BRAND PERFORMANCE OF HIMALAYA

INDIVIDUAL ASSIGNMENT
Name- Shivani Goenka
Roll No: 2017233120
Subject – Brand Management
Submitted To – Prof. Rajeev Kamble

1. EVOLUTION OF HIMALAYA WITH RESPECT TO ITS POSITIONING

Himalaya has positioned itself as an herbal brand giving health & wellness of the customer prime
importance while doing business and formulating products best suited to the changing times.

 In the year 1934, Himalaya introduced its first product named Serpina. The company in 1955
came out with the blockbuster product in the form of Live 52. It is the flagship product of
Himalaya.
 After 69 years of corporation, in the year 1999 the brand went for a complete make over and
emerged with a new identity. The brand, the company analysed, and targeted at the modern
Indian consumer who is willing to pay a premium for good medicine, and for those who believe
in Ayurveda but are not inclined to go traditional Ayurveda clinics. In the year 1999, the
company entered into personal care segment selling products of health care, oral care, Hair
care, Skin care and Baby care.
 In 2001, two years after they entered into the personal care, Himalaya changed their logo and
product packaging and named the brand as Himalaya Healthcare, which was earlier known, as
Himalaya Herbals.
 In 2003, Himalaya entered into Baby care segment. Every mother wants the natural product
when it comes to her children. Himalaya tapped this market well and launched the new products
under Baby care.
 In 2015, Himalaya entered into the mother care segment and launched products that were
needed during the pre and post- pregnancy.
 In 2016 after establishing itself successfully a trusted brand in women’s grooming Himalaya
entered the category of Men’s Face Wash In the year 2016 company has rechristened its logo
as “Himalaya, since 1930”, in order to create the global identity communicating the rich legacy
of the brand and history of over 86 years and now presently it is known as Himalaya Wellness.

While the company has been successful in transitioning from being a pharma to a FMCG company, it
carved a niche in the larger segments of baby care, men’s care and wellness, rather than go all out in
their pursuit to grab market share from its competitors and it was clever positioning of the brand that
made Himalaya the success it is today.

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EVOLUTION OF HIMALAYA WITH RESPECT TO ITS COMPETITIVE ADVANTAGE

The competitors of Himalaya in personal care segment are Patanjali, Dabur, Lotus Herbals, Emami
and many others .Himalaya has the first mover advantage in the Ayurvedic products. However, it is
not an easy segment to be in. Dabur and Emami , the already existed brand with whom Himalaya used
to compete against, there is one name that has caught everyone’s attention — Patanjali. Some of
Patanjali’s products directly compete with those of Himalaya’s

COMPARATIVE PRICING:

Himalaya products Size Amount(Rs)

Active Fresh Gel (Oral Care) 100g 50
Protein shampoo (Hair Care) 100ml 55
Lip Balm(Lip Care) 10g 28
Kajal ( Eye Care) - 135
Purifying Neem face wash (Skin 100ml 70
Care)
Nourishing body lotion (Body Care) 100ml 450

Competitive Products Size Amount(Rs)

Dabur Red Toothpaste 200g 92
Emami Kesh King Anti-Hairfall 120ml 100
Aloe Vera Shampoo
Emami Vasocare 10g 25
Lotus Herbals Natural Kajal - 145
Patanjali Saundarya Face Wash 60g 60
Lotus Herbals Safe Sun Anti-tan 250ml 245
Body Lotion

Here we can see that the price of Himalaya’s products are comparatively low compared to its
competitors. Himalaya was the first to develop a neem-based product highlighting its quality as an
anti-infectant. The brand has won over the trust of its consumers. Personal care now contributes 45% to
overall revenue, pharma chips in 30%, its new divisions, baby care and wellness, bring in 17% and 4%
respectively, while animal health makes up for the balance.

2. CURRENT MARKET STANDING OF THE HIMALAYA IN PERSONAL

CARE SEGMENT

The personal care products captures 45% of the market share and generates the revenue of more than
1800crs.Of all the products in personal care segment, Himalaya neem face is the flagship product and
generates the revenue of more than 500crores.Currently Himalaya stands first in case of its face wash
but has somewhat lost its shares in the oral care, hair care to Patanjali which entered the market after

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Himalaya and launched the products at 15-20% less than that of Himalaya. Himalaya is doing great in
the international market, but in India the brand, which was once the market leader in the Ayurvedic
products and now lost its identity to some extent. The revenue of Patanjali in the personal care segment
is around Rs 16000 crore right now. After Patanjali the most consumed product in personal care is
Himalaya.

THE EVOLUTION OF FMCG SECTOR

Himalaya operates in the FMCG sector. Favourable demographics and rise in income has given a boost
to FMCG industry. FMCG is the 4th largest sector in the Indian economy. Household and Personal
Care is the leading segment, accounting for 50 per cent of the overall market. Hair care (23 per cent),
Food, and Beverages (19 per cent) comes next in terms of market share. People are gracefully
embracing Ayurveda products, which has resulted in growth of FMCG major, Patanjali Ayurveda,
with m-cap of US$ 14.94 billion.

Over the years, Himalaya evolved from being a Pharma company to a FMCG company. It introduces
products in personal care, Animal health, Wellness, Baby and mother care.

3. MAJOR STEPS TAKEN BY THE BRAND IN THE LAST 3 YEARS AND

THEIR POSITIVE AND NEGATIVE IMPLICATION

1) In 2015, Himalaya launched products in the mother care segment, which dedicated herbal
products for women to be used before and after pregnancy.

Positive- The Company has launched four products targeting mothers and will promote it through its
network of gynaecologists and neonatologists. The products will be available in medical stores,
supermarkets and modern trades outlets. The film is about a mother, who is writing a letter to her
expecting daughter, emphasising the brand's message #BecauseYouNeedTakingCareOfToo. Her
words are told through a voice over.

Negative -The Short film, which was depicting the whole story, was in English. It is not necessary that
every Indian will understand the language. It is very necessary for any AD to be communicated in a
very simple way so that people will find it easy to understand

2) In 2016, Himalaya also came up with campaign named ‘My Lakshya campaign’, which was
launched to enable people to live their dreams and was launched using digital and social media to reach
out to the young urban consumer. ‘

Positive: The video aimed to bridge the gap between passion and career. Himalaya by launching My
Lakshya campaign has dared an exemplary move in the field of consumer engagement. Going beyond
business to being platform for who wanted to pursue their dreams and built a strong base to reach out
to young and aspiring individuals.

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3) In 2016, Himalaya Herbals Lip Care launches ‘Muskaan’, which was an initiative to spread
smiles in partnership with Smile Train. Through Muskaan, Himalaya will support free corrective cleft
surgeries in India. Rs. 2 from the sale of every Premium Lip Care product will be contributed to this
cause.

Positive - #MuskaanByHimalaya inspired people who had previously suffered by cleft lip and palate
to speak up and voice their support for the initiative on social media. The #MuskaanByHimalaya went
viral on social media like facebook, Twitter and the celebrities like Mandira Bedi also posted about
this initiatve on her twitter account.

4) In 2017 the company has launched its first exclusive 'moms & babies' shop in Bengaluru.

Positive- Earlier the products were available in a chemist shop or any other outlet. With the launch of
Himalaya's exclusive shop for moms and babies, Himalaya created visibility of their and provided
products under one roof. As part of its innovative offering, the shop will assist mothers with doctor
consultation services and have breast-feeding units and nappy changing units within the shop

4. NOTEWORTHY CHANGES IN THE ECOSYSTEM

 CONSUMER PREFERENCE

While talking to some people and visiting some of the retailers, it was seen that people are buying
Patanjali because it is more affordable and providing more quantity as compared to Himalaya. It was
also noticed that the people above the age of 35 mainly bought Patanjali products. However, now even
the youngsters buy it.

 GLOBAL TRENDS

Himalaya is lacking a lot in case of advertising their product. Customers who have used the product,
they find it sticky and go back for more. Himalaya need to market its product more . It has lost its share
the time Patanjali has entered into the market. In January 2017, Patanjali has its highest sales and
people searched products of Patanjali more than the products of Himalaya. There has been stagnant
performance of Himalaya over the 3 years. If it does not changes its strategy, soon it will be losing all
its market to Patanjali and Patanjali will capture the market of Himalaya.

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