MKTM503

Marketing Management-1

“Himalaya Marketing Analysis”

Assignment

Mittal School of
Business Lovely
Professional University
Phagwara, Punjab.
 Annexure V – Cover Page For Academic Tasks

Course Code: MKTM503 Course Title: Marketing Management-1

Course Instructor: Dr. Muramalla Venkata Section Q2155
Assignment Task NO. :01 Academic Task Title: Himalaya’s Marketing Analysis
Date of Allotment: 16 Sept, 2021 Date of Submission: 10 oct, 2021
Student’s roll No: RQ2155A16 Student’s reg No. 12101754
Evaluation Parameters:
• Analysis of market orientation of organization - 5 marks
• Environmental Analysis of organization - 10 marks
• Competition Analysis - 5 marks
• Identification of value addition activities - 10 marks

Purpose: To make student analyze the changes happening in dynamic marketing environment
and evaluate their implications on marketers.

Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other
students work or from any other source except where due acknowledgement is made explicitly in
the text, nor has any part been written for me by any other person.

Student’s Signature:

Evaluator’s Comments (For instructor’s Use only)

General Observation Suggestions For Improvement Best Part of the Assignment

Evaluator’s Signature and Date:

Marks Obtained: ____________________ Max. Marks: ________________

Acknowledgement
I feel extremely grateful to have such a programme in my course which help me
provide great insights on my Management skills. I express my deep sense of
gratitude to all those who have been instrumental in preparation of this project.

I take this opportunity to thank Lovely Professional University,Punjab for

giving me a chance to do this project and I acknowledge the kind of support ,
efforts and timely guidance provided my Dr. Muramalla Venkata . This report
helps in better understanding of the subject matter.

Lastly, I would like to thank each and every person who directly or indirectly
helped me incompletion of the project especially my Peers who supported me
throughout my project.

Navya Malhotra

(12101754)
 About Himalaya
Himalaya is a Multinational Healthcare company established in 1930 by
Mohammad Manal. It is based in Bengaluru, Karnataka , India. It all started with
the founding of Rauwolfia Serpentina in the forests of Burma and it led to the
creation of first natural antihypertensive drug Serpina by Himalaya, launched in
1934. Himalaya targets in touching people’s lives by providing wellness through
their products in every home and happiness in their heart.

Himalaya’s vision was to bring the Traditional Indian science of Ayurveda

to society in a contemporary form. It was established during a period when there
was skepticism regarding Ayurveda and herbs usage. Mr. Manal after introducing
Serpina came across another breakthrough in medicine by introducing Liv.52 , a
liver formulation. At first it was different brands such as Septilin , Cystone,
Bonnisan and Rumalaya Forte. As Himalaya reached various segments, it went
rebranding its entire range under one umbrella naming “Himalaya Since 1930”.

Today Himalaya is a leading global Herbal Health which deals in

Pharmaceuticals, Himalaya For MOMS Personal Care, Baby Care, Wellness and
Animal Health with close to 500 products in over 100 countries.
 Market Orientation
Market orientation is basically identifying customer needs by a company and
making and innovating their products accordingly to meet the needs. The main
objective is to satisfy the customer in order to be profitable by providing their
activities as services. Market orientation is more of a culture than an individual
process to put forward consumers as their priority. Various companies follow
either one of the four orientations that are :- Product orientation, Market
orientation, Production orientation and Selling orientation, or go for the mix of
orientations concerning to stay ahead in the race.

As far as Himalaya is concerned , it uses a mix orientation of Product

Orientation and Market orientation.

Product orientation

Himalaya produces goods based on what it is good at doing. Himalaya is a product

oriented company that focuses more on the range of their products suitable for all
age comprising from infants to old aged people. Himalaya believes in their
products as they are best in providing the benefits through herbs and Ayurveda in
bringing wellness to their customers.

Example : One of its product named Himalaya Neem Facewash comprising the
market share of 24%. In this era of chemical containing products , Himalaya
believes in providing chemical-free herbal formulated facewash that cleanses
impurities and helps clear pimples. It is having natural blend of Neem and
Turmeric together that brings antibacterial and antifungal properties to protect the
recurrence of acne over time. They trust their products to be an Ayurvedic,
chemical free brand that provides solution to the skin problems of masses.
 The products chosen to produce mainly by Himalaya classifies under the
skin care segment of Herbal Healthcare. Products related to facewashes ,skin
nutrients, fairness creams, lip slaves , face packs come under the skin care
segment. The target market that Himalaya focuses towards is teenagers who
abstain to opt for chemical contained products that causes harm to skin and rather
choose natural products.

Himalaya works in building an attitude of consumers towards their product

as an essential part of everyday skincare treatment and wellness.The wealth of
knowledge and research is used by Himalaya skincare products, in natural Herbal
remedies, to formulate a range of products that cater to our daily needs. The
products are made from natural Herbal ingredients that cause no adverse effects
even when used daily. The blend of herbal extracts rehydrates the skin, restores its
vitality and keeps consumer fresh all day long.

Himalaya is having wide range of products with distinct features. Each

product is unique in its benefits and application. Their product strategy compasses
of:

 Baby care: Baby Laundary wash, baby diapers, Pre-bath, Post-bath, etc
 Personal care: Facewash, Natural Shine henna, Anti hairfall shampoo,
Protein hair cream, Lip care, Body care moisturizer, Men’s care, etc.
 Health care: Chyavanprash, kajal, Honey, Foot care cream, etc
  Pharmaceuticals: General Health(Septilin, Liv. 52, Q-Dee, Immunity,
Mentat,etc), Men’s Health, Women’s Health, Children Health(Koflet Syrup,
Bresol, etc), Oral Health, etc.
 Wellness: Antiseptic Cream, Cold Balm, Adult diapers, Green Tea, Pain-
relief oil, etc.
 Home Care: Germ Kill spray, Kitchen cleaner, Floor cleaner, Food Cleanser,
Etc.

It also provides benefits in the area of pricing so that customers can buy any
packaging size with affordable prices. Some of its products prices along with size
are given below:

Himalaya Products Size Price

Himalaya Neem 50ml-400ml Rs.70-Rs.350
Facewash
Damage Repair Protein 100ml-200ml Rs.90-Rs.165
Conditioner
Complete Care 150g Rs.85
Toothpaste
Platenza Syrup 100ml Rs.160
All purpose Germ kill 170ml Rs.159
Spray
Anxocare VET Tablets 60 tab Rs.150

Market Orientation
In market Orientation , companies cater to the needs of customers and accordingly
focuses on their products. In order to imply it efficiently a lot of research is done to
understand the customers needs, product success basis, competitors, Market
analysis in order to achieve profitability and sales growth.

Objective of Himalaya is to develop markets worldwide with an in-depth

and long term approach while remaining eco-friendly with nature and maintaining
their ethical standards at each step. Himalaya rather than completely focusing on
one target market produces range of products for everyone from infants to old aged
people and each gender. Thus, we can say that Himalaya meets the needs and
wants of customers and also achieves its objective at the same time.

Different needs of customer are met by the company as the possible market
segments can be:

1. Geographic:

Area: Urban(Metropolitan cities and towns) and Rural both

The company targets and fulfils the need of the urban city residents by
providing herbal care products as they are more likely to be well
knowledgeable about the benefits of the product and being in pollution and
population uses more of these products. Business places are more
considerable for the usage of such products as they are more aware of a
healthy and hygienic lifestyle. Rural markets are covered by providing
affordable and beneficial , close to nature products.

2. Behavioral:
 Occasion: End users who go to schools, colleges for wellness
products . Old aged people for Pharmaceutical products, Metropolitan
office workers for healthcare products.
User Status: Requires regular usage for better results.

Attitude towards product: An essential part of personal

care(skincare,haircare) and well being routine.

 The Herbal wellness company and drug maker has over 500 products that
operates on segments like personal care, Wellness and nutritional products,
Pharmaceutical products and Animal Health.

Himalaya’s total revenue is about 1,800 crore(FY16). Purifying Neem Facewash

alone accounts for over 500 crores out of 42% from personal care products. Liv.52
provides over 13% revenue out of 34% from Pharmaceutical products, baby care
products gives a 15% revenue and animal health and wellness together constitutes
of 9% revenue.
SWOT Analysis:

Strengths:

 It provides wide range of products: Personal care, Animal care, Health Care,
Home care, pharmaceuticals etc.
 It strongly believes in their beliefs of Herbal care and follows ethics towards
it in order to provide customer the best.
 Strong brand image and global presence.
 It is having strong distribution channel and delivers international
consignments with 48 hours of order placed.
 Backs each Himalaya employee and wants to not only meet the customer
expectation but exceed it each and every time.
 Targeting both urban and rural markets.

Weakness

 Limited only to Herbal health care products.

 It is having some quality constraints due to limited range(natural) raw
materials used.
 Some of the products may range in unaffordable category for rural markets.

Opportunities

 Increasing demand of Natural and Ayurvedic products in International

Market.
 Leaning towards diabetic patients.
 In coming years, research of medicinal plants may continue to be the most
sustainable growing sector.

Threats
 Major competitors with more benefit-providing brands available in market
like Dabur, Zandu.
 Cost of manufacturing and costs of processing are high
 Synthetic brands are to be seen as competitors.

Environmental Analysis

It involves the internal and external factors affecting the working and growth of
the company. External factors i.e macro environment affecting business
includes Political, Economical , Socio-Cultural, Technological, Legal and
Environmental factors(PESTLE analysis) that highlights the different extrinsic
scenario impacting the business of the brand. Internal factors i.e micro
environment includes Competitors, Organization itself, Suppliers, Market
Intermediaries and Customers(COSMIC analysis) in order to determine impact
of intrinsic factors.

Macro Environment Analysis

Political Factors

Political factor for Himalaya in PESTLE Analysis can be explained as follows:

Political circumstances are right now in favor of Ayurved and Ayurvedic

products that this leading Fast-Moving Consumer Goods Company is mainly
based on. The company mostly likes to stay in the line and stays with the nation
by adopting all government guidelines responsibly. Recently it has introduced
sustainable packaging of products by eliminating PVC from Supply Chain. It
uses eco-friendly formats and structures. The company is also following
Government initiatives like Make in India campaign.

Economic Factors
With the changing trends from 90s comparing to now , people have shifted
more towards natural and herbal products. It is generally perceived that herbal
products as compared to chemical products are more gentler on skin and also
works efficiently. Though with uncertain exchange rate and rising dollar value
against Indian rupee somewhere contributes to slowdown but it has done great
job internationally as 35% CAGR reflects that some of important market from
brand are US, Russia , South East asia among others. Increased value of dollar
resulted in raised landed cost of imported machinery , raw materials required
for production by about 14%. With increased cost of drug’s raw material,
Himalaya will have to look after tackling the cost of Drug based products to
serve to customers.

Socio-Cultural Factors

Since India has a history of Ayurveda and people are more connected and are
more aware about benefits of herbs than foreign countries, it is easy for
companies like Himalaya to connect with its consumers. Cultural factors
include how people perceive the products of the company be it be health care or
pharmaceuticals. Himalaya connects socially with both urban and rural
population as people in India are becoming more health conscious of herbal and
organic products. A rise to 2284.4 US million has been seen in healthy FMCG
products. The affordable prices offered also lets the company to cover the
whole market. Customer services are closely maintained by the company and
reviews from trusted and valuable customers are displayed on the company’s
website in order to maintain a relation and keep customers intact. The product
mix of company like Himalaya is selected based on needs of consumer and
country’s culture.

Technological Environment
 As well known technology plays a vital role today for the future growth of
every business. Government has created favorable space for Research and
Development. Himalaya itself created its own in house R&D facility in 1991 at
Bangalore using which all its Ayurvedic products are being developed.
Engineers from Himalaya Healthcare also worked at close quarters with their
foreign counterparts in the development of Himalaya Healthcare Drugs.
Ayurvedic Himalaya medicine company with their own R&D department is
now fully prepared to launch its range of soaps, lotions, creams and shampoos.

Legal Factors

In order to run a company smoothly it is necessary to follow by the ethics and

rules falling over the procedure. Development of product is influenced by the
legal factors therefore it is important not to illegally develop any product. There
are certain guidelines that need to be followed for Ayurvedic preparations by
Ministry of Ayush. A regulatory body of herbal dietary supplements
named Food safety & standards Authority of India (FSSAI) have to be
ingested. 

Environmental Factors

Himalaya company is all about natural herbs and Ayurvedic so for their
processing of products it has to undergo various environmental policies and
laws. The main challenge are the seasonal herb and the location to find these .
some herbs are found in winter season or some in autumn or summer.
Preserving and storing these herbs throughout the year for smooth production is
also an important aspect of the process.

Micro Environment Analysis

Competitors
Major competitors of Himalaya Health care among FMCG companies are Dabur,
Paras Pharmaceuticals, CavinKare, etc. Working on organic products as raw
materials Himalaya somewhat have quality constraints comparing to other
synthetic brands. Also the processing and manufacturing costs are high so in order
to make better products Himalaya need to overcome these barriers and have to
come up with more innovative ideas.

Organization Itself

Himalaya encourages a friendly and comfortable work environment for its

employees. Also it expects from its employees to have a common vision of helping
their consumers. The company’s culture helps in enabling a sense of empowerment
, valued and engaged within the employees. It believes to be a dynamic
organization that changes itself fast with the changing environment. The company
also believes and follows the values of Accountability, Integrity, Innovation
,Transparency and Humility. In their journey of spreading wellness and happiness,
a culture of diversity and inclusion by employing has been built under the
organization. This has enabled Himalaya to emerge as an employer of choice, a
place where growth has no boundaries.

Customers

It is very necessary for a Company to keep its customers intact and connected so as
they do not shift to other brands. An effort made by Himalaya driven by the purpose
of making wellness part of every home is what attracts customers the most. They
are dedicated towards solving and meeting needs of consumers from nearly 90
years now . Its Research and Development bring solutions to various customers
problems. It has well connected network from framers who grow the herbs,
communities and families who uses their products. Himalaya is consistently going
towards increasing its customer base by setting footprint across the globe and
building it into a high-value global organization for all stakeholders.

 
 After the Macro and Micro environment analysis of Himalaya Herbal
company, it comes out that the factors most affecting it are Socio-Cultural
factors, Consumers and Organization itself. As Himalaya follows Market
and product orientation , it creates a great impact on consumer’s mind as a
lot of its everyday products needs are fulfilled by Himalaya. And
organization is an important factor as employees need to be understanding
the needs of customers and should provide services accordingly that is well
taken care because of the working environment provided by the
organization.

Competition Analysis

There are various FMCG competitors like Dabur , Patanjali, Zandu, Marico present
in market. Among them comparing to the range of products provided, it has a real
competition with Dabur and Patanjali the most. The number of employees in
Himalaya are 4,200 whereas in Patanjali it is around 25,000 and 7,740 in Dabur.
 The revenue generated by Himalaya is 358.5 million US dollars whereas it is
$4 billion US dollars for Patanjali.

Both the brands follows distinct values and principles. Patanjali provides big
range of traditional products. Both the brands brough Ayurveda in FMCG and have
modernized it. Though Patanjali was incorporated much later than Himalaya , it
still managed to reach to a peak in area of Ayurveda and FMCG products. Patanjali
ensures quality of their product by growing its various herbal species on farmland
of Divya Yog Mandir Trust and Yog Peeth.

One of the main reason of such success of Patanjali is that it has a “Face” to
represent its brand.  Patanjali for a wide variety of products offer low prices to
consumers due to very low selling, administrative and general costs at 2.5 per cent
of revenues. Advertising spend in FY 16 at 6 per cent is also well below the peer
set. Critically, it has kept retail margins at half or lower levels as compared to
competition. Patanjali has meticulously scaled up distribution in an intensely
competitive retail FMCG environment in India despite low retail and A&P
spends .While Patanjali’s combination of low prices, ‘natural and pure’ proposition
and ‘ swadeshi’ positioning are widely acknowledged to be the reasons behind
success, what is not that well known is the critical role played by Patanjali’s path-
breaking sales and distribution strategy in driving this exceptional growth
trajectory.

Patanjali has followed a two-stage distribution strategy in general trade (GT):

Stage 1: Create a strong alternative distribution system for demand creation and
building word-of-mouth advocates

Stage 2: Pivot to GT once a sizeable consumer base is generated from Stage 1.

Patanjali’s product named Colgate(Palmolive) had market share of 53% for FY17-
18 reduced from 57% for FY13-14. Baba Ramdev could not maintain the quality
of products hence sales were reduced down through years and resulting Patanjali
increased prices.

Future of this competition

 Himalaya needs to work more on its Distribution Strategy.

 Himalaya offers premium products but at a higher rate than the Patanjali
products that makes it more affordable and preferable to Rural market.
 Research and Development of Himalaya is more proved and reliable as
compared to Patanjali.
 Patanjali offers a wide range of pharmaceutical products as compared to
Himalaya.

Though Patanjali has risen tremendously over these years , it is still a less trusted
brand quality wise than Himalaya. In order to stay and slay over market Himalaya
would need to focus more on targeting rural market . Himalaya also needs to work
on making strong their distribution strategy and supply chain.

Value Addition Activities

1. Distributing Strategy of Himalaya

Himalaya products have reached over 91 countries in world including Canada
,Malaysia, Nepal , Saudi Arabia, Pakistan , Turkey, USA, UAE, Belgium, India,
Mauritius, Sri Lanka ,Qatar, etc.

1.1 Obtaining raw materials

o Since 1930s , Himalaya has having an experimental herb farm in the

foothills of Himalaya to grow rare herbs. Scientists there work constantly to
improve yield of the rare plants.
o R&D studies of Himalaya’s conducts study of Pharmacognosy i.e the
science dealing with sources, physical charateristics, dosage and usage of
drugs so as to know the authenticity of plant.

1.2 Warehousing

Different mode of transportation is used so as to distribute the most of the

products. The need for warehousing is very less for Himalaya as compared to other
skincare companies because further the products are distributed to potential
customers through various store display.

1.3 Distribution to Customers

The distribution to customers is done through various store displays. These stores
are located in India in different areas like Andhra Pradesh, Himachal Pradesh,
Gujarat, Kerala, Mizoram ,Goa, Uttar Pradesh, Tamil Nadu, Uttarakhand,
Maharashtra, Karnataka, etc. The Himalayan range of products are distributed
through a mix of channel like retailers, E-commerce, mom stores, authorized
distributors and products are described globally by around 400000 doctors.

1.4 Intermediaries

Market Intermediaries for Himalaya Herbal are:

 1. Producers
2. Wholesalers
3. Sales Representatives
4. Retailers
5. Consumers

Various channels for distribution would consist of supply chain as follows:

 Directly from Manufacturer  Customers that is Online trading

 From Manufacturer Business Distributor  Customer
 Manufacturer Manufacturer’s representatives of sales
branchBusiness Customer
 Manufacturer Manufacturer’s representatives of sales
branchBusiness Distributor Business Customer
2. Promotion Strategy

2.1 Advertising

Advertising is used to broadcast the company’s message through audio/visual form

to attract and increase its consumers base. Various creative strategies are used in
order to have customer attention. Advertisers show their creativity by coming up
with catchy slogan best relating to their product.

Himalayas famous taglines “Khush raho, Khushal raho” and “ Himalaya Sabse
Pehle” can be heard and seen in many advertisements. Himalaya also focuses on
showcasing their belief on organic and herbal ingredients. In most of the
advertisements natural products are highlighted to catch attention.

2.2 Sales Promotion

Various sales promotion activities are followed by Himalaya like:

  After sales free service.
 Buy one Get one Free.
 Giving away free trial packs or samples to customers.
 Introducing various discounts and offers like recently Himalaya
products is giving products on cheaper rates than usual.
 Increasing quantity of product within old same price of product.
 Free delivery etc.

2.3 Public relations and Publicity

Himalaya maintains public relations by connecting with their customers through

mails and comments and resolving customer’s queries. Customers can also connect
to company’s customer support by means of e-mails, websites , phones ,etc.

Publicity for products is done by sharing feedbacks and reviews from existing
customers in advertisements.

3. Features of Himalaya Products

1. Its products contributes towards the well being of overall body. It does not
only address and treats the external sickness but removes the illness from
root.
2. It pays attention to details while manufacturing so that no side effects should
occur with usage of these products.
3. For busy corporate climbers, moms and dads and for anyone who needs
relief from stressed out lives it gives natural stress relief through product
named Herbal Stress Care.
4. It provides clean and herbal medicines with no artificial fillers, binders or
excipients and do not contain synthetic ingredients.
 5. Their products can be consumed by vegetarian and vegan consumers too as
most of them are free from soy, wheat , corn, diary and yeast making these
products tolerant to everyone.
4. Value added products from Himalaya

Himalaya oil clear Lemon foaming Facewash

The main add on to this facewash is light-foam is produced itself through the
product. Also, it claims to be a soap free formula that does not let the skin dry and
removes excess oil from skin. It contains lemon and honey that leaves you with a
cooling effect on skin.

5. Segment of Customers
 The customer segmentation for products from Himalaya can be done for
every age group as it has something for everyone from infants to old aged
people.
 For infants the company provides baby care products, diapers, etc.
 For teenagers and adults it is having various skincare and hair care products
that can be used by every age grouped consumers.
 Its pharmaceuticals and wellness products can be used by every range group
of age some of those only after recommended by professional consultants.
  It targets both urban and rural market with the variety of products like oral
care, eye care, etc.
6. Market Share by Himalaya

Previously in year 2004, 97% of company’s revenue was coming from Ayurvedic
medicines with revenue of around 200 crores at that time that has increased to
1800 crores by year 2019 with 34% of revenue from Ayurvedic Medicines.

According to FY16 Himalaya has a market share of 8-10% of men’s facewash that
it aims to doubles to around 20%. The company has decided to drive its customers
towards men segment through sports platform. Men’s grooming segment’s
estimated to be around 5,800 crore.

Himalaya is the market leader in facewash with a market share of 24% overall. It’s
revenue from personal care comprises of 45% with a RS2,200 crore turnover.
Facewash only generates the half of revenues from personal care.