Himalaya Drug CompanyBranding Ayurveda (Case Analysis)

Submitted by: Abhishek Singh Akanksha Singh Aon Maniar Ayantika Banerjee Bhuvan Gupta
"I would like to see Himalaya as a trusted brand in every household, symbolizing global leadership in herbal healthcare." - Meraj Manal, Chairman, Himalaya Drug Co., in June 2002

IMPORTANT EVENTS IN HDC HISTORY

In 1930, M Manal visited Burma where he was highly impressed to see the soothing effects of a herb ,Rauwolfia Serpentina on restless elephants. This lead to the establishment of the HDC as a partnership company. HDC launched SERPENIA in the year 1934,worlds first anti hypertensive drug. LIV-52 was launched in 1955, which was a hepato-protective medicine, and it became one of the highest selling drugs. Karstein, a German pharmaceutical consultant joined the company in 1960 and directed HDCs attention to allopathic medical practitioners. Thus, company increased its product portfolio. HDC introduced popular drugs like Bonnisan, Geriforte, et all during this period. In the year 1975, it established its first manufacturing plant at Bangalore which later became its headquarters.

CONTINUED..
US Food and Drug Administration in the year 1996, permitted herbal products in the dietary food supplement market. HDC seized the opportunity and launched a range of personal care products in the market under name Himalaya. It opened offices in Houston ,Texas. In 1998 Company launched its animal health product range for commercial livestock. In 1999 launched personal care products under the name Ayurvedic Concepts. By 2002, HDC had started offering products in four segments :1. Medicinal supplements. 2. Personal care products. 3. Pure herbs. 4. Animal health products.

HDC Timeline

2002 1998-99 Became prominent in four segments

1975-96 1960
Focus on allopath 1930-34 Establishment of HDC, Serpenia launch Bangalore HQ, US Food and Drug Administration Permission

Commercial livestock health care products, Himalaya launched as a brand for personal care products.

Architecture and Positioning of BrandStrategy, Creative, Media

HDC had to break away the consumers mindset that Ayurveda had been developed by Sadhus, and that it was a modern and scientific discipline A three-pronged strategy was adopted by HDC to present Ayurveda as a contemporary form of medicine:
3 Pronged Strategy

Tagline: Get on with your life

Brand Ambassador: Double-Doctorate Dadima

Stationed a consultant in every retail outlet and made product available at supermarket and departmental stores

Balanced Approach to bridge gap between super-premium and middle level products

HDC CREATIVE MIX

We shall discuss the creative mix of HDC in terms of all of its PR Activities and Events The appeal of the double-doctorate and caring brand ambassador dadima was so great that GOWA (Guild of Women Achievers) in association with HDC, launched the Ayurvedic Concepts Lovable Grandma Contest. After HDC had gotten into retailing of its products, it placed consultants at those locations to be able to provide better knowledge to customers about its products and also consult their queries DC also went in for co-branding initiative with Discovery Channel for promoting Pure Herbs which telecasted a series of infomercials on the channel.

HDC MEDIA MIX

HDC spent 120 million on campaigning for Ayurvedic Concept and it received a very positive response Three TVCs were launched: 1. Health Capsule - Airplane - 60s 2. Digestive Capsule - Caf - 50s 3. Hair Care - Card Shop - 45s For Himalaya Umbrella Branding it promoted the concept on the website asour new brand identity communicates the very essence of our company

Umbrella Branding
Immense popularity of Ayurvedic Concepts' as a brand was posing a threat to the company's identity. Medical practitioners as well as consumers were reportedly unaware about Himalaya being the mother brand of Ayurvedic Concepts. This was done to unify the company products under a single global image with which all consumers, local and global, could identify with. As the company had to change its brand name from AYURVEDA TO HIMALAYA introduction of new products under the new name was necessary.

Diversified Portfolio
Rather than introducing new products, HDC decided to consolidate its existing portfolio which included 39 products under hair, skin, oral and health care products and company decided to focus on shampoos and skin care products. In April 2001, HDC launched a new product portfolio under the `Pure Herbs' brand, classified under the `Fast Moving Health Goods' (FMHG) category. The portfolio comprised a range of 12 pure herbs, as `soft health' products, with therapeutic claims sold as over-the-counter (OTC) products in packs of 60 capsules each and priced between Rs. 49 and Rs. 60. By 2002, HDC was offering products in four segments medicinal supplements, personal care products, pure herbs and animal health products. In the financial year 2000-01, the company's revenues amounted to Rs. 2.5 billion and its operations were spread over 55 countries around the world . Company sources expected revenues to reach Rs. 3 billion by 2002 and to Rs. 5 billion by 2004.

Future Prospects of HDC

The future prospects of HDC are prominent and bright. HDC is not much worried by domestic as well as foreign players. HDC focuses strongly on research led product development to emerge as a Global Leader in the herbal healthcare industry. The herbs used by HDC are of better quality. HDC has developed a unique technique over the last 3 decades to manufacture their products with quality and consistency.