A STUDY ON STRATEGIC MARKETING PROSPECTS OF MEDICINAL AND AROMATIC PLANTS OF UTTARAKHAND

Abstract

Marketing of medicinal and aromatic plants can be seen with a specific view in relation to the specific elements of value chain starting from the growers who have to be well aware about the medicinal value of medicinal and aromatic plants, the value the medicinal species may generate by being used as a medicine, the processor who must be aware of the universalization and standardization of the quality and the scientific validation of the same, wherein the customer should also not look at medicinal and aromatic plants with a nonmedicine or with an alternative medicinal perspective. Apart from the aforesaid key members of the value chain there are very specific aspects related to other members also. This research work while understanding the nitigrities of medicinal and aromatic plants based products or medicines have tried to gauge the specificities related to the entire value chain while focusing on the research elements of the role of marketing in this sector along with projecting “a study on strategic marketing prospects of medicinal and aromatic plants of Uttarakhand” Marketing related to this sector to be seen with strategic perspective has given deep insights of strategic marketing planning of the medicinal and aromatic plants based products and medicines. It is estimated that more than three-quarters of the world’s population now consumes some form of herbal products and approximately 60% of modern pharmaceuticals and commercially available drugs contain plant-derived compounds. Following the sophisticated consumer interest in herbal and herbal healthcare products and extending market for herbal produces, the global industrial demand for MAP resources is growing by 15–25% annually. For 2017, the global trade value of MAP resources was estimated US$107 billion and is expected to reach US$ 5 trillion by 2050. Owing to the remarkable biodiversity, India is recognized as a mega hot spot of global biodiversity and MAPs constitute one of the fastest-growing segments of the alternative medicine markets in the country. However, 90% of India’s MAPs are wild-harvested, and 315 of the recognized medicinal and aromatic plants here are endangered due to destructive harvesting practices, absence of sustainable business interventions, and deficiencies in the marketing infrastructure and system, which further has limited the development of country’s MAP trade in a sustainable manner. Infusion of (a) recognition of need of systematic marketing VI in medicinal and aromatic plants sector, (b) structuralization of the marketing practices throughout the value chain, and (c) involvement of all the stakeholders throughout the value chain with respect to the holistic marketing framework is need of the hour, especially when prospective magnitude of the business as high as the data says. Uttarakhand comprises 701 (40.10% of IHR) recognized species of MAP resources, of which 28 species are categorized as Globally Significant Medicinal Plants (GSMP) by the government of Uttarakhand with an objective of cultivation and conservation from socioeconomic as well sustainability perspective. The abundance of MAPs in Uttarakhand is primarily credited to its suitable geo-climatic conditions and unique landscape. With reference to the trade perspective, currently the demand for Uttarakhand’s MAP resources is growing by 15-20% annually and in the year 2013 the marketing value of Uttarakhand’s MAP resources was recorded US$ 70 billion. Nonetheless, the value of this sector is anticipated more than US$ 1475 billion (Sati, 2013), if the future strategies for conservation, trade, and marketing may be aligned to the practices of sustainability. With reference to the socio-economic perspective, the biodiversity of Uttarakhand is considered as the leading source of livelihood and supplementary income, of which the medicinal and aromatic plants contribute 17%-35% household income for rural communities. In addition, for the emerging market of herbal products the trade and marketing of medicinal and aromatic plants is a profitable source of revenue generation for the State Government as well. Simultaneously the demand for Uttarakhand’s rich MAP resources is also continuously growing in the global market. The State Government has therefore formulated several policies and strategic plans to develop the MAP sector as a source of sustainable employment and economic development for the region’s rural communities. Research indicates that the MAP resources of Uttarakhand has a significant economic potential and there is a scope of market development which also is substantiated by the policies of the government to develop this sector. The sector is partially developed with reference to the contemporary marketing practices. Further, despite the significant efforts of all the stakeholders, participation of the primary producers, and high economic value of MAP resources the sector is facing marketing challenges. Although there is a little information about why this phenomenon occurs. Review of Related Literature: With reference to this research study, two major areas of literature were critically reviewed. First, literature on the medicinal and aromatic plants of Uttarakhand and literature on the role of marketing in sustainable resource management. VII The literature on the medicinal and aromatic plants sector of Uttarakhand indicates that the marketing imperfections associated with the business of MAPs is creating issues for sustainable resource management, commercialization, and for the entire value chain. As a result, the medicinal and aromatic plants sector of Uttarakhand is generating less value as compared to the foreseen potential. However, the second part of the literature, i.e. the role of marketing in resources conservation and sustainable development indicates that marketing does not lead to non-sustainable conditions and is helpful in promoting sustainable resource conservation and business prospects in the business of natural resources. The review of relevant literature and the critical summary combined with researchers’ previous experience and understandings has contributed to developing the conceptual framework for the design and conduct of this study. Research Gap and Research Objectives: Both the types of literatures illustrate contradiction and are paradoxical to each other as the literature review on MAP sector of Uttarakhand reveals that the marketing is creating issues for MAP sustainability in Uttarakhand and the literature review on the role of marketing for resource conservation and sustainable development reveals that the marketing is helpful in sustainable resource management. It seems that the marketing is not leading issues for MAP sector of Uttarakhand, because the previous research studies which deal with the trade and commercialization of MAP resources of Uttarakhand are mostly conducted with biological/botanical perspective (assumptions) without an understanding of the role of marketing for sustainable resources management. Hence the identified research gaps are; (a) what are the elements of marketing which may enhance effectiveness and value through the value chain of MAP businesses, (b) what role marketers have to play for the development of the said market and development of marketing opportunity, (c) what would be the instigating elements for effective realization of structuralization of marketing of the said sector. The above identified gaps duly considered marketing with the concurrent marketing definition framework and holistic marketing framework wherein society, environment, and sustainability is dully acknowledged. To throw light on the problem, the following research objectives are addressed; - To study the trade and marketing challenges of medicinal and aromatic plants business of Uttarakhand. - To identify the organized and unorganized paths of the value chain of the medicinal and aromatic plants business of Uttarakhand. VIII - To suggest marketing strategies for sustainable medicinal and aromatic plants business in Uttarakhand. - To develop the marketing mix strategies for medicinal and aromatic plants resources of Uttarakhand for market opportunity development and sustainable entrepreneurship in the sector. Research Methodology: Reflexive Methodology with Reflexive Pragmatism was used to conduct this research study. A purposeful sampling strategy (Lincoln and Guba, 1985) was used to select the study’s sample. The research sample includes two groups of the participants. First, 18 elite participants and second, 35 primary producers for interview and observations. The sample included individuals from policy making, trade, academia, chief executive officers, practicing scientist from various research and development institutions, state level boards, institutions of national importance and 35 primary producers form various rural locations of Uttarakhand. Document analysis, interviews (elite and general), and observations were used as an instrument for data collection. Findings: Corresponding to the objectives of the study, five key research findings emerged from this study from the responses and discussion with two groups of participants. First, an overwhelming majority of the participants indicated that the current marketing arrangements for medicinal and aromatic plants businesses are imperfect in Uttarakhand, therefore criticizing marketing for non-sustainable conditions in the sector is irrelevant. Second, the majority of the participants expressed that the value chain of medicinal and aromatic plants businesses exist but is negligible in Uttarakhand. Third, all participants indicated that many key paths of the value chain of medicinal and aromatic plants businesses are unorganized in Uttarakhand. Fourth, all participants also cited the need of strategic marketing prospects for developing sustainable medicinal and aromatic plants businesses in Uttarakhand and suggested the strategic cues. Fifth, the overwhelming majority of the participants indicated that the delineation of marketing mix strategy is practical and promising for the medicinal and aromatic plants resources of Uttarakhand through existing traditional knowledge, scientific understanding, market trends, and involvement of herbalists, primary producers, and traditional healers in order to facilitate the opportunities of sustainable resources management and entrepreneurship in the sector. Analysis, Synthesis, and Discussion of Findings: In line with the objectives of this research study supported by the conceptual framework four analytical categories were used to analyses, synthesize and discuss the findings. First, developing an integrative perspective on the various IX challenges of medicinal and aromatic plants business of Uttarakhand to facilitate the systematic marketing. Second, efforts are necessary to develop the unorganized path of the value chain into organized path for strengthening the sustainable business of MAPs, primary producers and sustainable resources management. Third, strategic marketing prospects are required for sustainable marketing and conservation of medicinal and aromatic plants resources in Uttarakhand. Fourth, marketing mix is essentially needed for establishing the Opportunity of Sustainable entrepreneurship in the medicinal and aromatic plants sector of Uttarakhand. Conclusion and Recommendations: This study concludes that the integration of elements of marketing is practically absent in the MAP trade of Uttarakhand and the value chain is negligible in the businesses of medicinal and aromatic plants resources of Uttarakhand. The unorganized path of the value chain needs attention for generating value and sustainable growth in the medicinal and aromatic plants sector of Uttarakhand. Strategic marketing is needed and delineation of marketing mix strategy will facilitate market opportunity development in Uttarakhand MAP resources. Finally this study recommends specific marketing strategies for sustainable MAP business in Uttarakhand