56790001 Marketing Plan

MARKETING PLAN HIMALAYA’s SKIN CARE PRODUCTS

BY, N.SAVITHRI(1042323) N.SRUTHI SARANYA(1042335) K.C.TAMILSELVI(1042340) I MBA- B SECTION Table of Contents

1.

Executive Summary..................................... Summary............................................................................. ................................................... ............01 .01 The Product............................................................................... Product............................................................................... ..01 1.1.

1.2. 1.3.

The Target Market.............................................. Market.......................................................................01 .........................01 Why the Target Market Needs This Product...............................01 Product...............................01

2.

Company Background................................. Background.............................................................. ........................................ ...................... ............. 02 Brief Company History........................................................... History...............................................................02 ....02 2.1. Mission Statement.............................................. Statement.......................................................................03 .........................03 2.2.

3.

Situation Analysis.............................................................................................04 Environmental Analysis............................................................ Analysis............................................................ ..04 3.1. Environment.................................................................... ......................................04 .........04 3.1.1. Social Environment....................................... 3.1.2. Economic Environment......................................................................04 Environment.................................................................05 .......................05 3.1.3. Demographic Environment.......................................... Environment................................................................05 .......................05 3.1.4. Technological Environment......................................... Environment...................................................................05 ............................05 3.1.5. Competitive Environment....................................... SWOT Analysis..........................................................................06 3.2. 3.2.1. Strengths.............................................................................................06 3.2.2. Weaknesses.........................................................................................06 3.2.3. Opportunities......................................................................................07 3.2.4. Threats................................................................................................07

4.

Segmentation Strategy.....................................................................................08 General Product Market Characteristics.....................................08 4.1. Cycle..............................................................................08 .08 4.1.1. Product Life Cycle............................................................................. 4.1.2. Type of product: convenience, shopping, specialty, etc ....................10 Possible Market Segments..........................................................10 4.2. 4.2.1. Segment 1...........................................................................................10 4.2.1.1. Geographic..................................................................................10 4.2.2. Segment 2...........................................................................................10 4.2.2.1. Behavioral...................................................................................10 4.2.3. Segment 2...........................................................................................10 4.2.2.1 Demographics..........................................................................11

Approach to Segmentation...................................... Segmentation........................................................ ....................12 ..12 Approach and Reasoning for It......................................................... It...........................................................12 ..12 Selection of Target Market(s).............................................................14

4.3. 4.3.1. 4.3.2.

5.

Strategic Focus and Plan.................................................................................15 Core Competencies.....................................................................15 5.1. Sustainable Competitive Advantage...........................................15 5.2.

1.2. 1.3.

The Target Market.............................................. Market.......................................................................01 .........................01 Why the Target Market Needs This Product...............................01 Product...............................01

2.

Company Background................................. Background.............................................................. ........................................ ...................... ............. 02 Brief Company History........................................................... History...............................................................02 ....02 2.1. Mission Statement.............................................. Statement.......................................................................03 .........................03 2.2.

3.

Situation Analysis.............................................................................................04 Environmental Analysis............................................................ Analysis............................................................ ..04 3.1. Environment.................................................................... ......................................04 .........04 3.1.1. Social Environment....................................... 3.1.2. Economic Environment......................................................................04 Environment.................................................................05 .......................05 3.1.3. Demographic Environment.......................................... Environment................................................................05 .......................05 3.1.4. Technological Environment......................................... Environment...................................................................05 ............................05 3.1.5. Competitive Environment....................................... SWOT Analysis..........................................................................06 3.2. 3.2.1. Strengths.............................................................................................06 3.2.2. Weaknesses.........................................................................................06 3.2.3. Opportunities......................................................................................07 3.2.4. Threats................................................................................................07

4.

Segmentation Strategy.....................................................................................08 General Product Market Characteristics.....................................08 4.1. Cycle..............................................................................08 .08 4.1.1. Product Life Cycle............................................................................. 4.1.2. Type of product: convenience, shopping, specialty, etc ....................10 Possible Market Segments..........................................................10 4.2. 4.2.1. Segment 1...........................................................................................10 4.2.1.1. Geographic..................................................................................10 4.2.2. Segment 2...........................................................................................10 4.2.2.1. Behavioral...................................................................................10 4.2.3. Segment 2...........................................................................................10 4.2.2.1 Demographics..........................................................................11

Approach to Segmentation...................................... Segmentation........................................................ ....................12 ..12 Approach and Reasoning for It......................................................... It...........................................................12 ..12 Selection of Target Market(s).............................................................14

4.3. 4.3.1. 4.3.2.

5.

Strategic Focus and Plan.................................................................................15 Core Competencies.....................................................................15 5.1. Sustainable Competitive Advantage...........................................15 5.2.

5.3.

General Marketing Strategies............................................ Strategies......................................................16 ..........16

6.

Market Research..............................................................................................17 Research Plan............................................................................ Plan............................................................................ ..17 6.1.

7.

Marketing Program..................................... Program........................................................................... .................................................. .............. .. 18 7.1............................................................................................. Positioning .18 Product Strategy........................................................................ Strategy........................................................................ ..18 7.2. Name........................................................................ ............................ ............…19 …19 7.2.1. Brand Name........................................................ Benefits..........................................................................19 ............................19 7.2.2. Features and Benefits.............................................. 7.2.3. Points of Differentiation.................................................................…19 Cycle........................................................................ ..…20 7.2.4. Product Life Cycle........................................................................ Price Strategy..............................................................................20 7.3. Str ategy......................................... ...................................................... ............................20 ..20 7.3.1. General Pricing Strategy............. 7.3.2. Comparative Pricing...........................................................................21 7.3.3. Price Reactions...................................................................................22 Distribution Strategy.................................................................. Strategy.................................................................. .22 7.4. 7.4.1. Obtaining Materials............................................................................23 7.4.2. Warehousing.......................................................................................23 Customers...................................................................23 ...23 7.4.3. Distribution to Customers................................................................ 7.4.4. Intermediaries.....................................................................................24 7.4.5. Transportation.....................................................................................24 Processing................................................ .............................................................25 .................................25 7.4.6. Order Processing.................... Promotion Strategy................................................. Strategy......................................................................25 .....................25 7.5. Objectives.................................................................25 ............................25 7.5.1. Communication Objectives..................................... Advertising................................................................... ....................................................25 .......................25 7.5.2. Advertising...................................... Strategy.........................................................................25 .........................25 7.5.2.1. Creative Strategy................................................ Appeals........................................................................ .............................................26 ................26 7.5.2.2. Appeals........................................... Eff orts................................................. ............................................... ....................26 ..26 7.5.2.3. Competitive Efforts.................... Vehicles.................................................................. .......................................27 ..........27 7.5.2.4. Media Vehicles..................................... Ad...................................................................................... .27 7.5.2.5. Print Ad...................................................................................... 7.5.3. Personal Selling..................................................................................27 Promotion................................................................................ ..27 7.5.4. Sales Promotion................................................................................ Relations................................................................................ ..28 7.5.5. Public Relations................................................................................ 7.5.6. Publicity..............................................................................................28

8.

Evaluation and Control......................... Control.................................................................... ...................................................... ............... .... 28

8.1.

Implementation...........................................................................28

Supporting Documents Appendix A – Perceptual Map Appendix B – Sample Ad......................................................................................29 Ad......................................................................................29 Appendix C – Gantt Chart Appendix D – Market Research Forms...............................................................30 Forms...............................................................30

MARKETING PLAN  HIMALAYA – COSMETICS – SKIN CARE 

1. EXECUTIVE SUMMARY: 1.1 THE PRODUCT:

The product chosen for generating a marketing plan is from the company “HIMALAYA (Herbal Healthcare)” classified under the skin care segment. T he skin care is an area which broadly covers products that are related towards the teenagers such as skin nutrients, soaps, face packs, face washes, lip slaves and fairness creams. 1.2 THE TARGET MARKET:

The Himalaya’s skin care production concentrates deep into the r equirements of  the teenagers where they maintain a unique standard of producing the products using herbal ingredients that does not affect the skin of the user. 1.3 WHY THE TARGET MARKET NEEDS THE PRODUCT:

The target market as stated before are the teenagers who expect the product to be more of herbals rather than chemicals that spoils their skin. Himalaya thus  produces products that are more towards personal skin care that protect the consumers from inside, air conditioning and central heating dehydrating skin, Outside, a chemical cocktail with every breathe. Thus the products produced are well satisfied with the consumers’ expectations thereby providing them with a healthy nourishing skin.

2. COMPANY BACKGROUND 2.1 BRIEF COMPANY HISTORY ABOUT THE COMPANY:

The Himalaya Drug Company was founded in 1930 by Mr. Manal with a clear vision to bring Ayurveda to society in a contemporary form and to unravel the mystery behind 5000 years old system of medicine. The company has focused on developing safe, natural and innovative remedies that will help people lead richer & healthier lives. Today Himalaya products have been endorsed by over 2, 50,000 doctors around the globe and consumer in 59 countries rely on Himalaya for  their health and personal care needs. HISTORY:

1930 - Mr. M Manal formed the Himalaya Drug company. 1934 - Launch of Serpina,the world’s first hypertensive drug. 1955- Liv 52, a hepatoprotective drug is launched and goes on to become one of the world’s top selling drug. 1975- An advanced manufacturing facility is set up in Bangalore. 1996 - The company opens its US office at Houston, Texas. 1998-The animal livestock is launched.

health

product

range

for

2001 – The company adopts a new unified brand equity. 2005 – Himalaya celebrates 75 years.

2.2 MISSION STATEMENT:

commercial



Establish Himalaya as a science-based,problem-solving,head-toheel brand,harnessed from nature’s wealth and characterized by trust and healthy lives.



Develop markets worldwide with an in-depth and long-term approach,maintaining at each step the highest ethical standards.



Ensure that each Himalaya employee strongly backs the Himalaya  promise to exceed the expectations of the consumer, each time and every time. Nothing less is acceptable.

3.SITUATIONAL ANALYSIS:

3.1 ENVIRONMENTAL ANALYSIS 3.1.1 SOCIAL & CULTURAL ENVIRONMENT:

Cultural factors might include the way people perceive the Drugs should be for their family. The upper middle class population, i.e. Himalaya Healthcare target segment is however relatively sensitive to cultural factors as the people often have different demand of the Drugs they purchase. However if Himalaya Healthcare is looking to target other income population as well, then this factor would gain a higher prominence. 3.1.2 ECONOMIC ENVIRONMENT:

In addition, the uncertain exchange rate and a sudden increase in dollar value against Indian rupee have contributed to the slowdown. Increasing dollar value has raised the landed cost of imported machine tools and even raw materials required for production by about 14%. To make the matter worse, it is believed that pharma manufacturers across the country are looking for re-imposition of custom duty on pharma. Increased cost of raw materials directly affects the cost of the Drugs rolled out, eventually tagging a particular Drugs model with a higher   price tag, hence Himalaya has to look towards tackling the cost to serve the customers. 3.1.3 DEMOGRAPHIC ENVIRONMENT:

This as a macro environmental factor has a very positive impact on Himalaya Healthcare drugs as the upper middle class people believe in  purchasing the quality product that can suit their class. The target segment for  Himalaya Healthcare as identified earlier is primarily the upper middle or  higher class. This segment of the population has a high disposable income and  prefers high value in the product.

3.1.4 TECHNOLOGICAL ENVIRONMENT:

The technological factors will play a very vital role in the future growth of Himalaya Healthcare. The engineers from Himalaya Healthcare worked at close quarters with their foreign counterparts in the development of the Himalaya Healthcare drugs, much like that for  other competitors.

3.1.5 COMPETITIVE ENVIRONMENT:

Major competitors of Himalaya Health care includes Dabur, CavinKare, Paras pharmaceuticals,etc., The manufacturing costs & processing costs are high and also there is huge competition from synthetic brands. So, Himalayas have to overcome all these issues in making their products better than the competitors.

3.2 SWOT ANALYSIS 3.2.1 STRENGTHS:

 Wide

range of products- Pharmaceutical, Personal care,

Animal care.  Strong

brand image & global presence.

 Strong

distribution channels, International consignment

delivery within 48 hours.  R&D-Regulatory

certifications USFDA Quality assurance

through GMP,GLP & GCP.  First

company to produce 100% herbal baby products.

3.2.2 WEAKNESS:

 Basic

image of Himalaya as an herbal health care company.

 Limited

no of botanical supplier and inappropriate methods

of collection and storage leading to sub optimal levels of  active constituents.  Quality

constraint.

3.2.3 OPPORTUNITIES:

 Huge

demand of herbal and Ayurveda products in

International market.  Untapped  Next

rural market.

to IT & Biotechnology research in medicinal plants

should emerges as the most sustainable growth sector in the years to come.  Targeting

diabetic patients.

3.2.4 THREATS: 

Major competitors-Dabur,Cavinkare,Jyothy laboratories,Paras Pharmaceuticals,Zandu.

 Manufacturing  Competition

costs & processing costs are high.

from synthetic brands.

4. SEGMENTATION STRATEGY 4.1 GENERAL PRODUCT MARKET STRATEGY: 4.1.1 LIFECYCLE OF THE PRODUCT:

The product life cycle goes through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. Product life cycle (PLC) has to do with the life of a product in the market with respect to  business/commercial costs and sales measures. To say that a product has a life cycle is to assert three things: 

Products have a limited life,

Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller, 

Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage. 

The four main stages of a product's life cycle and the accompanying characteristics are: Stage

1. Market introduction stage

2. Growth stage

Characteristics

1.

costs are very high

2.

slow sales volumes to start

3.

little or no competition

4.

demand has to be created

5. customers have to be prompted to try the  product 6.

makes no money at this stage

1.

costs reduced due to economies of scale

2.

sales volume increases significantly

3.

profitability begins to rise

4.

public awareness increases

5.

competition begins to increase with a few new

 players in establishing market 6.

increased competition leads to price decreases

1. costs are lowered as a result of production volumes increasing and experience curve effects 2. sales volume peaks and market saturation is reached 3. 3. Maturity stage

increase in competitors entering the market

4. prices tend to drop due to the proliferation of  competing products 5. brand differentiation and feature diversification is emphasized to maintain or increase market share

4. Saturation and decline stage

6.

Industrial profits go down

1.

costs become counter-optimal

2.

sales volume decline or stabilize

3.

prices, profitability diminish

4. profit becomes more a challenge of   production/distribution efficiency than increased sales

4.1.2

TYPES OF THE PRODUCT:

The Consumer products are classified into 4 types as mentioned above. The  product of Himalaya’s can be classified into Convenience and Shopping  products where the demand for the product is high and there is a mass

advertising made for those products. There are many outlets present for the  purchase of the products.

4.2 POSSIBLE MARKET SEGMENTS 1. GEOGRAPHIC: 

Area: Metropolitan cities and towns The company has targeted metropolitan cities and town because of   population and consumer knowledge about the product is considerable and towns are upcoming business places. As the products from the company are  purely made of herbal the end users must be well educated in order to know about the advantage of using a herbal skin care product.

2. BEHAVIORAL: 

Occasions: those who go to schools, colleges, offices



User Status: Regular usage for better results



Attitude towards the product: a necessary part of everyday skin care treatment.



Benefits: the products in the Himalaya skincare has used its wealth of  knowledge and research, in natural herbal remedies, to formulate a range of   personal care products that cater to your daily needs. The products are from natural herbal ingredients that can be used daily and causes no side effects. A gentle blend of herbal extracts that restores skin vitality re-hydrates the skin and keeps the user to feel fresh all the day long.

3. DEMOGRAPHICS: 

Age: 16-26 The target customers are teenagers and those who give importance to their  skin and who are well aware of the herbal products and its importance.



Education: Students or Graduates

As mentioned earlier the product entirely deals with the ingredients of herbal and natural materials and thereby the end-users must be educated to know about the importance of the products and its use. 

Sex: Unisex The product was launched for usage of both male and female to protect their skin from the polluted environment.



Occupation: Students and office goers The company has targeted these people because the objective is to target the students and young office goers as they will be more concentrated towards their beauty and skin care.



Lifecycle: single and married male and female Any one of the above mentioned target audience are those who will care for  their skin and those who don’t mind spending for their personal skin care  products that will give them a feel of esteem



Social Class: Middle and Upper class people People having enough money to afford for the product are the upper and middle class as the cost of extracting and manufacturing products of herbal ingredients is high compared to other chemical skin care products.

4.2 APPROACH TO SEGMENTATION:

4.2.1 APPROACH AND REASONING FOR IT:

Variables can be determined by management  perception of business opportunities, because of the “world view” that managers have of their business world. In its simplest form, this sometimes leads to segmentation models that are based on a single criterion, such as which product a customer purchases, or the region of the country where a customer or prospect resides. Alternatively, complex multivariate models can be developed with this approach where project managers select measures based on an a priori view of the factors perceived as most relevant in differentiating customers and prospects. Determining the variables to use in a segmentation model can also be done on the basis of statistical criteria. Many different statistical techniques, as well as outcome measures, may be used to determine the variables that are ultimately used in the segmentation analysis. The steps involved in Customer Segmentation Approach are: STEP 1 - Define core (defining) vs. non-core (fine-tuning) parameters:

Question is on what are the top line parameters, which will make a difference to your strategy. The following could be among your defining segmentation  parameters: •

•

•

Income group (lower income groups will be higher potential customers), Usage patterns (a higher usage is expected as that will give you good revenue on lower margins), Risk profile (you cannot have a high risk with low margins)

STEP 2- Customer Segmentation at single core parameter level

One can first identify the customer segments at a single parameter level. This means that one should make multiple sets of customer segments: •

•

•

One set of segments for their risk profile. (high risk, medium risk, low risk..) One set of segments for product affinity. (Market basket analysis..) One set of segment for Existing/potential value/profitability. (High value, medium value, low value..)

STEP 3- Customer segmentation across multiple core parameters:

You can now make next level groupings on combination of multiple parameters. This will generate clusters of customer segments. A customer in this case will  belong to a single cluster, for a given combination parameters. STEP 4- Validate the Segment clusters, and churning out the invalid OR  sparse combinations of core parameters

You can take out the combinations which are either invalid combination OR are sparse combinations (with very few customer belonging to it) STEP 5- validate your actions, to go through the re-iterations

Once you get the details on how many customers are lying in a given combinations of parameters, you will do the following: •

•

Check if the numbers of customers in each cluster, are aligned to your  strategy Assumptions Check the possible actions on these segment are aligned to your SWOT: Let’s say that you have a cluster of customer, which will demand a major  change in the way your product is to be designed. If you feel that you that  product design is your weakness, you may like to nullify this cluster and redefine your segmentation strategy.

STEP 6 - Repeat Step 1 to Step 5

4.3.2 SELECTION OF TARGET MARKET(S):

Target marketing tailors a marketing mix for one or more segments identified by market segmentation. Target marketing contrasts with mass marketing, which offers a single product to the entire market. Two important factors to consider when selecting a target market segment are the attractiveness of  the segment and the fit between the segment and the firm's objectives, resources, and capabilities. The following are some examples of aspects that should be considered when evaluating the attractiveness of a market segment: •

•

•

•

•

•

•

•

Size of the segment (number of customers and/or number of units) Growth rate of the segment Competition in the segment Brand loyalty of existing customers in the segment Attainable market share given promotional budget and competitors' expenditures Required market share to break even Sales potential for the firm in the segment Expected profit margins in the segment

TARGET MARKET STRATEGIES:

There are several different target-market strategies that may be followed. Targeting strategies usually can be categorized as one of the following: •

Single-segment

•

Selective specialization

•

Product specialization

•

Market specialization

•

Full market coverage

5. STRATEGIC FOCUS AND PLAN 5.1 CORE COMPETENCIES:

Core competencies are those capabilities that are critical to a business achieving competitive advantage. The starting point for analyzing core competencies is recognizing that competition between businesses is as much a race for  competence mastery as it is for market position and market power. Thus establishing core competencies for a business product involves three main strategies as follows: 1. Provides potential access to a wide variety of markets 2. Makes a significant contribution to the perceived customer benefits of  the end product 3. Difficult for competitors to imitate 5.2 SUSTAINABLE COMPETITIVE ADVANTAGE:

The sustainable competitive advantage for HIMALAYA’S relies on its HERBAL VALUES. Marketing strategy is a process that can allow an

organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. 

According to The Nielsen Co figures for April-June 2010, Himalaya face washes had a 17.8 % market share in India, less than two percentage points  behind multinationals Hindustan Unilever Ltd and L'Oreal.



Himalaya's individual products also face competition from firms that ar e strong in one or just a few products, such as Colgate in toothpaste and Fair  & Lovely in face masks.



Doctors have been Himalaya's biggest brand ambassadors in  pharmaceuticals



By buying raw materials directly from growers, collectors and nongovernmental organizations, Himalaya keeps costs under control.



Recently, it signed an agreement with the Sikkim government to prepare farmers in organic farming of herbs and sustainable collection.



In pharmacy, Himalaya is stronger. "It has very sharply- positioned products for the eyes, liver, bones and so on.

5.3GENERAL MARKETING STRATEGIES:

General marketing strategies are broad and are aimed at various specific business objectives. Some of these goals could be targeted on 

THE MARKET SHARE,



LONG-TERM PROFITABILITY,



MARKET GROWTH,



POSITIONING, and



OTHER GOALS.

Thus HIMALAYA is aiming to attain its general marketing strategies by designing various decision area marketing strategies. The core objective is thus attained by  performing small marketing goals under each segment.

6.MARKET RESEARCH 6.1

RESEARCH PLAN:

According to American Marketing Association (AMA) "Marketing research is the function that links the consumer, customer, and public to the marketer through information - information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the methods for collecting information, manages and implements the data collection process, analyzes, and communicates the findings and their implications."

STEPS IN MARKETING RESEARCH PLAN:

STEP1: Definition of the problem. STEP2: Statement of research objectives. STEP3: List of needed information’s. STEP4: Design of data collection Project. STEP5: Selecting the sampling scheme and sample size. STEP6: Organizing field work. STEP7: Analysing the data. STEP8: Findings and conclusions.

The Research instrument used in this research plan is online questionnaire which was a tool in obtaining the data required for the research process. The results are analysed through the respondent’s feedback for the questionnaire. The

questionnaire and the responses are the key elements in determining the customer’s expectation and satisfaction.

7. MARKETING PROGRAM: 7.1 POSITIONING:

The brand, the company analyzed, is targeted at the modern Indian consumer who is willing to pay a premium for good medicine, and for  those who believe in ayurveda but are not inclined to go traditional ayurveda clinics. This is a good example of effective concept development. The company adopted a new logo to contemporize the brand image. The labelling and the print is bold, which makes it easy for customers to read them, even when placed in displays at pharmacies. The current Himalaya logo is a visual definition of the brand. The leaf that forms the crossbar of the letter H evokes the company's focus on herbal healthcare. The teal green represents proximity to nature, while the orange is evocative of warmth, vibrancy and commitment to caring, associating the Himalaya brand with the promise of good health and well-being. The positioning is wide across the areas as mentioned below: 1) Pharmaceutical - health maintenance, eye, cardiac and skin care. 2) Personal Care - Health Care, Oral Care, Hair Care, Skin Care and Baby Care. 3) Naturals - Pure Herbs, Chavanprash, and Honey. 4) Animal Health – Livestock, Poultry, Aqua and companion 7.2 PRODUCT STRATEGY:

Their product strategy ranges from,

Baby care: Baby cream, baby wash, baby shampoo, baby gift series etc., Hair care: Anti-dandruff shampoo/oil/hair cream, protein shampoo etc., Skin care: Baby lotion, face packs, lip balm , skin nourishes etc., Oral care: Dental cream Health care: Chyavanaprasha, foot care cream, honey, kajal etc. 7.2.1 Brand name:

A brand name is an identity for a company’s product. It must follow the requirements like: A good brand name should: • Evoke positive associations • Be easy to pronounce and remember  • Suggest product benefits • Be distinctive • Use numerals when emphasizing technological features • Not infringe existing registered brand names Thus Himalaya skincare has established a good brand name for its products. The word “HIMALAYA” has been used to signify the inclusion of natural herbs in all products they produce, in turn, it assures the product quality(i.e, it has no side effects). 7.2.2 FEATURE AND BENEFITS:

Himalaya skincare products have wide range of products with distinct f eatures. Thus each product is unique in its application and benefits. The benefits that ahs  been derived from these products are converted as customer experience. The customer experiences are shared in way of testimonials in the company website. Thus , these testimonials adds more goodwill and reputation to the company’s  products. 7.2.3 POINTS OF DIFFERENTIATION:

The point of differentiation refers to the PRODUCT DIFFERENTIATION. As far  as Himalaya skincare products is concerned, they outwits the other products in the market through their unique selling proposition, cost leadership, brand loyalty etc.,

7.2.4 PRODUCT LIFE CYCLE:

7.3 PRICE STRATEGY: 7.3.1 GENERAL PRICING STRATEGY: Premium Pricing: Use a high price where there is uniqueness about the product or  service. This approach is used where a a substantial competitive advantage exists.

Thus Himalayas Skin Care uses premium pricing for products like “HIMALAYA -ANTI HAIRLOSS CREAM” Economy Pricing: This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. The products are “HIMALAYA NOURISHING CREAM AND HONEY SOAP, CUCUMBER SOAP .

7.3.2 COMPARATIVE PRICING: Himalaya products 1. Fairness cream

size

25g

Amount R.30

2. Protein shampoo

100g

Rs.55

3. Anti-hair fall shampoo

100g

Rs.63

4. Deep cleansing milk

100ml

Rs.65

5. Purifying Neem face wash

100g

Rs.70

6. Intensive moisturizing body lotion

400ml

Rs.450

7. Protective sunscreen lotion

100ml

Rs.315

200ml 100g 100g 200ml 50g

Rs.99 Rs.125 Rs.265 Rs.470 Rs.99

Other products

1. 2. 3. 4. 5.

Garnier fructis shampoo Garnier light anti mark cream Ponds gold radiance cream Loreal Elvive serum Olay fairness cream

Thus by comparing the products and prices of HIMALAYA brand with various other brands, Himalaya has got wide variety of products with reasonable prices. The sizes of the products are also available in different ranges.

7.3.3.1

PRICE REACTIONS: 

Himalaya has recently reduced the price of its products and has introduced various offers for the consumers. Thus consumers in market feel that the Himalaya offers products at considerable  prices.  The products are good in their quality.  The prices are compared with the ayurvedic significance of the  product.  The better results of the product give a high product performance. Therefore, the consumers are ready to afford for the existing  prices.

7.4 DISTRIBUTION STARTEGY

Thus the g.lobal presence of HIMALAYA Company has been shown in the above mentioned map. Himalaya is located all over the world covering the following countries like: BELGIUM , CANADA, MALAYSIA, MAURITIUS, PAKISTAN, NEPAL, QATAR, RUSSIA, SAUDI ARABIA, INDIA, SOUTH AFRICA, SRI LANKA, TURKEY, USA, UAE etc.,

7.4.1 OBTAINING RAW MATERIALS: 

Himalaya has had an experimental herb farm in the foothills of the Himalayas, since the early 1930s to grow rare herbs. Scientists on the farm constantly work to improve yield of rare plants. Himalaya's R&D division conducts studies in Pharmacognosy (the science dealing with the sources, physical characteristics, uses and doses of drugs) to establish the authenticity of plant material. 



Himalaya has also set up an agrotech division in South India, where it is in the process of growing geographically compatible endangered herbs.

7.4.2 WAREHOUSING:

The products are mostly distributed to the various locations through different modes of transport. Moreover, these are further distributed to the potential consumers through various store display. Thus need for warehousing for Himalaya is very less when compared to other skin care companies. 7.4.3 DISTRIBUTION TO CUSTOMERS:

The distribution is done through various store displays. The stores are located in different areas in India as follows STORE LOCATIONS IN INDIA:



Andhra Pradesh



Mizoram



Chandigarh



Pondicherry



Goa



Punjab



Gujarat



Rajasthan



Himachal Pradesh



Tamil Nadu



Kerala



Uttar Pradesh



Karnataka



Uttarakhand



Maharashtra



West Benga

7.4.4 INTERMEDIARIES:

The intermediaries for Himalaya products are: 

Producers



Wholesalers



Sales representatives



Retailers



Consumers

7.4.5 TRANSPORTATION:

The improved transportation facilities have made the flow of   products easier. Thus the products can be circulates to the above mentioned 71 countries by way of various modes of transports. The transportation is made in such a way that the retail outlet, who serves as a major distributor, gets the products on time. The availability of Himalaya products is thus made easier. 7.4.6 ORDER PROCESSING:

The orders are processed by way of following modes:



The Electronic purchase orders received by the company are processed in such a way so that the product is dispatched to consumers directly. 

The Electronic purchase orders from distributors are also  processed and the products are delivered. 

The Delivery orders confirmation has to be received from consumers and distributors. 

The invoices and receipts proofs are generated for records in the future.

7.5

PROMOTION STRATEGY:

7.5.1

COMMUNICATION OBJECTIVES:

The marketing communication objectives are determined by  problem that the target or product category may encounter and how to overcome these problems. The various problems are cleared out by availing the market opportunities. Some common marketing communication objectives include: 1. Create a brand awareness for your company 2. Defining a need the product or service can fulfill 3. Encouraging action from the target

7.5.2

ADVERTISING:

Advertising is a form of communication used to persuade an audience (viewers, readers or listeners) to take some action with respect to products, ideas, or services. 7.5.2.1 Creative strategy:

In advertising, different creative strategies are used in order to obtain consumer attention and provoke shoppers to purchase or  use a specific product. Advertisers use different ways of  thinking to create catchy slogans that capture consumer  attention. Creative strategies promote publicity, public relations,  personal selling and sales promotion. 

Himalaya advertises its products by creative strategy that focuses on “natural and herbal ingredients “. The natural herbs are mostly highlighted for the skincare   products. Quality is assured through the ayurvedic contents.  This in turn increases the reputation and brand loyalty for   the company’s products. 7.5.2.2 Appeals:

The general inclination of the people, today, is towards using natural, herbal-based products, every shampoo or toothpaste has an ayurvedic tag on it. In such a scenario, Himalaya chose to carve a niche for itself among the many players competing in the sphere. Himalaya skincare logo is a visual definition of our brand identity. The leaf that forms the crossbar of the letter H evokes our focus on herbal healthcare. The teal green of our logotype represents our proximity to • nature, while the orange is evocative of warmth, vibrancy and our commitment to caring. Everything that carries the logo is accompanied by the • high quality that has always been the Himalaya hallmark. The Himalaya brand carries with it the promise of good • health and well-being. It is our endeavor to ensure that our logo  becomes the symbol of a promise delivered. •

7.5.2.3 Competitive Efforts:

The competitive efforts of Himalaya skincare has been advertised through introduction of wide range of products in the market. The products that are introduced by Himalaya skincare were more innovative and it made other competitors to follow their strategies. Himalaya skincare products such as “Clarifying mud pack, Revitalizing Night Cream, Anti-Wrinkle Cream, Under Eye Cream etc ., have become new innovative products in the market. 7.5.2.4 Media Vehicles:

Himalaya uses the following media vehicles to advertise its  products. They are as follows:    

Television Magazines  Newspapers Internet etc.,

7.5.2.5 Print ads:

The print ads of Himalaya skincare mostly highlight its herbal  presence in the products. Thus they green logo with leaves signifies the purity and natural ingredients in the product. These aspects are printed in newspapers, magazines,etc., 7.5.3 Personal selling:

Personal selling is one of the oldest forms of promotion. It involves the use of a sales force to support a push strategy (encouraging intermediaries to buy the product) or a pull strategy (where the role of the sales force may be limited to supporting retailers and providing after-sales service).    





Prospecting - trying to find new customers Communicating - with existing and potential customers about the product range Selling - contact with the customer, answering questions and trying to close the sale Servicing - providing support and service to the customer in the period up to delivery and also postsale Information gathering - obtaining information about the market to feedback into the marketing  planning process Allocating - in times of product shortage, the sales force may have the power to decide how available stocks are allocated.

7.5.4 Sales promotion:

Himalaya skincare follows the following sales promotion activities: 1. 2. 3. 4. 5.

Giving free samples/trial packs Introducing discounts and offers Buy one get one free Free after sales service Free delivery etc., 7.5.5 Public relations:

Himalaya skincare maintains public relations by responding to customer queries through mails and other modes. They take initiative in explaining their products through various modes of  communication. For further details, customers can write to their  websites, e-mail, phones etc. 7.5.6 Publicity:

The publicity is done through sharing customers experience and existing customers’ feedbacks in their advertisements. Moreover, Himalaya skincare products have a very good brand name which further helps in increasing its publicity.

8. EVALUATION AND CONTROL: Once we have done with Situation analysis, Marketing strategy and Marketing mix, the final step in a marketing plan is to evaluate the process and ensure control measures wherever  necessary. 8.1 IMPLEMENTATION:

At this point in the process, the marketing plan has been developed and the product has been launched. Given that few environments are static, the results of the marketing effort should be monitored closely. As the market changes, the marketing mix can be adjusted to accommodate the changes. Often, small changes in consumer  wants can be addressed by changing the advertising message. As the changes become more significant, a product redesign or  an entirely new product may be needed. Accordingly, the company has to design for the change.

The marketing process does not end with implementation continual monitoring and adaptation is needed to fulfill customer needs consistently over the long-term. When they continuously update themselves with the customer   behavior towards their product and the competitors moves, they can tackle the market by reading the entire market phenomena efficiently.

APPENDIX II

SAMPLE AD:

Himalaya’s latest advertisement campaign, which went on air  for the first time in August previous year, was creating a buzz amongst the youth. The new ad for  Himalaya Purifying Neem Face wash brings to the fore the idea of ‘Himalaya sabse pehle’ or ‘Himalaya  First’. The messages are simple and clear- TRY HIMALAYA FIRST AND SPARE YOURSELF THE AGONY OF GOING THROUGH SEVERAL REMEDIES THAT DON’T WORK!!! The TV commercial has an extremely young look and feelaimed at capturing the interest of the youth. The music is distinctly continental and the model’s look is very retro chic! The ad is instantly endearing as it tells the story of the experiences of a girl-next-door.

APPENDIX IV

MARKETING RESEARCH FORM: QUESTIONNAIRE MARKETING RESEARCH ON HIMALAYA'S SKIN CARE PRODUCTS

Dear respondents, We are the students of SSN. As a part of our  marketing plan we would like to perform a research on Himalaya's skin care products. Your response to our survey values a lot. we assure that your response will be taken confidential.Thank you for your time and support for our   project. Regards, Savithri N Sruthi Saranya N Tamil Selvi K C 1.

Age group that you belong to: *

•

35

2.

Monthy Income range : *

•

45,000

3.

Do you prefer using skin care products? *

•

Yes

•

No

4. How frequently do you use the product? •

Daily

•

Weekly

•

Monthly

•

During occasions

5.

Which brand do you use now? *

6. Which features highlight your need for that product? •

Fairness

•

Skin protection/ scrubbers

•

Moisturizing & cleansing

•

Anti- aging creams

7. How frequently do you switch over your product? •

Once in a month

•

Once in 6 months

•

New arrivals

8.

Had you tried Himalaya’s skin care  products? *

If yes, how you got to know about the product? * •

Advertisements

•

Friends

•

Beauticians

•

Dermatologists

9.

Which feature best suits for the Himalaya’s products? *

•

Affordability

•

Availability

•

Herbal ingredients

•

Innovative products

•

Others

10.Which

pack size do you frequently use in Himalaya’s

skin products? * 11.Which

skin care product do you use in Himalayas? *

•

Face packs

•

Face wash and soaps

•

Fairness cream

•

Body Lotions

12.How

likely will you recommend the product to others? *

•

Strongly

•

Fairly

•

At times

•

Never 

13.Which

brand do you feel having better features than

Himalayas? *

Submit