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Himalaya Case Study

Table of Contents
Q 1. Explain how the strategic planning process builds on values to produce a vision
(Described in this case as the aim) and translates into SMART objectives............................3
1.1Current Situation Analysis................................................................................................3
SMART Objectives................................................................................................................4
1.2Segmentation Analysis......................................................................................................4
1.3SWOT Analysis.................................................................................................................4
1.4Core Competence Analysis...............................................................................................5
1.5Key Success Factors..........................................................................................................5
1.6Busienss Unit Strategy / Nosiness Plan............................................................................6
1.7Mission and Vision of the Company.................................................................................6
2. Describe Himalaya Corporate Responsibility (CR) approach. How does this relate to its
products? Give examples of products which might be ruled out by its CR approach...............7
2.1 CR Approach....................................................................................................................7
2.2 CR Approach in Relation to Himalaya Products..............................................................9
5. Do you see Himalaya's as a low cost or a differentiated company? Provide examples to
justify your answer...................................................................................................................10
Bibliography.........................................................................................................................12

Q 1. Explain how the strategic planning process builds


on values to produce a vision (Described in this case as
the aim) and translates into SMART objectives.
Strategic Planning is as important for any business as a map is for a road rally driver.
Strategic Planning process is an effective tool which helps in defining the route which when
taken leads to most likely towards the probability of taking the business form where it is at
present to where the stakeholders and owners want the business to go.
Therefore Strategic Planning process can be called an effective way of bringing into life the
mission as well as vision of any organization. A well crafted strategic plan which has some
value drives from top down considering along the internal as well as external environment
around the business. It also involves the managers at high level and is communicated
simultaneously to all the stakeholders of the business including both internal as well as
external stakeholders of the organization.

1.1Current Situation Analysis


Himalaya Drug Company has been a key player in the pharmaceutical field for several
decades. Its Herbal Offerings included Health Supplements, Pain Ointments and Personal
care products.
The Unique Selling Proposition of Himalaya is the scientific rigor which is associated with
the testing

of its herbal offerings. In order to enter the consumer markets it launched

Ayurvedic Concepts. These Ayurvedic Concepts targeted the young as well as urban
professional population for creating brand awareness. In the year 2010 around 409% of its
turnover came from its consumer products like soaps, face washes, shampoos, baby products
etc.
Currently it has many exclusive outlets across India and shop-in-shop counters in the modern
retail outlets. Like other FMCG manufacturers Himalaya does not believe in television
advertising rather the brand associations are nurtured using Word-of-Mouth. IN order to build
higher market share in very highly competitive personal health care market, thus it started

advertising toothpaste and face wash brands. Currently Himalaya brand has positive
perception amongst its target consumers.

SMART Objectives
The objectives should be Specific, Measurable, Achievable, Realistic and Time bound.
Therefore the SMART objectives for Himalaya are:

Need to enter a New Problem Solving category keeping USP as Herbal


To create around 50% market awareness before launching the product
After 2 years of product launch gaining 5% market share every year
Increase in the sales by at least 10% every year
Maintaining as well as retaining the brand loyalty of the product.

1.2Segmentation Analysis
Himalayas Dental Cream belongs to Herbal segment and it wants to enter the niche segment
of oral care. The consumer behaviour of Herbal segments shows that 88% of consumer
brushes once a day, 84% even visit a dentist, while 67% of the dentist does not recommend
the toothpaste. Therefore the real health problems are found to be 92%. Oral care is High
involvement category with 40% involvement (Choudry, 2012).
In the niche segment it is found that 23% brush once in a day whereas 64% never visit a
dentist. IN this segment 88% dentist do not recommend any toothpaste and the oral health
problems are found to be 80%. The segments show high involvement at rate of 64%.

1.3SWOT Analysis
Strengths
It ahs strong financial backup with well qualified staff. Himalaya delivers its consumers what
they want as they target both urban as well as rural markets. Himalaya products are ecofriendly as well as totally herbal products. Himalaya toothpaste uses natural fluorides in place
of chemical fluorides used by other toothpaste companies.
Opportunities

Himalaya has good investment and high growth opportunities. It expects higher growth
because of its eco-friendly toothpaste. Since toothpaste is daily consumption commodity
therefore Himalaya uses intensive distribution technology, so that it is available at every shop
because of which the sale of the product is increasing day by day. Since the world is growing
globally, so Himalaya has immense global opportunities to exp-and globally.
Threats
Since the company is entering new market that too premium segment therefore there are few
chances of product failure too. Moreover the company will have to face stiff competition
from various other herbal toothpaste brands like Colgate Herbal, Dabur Red etc. The
Himalayas Dental Cream is an Ayurvedic product and there are already so many products in
the market launched by many international companies therefore it is a big threat for the
company.
Weakness
Since the Himalaya Dental cream belongs to premium segment therefore it might prove to be
unaffordable for the rural population. Being totally Ayurvedic might prove to be a weakness.
Himalaya will have to face big competitors in the market which are already highly
established like Colgate and Pepsodent etc.

1.4Core Competence Analysis


The main competitors of Himalaya Dental Cream are Colgates Total 12, Colgate Sensitive,
Colgate Maxwhite, Daburs Meswak, and GSKs Sensodyne. Amongst them the ones which
target the niche target consumers are Colgate Sensitive Maxwhite, Sensodyne of GSK. But
Himalayas Dental Cream is distinct and its core competency is that in the premium segment
it targets the whole family while other target niche consumers with dental sensitivity or who
have whitening requirements.

1.5Key Success Factors


The key success factors of Himalaya are: firstly it belongs to herbal segment which is the
second highest percentage of high involvement customers. This presents highly favourable
situation which Himalaya can tap in the oral care market. The product has also developed a
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completely new range of herbal prescription-based oral care products by the brand name
HiOra which includes toothpaste, two types of mouthwashes, a gum astringent, a whitening
agent and an ulcer gel. Therefore it will automatically target consumers who have dental
problems and can use these products through doctor prescription which other brands cannot.
Moreover the oral care market for doctor-prescribed products has seen a growth of 21%
annually after 2010 which indicates that the oral awareness is growing amongst the
consumers.

1.6Busienss Unit Strategy / Nosiness Plan


The business plan is to create a differentiated product with differentiated product design as
well as packaging which will help in establishing the product in the niche market. The price
would be competitive with the other similar toothpastes in the segment. These toothpastes are
already sold over the counter in various outlets and shops but now they would be pr4escribed
through doctors, drug stores, plastic surgeons, large retail stores, department stores and
grocery stores too. The product promotion strategy would cover advertising, publicity as well
as sales promotions.

1.7Mission and Vision of the Company


The vision is to spread

wellness in each and every home utilising the benefits of

herbal healthcare. The mission is very comprehensive which has many objectives held
together. It wants Himalaya to be established as a science-based, head to heel brand,
connected with the enormous wealth of nature, problem resolving and which should be
known through its highly trustworthy and healthy lives is its main or key objective.
Himalaya wants to penetrate the global markets by adopting a long term approach by
collaboration with various local communities during the process of product development and
at the same time exceeding the expectations of its customers are some of its equally vital aims
(Umesh, 2013).

2. Describe Himalaya Corporate Responsibility (CR)


approach. How does this relate to its products? Give
examples of products which might be ruled out by its CR
approach
2.1 CR Approach

Himalaya and its products follow the Corporate Social Responsibility Approach by following
responsibility through four steps by caring for earth, caring for good health, caring for the
environment and caring for people. That is why at Himalaya Herbal Healthcare stands out for
everything which is good in nature. All its products are symbolic of completely safe as well
as efficacious herbal products which bring together all the best ingredients of nature.
Himalaya Herbal Healthcare takes care of its employees, responsibility can be seen the way
they conduct their business, the way they grow their herbs, ethical researches and respectful
attitude towards Earth. The company believes in integrating the corporate social
responsibility with the objectives of the company.
In order to strengthen the conscious effort of company and its commitment towards
environment it has adopted several environment-friendly practices. Some of its CSR
approaches are discussed below:
Care for Earth
Himalaya follows good-for-earth farming techniques like it uses organically growing herbs
for making its products.
Himalaya also took great initiative of planting trees since 2009 in partnership with US-based
organisation Trees for the Future. They have planted more than 150,000 trees within three
years span which has helped in reducing the carbon footprints of Himalaya and around 600
trees have been planted in the Bangalore campus (Care for the earth, 2012).
Care for Health
As its social responsibility towards mankind Himalaya has started running a free diagnostic
medical campus which test people for osteoporosis and also provides them with proper
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medical alternatives. The Bone Mineral density (BMD) camps are being organised for
diagnosing osteoporosis at earliest stage when there are not any overt symptoms in patients
(Care for health, 2012).
Diabetes is considered to be a silent epidemic which is a major health concern across the
globe therefore Himalaya has started conducting Diabetes Detection Camps across India
since 2008 , which carries free blood sugar tests for patients and if found with abnormal
sugar levels they are being referred for treatments (Care for health, 2012).
Care for Environment
Himalaya has been awarded with an ISO -14001:2004 certifications which are the globally
recognised standard in the field of environment management. The reason being Himalaya has
taken several steps towards conservation of water, and power while conserving environment
from pollution as per the National Quality Assurance (NQA) guidelines. One most significant
step is setting up of water treatment plant as well as sourcing water which has lower Total
Dissolved Solids (TDS). This has lead to reduction of consumption of water in the
organization by 10,000 litres in a day (Care for the environment, 2012).
Using compact fluorescent lamps (CFL) instead of fluorescent tube lights (FL) and sensorbased corridor lights helps in saving power, using Galvalume roof sheets in the warehouse,
treating effluents in-house and then using it for gardening purpose are some steps which help
in reducing carbon footprints of organization and also protecting the environment.
Himalaya has also set-up rainwater harvesting project on its site which helps in making
effective use of rainwater. This also helps in reducing the TDS level in the groundwater
sources. Some other significant steps which Himalaya takes towards
responsible packaging, using polyethylene

CR approach are

terephthalate bottles (PET) for products,

toothpaste cartons of 100% recyclable boards, Waste management, local sourcing,


sustainability, seed-to-shelf, community trade ingredients, greening of stores, certified
organic ingredients (Care for the environment, 2012).
Care for People
By working closely with the Prison Authorities and the government of India it is planning to
rehabilitate the prisoners by creating employment opportunities for them. Himalaya promotes

contract farming where it engages poor farmers including women farmers who have
fragments or small land holdings (Care for People, 2012).

2.2 CR Approach in Relation to Himalaya Products

It does not use pesticides or fertilizers while farming like it uses prophylactic sprays for e.g.
Neem oil for as pesticides in farms. Thus it ensures pollution-free and chemical-free
environment which delivers best quality herbs which makes all its products safe as well as
efficacious.
Some of the examples of its successful innovations in its products following corporate
approach are:
Serpina: It is being derived from the plan Serpina which is a natural tranquiliser and also
possesses hypersensitive properties too and is the first natural hypersensitive medicine which
was launched in 1930 (Remedios, 2009).
Liv. 52: This is very good example of highly innovative natural product which takes care of
people and earth. The R&D department at Himalaya Herbal Healthcare came up with natural
remedy for improving liver functioning and at present this natural medicine made form
natural herbal components is hallmark of innovation with 1 billion tablets and 13 million
syrup bottles sold across the globe every year.
Bonnisan: This is very popular natural paediatric digestive tonic with sweet taste which
was introduced in 1972 and is the leading brand in this category and Himalaya on further
research in Malaysia found that it is capable of curing asthmas long standing problems in
many preteens.
Personal Care Products: All its personal care products range is natural and connected with
Ayurvedic Concepts.
Biodiversity Protection: It is the integral part of its corporate social responsibility program of
Himalayas, where many herbs which are critically under endangered category or under the
threat of extinction are chosen for biodiversity protection (Remedios, 2009).

Green Himalaya Stores: All the stores are made form eco-friendly materials with low carbon
footprints which get maximum natural light through glass panels, all the in-store units are
made from wood shavings and nontoxic paints are used in Green Stores.
Himalaya Anti-Wrinkle Cream: It combines the benefits of foundation, compact as well as
concealer which discourages the chasing the trend philosophy and promotes the concept of
healing touch.
Menosan: This is an ideal herbal replacement for Hormone Replacement Therapy and it
helps women during menopause as well as post menopausal stages. The hormones used in it
are plant derived that are phytoestrogens which is completely risk free and also helps in
women cope with all kinds of menopausal discomforts as well as mood swings.
Himplasia: It helps the aged men in delaying with prostrate problems. It is completely
natural product without any side effects and helps men in restricting the growth of the
prostrate if taken early in life.

There are none of Himalaya products which goes against it CR approach all its products
conform to its CR approach.

5. Do you see Himalaya's as a low cost or a


differentiated company? Provide examples to justify
your answer
Himalaya Herbal healthcare is a truly differentiated company not a low cost company. rather
the Himalaya dental cream toothpaste is also targeted towards the premium market segment.
Himalaya Toothpaste differentiates on the basis of being premium toothpaste which is
targeted at the niche category as fresh Natural & Secure. The Himalaya Toothpaste is
different as it provides freshness along with giving solutions to its consumers towards
following oral problems like bad br5eath control, tightening and at the same time reducing
the swelling and bleeding of gums and it also helps in preventing tooth decay as well as tooth
ache.
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The skin care category product Himalaya Body Lotions are also highly differentiated as they
are available in three variants as Himalaya Intensive Moisturising Body Lotion, Protective
Body Lotion and Nourishing Body Lotion. The Himalaya Drug Company wants to expand its
retail presence from just shop-in-shop to bigger malls and various other markets by launching
highly differentiated products which will be a combination of science with cosmetics. AT
present the company already has 130 products across its several divisions which include both
consumer as well as pharmaceutical products.
The consumer products division of Himalaya is focussed more on skin care, oral care and
hair care segments. It is rapidly capitalising on its need category products through which it
has created a completely differentiated range of products ranging from face wash to
toothpastes. Himalaya already ahs neem pack, neem face wash and a neem supplement and it
is planning to launch a soap and a different face wash in short period in a different delivery
format .
It is seen that the growth in FMCG segment does not arrive from the me-too products rather
the product differentiation is the best tool for achieving growth for example the Himalayas
hair conditioner

which is not just a simple conditioner rather it is a de-tangler too

(Challapalli, 2007).
Therefore the marketing strategy being adopted by Himalaya Herbal Healthcare is product
differentiation and the strategy is focus business strategy. The focus business strategy which
either relies on differentiation or cost leadership. Therefore if considers in market terms these
are called niche marketing strategies. The most common factor used for identification of the
target consumer groups are the demographic characteristics like age , sex, gender , income ,
occupation etc. Or geographic segmentation like rural or urban and Northern Indian or
Southern Indian or lifestyle like whether it is modern or traditional. For the identified market
segment every focussed organization uses either differentiation strategy or low-cost strategy
(Kazmi, 2008).
Himalaya antidandruff shampoo has been positioned as Herbal anti-dandruff formulation
which helps in controlling dandruff and nourishes hair along with strengthening hair roots
thus making sure that the scalp remains healthy. Therefore in order to handle the concern of
using chemicals in the shampoo it started positioning itself as a shampoo which is prepared
form natural and herbal extracts without any side effects. Therefore in this case Himalaya
brand gives clear cut differentiated product by developing association with traditional
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methods of health care. Himalaya positions its well differentiated products either at the mid
segment or as the premium segment (Majumdar, 2007).
The Himalaya Dental Cream Toothpastes have the biggest differentiation as a product as they
use natural fluorides instead of chemical fluorides which are being used by other companies
like Colgate, Pepsodent etc. Himalaya toothpastes contain fluorspar which is a combination
of lime and fluorine and is a completely natural source of fluorides.

Bibliography
Care for health. (2012). Retrieved July 13, 2013, from The Himalaya Drug Company:
http://www.himalayahealthcare.com/responsibility/care-for-good-health.htm
Care for People. (2012). Retrieved July 13, 2013, from The Himalaya Drug Company:
http://www.himalayahealthcare.com/responsibility/care-for-people.htm
Care for the earth. (2012). Retrieved July 13, 2013, from The Himalaya Drug Company:
http://www.himalayahealthcare.com/responsibility/care-for-the-earth.htm
Care for the environment. (2012). Retrieved July 13, 2013, from The Himalaya Drug
Company: http://www.himalayahealthcare.com/responsibility/care-for-the-environment.htm
Challapalli, S. (2007, oCTOBER 18). Himalaya Drug Company expanding retail presence.
Retrieved jULY 13http://www.thehindubusinessline.com/todays-paper/tpmarketing/himalaya-drug-company-expanding-retail-presence/article1672349.ece, 2013,
from The Hindu Business Line.
Choudry, A. (2012, Neovemeber 21). Himalaya herbal toothpaste . Retrieved July 13, 2013,
from Slideshare.net: http://www.slideshare.net/arjunchoudhry/himalaya-herbal-toothpastegroup4
Kazmi, A. (2008). STRATEGIC MGMT & BUS POLICY 3E. New Delhi: Tata mcGraw Hill.
Majumdar, R. (2007). PRODUCT MANAGEMENT IN INDIA: WITH CD-ROM. PHI
Learning Pvt. Ltd.
Remedios, F. (2009, August). The Good And The Beautiful. Retrieved July 17, 2013, from
VERVE Online: http://www.verveonline.com/76/fashion/ethicalbeauty.shtml
Umesh, K. (2013, February 5). Himalaya Drug: We let our employees learn as they earn.
Retrieved July 13, 2013, from Shine.com: http://info.shine.com/Article/Industries/HimalayaDrug-We-let-our-employees-learn-as-they-earn/6494/cid1.aspx

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