Presentation on Porters 5 forces on Hajmola

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Information about Presentation on Porters 5 forces on Hajmola

Published on March 14, 2014

Author: unitedworldmba



Presentation on Porters 5 forces on Hajmola


Michael Porter’s 5 forces

What is the model about? • This tool was created by Harvard Business School professor. Michael Porter. • To analyze the attractiveness and likely- profitability of an industry/company. • By studying the structure of the model and dynamics between these forces, a company can discover opportunities for improving upon your strategies.

PRODUCT INFORMATION •Tasty Digestive Tablets •Launched in 1978 •Chatpata Flavour that stimulates digestion •Originally Ayurvedic •Mix of Indian herbs and spices •Can be taken at anytime of the day •Has health benefits such as increasing appetite

Michael Porter’s Five Forces Model

COMPETITION WITHIN THE INDUSTRY  In the industry of digestive tablets, Dabur Hajmola faces competition from Satmola, Aam Pachak, Churan, Anardana, etc  However, we find Dabur Hajmola is always preferred when it comes to brand preference.  Customers prefer a packed container of Hajmola than Churan sold openly on roadside.  Swad had been there in the market before Hajmola entered. However, Hajmola seized the market.

NEW ENTRANTS Companies like Himalaya Drugs, S.S.G Pharma, Ajit Ayurvedic and Anil Industries had entered the digestive tablet market with products much after Hajmola came into the market. Entry barrier is high. So competition is low. Dabur Hajmola did not have to worry about stiff competition. It is still the market leader.


THREAT FROM SUBSTITUTES Substitutes of digestive Hajmola are many in the market, in the form of antacid tablets, ENO salt ,jal jeera or even a Thums Up for that matter. ENO comes in inexpensive sachets and many customers prefer washing down heavy food with a glass of cold drinks. Even though Hajmola doesn’t face stiff competition within the industry, it must concentrate on its substitute markets.

BARGAINING POWER OF BUYERS Customers mainly bargain for price considering the quality, quantity, brand and availability of the product. Since , Dabur Hajmola has many substitutes, it becomes very important to retain customer base. Hajmola, earlier available only in Re.1 pouches having 6 tablets now come in Rs.20 containers for each flavour, its consumption spread over a week.

 The Hajmola candy is also very popular.  Hajmola also came up with different flavours the current being pudina, along with kachcha aam, imli.  Other than the chatpata flavours of the Candy, it has also introduced the Hajmola MintMasti which has the mint flavour.  The likes of Amitabh Bachhan and Ajay Devgan are engaged to advertise and build brand image. Conti……

BARGAINING POWER OF SUPPLIERS Raw materials mainly used to make Hajmola are the different Indian spices and herbs. These find uses in the making of other food also. They are the essentials of cooking and hence , have mass demand. In such a case, bargaining power of the suppliers of such herbs and spices is high. The suppliers of containers also have a strong bargaining power.

Porter’s five forces model has helped us to analyze Dabur Hajmola’s position in the digestive tablet market. It has been able to capture the market and has been successful in retaining strong customer base. This model also helps to make a SWOT analysis of the brand and hence work out the brand positioning of Hajmola. Hajmola, one of the strongest brands in Dabur’s portfolio. The brand has extended itself to candy and other forms of digestives as well. Apart from a new price point, a new format like candy (has) brought new consumers, mostly kids, into the brand fold.

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