You are on page 1of 65

Promotional Effectiveness

of Himalaya
PROMOTIONAL EFFECTIVENESS OF HIMALAYA
DRUG COMPANY
A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE AWARD OF MBA DEGREE OF
BANGALORE UNIVERSITY.
Submitted By
Mr. SENTHIL BHARATHY
Reg.No-03XQCM6091
UNDER THE GUIDANCE OF
Prof. S. RAMGOPAL
FACULTY
INTERNAL GUIDE
M.P.BIRLA INSTITUTE OF MANAGEMENT
ASSOCIATE BHARTIYA VIDYA BHAVAN.
BANGALORE-560001
M.P.Birla Institute of Management 1
Promotional Effectiveness
of Himalaya
2003-2004
Declaration
I hereby declare that the project
work embodied in the dissertation entitled
“PROMOTIONAL EFFECTIVENESS OF HIMALAYA DRUG COMPANY“, has been
carried out by me under the guidance and supervision of Prof. S RAMGOPAL, Adjunct
Professor, M.P.Birla Institute Of Management , Bangalore.
I also declare that this dissertation has not been submitted to any University / Institution
for the award of any Degree / Diploma.
Reg no: 03XQCM6091
Place : Bangalore
Date :
SENTHIL BHARATHY
M.P.Birla Institute of Management 2
Promotional Effectiveness
of Himalaya
Certification
I hereby certify that the project work embodied in this dissertation entitled
“PROM OTIONAL EFFECTIVENESS OF HIMALAYA DRUG COMPANY“ has been
completed by Mr. SENTHIL BHARATHY under the guidance of Prof. S Ramgopal,
Adjunct Professor, M.P.Birla Institute of Management, Bangalore (Internal Guide) and
Mr. K. Ganesan of HIMALAYA DRUG COMPANY, Bangalore (External Guide)
Place: Bangalore
Date:
Dr.Nagesh Malavalli
M.P.Birla Institute of Management 3
Promotional Effectiveness
of Himalaya
Acknowledgement
I would like to take this opportunity to thank Mr. K.Ganesan Retail Country Manager,
HIMALAYA DRUG COMPANY, for guiding me throughout my Project.
This has been a wonderful experience and my interactions with him have proved
incredibly helpful. Thank you sir, for giving such a patient hearing to all my questions.
Heartfelt thanks to Prof. S Ramgopal and Dr. N.S. Malavalli, Principal M.P.Birla
Institute of Management for giving me an opportunity to undertake this study.
Place: Bangalore
Date:
SENTHIL BHARATHY
M.P.Birla Institute of Management 4
Promotional Effectiveness
of Himalaya
Guides Certificate
I hereby certify that the project work entitled ‘PROMOTIONAL EFFECTIVENESS OF
HIMALAYA DRUG COMPANY“ has been undertaken and completed by Mr. SENTHIL
BHARATHY under my guidance and supervision.
I also certify that to the least of my knowledge, he has fulfilled all the
requirements under the covenant governing the submission of project to the Bangalore
University for the award of MBA degree.
Place: Bangalore
Date:
Prof. S Ramgopal
M.P.Birla Institute of Management 5
Promotional Effectiveness
of Himalaya
LIST OF CONTENT
Chapter Number
1.
2.
3.
4.
5.
6.
7.
8.
Topics
Executive Summary
Introduction
Research Design
Data Analysis and Interpretation
Findings
Recommendations
Bibliography
Annexure
Page No
1
3
15
18
44
48
51
53
M.P.Birla Institute of Management 6
Promotional Effectiveness
of Himalaya
LIST OF CHART
Serial
Number
1.
1.1
1.2
1.3
2.
2.1
2.2
3.
3.1
3.2
3.3
4
5.
6.
7.
8.
9.
Topic
CONSUMER PERCEPTION
Quality
Package
Image
AWARENESS ABOUT THE COMPANY AND ITS
PRODUCTS
In Mumbai
Rest of the western zone
PERFORMANCE OF THE SALES EXECUTIVES
In Mumbai
Rest of the western zone
Overall
CONSUMER MINDSET
LEISURE TIME SPENDING PATERRN
SALES PROMOTION
ONSUMER UNAWARENESS
MEDICAL PRACTITIONER PROMOTION
CONSUMER PRODUCT PREFERENCE
Page no
19
20
21
22
24
26
28
30
32
34
36
38
40
42
M.P.Birla Institute of Management 7
Promotional Effectiveness
of Himalaya

CHAPTER - 1
EXECUTIVE SUMMARY
M.P.Birla Institute of Management 8
Promotional Effectiveness
of Himalaya
EXECUTIVE SUMMARY
The research on Promotional effectiveness of the Himalaya Drug Companies conducted
in the Western Zone has brought many things into light. The intense study has brought
out the actual level of performance promotional activities carried out by the Himalaya
Drug company. During the study, I am able to identify the problems and challenges faced
by the company due to improper promotional activities. The study has provided the
information and suggestions to improve the performances of the company.

M.P.Birla Institute of Management 9


Promotional Effectiveness
of Himalaya

CHAPTER - 2
COMPANY PROFILE
M.P.Birla Institute of Management 10
Promotional Effectiveness
of Himalaya
History:
The Himalaya Drug Company was founded in 1930 by Mr. Manal with a clear
vision to bring Ayurveda to the society in a contemporary form and to unravel the
mystery behind the 5,000 years old system of medicine. This included referring to ancient
ayurvedic texts, selection indigenous herbs and subjecting the formulations to modern
pharmacological, toxicological and safety tests to create new drugs and therapies.
Seventy three years ago, on a visit to Burma, Mr. Manal saw restless elephants
being fed with a root to pacify them. The plant form which this was taken is Rauwolfia
serpentine. Fascinated by the plant’s effect on elephants, he had it scientifically
evaluated. After extensive research, Serpina, the world’s first anti-hypertensive drug, was
launched in 1934.
The legacy of researching nature forms the foundation of Himalaya’s operations.
Himalaya has pioneered the use of modern science to rediscover and validate ayurveda’s
secrets. Cutting edge technology is employed to cerate pharmaceutical grade ayurvedic
products. Since its inception, 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 250,000 doctors around the globe and consumers in
over 60 countries rely on Himalaya for their health and personal care needs.
M.P.Birla Institute of Management 11
Promotional Effectiveness
of Himalaya
MISSION
We will satisfy each customer’s health needs through well -researched, effective and safe
remedies harnessed from nature’s wealth
We will consider the world our market, and make international quality standards our
obsession
We will maintain customer-friendly prices and proudly participate in securing India’s
rightful place in the global economy, all through the total commitment of each member of
the Himalaya family.
M.P.Birla Institute of Management 12
Promotional Effectiveness
of Himalaya
BRAND IDENTITY:
…. the promise of health, well-being and a prescription for good living
The Himalaya brand has much in common with the mountain range from which it
draws its name. For centuries, the Himalayas have been an icon of aspiration, of man’s
quest to unlock nature’s secrets. They represent purity and lofty id eal. The fact that the
Himalayas are the source of many of the herbs that are used in our products makes our
brand name all the more appropriate.
The Himalaya logo is a visual definition of its brand identity. 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. The Himalaya brand carries with it the promise of good health
and well-being.
M.P.Birla Institute of Management 13
Promotional Effectiveness
of Himalaya
LOCATION:
Himalaya Manufacturing Plant:
Starting off operation(s) in Dehradun way back in the 1930s, the company set up
an advanced manufacturing facility in Makali, Bangalore, India, which today houses the
corporate headquarters. In 1991, the company relocated its R&D facility to Bangalore.
The manufacturing facility at Makali has the largest tablet-coating unit in the country.
Over one crore tablets are punched every day.
MILESTONE
1930
1934
1950
1955
1964
1965
1975
1991
1996
1998
1999
2000
2001
2003
2004
2005
Mr.Manal found The Himalaya Drug Company
Launch the world first Anti-hypertensive drug, Serpina
Dr.Rosan M Captain joins the company and spearheads research and
development.
Liv.52, a hepatoprotective, is launched and goes on to become one of the
world’s top -selling drugs.
Mr.Meraj A Manal, the founder’s son, join the company.
Mr. Karstein, a German pharmaceutical consultant, directs the company’s
focus towards allopathic medical practitioners.
An advanced manufacturing facility is set up in Bangalore. The facility grows
to become the corporate headquarters.
The company’s R&D center moves to Bangalore. Research and development
becomes a very important aspect of the company’s focus.
The company opens its US office at Houston, Texas.
The animal health product range for commercial livestock is launched.
Himalaya herbal launches its personal healthcare products in India.
The company launches a special range for pets called Companion Care range.
The company adopts a new unified brand identity.
Consumer Health Division formed.
Mr. Nabeel Manal, the third generation Manal, becomes Vice Chairman.
Himalaya celebrates Seventy-Five years.
M.P.Birla Institute of Management 14
Promotional Effectiveness
of Himalaya
PRODUCT PROFILE
M.P.Birla Institute of Management 15
Promotional Effectiveness
of Himalaya
PHARMACUETICAL
CHILD HEALTH:
Bonnisan Koflet
MentatSeptilin
Liv.52
WOMEN EALTH:
Claring
Evecare
Lukol
V-Gel
Men’s Health:
Rwenalka
Reosto
Styplon
Menosan
Speman
Himcolin Gel
Tentex Royal
Confido
Tentex Forte
Himplasia
M.P.Birla Institute of Management 16
Promotional Effectiveness
of Himalaya
GENERAL HEALTH:
AbanaHimcocid
Liv.52Rulalaya Forte
ClarinaHimcaspaz
CystoneDiarex
Rumalaya Septalin
GasexGeriforte
Purim
Renalka
Diakof
Reosto
Koflet
Serpina
Pure Hands
Diabecon
Mentat
Rumalaya Gel
Ophthacare
Pilex
Hwrbolax
M.P.Birla Institute of Management 17
Promotional Effectiveness
of Himalaya
PERSONAL CARE
Skin Care:
Gentle Refreshing Toner
Fairness Cream
Lip Balm
Face Pack
¾Purifying Mud Pack
¾Refreshing Fruit Pack
Facial Cleaner
¾Deep Cleansing Milk
¾Gentle Exfoliating Walnut Scrub
Moisturizers
¾ Moisturizing LotionFace
¾Intensive Face Moisturizing Lotion
¾Protective Sunscreen Lotion
¾Soothing Body Lotion for Normal Skin
¾Soothing Body Lotion for Dry Skin
Skin Nutrient
¾Anti-Wrinkle Cream
¾Nourishing Skin Cream
¾Revitalizing night Cream
Oral Care:
Dental Cream
M.P.Birla Institute of Management 18
Promotional Effectiveness
of Himalaya
Hair Care:
Protein Conditioner
Revitalizing Hair Oil
Protein Shampoo
Dandruff Control
¾Anti-Dandruff Shampoo
¾Anti- Dandruff Hair Oil
Health Care:
Daily Health Capsule
Cold Balm
Foot Care Cream
Antiseptic Cream
Ayurslim Capsule
Pain Relief
¾ BalmPain
¾ Massage OilPain
¾Muscle & Joint Rub
Pimple Control
¾Acne –n – Pimple Cream
¾Blood Purifier Capsule & Syrup
M.P.Birla Institute of Management 19
Promotional Effectiveness
of Himalaya
CONSUMER HEALTH
Forest Honey
Chavanaprasha
Throat Drop
Shahicool
Gripe Water
Pure Herbs:
Amalaki
Bael
Guduchi
Kapikachhu
Mandukaparni
Neem
Shatavari
Sunthi
Triphala
Vrishamla
Arjuna
Barhmi
Haridra
Karela
Manjishatha
Punarnava
Shigru
Tagara
Tulasi
Yashti-Madhu
Ashvaganda
Gokshura
Haritaki
Lasuna
Meshashringi
Shallaki
Shudhha Guggulu
Trikatu
Vasaka
M.P.Birla Institute of Management 20
Promotional Effectiveness
of Himalaya
ANIMAL HEALTH
Appetonic Vet
Inflamin Vet
Spemen Vet
Appetonic Forte Vet
Liv.52 vet
Spemen Forte Vet
POULTRY
Spemen Vet
Spemen Forte Vet
Liv.52 Protec
Geriforte Vet
Tentex Vet
Nefrotec Vet
Aqua culture
Geriforte Aqua
Liv.52 Protec
PETS
Anxocare
Erina EP
Canisep
Nefrotec
Erina Plus
M.P.Birla Institute of Management 21
Promotional Effectiveness
of Himalaya

CHAPTER - 3
RESEARCH DESIGN
M.P.Birla Institute of Management 22
Promotional Effectiveness
of Himalaya
PROBLEM STATEMENT
To study the company’s expect ed achievement by the present methods of
Promotional activities.
On the basis of this problem statement, the following specific objectives have
been crystallized.
OBJECTIVE OF THE RESEARCH
To find the actual Promotional effectiveness and to improve the performance of
Himalaya drug company.
RESEARCH DESIGN
The research aim is to find out the company’s promotional effectiveness,
utilization, reachability, Efficiency of message to customers delivered by the Company.
The customer amazement through products and the awareness about the company is
based on survey through questionnaire with partly open ended and partly close-ended
questions and through direct observation.
TYPE OF RESEARCH
Observational Research
Fresh data can be gathered by observing the relevant factors and settings. This
exploratory research might yield some useful hypotheses that show the customers feel
about the promotion and the awareness it creates.
Survey Research
Surveys are best suited for descriptive research. Companies take up surveys to
learn about people’s knowledge, beliefs, preferences, and satisfaction. Th e survey
exercise includes the questionnaire (See annexure) to know the customers, the location
study and the company’s image.
M.P.Birla Institute of Management 23
Promotional Effectiveness
of Himalaya
SAMPLE SIZE
The chosen size of the sample for research is 1400 customers. Since, in western
Zone, Himalaya have fourteen outlets, decided to allocate 100 samples to each outlet.
SAMPLE DESCRIPTION
The sample is chosen from different customers who had visited Himalaya outlets
during different times of the day, at the rate of 100 customers from each of the fourteen
outlets in the western zone.
INSTRUMENTATION TECHNIQUES
The questionnaire technique is used for the survey and the reasons for using this
approach are;

It covers wide area


It is not an expensive affair
Original data could be obtained
It is free from all bias
Easy to tabulate and understand
COLLECTION OF DATA
Data has been collected from both primary and secondary sources. Primary data is
collected by the questionnaires and personal observation. Secondary data is collected by
the company brochures, books, internet, magazines, etc,
LIMITATION

The data is collected only at the Western Zone


Time constraint
Results are purely based on primary information
The analysis and interpretation is made under the assumption that data are
accurate
M.P.Birla Institute of Management 24
Promotional Effectiveness
of Himalaya

CHAPTER – 4
DATA ANALYSIS
AND
INTERPRETATION
M.P.Birla Institute of Management 25
Promotional Effectiveness
of Himalaya
CONSUMER PERCEPTION
1.1. Quality
Low
1%
Moderate
35%
Extremely
High
5%
High
59%
Analysis:
The chart shows almost 99% of the customers feel, Quality of Himalaya products
is extremely good. This is the greatest advantage for Himalaya. This shows it is easy
to introduce new products to the customers.
would be very loyal customers.
The 64% representing ‘extremely high’ & ‘high’ column should be retain as they¾
35% customer’s feels that quality is moderate and company should focus to that¾
1% of customers feel that product quality is low have accepted that they are¾
allergic to few herbs, and some feels that herbal product give results very slowly.
to find out the needs of the customers.
M.P.Birla Institute of Management 26
Promotional Effectiveness
of Himalaya
CONSUMER PERCEPTION
1.2. Packaging
Extremely High
7%
Low
17%
High
43%
Moderate
33%
Analysis:
The study showed that 53% of the purchases are made on impulse and packing
has truly influenced the impulse behavior
The ‘extremely high’ and ‘high’ rated category customer have reasoned that
company products.
Packing helped them in self-service by enabling them to differentiate the¾
Customers are ready to pay a little more for the smaller pack which is slightly¾
higher than the economy pack for the convenience of carrying. Example: Perk
They have liked the new packing as it gives a feeling of standard quality products.¾
This will help in building the company and brand image
chocolate are now available at Rs2/- which has more profitability.
M.P.Birla Institute of Management 27
Promotional Effectiveness
of Himalaya
CONSUMER PERCEPTION
1.3. Image
Extremely High
18%
Moderate
20%
High
62%
Analysis:
The graph represents that the company has positioned itself very strongly in the
minds of customer.
None of the customers have rated the image as low which adds to the credit¾
The categories representing ‘high’ and ‘extremely high’ are totally 80% which is¾
very good to the company. This is supported by the Customer Brand Loyalty
graph. The company should continue to provide the same level of delight to retain
20% representing moderate are the customers who have been newly introduce or¾
would like to still try the other products of the company to see the effectiveness of
herbal products.
this position.
basket of the company.
M.P.Birla Institute of Management 28
Promotional Effectiveness
of Himalaya
2.1. AWARNESS ABOUT THE COMPANY AND ITS PRODUCTS
IN MUMBAI
Data given below shows the means through which customers were introduced to the
company products i.e. how the customers got to know about Himalaya products?
Location
Andheri (E)
Borivilli
Byculla
Collaba
Domivilli
Goragaon*
Kandivali*
Koparkarine*
Thane
Code
ADH
BOR
BYC
COL
DOM
GOR*
KAN*
KOPA*
THA
Advertisements Word of mouth
6327
4643
5028
5331
5736
5519
5536
5527
4313
Other Means
10
11
22
16
9
26
9
30
60
70
60
50
40
30
20
10
0
ADH
BOR
BYC
COL
DOM GOR* KAN* KOPA* THA
Other Means
Advertisment
Word of mouth
M.P.Birla Institute of Management 29
Promotional Effectiveness
of Himalaya
Analysis:
The graph shows that majority of the Mumbai customers are aware about the¾
company through Advertisements. This shows that advertisements have a very
good impact on the crowd.
Thane outlet differs from rest of the outlets. Since it is located in a very good area,¾
the outlet is bringing about very good awareness about the company. This proves
that outlet itself can be an excellent means of advertising.
Buzz marketing i.e., ‘Word of mouth’ marketing rank second in the list of mode¾
of promotion. This shows Buzz marketing is one of the effective ways of
promoting the brand.
M.P.Birla Institute of Management 30
Promotional Effectiveness
of Himalaya
2.2. AWARNESS ABOUT THE COMPANY AND ITS PRODUCTS
IN REST OF THE WESTERN ZONE
Data given below shows the means through which customers were introduced to the
company products i.e. how the customers got to know about Himalaya products
Location
Ahmedabad
Arungabad
Nasik
Pune
Surat
Code
AHMD
ARUNG
Nasik
Pune
SUR
Advertisement
51
38
56
21
23
Word of mouth
39
47
61
36
50
Other Means
10
15
7
43
27
70
60
50
40
30
20
10
0
AHMD
ARUNG*
Advertisment
Nasik
Word of mouth
Pune*
SUR*
Other Means
M.P.Birla Institute of Management 31
Promotional Effectiveness
of Himalaya
Analysis:
The graph represents that the customers got to know about Himalaya almost¾
equally by way of means.
The comparison of these two charts shows that in Mumbai, the advertisements¾
made a great impact where as in rest of the western zone, Word of Mouth and
other means are also equally effective.
The general behavioral patterns of people in Western Zone, is very different from¾
the Mumbai people, because of standard of living, cultural difference, etc.,
M.P.Birla Institute of Management 32
Promotional Effectiveness
of Himalaya
3.1. PERFORMANCE OF SALES EXECUTIVES
IN MUMBAI OUTLETS
Statistics of customers getting the required information from the Executives
Location
Andheri (E)
Borivilli
Byculla
Collaba
Domivilli
Goragaon
Kandivali
Koparkarine
Thane
Code
ADH
BOR
BYC
COL
DOM
GOR
KAN
KOPA
THA
Yes
27
65
56
61
46
14
24
18
17
Occasionally
16
11
6
12
14
4
9
6
13
No
52
18
18
23
36
6
2
0
60
Unable to Comment
5
3
17
4
4
0
3
0
10
70
60
50
40
30
20
10
0
ADH
BOR
Yes
BYC
COL
DOM GOR* KAN* KOPA* THA
No
Unable to Comment
Occaionally
M.P.Birla Institute of Management 33
Promotional Effectiveness
of Himalaya
Analysis:
This graph shows 3 or 4 outlets like Borivilli, Byculla and Collaba, Sales¾
Executives have good product Knowledge due to their innate interest and
enthusiasm.
Incase of Andheri (E), Sales executive are good in product knowledge but they¾
lack motivation. Sales executive are de-motivated due to very few impatient
customer.
Poor product knowledge of the sales executive in Thane outlet leads to customer¾
dissatisfaction.
M.P.Birla Institute of Management 34
Promotional Effectiveness
of Himalaya
3.2. PERFORMANCE OF SALES EXECUTIVE
IN REST OF THE WESTERN ZONE
Statistics of customers getting the required information from the Executives.
This includes introducing the customers to the new products and prompting.
Unable to
Location
Ahmedabad
Arungabad
Nasik
Pune
Surat
Code
AHMD
ARUNG
Nasik
Pune
SUR
Yes
28
31
66
7
16
Occasionally
10
3
14
4
3
No
53
9
3
1
2
Comment
2
0
2
0
0
70
60
50
40
30
20
10
0
AHMD
Yes
ARUNG*
Occasionally
Nasik
No
Pune*
SUR*
Unable to Comment
M.P.Birla Institute of Management 35
Promotional Effectiveness
of Himalaya
Analysis:
This graph shows sales executive are having considerable product knowledge,¾
prompting the customers and introducing them to new products. They can manage
the local prospect, but still there is lot of scope for improvement.
The customers have rated the performance of the franchisees considering¾
franchisees as sales executive that is one of the reasons for the high performance
rating.
At¾ Ahemdabad: Out of 100 customers, 58 of them told that sales executive are not
having Product knowledge. This shows Ahmedabad sales executives should work
towards improving their product knowledge.
M.P.Birla Institute of Management 36
Promotional Effectiveness
of Himalaya
3.3. PERFORMANCE OF SALES EXECUTIVES
Statistics of customers getting the required information from the Executives
This includes introducing the customers to the new products and prompting.
Total
sample*
1000
Yes
476
Occasionally
125
No
283
Unable to Comment
50
1000
900
800
700
600
500
400
300
200
100
0
Total
sample*
Yes
Occasionally
No
Unable to
Comment
M.P.Birla Institute of Management 37
Promotional Effectiveness
of Himalaya
Analysis:
The graph depicts that the Sales executives are not having sufficient product¾
knowledge, not introducing the customers to the new products or prompting them,
and giving them sufficient information.
Out of 1000 samples, 283 customers are not happy with the sales executives’¾
product knowledge and the new products information. In one of the research
findings, it is founded that every unsatisfied customer will adversely influence
minimum of six other customers by negative word of Mouth.
M.P.Birla Institute of Management 38
Promotional Effectiveness
of Himalaya
4. CUSTOMERS MINDSET
Trustworthy
Modern Ayurveda
No Side effect
High Class Product
15%
60%
15%
10%
60%
15%
15%
10%
TrustworthyModern No Side High Class
Ayurveda effectProduct
M.P.Birla Institute of Management 39
Promotional Effectiveness
of Himalaya
Analysis:
The Graph shows that sixty percent of the customers /consumer perceive that the¾
brand Himalaya is Modern Ayurveda, when compared to other parameters like
‘Trustworthy’ , ‘no side effects’ , ‘high class products’ .
Trustworthy and No side effect shares equal percentage in the chart of 15%.¾
Final, High class product parameter scores only 10% among the consumer and¾
customer.
The graph shows that Modern Ayurveda predominantly higher than the other¾
parameters.
M.P.Birla Institute of Management 40
Promotional Effectiveness
of Himalaya
5. LEISURE TIME SPENDING PATTERN
Magazine
164
TV
623
Radio
56
Family
465
Newspaper
92
92, 7%
164, 12%
465, 33%
623, 44%
56, 4%
Magazine
TV
Radio
Family
Newspaper
M.P.Birla Institute of Management 41
Promotional Effectiveness
of Himalaya
Analysis:
Out¾ of 1400 samples, 623 prospect customer watch television during there leisure
Out of 1400 samples, 465 prospect customer spend there leisure time with there¾
Nearly 77 percentage of the customer comes under two things that are Television¾
Rest like radio, magazine, newspaper are put together 33% percent.¾
and family.
family.
time, that is 44 percent.
M.P.Birla Institute of Management 42
Promotional Effectiveness
of Himalaya
6. SALES PROMOTION
Total Sample
1400
Free Sample
326
Tester
119
Tester
119
Free Sample
326
1400
Total Sample
M.P.Birla Institute of Management 43
Promotional Effectiveness
of Himalaya
Analysis:
Exclusive outlet of Himalaya is one of the company’s distribution channels, so the¾
Out of 1400 customer, only 119 customers are aware or used the tester facility¾
Only 326 of total sample collected were given the free samples of the product.¾
to tap new customers for the company or to other product of Himalaya.
from Exclusive outlet of Himalaya.
tester and free samples given there plays a major role for promotion.
These are the most important way of sales promotion, but it is not used properly¾
M.P.Birla Institute of Management 44
Promotional Effectiveness
of Himalaya
7. CUSTOMER UNAWARENESS
Not Effective
Not Seen
TV
245
192
Magazine
169
512
169
245
192
0
200
512
Magazine
TV
400
600
Not Seen
800
Not Effective
M.P.Birla Institute of Management 45
Promotional Effectiveness
of Himalaya
Analysis:
Customers are unaware about the product through advertisement because of two¾
In¾ case of Magazine, not seen column is higher than not effective column that is,
It’s¾ equally bad that both Not seen and Not effective are filled in case of
Television advertisement 192 & 242 respectively.
Not seen – 169, Not effective – 512.
main reason, they are Not seen the advertisement and Not effective advertisement.
M.P.Birla Institute of Management 46
Promotional Effectiveness
of Himalaya
8. MEDICAL PRACTITIONER PROMOTION
Medical Practitioner
Yes
No
155
12
No
12
155
M.P.Birla Institute of Management 47
Yes
Promotional Effectiveness
of Himalaya
Analysis:
More than half of the sales are through medical products for the company, so it’s¾
very important that company should concentrate on Medical Rep as vital channel
The response for this analysis is purely from the customer who use medicine¾
Out¾ 167 customers who use medical product of Himalaya, 155 customers is came
to know about Himalaya through Medical practitioner.
category.
member for its product.
M.P.Birla Institute of Management 48
Promotional Effectiveness
of Himalaya
9. CATEGORYWISE CONSUMER PREFERENCE
Personal Care
295
Cosmetics
342
Toiletries
139
Medicine
823
900
800
700
600
500
400
300
200
100
0
Personal Cosmetics Toiletries
Care
295
342
139
823
Medicine
M.P.Birla Institute of Management 49
Promotional Effectiveness
of Himalaya
Analysis:
Company product portfolio or product line can be divided into four category i.e.,¾
Out of these four categories, Medicine is highest selling category having more¾
The next highest in the list is Cosmetics, but that is half of Medicine category.¾
than 60% of the total sales.
Personal care, Medicine, Toiletries, Cosmetics.
M.P.Birla Institute of Management 50
Promotional Effectiveness
of Himalaya

CHAPTER – 5
FINDINGS
M.P.Birla Institute of Management 51
Promotional Effectiveness
of Himalaya
Findings of the study
In the study of the promotional effectiveness observations were made and some
were common to the all companies. They are
Awareness:
1) In Mumbai, Advertisement made a greater impact when compared to other mode
of communication.
2) In rest of the western zone, all the mean of awareness creation as worked out
equally and effectively.
Advertisement:
3) More than 65% percentage of the respondents is unaware of the Himalaya
advertisement that is basically, advertisements are not attractive or not telecasted
at proper time and media.
Consumer Preference:
4) Himalaya has four product categories i.e., Personal care, Medicine, Toiletries,
Cosmetics, among these four categories, Medicine is highest selling category
having more than 60% of the total sales.
5) Leisure Time – In case of urban cities customer spend more of their leisure time
with their friend and in case of sub urban and towns they spend their time in
watching television.
Promotion:
6) Sales promotion – Tester and Free sample are the most important way of sales
promotion, but it is not used properly to tap new customers for the company or to
pull exiting customer of Himalaya to other products of Himalaya. The purpose of
providing the tester facility at the outlet by the company is to provide the touch
and feel of the products and to raise the need. For all this the testers should find a
proper place. The customers should be made known that they can try sales
executives should draw the customer interest towards the testers. The testers
should be neatly displayed with required content. Exclusive outlet of Himalaya is
M.P.Birla Institute of Management 52
Promotional Effectiveness
of Himalaya
one of the company’s distribution channels, so the tester and free samples given
there plays a major role for promotion.
7) Medical Practitioner - More than half of the sales are through medical category
for the company, so it’s very important that company should concentrate on
Medical Rep as vital channel member for its product.
Consumer Perception:
8) Quality – Quality of Himalaya products are rated higher than any other criteria for
consumer perception. Few customer are not satisfied with the product, and they
can be divided into two part, the first part is because the product is not suiting
there body or allergic to that particular herb. The other part is not made for that
segment of the customer.
9) Image/Brand - Brand name of Himalaya stand very high among the existing
customer of Himalaya. Other parameters like quality, package, product line,
goodwill etc, helped the brand to create high brand value.
10) Position - More than 60% of the respondent are positioned Himalaya has Modern
Ayurveda when compared with No side effects, Trustworthy, High class products.
11) Package – Customer affluence as the customers are ready to pay a little more for
the smaller pack which is slightly higher than the economy pack for the
convenience of carrying.
12) Price – Price of the Himalaya product are relatively high when compared to
competitors price.
Exclusive Outlets:
13) The product catalogues and the other material to guide customer and give product
information are not promptly distributed recognizing the need. Only at the request
of the customers for such information they are served.
14) The outlets are facing problems due to different offers at the medical stores and
shopping malls on Himalaya products. Better offers in these places the customers
are loosing hope on the exclusive outlets. Like an anniversary offer of 10% off on
purchase of non purchase products at the outlet while in medical stores side by the
outlet offers Rs.60worth of free goods on purchase of Rs.240 worth of Himalaya
M.P.Birla Institute of Management 53
Promotional Effectiveness
of Himalaya
products which is almost 25% off. In Big Bazaar the 1+1 shampoo free but it is
not available in the outlet.
The executives are having product knowledge but are not able to deliver it in a way
the customer can understand. They are confused by the questions and land up giving
wrong and vague answers. Thus they are not able to recommend appropriate products.
15) The sales executives are making no efforts to sell health and wellness to
customers. They do not probe into customers wants to find out what they actual
are looking for and suggest most appropriate product.
16) Offers announced by the company on the products are not followed. Like the 1+1
Hair oil free offer on the old pack, at some outlet the hair oil is given free on
purchase of a shampoo while in another outlet they are sold individually while in
another outlet the offer is given only for sometime even though the old pack of oil
is not completed. This does not give a good image to the customers buying at
different outlets.
17) Product Knowledge - Only with sufficient product knowledge the sales executives
can give proper guidance to customers. The sales executives must be able to give
the information in a way the customer can understand.
18) Telephone orders - The telephone orders can be accepted only if the calls are
attended. If the lines are always busy the customers will never try to avail this
service. The orders should be properly noted for prompt delivery of service and
products.
19) Home delivery - The telephone orders received should be processed as soon as
possible without any mistakes as to product, quantity or place.
M.P.Birla Institute of Management 54
Promotional Effectiveness
of Himalaya

CHAPTER – 6
RECOMMENDATIONS
M.P.Birla Institute of Management 55
Promotional Effectiveness
of Himalaya
Recommendations
Promotion Channel:
Company should follow a different way of advertising media and channel. Since
customer is spending most for their leisure time with their family and television,
company should continue with BUZZ marketing and start advertising aggressively on
television and magazine.
Positioning:
Company should try to use its strength, and position the company in
consumers’/ customer’ mind. Company should reinforce the image of the company that
“ Himalaya as Modern Ayurveda” through advertisements. And that how at present
customers is perceived about Himalaya.
Effectiveness:
Print media Advertisements of Himalaya are not very attractive to the customer.
Company should organize to create very attractive advertisements and try to pull
customer attention either by Television or by Print. Himalaya can rope in good
advertisement agency .
Promotion:
Medical products:
Since more than sixty percent of the revenue come from Medicines, company
should concentrate on Medical Representative and the ways of promotion through
Medical Practitioner.
Rapport with the Doctors:
The company needs to maintain a constant liaison with Ayurvedic doctors. As the
customers base their trust on the doctor’s suggestions first the company needs to KEEP
the doctors UPDATED ABOUT the wide range of Himalaya products and their wide
M.P.Birla Institute of Management 56
Promotional Effectiveness
of Himalaya
availability across the globe. The doctors can prescribe HIMALAYA MEDICINES
ALSO TO NRI patients AS the products ARE available in other countries as well.
OTC Products:
Growth of the company depends on the FMCG product so they should focus on
product category like Cosmetics, Toiletries. Company advertisements should focus more
of these products.
Exclusive Outlet:
Product Display:
The displaying of the products in the shelves should be done with more care. Use
of shelf talkers (Shelf Labels) to correctly guide the customer is necessary.
The
company should provide the same adequately as soon a possible. It is strongly
recommended that the company adopts "Visual Merchandising” to enhance the
visibility of the products which in turn enhance the brand association.
Executives training needs:
The training needs to be revised to train the executive to be able to deliver the
information about the products to the customers in way customers can understand and not
just using the same wordings or jargons, which are there in the "Guide To Good Living".
Training should also focus on improving the executives knowledge of the nearest
competitive products so that they can justify the Quality and Price of Himalaya products
compared to others. The executives should be trained to use computer soft ware to give
quick service and handle the credit card.
Offers uniformly offered:
The company should strictly ask the outlets to follow the offers announced by the
company. Being an exclusive outlet there is a need to offer the offers on products
uniformly to gain the trust of the customers purchasing at different outlet.
Flexible sales promotion:
The sales promotional activities give the desired effect only when they are
flexible. While the company is focusing on upper middle class and upper class, offers like
free lunch box on purchase of honey is not suitable. Thus the offers should be made
M.P.Birla Institute of Management 57
Promotional Effectiveness
of Himalaya
flexible giving an equal amount of price discount on rejecting the gift. Company should
also provide a discount at the outlets on bulk purchases.

CHAPTER – 7
BILIOGRAPHY
M.P.Birla Institute of Management 58
Promotional Effectiveness
of Himalaya
Bibliography:
Books:
Marketing Management by Philip H Kotler9
Consumer Behavior by Schiffman9
Service Marketing by Valarie A Zeithaml & Mary Joe Bitnar9
Logistic & SCM by Martin Christopher9
Principle of marketing by Philip H Kotler9
Advertising Management by Rajive Batra9
Magazines:
American Marketing Association Journal9
Retail Image9
Indian Journal of Marketing Published by ICFAI9
Website:
www.marketingterms.com9
www.exchangeindia.com9
www.marketpower.com9
www.indiainfoonline.com9
www.marketingstrategy.com9
M.P.Birla Institute of Management 59
Promotional Effectiveness
of Himalaya

CHAPTER – 8
ANNEXURE
M.P.Birla Institute of Management 60
Promotional Effectiveness
of Himalaya
Name:
Area:
+,0$/$<$&$5(5(6($5&+

Occupation:
1. Why did you choose HIMALAYA Products?
Health Conscious
Quality products
For Trial
2. Which product categories of HIMALAYA are you using?
Personal care
Cosmetics
Toiletries
Medicine
3. How did you come to know about HIMALAYA?
Ad
Friends
Relatives
if Others (please specify)____
4. How do you ‘feel’ about the products of HIMALAYA, which you have used?
Product name: _________________ Product name: ___________________
Comment:
Continue
_________________ Comment:
Discontinue
___________________
Discontinue
Yes
No
Continue
5. Does any medical practitioner prescribe HIMALAYA product?
6. Is the salesman prompting you to try other products of HIMALAYA?
Yes
No
Occasionally
7. How do you spend your leisure time?
Newspaper
Magazine
TV
Radio
Family
8. What time usually in a day, do you watch Television?
M.P.Birla Institute of Management 61
Promotional Effectiveness
of Himalaya
7 – 9am
9 – 12am
12 –6pm
6 –9
Night
Parameter
Quality
Package
Availability
Price
Image
Extremely Low
Low
Moderate
High
Extremely High
Please tick the appropriate block
9. How do you feel about the ‘promotional’ of HIMALAYA product in terms of
frequency, impact, logo, appeal, theme and reach?
Excellent
Quite good
Average
Poor
10. What do feel about HIMALAYA products?
________________________________________________________________
11. Are you aware of the services provided by HIMALAYA?
Home Delivery
Testers
Free Samples
12. Which other products do you want from HIMALAYA? _____________________
13. Your comments / opinion for improving the HIMALAYA products.
M.P.Birla Institute of Management 62
7+$1.<28
+$9( 1,&($'$<
Promotional Effectiveness
of Himalaya

M.P.Birla Institute of Management 63

You might also like