Unlike the days of the past, everyone is virtually concerned about their health and well being. Everyone takes it seriously nowadays, which is always looking to improve their health, or fix everything if there is anything wrong on their health part. Healthcare is a crucial service that touches the lives of thousands of individuals at significant and vulnerable times.
Al Manar Ayurvedic Centre (AMAC) was proven in 2003 to apply Ayurveda in its totality aiming at protection, cure and rejuvenation of the complete being keeping up with the original Ayurvedic philosophy, text messages and beliefs thus promoting balanced holistic way of life. The atmosphere at Al Manar Ayurvedic Center (AMAC) is very inviting, comforting and the ambience created in our center offers one a feel to be in a place where they will get comfort to their all five senses. At Al Manar Ayurvedic Center under the advice of our own experienced doctors, and therapists, you can experience riches of Ayurvedic treatments in their true form.
Al Manar Ayurvedic Centre (AMAC) is not free from competition as well. It originates from both the planned and unorganized sectors. The main purpose of the research is to investigate the marketing strategy of AMAC, identify issues through standard technique, and then suggest suggestions, if any, predicated on the guidelines in the current Ayurvedic industry.
First off, to study where the main competition and rivals come in, an exploratory research approach is used. From then on an interview has been conducted within the business from different branches. Several key tools and models are used to help evaluate AMAC and its own competitor's strategies. To analyze it further, Porter's Five Forces model can be used to ascertain the industry structure attractiveness of the Ayurvedic retail sector in the UAE. A SWOT evaluation was also conducted on AMAC to give a brief and compact review of its strengths, weakness, opportunities and risks.
AMAC is currently a good player on the market considering its current situation. Nonetheless it needs to reanalyze its marketing strategies in order to develop its business in the coming ten years since less development in the internet market really can cause AMAC a downfall. Therefore predicated on the issues found, a few advice have been discussed as well. If a detailed approach is considered with the suggestions given, AMAC can definitely increase with the growing of the UAE current economic climate in conditions of value, devotion of customers and by learning to be a major icon in the Ayurvedic market industry.
Al Manar Ayurvedic Centre (AMAC) was proven in the entire year 2003 to practice Ayurveda in its totality aiming at elimination, cure, and rejuvenation of the whole being keeping up with the initial Ayurvedic philosophy, texts and worth thus promoting a well-balanced holistic way of life. At AMAC we have totally dedicated hard working team of experienced doctors and therapists who are totally trained in traditional Ayurvedic ways. The framework of the business enterprise is a singular - proprietorship and everything major business functions are handled by the proprietor's family.
AMAC basically does treatment and then offers appropriate Ayurvedic drugs for the incoming patients. It offers all types of treatment namely:
Ayurvedic lifestyle changing consultation
Ayurvedic healing marma massage
Shirodhara - medication free method for stress anxiety unhappiness insomnia and hormonal imbalance
Shiro Vasti - most sought after treatment for mental balance
Ayurvedic synchronize massage
Ayurvedic musculoskeletal program- for back pain, frozen shoulder neck of the guitar problem
Navara kizhi therapeutic massage - effective in degenerative muscle diseases like poliomyelitis muscular atrophy etc
Pre and post natal rub protocol
Tarpanam- special treatment for eyeball problems
Nasya treatments- for chronic sinus, migraine headaches hay fever problems
AMAC basically caters to the expat and local people of the country. AMAC was quite simply setup in Kerala almost 32 years again. Therefore, the branch in UAE when opened up in 2004 observed huge number of folks to arrive from different areas due to the already proven name in India. Expat human population volumes are typically motivated by Indians accompanied by people from different nationalities and origins. Also, the Arab inhabitants coming into the guts is also high. Majority of the consumers coming in are usually residents of UAE. We also receive a high number of individuals coming from neighboring countries like Oman, Qatar, Kuwait, Saudi Arabia etc.
AMAC fundamentally imports all its medications and other requirements from its mother or father corporation in Kerala, India. Then other basic requirements are helped bring from the UAE market as well. For that purpose, we utilize a wide variety of suppliers predicated on cost edge. The purchase function plays an important role in the business because the low cost we ask for on the consumers for different treatments depends upon the quantity of the materials we get from the marketplace. Therefore we always look to discover the best material with most reasonably priced possible.
The medications and other equipment are stored in our warehouse and the Stock Keeping Systems (SKUs) are maintained by way of a centralized purchase and inter - branch network and a competent logistics between different branches and the warehouse.
Consumer Satisfaction is given excellent importance in this business
Pricing is also an essential factor since the consumers always look for the cheapest and the best available option
Constant opinions system from the consumers who have already considered our treatment or have taken our medication is taken
A friendly atmosphere, and good amenities in the center also satisfies the people that come into the center
Spacious treatment facilities, trained and experienced masseurs also assist in obtaining a good phrase from the consumers.
Everyone is getting excited about this traditional and natural and organic way of getting the disorders out of their way. With all the global market for Ayurvedic herbal and medication looking appealing with around value of US$100 billion, the world is just going to see Ayurveda enhance itself into a major thing in everyone's lives.
A recent research implies that increasing number of people all over the world are showing desire for alternative remedies and recognition given by the Who's an indication of its attaining importance. It is estimated that the Ayurvedic market will increase greatly between 10 - 15 percent, with the same growth rate targeted for another 10 years.
Ayurvedic Products falls into two categories - top quality and traditional. Currently there will be more than thirty thousand branded and about fifteen hundred traditional products available for sale. In India, Ayurvedic drugs worthwhile Rupees six thousand crores are produced every year, which Rupees fifteen hundred crore are exported outdoors. So just imagine how big is the market of Ayurveda and its medicines.
Ayurveda is currently an integral part of a motion towards a worldwide medicine system that may include the best medication systems of many countries of the world. A treatments that is completely natural, free of any side-effect is emerging. Out of all the health systems that we have, Ayurveda is just about the best point of synthesis for such a worldwide medicine system as it includes the broadest range of healing knowledge and modalities. It's the answer to many unfamiliar diseases which are obstinate and incurable in other kinds of medicines. After that it also forms a layer so the particular disorder never comes home compared to that person. Therefore, it aims at both avoidance and get rid of of diseases at the same time. The reason why Ayurveda is successful is that it studies the essential human characteristics and urges like cravings for food, thirst, sleep, sex etc. and then provides options for a disciplined, disease free life. Successful Ayurvedic Remedy is made up of a variety of treatments that assist to remedy disease condition like autonomic anxious disorders, digestive disorders, respiratory diseases, sensitive disorders, pores and skin diseases, genitor - urinary disorders and neurological disorders.
The healing powers of Ayurveda have become more and more popular around the entire world. Another thing is the fact that along with the expat community, the local community is also becoming a lot more interested in the merchandise once they come to learn the worth of Ayurveda. There are not much Ayurvedic Centers in the GCC, especially in the UAE. Also, only some centers actually offer authenticated treatment facilities. Which means market reach is huge, in case the business enterprise ideas are properly in place, it presents one of the better business opportunities in the region.
Even though there are not much players on the market here in the region, AMAC is not clear of competition. In your community, few people prefer Ayurvedic treatments or medications just because they have a normal notion that Ayurvedic drugs actually take time to heal, and because the consumers nowadays want everything to occur at a swift pace, other popular kinds of conventional medicinal practices is necessary. If everyone takes a close check out the typical system of drugs, it certainly is the destruction rather than the construction what is focused. Interference with the body functions and not aiding your body functions is what's focused.
The Ayurvedic industry in the region is marked by the presence of both prepared and unorganized sectors. There are numerous unorganized players producing low quality drugs that not just have an adverse effect on the patient's health but also damage the trustworthiness of the industry all together. Sometimes standard quality control actions are not set up, and then the industry as a whole suffers when small players or unorganized players do produce poor stuff.
Most of the time, consumers always choose the conventional style of medications because they always want to get cured at the earliest opportunity. But the idea that Ayurveda actually does take time to get rid of is not accurate. Ayurveda, its treatment and medication actually work towards the root cause of the condition and take it out of the body without further harm coming in the long run. But the classic medicines may bring out results earlier and they are also thought to have stronger side effect. Again, Ayurvedic treatments may also cost greater than the conventional style of treatments. That is also taken into consideration by many consumers.
An exploratory research approach is utilized in this analysis where AMAC and its own competitor's current situations are evaluated. This research strategy is chosen as a result of adaptability and wide-ranged approach it offers to the primary analysis. The exploratory research approach in this analysis draws upon interviews and extra data options.
Four different people from different branches of AMAC are decided on in which all of them are based in UAE. The chosen interviewees will be the Doctor, Business Development Administrator, and two sales professionals. A qualitative interview approach is used. Armstrong and Kotler (1996) stated that there are numerous features of using qualitative interviewing. For instance, it allows the participant to describe what is significant or important to him/her using his/her own words rather than being restricted to predetermined categories, so individuals may feel more calm and candid. In addition, it provides high trustworthiness and face validity, and it allows the evaluator to probe for additional information and ensure that participants are interpreting questions just how they were expected. Furthermore, interviewers possess the flexibility to use their knowledge, experience, and social skills to explore interesting or unforeseen ideas or themes or templates raised by individuals.
The Ayurvedic Industry being examined in this research study deals mainly with organizations or centers that sell and provide treatments in the structured and unorganized market. This is targeted to the expat, local, and the neighboring GCC countries in your community.
Several key tools and models are being used to help evaluate Ayurvedic Centers and its opponents' strategies Porter's Five Causes model is used to see the industry composition appeal of the Ayurvedic sector in the UAE. In his 2004 edition of "Competitive Strategy: Techniques for Analyzing Industries and Competitors", Porter built a construction that models a business as being influenced by the risk of access of potential rivals, the intensity of rivalry among set up companies within the industry, the bargaining electricity of the customers, the bargaining electric power of the suppliers, and the closeness of substitutes with an industry's products. The tactical business manager seeking to develop an advantage over rival companies may use this model to better understand the industry context in which the firm functions. Porter explained that the more powerful each factor is, the most likely established companies will be able to increase prices and earn higher profits.
The CLC (Company Life Circuit) and the PLC (Product Life Pattern) is examined. PLC has to do with the life span of a product on the market with respect to business costs and sales procedures. Hill (2005) pointed out that something life routine asserts four things: products have a limited life; product sales pass through different stages, each posing different issues, opportunities, and problems to owner; profits grow and fall at different levels of product life pattern; and products require different marketing, financial, developing, purchasing, and human being tool strategies in each life cycle stage.
Next, a SWOT examination was conducted on AMAC to give a brief and compact review of its talents, weaknesses, opportunities and hazards. In addition, the retail mix of the AMAC is examined to understand the existing strength and weakness of the retailer.
Various tools have been used to analyze the business of Al Manar Ayurvedic Centre. All these tools provide valuable observation and conclusions which it'll then help us in deriving the correct assessments and tips.
Figure 1 : Porter's Five Push Model
AMAC issue evaluation can be easily referred to by Porter's five push model which is shown in the Physique 1 : Porter's Five Pressure Model. It's definitely a profitable field to enter into. So companies will definitely consider getting into this setting of business. Potential entrants are companies or organizations that are not currently contending in the Ayurvedic industry, but are capable to take action. It's definitely a profitable area to get started on business in. Nonetheless it is not actually a simple business to find yourself in. Proven companies like AMAC will definitely try to dissuade potential competitors from coming into the industry to protect their market talk about. The greater the costs to enter an industry, the greater are the barriers to entry and the weaker will be the competitive force. Therefore, high entry barriers may keep potential opponents out of a business even though industry revenue may seem to be to be high.
There are extensive prominent players on the market in the field of Ayurveda within UAE. Players like Kottakkal Ayurvedic Middle, and Al Shifa Ayurvedic Center, and AMAC have a really good advantage due to being the first ones to enter into the UAE market in terms of Ayurveda, and also because of the low cost structure. This comes only due to their cheaper operational methods and also because of the great negotiation vitality in the market. Then another thing about cheaper procedure is controlling the procedure in conditions of labor, retail space and management skills. The benefit these companies have is they stand for lower hazards than new entrants. One problem with the new entrants coming into the market is due to huge amount of government fees, and other charges to be able to create an Ayurvedic Centre. This is most likely the highest hurdle to entry that most new entrants will face. As a result, the above advantages reduce the likeliness of hazards from exterior entrants.
AMAC actually suits large group of consumers in comparison to other rivals in the marketplaces. This way we can take advantage of the economies of size due to our large retail space at critical locations and well-established branch sites. Another advantage we have is that people also cater to the international mass market (GCC and other neighboring countries) by providing them cheaper options and reasonably priced drugs and treatments, which allow us to achieve that economies of range as well. On the other hand, Al Shifa Ayurvedic Center caters advantages from economies of range due to catering to the mass market by reduced income and catering to low end consumers like the labor force from India, Pakistan & Bangladesh. Therefore accomplishments of economies of size by several players in the Ayurvedic industry has managed to get harder for new rivals to enter the market.
To achieve a high market share, retailers must have good access to retailing programs. Porter (2004) said that the low the usage of distribution in an industry, the higher the barriers to entry. The established companies in the Ayurvedic industry get access to their own retailing channels and have built loyalty rendering it difficult for a new entrant to remain competitive.
The intensity of rivalry is the competitive have difficulties between companies in an industry to get market share from each other (Czinkota et al, 1998). The competitive have difficulties can be fought using price, product offering, advertising and campaign spending, direct advertising work, and after sales service and support (Cravens and Piercy, 2006). As strong rivalry decreases prices and increases costs, it squeezes earnings out of a business. On the other hand, if rivalry is less intense, companies have the opportunity to increase prices, which causes higher earnings. Ayurvedic centers and stores compete based on price of different kinds of treatments and drugs provided.
When the industry has many small vendors and some large players, the purchasers have bargaining ability (making use of marketing concepts of Porter, 1998). When customers purchase in large volumes, they can use their purchasing power to deal for price reductions. We also provide treatments and drugs for tourists. We have setup channels in many hotels in Dubai, where in fact the visitors can get an experience of what actually an Ayurvedic treatment is, and if they're interested, and so on, we even deliver the medicines with their home country due to the import and export license we have. We have several sales executives working for us in many emirates to help us to get to those customers, vacationers etc. Therefore we make sure that we focus on every section of the UAE, and also make sure that our name reaches out all around the market. Because of all this hard work and dedications, we have been even honored the best health centre in UAE by the Ministry of Health (U. A. E. ) in year 2008 and 2009.
Porter (1998) mentioned that the suppliers are powerful if the industry is dominated with a few offering companies which can be far less in number than the amount of companies that they sell to. The supplier prices offer exclusive prices to a few large players in the unorganized sector. However in our case, our drugs and other amenities are made by our own system based in Kerala, India. Therefore we've the exclusive privileges to certain brands in the UAE market, and it can only just be sold to other stores or marketers through our vegetable based in India. But we additionally require other supplies in order to run the business. The prices from the suppliers are set on a variety basis.
Ayurvedic Industry in the UAE reaches its growth stage. AMAC keeps growing along start. When we started back 2004, there have been hardly ever any players on the market aside from 3-4 companies. We have around 5 retailers and centers in the UAE now. Gradually and gradually by launching more centers and allowing more styles of consumers to come in will definitely help us in getting the expansion rate stable. Moving up in the retail value chain is also very important in this situation. Our current way of branding our products as well as the campaigns done in terms of the products and treatments offered, we can definitely expect substantial growth in the near future. Once the development of our shops and our centers are done, we can definitely concentrate on a more substantial band of consumers, and then we can also focus on giving in house treatments. That's another possibility that people can look to explore. Right now, coverage for Ayurveda in the UAE market isn't that high. But it's definitely growing from what it was, and can definitely be preferred among consumers in the coming days compared to the classic way of drugs because of the many advantages this health knowledge provides. We are also seeking to expand the guts into a medical center, and make our current shops into a complete scaled Ayurvedic pharmacy. At this time, the awareness and placement of the current Ayurvedic market will not allow us to extend to that level. But that will be a reality due to progress of Ayurveda in the region.
The following SWOT evaluation shows the talents, weakness, opportunities and hazards of Al Manar Ayurvedic Centre.
Figure 2 : SWOT Analysis
The main strength of Al Manar Ayurvedic Center is their location. We have been blessed as well as blessed to get some prime location places in the UAE. In order that definitely helps us to get people that way. Regardless of whether it is merely people passing by, they will feel to check out the middle when they start to see the look and the style the centers were created. Next strength that our center can be pleased with is our medications, and Ayurveda as a whole is totally natural, and fully free from any side results. Since the drugs are produced in our very own home vegetable, we can be hundred percent confident that the medications are genuine. Our doctors, doctors and masseurs come up with a huge selection of experience. Our main doctor comes with an experience of over thirty two years in neuro-scientific Ayurveda. His name is well know within the southern part of India, and using him as a marketing tool, we do get amount of people arriving merely to get cured by him. Because of all the facilities we provide, and also due to good work done by our staff, we do have a great deal of dedicated consumers. Even if they are approached by other centers, and other get-togethers, they always do come back to us due to the good service that we provide to them. Now all this cannot be possible with no a good management team. We are really proud of our management team, given that they mostly consist of family members, plus they always clear any type of glitch that will come in their way in order that they could gain from it, and at exactly the same time, the guts can grow as well.
One of our main weakness that people could say would be that the strict plan and the a little time consumption for the treatment to work. Because of swift tempo of things going on on earth, all consumers would like to get everything sorted out at the earliest opportunity. However in the field of Ayurveda, it can take some time, very little time, however the Ayurvedic drugs actually go directly to the real cause of the illness, and gets it sorted out. Unlike the conventional medicines where relief will be found out in a matter of 3-4 days, it could actually take a week for the Ayurvedic medicines to take impact. But the plus side to it is the fact, there is no almost any side effects coming from the drugs. But on the other hands, conventional medicines do produce side effects most of the time. At this point of energy we only operate with 5 branches across the UAE. We do feel that if we've more branches, our name will reach more levels of people, and we get more penetration in to the market as well.
The biggest opportunity that Al Manar Ayurvedic Center (AMAC) has is the expansion of Ayurveda all together in your community. When AMAC was started, Ayurveda did not have much importance in the market, and many individuals were unaware relating to this. However now, Ayurveda keeps growing at an easy speed in the UAE market, and we'll definitely be benefitted out of this development since we were one of the first players on the market. Another thing that we would like to do is to go the retail chain on the market. We would like to reach a location on the market where the typical medicinal stores/shops are in. We remain at quite a distance in comparison with the other systems, but we definitely notice that as a chance and we wish to reach to that position in the near future. The next area that we find an opportunity is individuals who have began taking our medicines and treatments would always adhere to our portion of treatments and drugs. This is because most of enough time, the conventional varieties of medicines do actually come up with some side results, if not any. This is completely taken care and attention in our form of medication since there are no part effects in our way of treatments and medications.
Our major menace comes up from the traditional medicine systems and other medicinal forms such as Homeopathy and everything. Then threat can be purchased in the form of rivals in the similar field. But the main problem is the main one who offers counterfeit products. Usually Ayurvedic medications are a little on the expensive sides. There are some retailers who just offers it out for really cheap value, which too is not of good quality. What goes on with this is that individuals get ill effects due to that and lose trust in the market. Also, consumers who come to your centers claim that they obtain it at a cheaper rate from those centers. A fortunate note is the government takes strict methods on people, property, and shops when they see that they are doing something on the illegitimate side. But that does not decrease the amount of men and women and retailers that sells counterfeit products. Most of the people choose cheaper products and therefore they are really always on the lookout for those varieties of products and always fall in the trap of these varieties of merchants.
Figure 3 : Retail Mix Analysis
Product: AMAC offer more or less the same product as the rivals. As the demand of consumer and suppliers are the same, the difference in product offering is nearly nothing. Currently, AMAC has a good branding name on the market. So in comparison with other key players in the market, AMAC does maintain a good name. Since were open from 4 am in the morning, till 10 pm in the night, we also have maximum coverage. Another advantage we've is the after sales service that people have.
Pricing of AMAC is less when considered to major players. The success is also retained. AMAC is very considerate about the grade of the products they sell as well. We always provide better service and products for the prices that people offer. Retail logistics are also monitored perfectly. Central purchase and circulation to the stores are done very well.
AMAC has a great deal of promotional strategies. We do direct marketing, and then also execute a whole lot of advertise in conditions of TV advertisements, Radio Ads. We also have whole lot of flyers going by giving it to an advertising agency. We also sponsor ethnical programs that happen in the UAE. Training is one of the main things inside our centers and shops. Our staffs are capable of handling any type of consumers that come in. Our personnel is trained on each and every product we offer, as well as different programs you can expect. We also have excellent sales executives who are able to convert the enquiries into sales. All of our staff are experts, trained properly and also qualified as per the regulations of the Ministry of Health, UAE.
As mentioned previously in the SWOT analysis, AMAC must grow further, and must get better looking stores and centers as a consequence to large amount of crowd that will come in to the guts or retailers. Sometimes when its turns into occupied, some consumers do think it is hard to get what they want, or even to even grab a seat. Which means this must be sorted out so that the consumers get catered to their needs as soon as they enter into our premises.
When looking from a small business potential, Al Manar Ayurvedic Centre does well in comparison with its opponents and can consider itself a good player in the market. However in order to stay competitive and to be able to reach higher heights, it requires to reanalyze its strategies and then consider what can be increased. Another benefit form AMAC is the fact they were early on in to the Ayurvedic business, and now has a strong base in the Ayurvedic business market. So that is probably a really good asset for AMAC. Also the natural benefits associated with the medicine, and also the loyal set of customers is also another benefits for AMAC
On another take note of, AMAC needs to have more outlets and centers so that it will be available to larger masses, and can focus on much more capacity masses than it already has. It also can work up further up its business and be a leader on the market. Therefore AMAC should take up its challenges and then opt to work it out and then change it.
Based on the assessment, there are many factors to be laid out. They are:
Competitive Rates Strategy as its "strength"
Enter in to the online web space
Take up innovative strategy
Reanalyze its retail strategy
To reach the very best of the retail value chain
Continue offering natural and "No Counterfeit Products"
From the assessments from the issue analysis, a few strategies have been suggested in the report to treat the few issues which has been identified. This is to tackle the current position Al Manar Ayurvedic Centre is in in order to revive AMAC to an improved and most likely the leader of the marketplace in the near future.
Develop a planned retail strategy based on the retail strategy mixture and move into the arranged market as a respectable player thereby completing the retail value chain
Create a positioning of any 'Innovator or market innovator' within the marketplace which could help in increasing amounts and in that way support growth and buy power
Promotional attempts to increase footfall and that could lead to sales
Open up retailing options online and then start business opportunities because of this too
Considering the marketplace dynamics and looking at the consumer segment and their price level of sensitivity and also the 'Innovator or market innovator' status which we need to create volumes and in so doing support growth and buy electric power, can be derived as AMAC as a business destination where price delicate consumers from all strolls get the real medicines and treatments for the least expensive price and has a pleasurable shopping experience'. This placement need to converse through various retail things, staffing, branding and communication and promotion strategy.
Right now, AMAC definitely has a good brand image. It ought to be increased more. This may only be reinforced with a friendly and energetic brand personality. This should echo in each knock and spot of the organization which may include the store layout, products, packaging etc. It should also be continued the vehicles possessed by the company, the catalogues and online website and materials distributed by the organization.
The offers offered done by AMAC are handing out flyers, then your sales executives venturing out and dispersing the name and fame of the business. Also by sponsoring major incidents in the united states, the name of AMAC reaches out in the market too.
A promotional strategy is very important to attain the following
Increase sales volumes
Removal of dead stock
It is a well known simple fact that the internet is the greatest shopping mall on earth these days. It is convenient for anyone to actually take a seat on a computer workplace and do all the shopping. Few people actually would prefer to venture out and do their shopping. In terms of AMAC, they can provide virtual treatment and offer medicines, or get the medicines delivered to them. Since AMAC already has a web site, they can set it up to get the queries of consumers online and provide the appropriate medicines online itself. That may something AMAC could produce.
As per the analysis and the suggestion given, this will be taken into consideration by AMC. This way they can prosper. An effective detailed approach should be used the suggestions given, and an in depth action plan needs to be organized. And another benefits with the growing economy of the UAE is that Al Manar Ayurvedic Middle will also develop along in terms of value, volume level, number of outlet stores and centers, and the devotion of consumers.