Friday, February 1, 2013

Blue Ocean Strategy in Indian Herbal Medicine for liver treatment

More than 25 years ago, when Kamalahar (Herbal or Ayurvedic medicine for the treatment of liver disorders such as hepatitis, cirrhosis, fatty liver, ascites and jaundice) was first created, no one envisioned that it will one day reach and cure the patients of USA, UK, Malaysia, etc. For a long time the reach of the product was limited to states in the eastern part of India. It was the launch of new strategy in October 2010 that opened up the new market space for the product.

The product first expanded its reach to whole of India. Marketing cost is a big component of product cost for over the counter products if you want to reach all the nooks and corners of a country and more so for a country like India which is huge. The strategy was to reach all the corners of India and make it very easy for customers to order the product. The order system was designed keeping mind the limitation of Indian eco-system. There were some initial hiccups but they were corrected over time.

Once the model was tested for Indian market, it was expanded to other parts of the world. It took little additional cost to expand the reach. The only limitation right now for the overseas market is the difference in regulations in different countries with regards to importing of Ayurvedic or herbal medicine. Kamalahar has seen good growth in countries which are friendly to herbal medicines. In countries which are not so friendly, the buyers have to go through a pain point whereby they have to undergo the inspection by local authorities. Hopefully with time the company will be able to overcome the hurdle.


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