Himalaya

Piangchai Ferstand
Himalaya Shampoo
Bus 5060

Himalaya Drug Company has positioned itself as a brand that provides a very strong line of products based on natural concepts. They take the belief that a holistic approach to hair care and balance should be used. The brand by profile is targeted for consumers in high and mid market range. This product line has global presence. In past the branding of the product lines was different in different geographies. Company management has recently put all the products under a single umbrella brand called “Himalaya” to avoid any confusion.

Himalaya offers shampoo and hair care products as listed below;

1. Protein-based shampoo
2. Hair de-tanglers
3. Conditioners
4. Anti Hair fall
5. Anti-dandruff

1. Based on the above facts one strategy is evident. The shampoo brand should be positioned for the high and mid-market segments. The shampoo brand should also withhold the Ayurvedic concepts for other then local markets. This will ensure the compatibility of Himalaya shampoo with other Himalaya products locally as well as offer a overseas market plan.

Exhibit 1 From the answers provided I can see the following.

1. The responses indicated that the protein is an important content in shampoo. They feel that protein is not harmful for their scalp or skin and required.
2. Most felt the herbal shampoos are generally high with required protein.
3. People with long hair considered conditioners was very important for stronger hair.
4. Respondents using Herbal shampoo felt that Hair oils were as important as the shampoo itself.
5. Most felt that dry hair requires extra nourishment and moisturizing.

Based on the survey response Himalaya shampoo should market the fact that their product includes protein in their shampoos. Given the variety of products that Himalaya as a brand sells it should develop combination packs in marketing and show how they complement each other. Most customers would appreciate an offering that bundled all their needs.

2. It was reported in the case study the market consumption volumes reported an increase of 12.3% between 2006 and 2010, 1.9 billion units in 2010. It was also reported in that report that by 2015 the number of units will increase to 3 billion. This indicates projections of strong growth however there is still a foreign market to overtake .

It was also stated in the case study that the penetration for Shampoo is already 100% in urban India. The penetration rose to 18% in rural areas. This would mean there is growth in rural areas. However more is required.

3. The facts derived from the survey and sales would indicate that the rapid urbanization and increasing purchase power in the rural areas will fuel additional growth. This market is still widely open and opportunity to brand a segment to target. The higher income group of rural areas can be associated with the mid-segment market found in urban areas. Himalaya as a part of strategy should target the high income group of rural areas. Marketing themselves as a top brand. Himalaya should increase the distribution reach in rural areas. Himalaya should market itself as a top end product for urban customers as well.

4. Exhibit 3 depicts that Himalaya Shampoo is an excellent Ayurvedic shampoo. Ayurvedic medicine is a system of Hindu traditional medicine, is native to the Indian subcontinent, and is a form of alternative medicine. The shampoo is also eco friendly. As a branded shampoo it plays on ethics. Since it is recommended more by specialists they are missing part of a large market.
The shampoo generates no excitement and no celebrity endorses it. It is stated in the case study that the 2 age groups: Below 20 and 20-29 years are more willing to try innovative products. Based on the exhibit 2 the only add framed by Pantene depicted the innovation.

5. Himalaya shampoo should alter its advertisement plans. It should ensure that even if there is no celebrity endorsement or if they are not willing to spend money to get them the innovation part should be delivered for the young age groups. There seems to be greater potential in attracting younger consumers.

Proposals for Himalaya shampoo brand positioning

1. Protein content should be highlighted in the product
2. Herbal values should be maintained intact
3. In advertisements for India the innovation should be given preference ensuring that the ayurvedic values are intact. The advertisement should be attractive to young age groups (below 20 and 20-29)
4. In advertisements for global consumers they might want to drop the ayurvedic values since they are not known or understood outside of India.
5. Combo packs should be offered for the customers. It should be marketed as one-stop shopping products. Conditioners have strong growth and consumption.
6. Target customer segments who are looking for modern, natural innovative products on the higher end of offerings. They have the money to spend.
7. Himalaya should increase the distribution reach in rural areas as there is a large untapped market there still.