giving ayurvedic medicines and food supplements. The R&D of the company is doing research in special areas where the real potential of ayurveda is yet to be explored. A team of doctors and scientists are continuously working to accomplish the best out of ayurveda. The wealth of ayurveda is invaluable. Kunnath Pharmaceuticals is trying to find out the most of them to make mankind healthy and happy.

The real aim is to be the brand name that redefines what modern Ayurveda is before a sceptical world community. They are sceptical because many of the usual ayurvedic drugs don’t pass strict western tests like those for heavy metals.The company want change that. The comapany make our ayurvedic drugs identical with the safest drugs in the world. The company is investing heavily for these pursuing drug approvals in over 70 countries, and budding a pipeline of over 60 ayurvedic formulations.

2. Goals

For the coming years Kunnath Pharmaceuticals seeks to achive the following goals:

To retain its present image as the highest quality line of herbal products.
To enter the international market.
To achive national distribution in all targeted nations.
To add new unique herbal products into the market
To reach out to the patients, not wait for them to discover our remedies at a too later stage.
To market the herbal products of the non-organized traditional ayurvedic physicians of Kerala who want us to market their best remedies which are generally closely guarded secrets in their families.

3.Core Competency

In terms of core competency, Kunnathu Pharmasuticals seeks to achive unique ability

To provide distintive high quality herbal products such as Musli Power X-tra.
To reach out to the patients, not wait for them to discover our remedies at a too later stage.
Deliver the products to customers using effective manufacturing and distribution systems that maintain the company’s standards for example making sure that the product bought by the customer is not a dupicate.

We are traslating these core compentencies into a sustainable competative advantage. The company will maintain and work closely with distributers, ...

This is a preview of the whole essay

3.Core Competency

In terms of core competency, Kunnathu Pharmasuticals seeks to achive unique ability

To provide distintive high quality herbal products such as Musli Power X-tra.
To reach out to the patients, not wait for them to discover our remedies at a too later stage.
Deliver the products to customers using effective manufacturing and distribution systems that maintain the company’s standards for example making sure that the product bought by the customer is not a dupicate.

We are traslating these core compentencies into a sustainable competative advantage. The company will maintain and work closely with distributers, physicians and suppliers to build relationships and alliances necessary to achive the company goals.The company maintains high-concentration extracts of active ingredients in these herbs, while others mostly go for bulk raw herbs. It raises thecosts as the company has to use more raw materials, but the medicines to be 100% effective.

Situation Analysis

This situation analysis begins with a picture of the existing atmosphere in which kunnathu Pharmasuticals finds itself by providing a brief SWOT analysis for the product Musli Power Extra.After the SWOT overview the analysis examine the levels in detail by Industry, competitors, company and consumers.

SWOT Analysis

Industry Analysis for sexual dysfunctions Medicines

The current market for drugs to treat sexual disorders is estimated at US$3.8 billion which is forecast to increase 74% to US$6.6 billion by 2012. The studies shows that Critical analysis of marketed sexual dysfunction drugs related to erectile dysfunction and androgen deficiency.The sales estimated by 2020 is over 10 billion.Lots of companies are investing huge amount of money in the reserch and development for the new improved medicines.At this state a unique herbal product like Musli Power X-tra has a very huge market.

Competitors in sexual dysfunctions Medicines

The current competitors are products like Viagra, Tadalafil and many more. These are international companies which has generated millions of dollars in the last decade. Currently Viagra is one of the products well known all over the world and is availble in most of the countries. In the recent surveys and discoveries made by many health organizations these drugs can cause many negative side effects. It is not suitable for heart patients or people sufferring from other physical problems such as high blood pressure.

But apart from its disadvantages many people still uses these drugs.These drugs gives very instant results and very successful. But many people are realising the problems of these drugs which can cause long term damage to their health in the future. But Musli Power X-tra is a product which is made of natural herbs which has no negative side effects and it is proven by many tests that it is non-toxic drug. The only disadvantage of the drug is it does not give any instant results; the drug has to be taken for a short period of time from 1 week to 120 days. But the product ensures no future health damages or no threat to people have diseases or health problems. Despite the product is very helpful for curing many illness and health issues.Apart from these drugs Musli Power X-tra is equally best for males and females.

The trend in the market is that people are looking for medicines which has no negative side effects and gives the results. The Musli Power X-tra is the best product suits this trend.

Company Analysis

KC Abraham founder and owner of Kunnathu Pharmasuticals figured that allopathic drugs like Viagra would soon run into a wall, as far as sales are concerned, due to their associated health risks. And that is what happened to Viagra and its cousins during the next couple of years, especially in countries like India. This was the same time during which Abraham was interested in a herb called safed musli, and a huge surplus yield in Kerala with no takers. Since the herb had an emerging reputation for therapeutic male impotence, KC Abraham decided to take his big chance in pharma business. He and his small team created Musli Power Extra, a concoction of nine Ayurvedic drugs including safed musli.KC Abraham is well know as a herbal medicine supplier.

Customer Analysis

Characteristics of customer expected to buy Musli Power X-tra

Musli Power Extra can be used for both males and females. The product is generally purchased by male customers who have problems in their sexual life such erectile dyfuntion, premature ejaculation and fatigue. Also it is highy recommended for males who are impotent.The female customers are generally who suffers from Dyspareunia, Vaginismus, female sexual arousal disorder, Sexual aversion disorder, Hypoactive sexual disorder etc. It is estimated that more than 50% of people faces these problems in their sexual life. Musli Power X-Tra characteristics to solve the erectile problems and the general wellbeing and vitality make it suitable for all.

Because the product is made of pure natuaral herbs it does not have any side effects like the modern medicnies. It is sutable for people use medication for disorders like diabetics or high or low blood pressure. Buyers can range from 18 years and above. The best part of the product is that even people above 55 years can use this product. Another characteristic which may interest the buyers is that it the product acts as a curative for physical weakness and many illnesses.

Market – Product Focus

Kunnathu Pharmasuticals intends to take full advantage of its product advantage of Musli power X-tra as Herbal non lethal product. These are detailed in 3 areas below:

Current market

Current market will be grown by expanding the distribution into the Medical shops all around Australia.The primary aim is to make the product available to even small shops to increase customer awarness of the product. Make the customer familiar to the product through simple advertisments in the shops and the media. This will increase the possibility of increase sales in the future and increase customer knowledge of the product. Another important objective of the company is to obtain proper medical drug approvals for the safe usage of the product without physican assistance.

New Markets

At present the product is only available in India and it is exported to United States, Russia and Australia via internet shopping. The company’s aim is deliver the product in the domestic markets of these countries including all the metropolitan and regional areas in Australia, Russia and United States with the next year. In 3 years time the company’s aim is to expand the product into the world market and other countries.

New products

The company’s reserch and development team is engaged in developing unique products like Musli Power X-tra in the future. The company has already planed to introduce 2 new products with in 1 year. The company is seeking international approval for these medicnies and they are in the final test faces.

Target market

The target market for Musli Power X-tra is for mostly everyone who has sexual dyfunctions for both males and females. The Usage of the medicine is recommended to customers who are 18 years and over. The Musli power X-tra comes with small, medium and large packages which suits to the requiement. More importantly musli power Extra is a medium priced high quality product which can be afforded by more than 80% people.

Points of Difference

The major points of differnce of the Musli Power X-tra is fall into 3 areas

Unique product for Males and Females :

The major difference that makes Musli Power X-tra uniqe is that it is suitable for both males and females. Most of the products in the current market is either for males or for females.

Pure herbal product ensures no negative side effects.

This is one of the most important differences from other products. Musli Power X-tra is made from natural herbs na it is scitifically proven that it has no negative side effects such as stomache, headache or other serius medical conditions. Hence the product is completely safe for contiuos usage.

Suitable for all ages above 18 years

Musli power X-tra is suitable for all ages where other products in the market are not recommended for certain age groups and to people who has some serious medical conditions such as a weak heart or high blood presure. Musli power X-tra can be used by people who has different medical conditions and on medication.

Positioning

In the past most of the products have been either for males or females but not both and also most of the products have negative side effects which can affect the health in the future. Musli Power X-tra has desirable charateristic to obtain a positioning in the consumers mind as a “Non Toxic healthy Natuaral Herbal Medicine for Everyone” that can be used very easily at a affordable price.

Marketing Program Strategy and Tactics

Marketing Program Strategy is developed on the basis of the following elements

Product Strategy

Unique Product quality: Each capsule is made using high concentration of herbs to make sure of the quality.
No Restriction for usage: Can be used for any age groups above 18 years old and can be used by people who are on medication.
Suitable for both Sex Groups: Can be used for Males and Females.
Non Toxic and Healthy: No negative Side Effects.
Customer Services: To ensure that the customer get the genuine product the company provides online product verification through internet.
Packing: Bio Degrade packing is used.

Pricing Strategy

Here we are using the penetration pricing strategies.The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased.

Musli Power X-tra is availble retailing for

30 capsules packing with the cost of $26.
60 Capsules packing with the price of $42.
90 Capsules packing with the price of $60.
180 Capsules packing with the cost of $100.

The pricing strategy is created in a way so that any cusumer group can buy the product accordingly to their requirement.

Promotion Strategies

Key promotional programs such as

Online Purchase Price Discounts: Special Discouts for Online purchases including free home delivery and cash discounts upto 20%.

Inserts in Sunday newspaper magazines .These inserts are highly read and will help generate awarness.It is considered to be a very successful technique so far.
In-Pack coupons: Special Discount coupons boxed inside the each package for next purchases.
In-Store Demonstrations: In store demonstration to create awareness of the product and offer special prices with money back gurantee and bonus.

Place (Distribution) Strategy

Muali Power X-tra is currently distributed to reatailors all over India. The product is avaialble in any medical shops or ant deparment stores. The company is planning to distribute the drug through Medical shops in the first phase. This approch is to make sure that it is properly intially recongined as a medicine and not as a tonic. As the sales and consumer awareness increases the company is planning to make the product available in all supermarket chains such as Aldi, Coles etc. The company is to take direct control over the distribution to these retailers to maintain the medium cost of the product.

Research and Development, and Operations program

Kunnathu Pharmasuticals is not aiming only for commercial success.but real aim is to be the brand that redefines what modern Ayurveda is before a sceptical world community. They are sceptical because many of the conventional ayurvedic drugs don’t pass stringent Western tests like those for heavy metals. We want to change that. We will make our ayurvedic drugs synonymous with the safest drugs in the world. The company is investing heavily for pursuing drug approvals in over 70 countries, and developing a pipeline of over 60 ayurvedic formulations. The company has initiated the process of getting FDA approval.

The testing pipeline is now led by a formulation for diabetes, and many others are set to follow. The company is trying to provide non-organized traditional ayurvedic physicians (vaidyas) of Kerala who want the company to market their best remedies which are generally closely guarded secrets in their families. Non-organized traditional ayurvedic physicians want their

Formulations to live on even after them and as an organization that can make success out of the correct formulationthe company encourage them to join our efforts. The company is currently testing some new-age medicines based on these formulations.

Apart from the formulationsthe company’s is planning to start a chain of neighbourhood clinics all over Kerala, and possibly across the nation later. Qualified and Kunnath accredited ayurvedic physicians will provide consultations to patients. The company wantwant to reach out to the patients, not wait for them to discover our remedies at a too later stage.

At present the product is only available in India and it is exported to United States, Russia and Australia via internet shopping. The company’s aim is deliver the product in the domestic markets of these countries including all the metropolitan and regional areas in Australia, Russia and United state with the next year. In 3 years time the company’s aim is to expand the product into the world market and other countries.

Financial Projections

Historically the company has achived a 200% growth rate every year from 2005 till 2010.The Company has steady increase in revenue and sales jumped spectacularly due to the product quality and its results. The sales has continued to rise in a dramtic rate in abroad especially in the middle east.It is estimated that company’s earned a sales revenue of $300 million in the last 5 years.

The company earns an average profit of $0.65 on each capsule sold.In a Month averages of $2million capsules are sold. These figures are expected to rise as the company is entering into the international market. The future projection of the sale in Australia in the coming year is estimated to 70000 to 100000 units of Musli Power Extra at an average cost of $57 per unit. The initial sales revenue is expected to be an average of $5 million.

In the coming years the company will expected increase its sale to 2 million units in 3 years estimated at an average of 10% of the consumers. The company’s target is to make the product available to all the required customers.

Organizational structure

Kunnath Pharmaceuticals works through 4 wings:

1. Production and Distribution.
2. Research and Development.
3. Medical Wing.
4. Farmers’ Welfare.

1. Production and Distribution

Musli Power X-tra is produced and distributed through a chain of over 4000 medical stores in India, supervised by a large number of super stockists spread all over the country and abroad. The whole process is managed by Mr. K.C. Abraham Managing Director and also Mr. T.K. Abraham, General Manager, Marketing (Former General Manager, Ranbaxy Pharmaceuticals.

2. Research and Development

This wing consists of research on the efficacy of Musli Power X-tra, sexual health, treatment for sexual dysfunction and sexual education. It is managed by Dr. T.V. Mathew, Ph.D., Clinical Psychologist and Sex Therapist (Former HOD, Department of Clinical Psychology, Pondicherry Institute of Medical Sciences, and Pondicherry). Dr.Mathew is trained under the illustrious Sexologists and Sex Therapists, William H. Masters and Vergina E. Johnson.

3. Medical Wing

This wing takes care of infertility and sexual problems of both male and female through medical treatment. The well known Infertility Specialist, Dr. Philips Abraham, DGO, MD, Gynecologist is in charge of this department.

4. Farmers’ Welfare

Indian farmers of herbal plants are in great distress due to price variation, loss of their products and the middlemen who manipulate them. Kunnath Pharmaceuticals require over 400 Metric tons of each 9 herbal medical products annually. The farmers are offered fair prices directly and they can be sure of a higher profit.

Launching Plans

Launching plans will cover up 3 steps

Launching target

Launching target is most important. So the company is planning to sell total 70,000 units to 100000 of product initially. In the Australian market ,20,000 Musli power X-tra 30 capsules packing with the cost of $26, 18,000 Musli Power X-tra 60 Capsules packing with the price of $42, 17000 Musli Power X-tra 90 Capsules packing with the price of $60 And 15000 Musli Power X-tra 180 Capsules packing with the cost of $100. Because we believe that target is more important to do well in the market and to focus on sales and how to perform or how to act in the market.

Launching plans

We believe that internet is the best way to launch and sell the product because most of the people in Australia use the online mode shopping .So that the first focus to do advertising on internet by using popular sites like e-bay.com, Face book etc, and our second step to do advertising in mass media. Company is planning to advertise on TV and radio because TV is the one of the best way to reach people quickly.The advertisement on TV gives more impact to the people and excites them to buy the product. Radio is also good way to do advertisement of product because some people don’t get time to watch TV so they listen radio while traveling. For e.g. the truck drivers do not get time to watch TV so they listen only radio. Radio is a good medium for advertisement. Third way of advertising the product and the company is to distribute pamphlets and giving ads in magazines and newspaper. When people read morning newspaper or magazine they will come across the advertisement.

Launching product and extra offers

Musli extra power capsule will be first available in medical stores and we will launch musli extra power on internet which is available for online purchase from our website and will focus some general stores like 7-11 shops later on. Because they are available 24 housr we are also giving an offer of 10% discount on the purchase of 2 package of Musli power X-tra and to promote the sales we are giving 100% money back guarantee + with extra bonus of $100 it our product will not work on you (conditions apply) and we also offering free home delivery on the purchase of $50 or above $50.

Implementation Plan

Introducing Musli X-tra in a country like Australia where there are very strict rules when it comes to Pharmaceutical products. It requires a very creative promotional and a greater awareness in terms of the product safety. We should have a very good rollout schedule to enter this type of a Market. Our first target is to capture 10% of the target consumer, i.e. 3% of the target market in first year.

Diverse and Multicultural People of Australia have different needs and values so we have to carefully evaluate these major things and to minimize this effect we need to launch it in metropolitan cities like Sydney. We have to set specific sales target in order to analyze the acceptance of the product and based on the results we need to fix some targets for the future sales. Based on the sales in Sydney we would also launch the products across the country which is the main motive of the organization. We are having our own distribution model which minimizes the middle man concept by this we can have a better distribution channel. As we are doing most of the sales through internet and by home deliveries through recognized pharmacist, this needs better distribution plans.

Evaluation and control

As we are initially launching the product in Sydney where we have set specific sales target when we compare this sales with budgeted sales. This will reflect the speed of the roll out of the product and by these we can analyze what went wrong and we can improve the advertising and promotional strategies of the company and by this we can decide the pace of the rollout of the product.

References

Kunnathu, Creators of musli power X-Tra bags French Innovation Award, Seasonal magazine, Wednesday April 21st, 2010 retrived April 30 from
Mission, Kunnathu Pharmaceuticals, retrived April 30 from .
How a herb created a millionare The story of K.C. Abraham and Musli Power X-tra, Seasonal magazine, Wednesday April 21st, 2010 retrived April 30 from .
How a herb created a millionare The story of K.C. Abraham and Musli Power X-tra, Seasonal magazine, Wednesday April 21st, 2010 retrived April 30 from .
Report on World market for sexual disorders, Spectra Intelligence Report published on January 2006 retrived on april 30 from
About Us, , Kunnathu Pharmaceuticals, retrived April 30 from aboutus.htm