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Market Report
The chosen product for this report is Mental Stimulant Syrup, child care range Angel, from
Dacia Plant. According to the company description, the supplement is recommended for
children aged 5 to 14 years, for the optimal functioning of concentration and memory, as well
as improving school performance (Dacia Plant, 2013). According to Dacia Plant this product
is one of the best-selling item. The major reason for selling this syrup and generally for any
vitamins and supplement products is the rapid extension of health products. Moreover, being
exclusively made from plants, the product is popular among customers as in the last years a
growing trend in health and environment awareness had been observed- 85% of the dietary
supplements marketed in Romania contain single or mixed herbs (Mediafax, 2013). Dacia
Plant and their products are one of the beneficiaries of the Operational Programme 'Increase
of Economic Competitiveness' of the European Union. In Romania the estimated value of
supplements and vitamins market is 250 million of euro (12.5 euro/person). In a public
statement the Director of the National Service for Medical, Aromatic Plants and Products of
the Hive declared that most of consumers are young people eager for pleasant appearance,
older people with limited financial possibilities, pregnant women, children, media consumers
(Mediafax, 2013). Regarding the Maslow`s hierarchy of needs, the mental stimulant syrup is
part of the safety category (Research History, 2012). People use the product to improve their
health and gain respect in social groups as learning skills are improved.
In the last years Dacia Plant became one of the most well-known companies selling plant-
made supplements. The 250 products are distributed in over 3000 shops in Romania, all the
crops being bio/organic certified. The company uses no treated and chemical processed
plants, no dyes, preservatives, flavours or artificial sweeteners. The research team has 150
members with specialisations in alimentary and medical field, they participating
concomitantly in medical congresses in order to promote their reports and products. The
2012 turnover was 24.070.523 RON 4.440.843 (International Business Promotion, 2012).
The target market for this product is United Kingdom, a country where the market for
vitamins, minerals and supplements (VMS) has been affected by the global economic
downturn of 2008 as any other industry sector. In spite of this fact, the market has been
sustained by certain consumer groups analysed later on. During recession the total value of
sales grew by 3.9% in 2013, after a rise as well of 2% in 2012 (Key Note, 2013). According
to a report carried out by the market analyst Mintel although 18 million Brits take
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vitamins/supplements on a daily basis, an additional 16 million are occasional users or have
not taken them in the last 12 months. If frequency can be encouraged, the overall value of the
market will see strong growth (Mintel, 2013). The suitability of the product in UK market is
increased as well by the positive predictions. The predicted rise in the population of the
youngest segments suggests that more people will be buying age-specific
vitamins/supplements- children aged 5-9 (recommended ages for product) are expected to
grow in number by 9.6% in 2018. Therefore the market is predicted to grow by 14.7% to
468 million to 2018, with growth coming from the continued baby boom (Mintel, 2013).
The product will be marketed to a specific sector of the targeted market. Parents aged 25-34
are most likely to give vitamins/supplements to their children. Only 30% of this age group
dont give vitamins/supplements to their children compared with 53% of 16-24-year-olds.
Additionally, parents are more likely to give vitamins/supplements to younger children than
older children. Boosting health in general, boosting immune system and most importantly
improving brain function are the most important reasons why parents give
vitamins/supplements to their children (Mintel, 2013). The mental stimulant syrup will
therefore be marketed to parents, both single and married, middle and upper middle class
representing over 60% of the consumers in 2012 as the aforementioned report explains.
Regionally, the highest levels of penetration (both occasional and heavy users of vitamins or
supplements) were found among people living in East Anglia. (Key Note, 2013). Even
though the principally effect of the product is the mental stimulation and it will not be
marketed as a remedy for any specific illness or disease, being made exclusively from plants
it can be used as well to reduce fatigue and agitation. It has been reported an improvement in
the behaviour of ADHD (Attention deficit hyperactivity disorder) affected children (Dacia
Plant, 2013). ADHD is the most common behavioural disorder in the UK, and is estimated to
affect 2-5% of school-aged children and young people (National Institute for Health and Care
Excellence, 2013).
The British Government and the health sector offer a certain amount of support for the VMS
market. Healthy eating and more active lifestyles have become major issues in todays
society, because of the so-called obesity epidemic. Figures from the Department of Health
(DH) have revealed that the number of children who are overweight or obese doubles during
their time at primary school. According to the DH, the majority of the population in England
is overweight or obese. This includes 61.3% of adults and 30% of children aged between 2
and 15 years old. Obesity currently costs the National Health Service (NHS) more than 5bn
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every year. The Government in England launched its Change4Life scheme in 2009, aimed at
tackling the causes of obesity and improving diet and fitness levels among the UK
population. The campaign uses the slogan Eat well, Move more, Live longer, and is
supported by the DH in partnership with major food and grocery companies, including ASDA
(owning its own pharmacies) and Kellogg (NHS, 2014). The product will benefit from this
campaign because it can be used as a part of daily nutrition as a supplement.
Regarding product distribution, several strategies are suggested. The mental stimulant syrup
will be firstly sold via direct online marketing as UK`s number of internet buyers is growing.
According to Mintel direct selling saw growth of 11% in 2012 (Mintel, 2013). Websites as
Inner Me and My Vitamins are offering discounts to consumers purchasing bundles of
products, therefore as the product is designated for children, it could be included in All
Family Packages. Women always represented a category of constant consumers, but from
2010 men`s vitamins and wellbeing products begun to gain attention. Customer relationship
and loyalty can be built by social media. Facebook pages giving tips for parents in coping
with kids` energy and problems, as well as recommendations from experts. Almost half
(47%) of people who use vitamins/supplements to improve brain function research for
information and go to health professionals for advice (Mintel, 2013). Secondly, the syrup will
be made available to customers in chemists and drug stores, the first point of distribution for
vitamins and supplements, with a market share of 37% of the total industry. The sector is
dominated by Alliance Boots as the abolition of resale price maintenance (RPM) for over-
the-counter (OTC) medicines in 2001 led to a growth in sales of VMS products through
grocery multiples (Key Note, 2013). Due to this action, competition and fragmentation of
the market are at high level. Major producers of multivitamins in the UK include: Vitabiotics,
Seven Seas, Bayer and Wyeth. Bayer and Seven Seas are leaders in the market, their products
designated for kids having an average price of 6 (Price Runner, 2014). The price in Romania
is 18.89 RON- 3.48/ 200 ml, therefore the product will enter the market at a lower price than
any other products being in the same time bio certified. Over time, according to sales results,
in the future the company could develop larger quantity packages with increased prices to add
diversity to the product range and customers` needs.
In conclusion, Mental Stimulant Syrup, child care range Angel, from Dacia Plant would be
suitable for the British market. As shown in the report, despite of the negative effects of the
economic crisis from 2008, the market is expected to reach 493.5m in the year ending mid-
April 2018, up by 19.4% from the same period in 2014 (Key Note, 2013). Another advantage
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is the baby boom effects and growth of the young population as well as the shift towards an
active lifestyle, in order to reduce levels of obesity. Even if other competitors are present in
the market, the low price and bio certification will boost the success of the product. Market
penetration will occur easily, by both using online and in-store marketing as distribution
channels, allowing diversification and product development as well.
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Bibliography
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http://www.daciaplant.ro/sirop-stimulent-mental-122005--p181159.html#despre
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http://www.nice.org.uk/newsroom/pressreleases/CareAndSupportForPeopleWthADHDMus
tBeImprovedSaysNICE.jsp
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needs/