STUDY ON IMPACT OF ADVERTISINGS EFFECTS ON CONSUMERS WITH REFFERENCE TO HIMALAYA HERBALS

TABLE OF CONTENTS

CHAPTER I INTRODUCTION NEED FOR THE STUDY OBJECTIVES OF THE STUDY RESEARCH METHODOLOGY SCOPE AND LIMITATIONS OF THE STUDY CHAPTER II COMPANY PROFILE CHAPTER III REVIEW OF LITERATURE CHAPTER IV DATA ANALYSIS AND INTERPRETATION CHAPTER V FINDINGS CHAPTER VI CONCLUSIONS CHAPTER VII RECOMMENDATIONS CHAPTER VIII BIBLIOGRAPHY CHAPTER IX APPENDEX

CHAPTER-1

INTRODUCTION

Advertising campaigns since the 1930s (and arguably before that) have rarely just presented information about a product or service. Advertisers have developed images not only for products but also for their consumers. Many adverts conjure up images of a desirable or enhanced lifestyle, with the implication that this is available for the consumer who has wisely selected that product. Advertisers draw their inspiration from modern culture but it seems that their work is increasingly having a role in the formation of that culture. The evidence is all around: in the column inches devoted to an analysis of advertisements for instant coffee, in the television programmes devoted to advertising clips or to parodying the latest ads in comedy sketches, and in the conversational allusions which are expected to be universally understood.

Advertising is, however, not simply a creative and culturally fascinating process. It is a vital part of modern business, not just for communicating a product or service but also for imparting company values and adding meaning to the goods and services that people buy. As advancing technology transforms international communication, companies have developed global perspectives for their trade and hence their corporate identity and marketing plans. Britains advertising agencies have contributed their uniquely creative solutions to many of these global campaigns. But advertising, although undoubtedly important (if not vital), is expensive. Managers have to decide if, how and when to advertise, and they demand a good return for their money. The market must be researched thoroughly so that marketing strategies will be well informed, the creative concept properly tested and the most appropriate medium for communication used.

Once something has been produced, it has to be sold. However, marketing starts before and not after, the act of production. Marketing is done in terms of the four Ps. Product activity includes developing the right product or product line, packaging and branding. Placement determines the selection of the right channels for moving the product to the customer, including transportation, storage, wholesaling and retailing. Promotion is concerned with communication and persuasion, making use of advertising, sales promotion and personal selling. Lastly, price deals with setting the optimum selling price, so as to maximize the profit of the firm. Broadly speaking, advertising communication is expected to (a) inform, and (b) persuade the target audience. Advertising is a salesmanship in print. The word advertising has been derived from the Latin term advertere connoting turn to, to turn the people towards it or turning the valuable attention towards the product. To be very simple, it is the technique of popularising the product (or) a service. It encompasses almost every activity designed to impress the customer and to improve the customer and to improve the sales turnover rate. It is the set of means employed to bring a particular message to the notice of the general public. It is that economic and social force that diverts the consumption, affects the exchange process and directs the production indirectly. Any successful advertising involves creativitycreativity with a purpose. The purpose is to achieve the clients advertising objectives. Thus, the advertising message created will have to sell the product, service and idea to the target audience. If an Ad does not sell, it is not creative. Promises held out in the advertising messageproduct benefits, features, appeals, etcshould be

communicated to a defined target audience through a single or combination of media, in a language which helps in attaining the advertising objective.

Purpose of Advertising It communicates information It imprints the image of values It educates the public It creates and directs demand Builds a sound edifice of goodwill The role of advertising has often been a subject of much debate in society. Advertising may be useful to consumers, considering that dissemination of information is necessary when buyers have to make a choice from various products and services. The opposite view is based on the contention that consumers are duped by misleading advertising and hence advertising should be curtailed, or at least strictly regulated. Advertising on social issues is criticised on the grounds of being in bad taste. Besides, it also is alleged to corrupt our social values and life styles. Advertising is aimed at creating a favourable impression for a company and its products. The results may be measured by attitudinal studies. The relationship of attitudes to product usage may be a more significant measure of advertising effectiveness as against awareness and recall studies. Consumer behaviour Consumer behaviour refers to the process as to how consumers make their purchase decisions. Edward W. Cundiff and Richard R. Still defined consumer behaviour as the process whereby individuals decide whether, what, when, where, how and from whom to purchase goods and services. Thus, it consists of both physical and mental activities of a consumer.

The starting point of understanding consumer behaviour is the stimulus response. Consumer behaviour is a process involving a series of related and sequential stages or activities. The process begins with the recognition of

unsatisfied needs and wants, consumers search for information and followed by evaluation of alternatives and a purchase decision. Then comes a post purchase behaviour in the process.

Advertising today is a result of business development and society. It helps bring together the buyer and seller and facilitates the exchange. It educates, creates awareness, and persuades consumers to buy products and services. Today advertising affects every moment of our daily life. From the brands of toothpaste that we use, the food that we eat, the beverages that we drink, is all a direct result of advertising. It has given the consumer the power of choice. Advertising employs psychology, anthropology disciplines to understand the consumer or customer who ultimately decides the success or failure of a product or service in the business environment, today. The beginning of advertising Advertising has been in existence even since man entered into an exchange of goods. The earliest known evidence of advertising has been a Babylonian Clay tablet (3000 BC) that bears inscription for an ointment dealer. Outdoor display was used in the cities of Rome and Pompeii. Eye-catching sings were painted on buildings. An outdoor advertisement excavated in Rome offers property for rent, and one found painted on a wall in Pompeii calls the attention of travellers to a tavern situated in another town. Town criers with a musician usually announced the arrival of goods for sale.

The invention of the printing press The invention of the printing press by Johann Gutenberg further facilitated the development of advertising. William Caxton who set up the first printing press in England printed the first handbill. Merchants used little flyers to advertise their products. They also used posters on walls. This form of advertisement lasted for a very long time. Mercuries and new-sheets By the middle of the seventeenth century, new-sheets known as mercuries began to be published. These mercuries carried information about stocks, ships, arrival of cargo. The most significant of ads were the earliest patent medicines and cures. These looked like the classified ads of today. An advertisement of 1660 for toothpaste: Most excellent and approved Dentifrice to scour and cleanse the Teeth, making them white as ivory, preserves from the Tooth-ach, so that being constantly used, the Parties using it are never troubled with the Tooth-ach, it fastens the Teeth, sweetens the Breadth, and preserves the Gums and Mouth from cankers and impothumes. Advertisements in those days were laid out like our present day classified advertisements. They were hardly illustrated. A typical newspaper would carry advertisements for coffee, books, wines, lottery and costmatiks. In order to attract attention, simple illustrative devices were used such as a woodcut of a ship.

Technology The industrial revolution led to a number of inventions that had an impact on communications. Invention of photography, the telephone, telegraph, and typewriter opened up channels to communicate. More and more people began to read newspapers and magazines. The newspapers started hiring agents to sell space to advertisers. This started a new business the advertising agents. These agents bought the space in the newspapers cheaply and sold it to advertisers at a profit. Radio and Television After the First World War ended, the truck industry profited enormously. With good road infrastructure, truck product ion registered phenomenal increase. Door to door delivery form manufacturer to retailer spurred the growth of stores, leading to supermarket and food malls. The passenger car market also boomed and new consumer products like refrigerators, washing machine appeared. The most remarkable of them all was the radio. Guglielmo Marconi invented the radio in 1895. In the 1920s advertisers and their agents had come to realise the radios possibilities. With its drama and immediacy, radio could convey their message directly to the consumer who would not need to purchase a publication or even need to be literate. The early 1930s ushered in dozens of radio dramatic series that were known as soap operas because soap companies sponsored them. In the 1950s came television. Now advertisers could demonstrate the use of their products and present well-known figures to praise it. They also could arrange emotions through television. Benefit and image Advertising really grew after the Second World War upto the seventies. After the war consumers started spending like never before. Advertising made consumers to spend more and more. Advertising agencies were set up and they saw an unprecedented opportunity. The advertisements did not show just product

benefits but began to create a product image. Research started playing an important role to understand the consumer. The age of convergence The eighties saw great changes taking place in the advertising industry. Advertisers did not advertise to mass markets, but narrowed down to address specific consumers. The emergence of cable television, home video changed consumer habits and advertisers had to change to respond to the new challenges. Nineties saw the emergence of an entirely new mediathe internet. The advertising not longer worked in isolation, but as part of an integrated marketing plan. The traditional role of an advertising agency has changed and no longer does it only create copy and visuals to make an advertisement. One of the most visible trends in advertising has been convergence where several technologies or services that come together to provide a synergy. Communication is getting more and more personalized and one-to-one. Definition of advertising Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor the Definition Committee of the American Marketing Association 1948. Advertising is non-

personal because it is directed to groups of people rather than specific individuals. It communicates information about the product, its benefits and use. The identified sponsor is the company that is selling the product who pays for the advertisement to be released in the mass media or communication channels that reach the groups of people. The advertisement is said to influence or persuade the people to buy the product or service. During the past 100 years, manufacturers, traders built their business on the basis of advertising. When the economy is upwards, consumers have the money to buy. When the sales are high, advertisers increase their advertising budget. It is advertising that promotes this expansion as long as their goods and services are produced and is up for sale. For this, people have to be informed,

1

motivated and persuaded. Advertising also helps in expanding new markets. Whenever a new product category is introduced, awareness is created about the uses and benefits through advertising, which in turn creates a desire for the product.

Objectives of advertising What advertising does for business To stimulate demandpeople

become aware of new products and new users of existing products. It attracts attention, creates interest and arouses desire among

consumer. It widens the market for the product and helps to increase sales. To face in competitionadvertising building the and loyalties with by the

helps

deepening consumer competition.

bonds by

creating

To sell a new product quickly advertising can help sell a new product quickly, enabling them to recoup the costs of developing the new product. To increase competitionby

stimulating the development of new products, increase advertising, competition. helps Increased

competition leads to lower prices, thereby benefiting consumers and the economy as a whole. Builds new it brandswithout will be next to

advertising

impossible to build new brands. What advertising does for the consumer

3

To educate consumersadvertising provides information and about the new uses of the product and helps the customers to know more about it. Improves the living standardit

creates a desire for newer and better products that improves our lifestyle. Builds brand preference

advertising helps the consumer to make a preference and builds up loyalty with the consumer. Improves quality of products

advertising educates the consumer who in turn demands value for his money, thus improving the product quality. What advertising does for the public To build goodwilladvertising helps to build an image and create good will amongst existing and potential customers, stockholders, government, employees, stakeholders, financial institutions

and the community at large. Advertising as part of marketing communications

Advertising is a communication tool meant to convey information about a product or service to a specific target audience. It is part of the overall marketing plan and plays its role in achieving the marketing objective. Advertising alone cannot create sales, but it should be able to contribute towards profits. This

contribution is called return on investment. Studies show that the more companies spend on advertising and promotion, as a percentage of sales, higher is the awareness of the brand. This helps increase market share. Greater the market share, product volumes increase, thus lowering costs. The marketing mix It consists of product, price, distribution and promotion. Product is the goods or services or combination of both which is

offered to the consumer. It is a package of values that meets

customer expectation. When you buy a car, more than a body that runs on wheels, you get a number of added features, components customer service. and

Advertisers

distinguish one product from the other by advertising a brand. A brand is a name, word, phrase, symbol or a combination of these elements. Price is the monetary value that sellers ask for their products. Price includes the cost of manufacturing, distribution promotion and profit. Price supports the image of the seller and increase market share. Distribution is the movement goods from the seller to the buyer through marketing channels. It includes

transportation, storage, processing orders and keeping a track of the

5

inventory. Promotion includes a variety of

techniques used to communicate to the customers. Advertising is one of the tools along with personal

selling, public relations and sales promotion. Public relations the are relationship and the of

between media

advertiser the

and

management

goodwill with the public at large. Sales promotion is extra incentives given to the customer to make an immediate purchase. For e.g. an introductory discount offer, prizes, buys two get one free offers. These are short-term measures to

increase sales. Integrated Marketing Communication Integrated Marketing Communication is when all marketing activity is integrated and coordinated together. This includes various advertising vehicles like print (newspapers, magazines); broadcast (television, radio) direct response marketing, exhibitions. Types of advertising: All advertising is not alike. It differs depending upon the specific customer (target audience) and what the advertiser wants as a result. Consumer category Consumer advertising: Advertising that is addressed to the consumer outdoor, internet. Events and sponsorships, trade shows and

who buy products and services for their personal or family use. Much of what we see around For cerel, credit us is e.g. LG cards,

consumer Kellogs

advertising. breakfast ICICI

televisions,

Maruti cars. Vehicles of mass media like newspapers, television, outdoor hoarding are used. International advertisers advertising: advertise in When other

countries. For e.g., Pepsi, Coke, AT &T National advertising: When the

advertiser for a product that is sold through distribution channels,

stores wherever they may be. They may not necessarily be sold

nationwide. Retail advertising: Advertising that is placed by retailers like stores, supermarkets and dealers. Retail advertising is full of information and often advertises discounts, special offers. Retail advertising is used for increasing footfalls (Customers

walking into the stores) to induce customers purchase. End product advertising: is used by manufacturers whose products are vital ingredients consumer used to to make immediate

manufacture

products.

7

The

consumer

rarely

purchases

these products. Business Category Business to business advertising (B2B) When the advertising is aimed not at the end consumer but who buy products and services for business. B2B advertising appears in specific business publications, trade magazines. Other vehicles used are direct mail, trade shows, and exhibitions. This category of advertising also includes Industrial advertising: People who buy and use products, materials, and services other needed products. of to For dairy

manufacture e.g. a

manufacturer

equipment who will advertise to manufacturers of dairy products. Trade advertising: Directed at and

wholesalers,

distributors

retailers that buy goods for resale to the consumer. Professional to advertising: like Directed

professionals

architects,

lawyers, accountants, doctors. The advertising here is used to persuade professionals who would use it in their work or recommend the

product; or service to their clients. For e.g., a manufacturer of laminate who will advertise to architects, interior software decorators. that will Accounting advertise to

accountants.

Corporate

or

institutional

advertising: The advertisers place ads to influence public opinion, or build good will or image. It is also used to overcome a negative image. Non-product sometimes advertising Primary demand advertising: the advertising: called Is

institutional

purpose is to stimulate demand and expand the market for that product category but not for a particular brand. For e.g. The Coffee Board that advertises to popularize coffee drinking. The Tourism Department of India that advertises to increase tourist traffic in India. Specific

industry associations place these advertisements. Social service advertising:

Advertisements that have a noncommercial objective and which are concerned with social cause such as health, social welfare, heritage, environment and public education. The advertisers sector are institutions, and

public

companies

government organisations. Business houses support these causes. Functions of advertising Advertising meets one of the objectives depending upon the overall marketing plan.

9

To

communicate

product

information: the advertising focuses on the uses, features of the product. To differentiate products from their competitors: the advertising

message reinforces features that distinguish competitors. To urge product use: the advertising message gives a reason to buy. The advertising message contains it from their

discounts, trial offers, etc, To increase brand preference and loyalty: the advertising message

gives a reason to prefer the brand over competing brands. The advertising spiral Products have a life cycle that is marked in three stages beginning with introduction, dominance and finally decline. The advertising message will change depending upon the stage at which the product is Pioneering Stage: The product is introduced and needs to have

acceptance from buyers. The sales growth at this stage is slow. The advertising at this stage needs To educate consumers about the new

product, its benefits and uses. To show that consumers have a need for the product if there was none and That the product can fulfil the need. Competitive witnesses a stage: rapid This period The

growth.

product

has

gained

acceptance

from the consumers. But there are other competitors who have also entered the market. The advertising message preference will over be to create a

competitive

and

retain market share. During this stage, the advertiser may decide to introduce a new development, add new features to the existing product. For e.g., Colgate, new development would be Colgate Plus. Retentive Stage: The product has reached its maturity The need and mass

acceptance. message will

advertising to remind

consumers that the product exists and retain consumers. The task is to retain market shares. When products enter the retentive or decline stage, they are cycled back into the growth stage by new developments to the existing product. Line extensions are created. For e.g. Colgate, its line extension is Colgate Herbal. The product now enters into a new life cycle beginning with new pioneering stage. Line extensions Line extensions are entries into the existing product category by using the same brand name. The entries can come in varying product sizes, flavours, colours, ingredients, forms. The brand name and the product category remain constant. For e.g. Product categoryhair shampoo, BrandSunsilk, line extensions are Sunsilk Pink, Sunsilk Black, Sunsilk Yellow. Advertising and communication process:

1

Advertising communication involves a process between the source and the audience. The advertiser that generates the message is the source; the idea that is to be communicated is the message. The source encodes the message using words and images that can be understood by the audience, the person who receives the message. The medium carries the message such as radio, TV, newspaper, packaging. The audience who receives the message derives meaning from the message that is known as decoding. In advertising the advertiser communicates a message that creates awareness, inform or persuade the audience. The advertising communication message For the advertising message to be successful, it has to pass through six mental steps in the consumer beginning from awareness to satisfaction. Stage 1: Awareness: The audience is to be made aware about the product in the market. The advertising message will be to create awareness about the product, particularly if it is a new product. Stage 2: Knowledge: The audience has to understand the product features and benefits. The advertising message has to educate the audience and impart information about the product. Stage 3: Preference: The audience knows about the product and may not consider buying it, therefore there has to be a compelling reason to prefer buying it. Stage 4: Conviction: The audience may be about to buy it. But is still not sure and is not entirely convinced. Here the advertising message should lead the audience to buy the product. Stage 5: Purchase: The audience initiates the action of buying the product. The advertising message should be a call for action. Stage 6: Reinforcement: The audience should feel confident of having made the purchase. The advertising message should look for feedback from the

audience. The advertising planning process: An advertising plan is made once the marketing objective has been set and the role of advertising is assessed. The process begins with assessment, planning, execution and evaluation. Analysis of the current situation Defining the target audience Setting advertising goals Setting the advertising budget Developing and executing the

advertising and media strategy Evaluation effectiveness The advertisements that we seen in the newspapers or on TV are prepared by an advertising agency. The advertiser gives the task of creating the advertising to an advertising agency. The advertising agency develops and prepares the advertising and places it in the media. Today, there are more than 40 large national advertising agencies in India, some of which are multinationals. For e.g. JWT, Lowe, O&M, Bates, Leo Burnett, McCann-Erikson., Grey Worldwide etc. the advertising agency has to play a key role in creating advertising that is successful and which helps the advertiser to achieve the marketing objectives. Historically advertising agencies used to make money by selling space on behalf of the media. The newspapers and magazines firms paid a commission to these agents according to the amount of space sold to advertisers. Today, majority of the agencys billings or total revenue come from media commissions, fees, mark-ups and incentive based compensation. The commission is a payment from the media firm to the advertising agency and has been standardised at 15% on the space sold by the the advertising

3

agency. The advertising agency buys

services from outside supplies like printers, production offer the photographers, houses. agency a They do film not

commission.

Rather the agency adds a mark-up of 17.65% on the suppliers bill when it is presented to the client. Some agencies charge a retainer or a fee Another way by which agencies are compensated is incentive based

compensation, given to the agency according to the results that the advertising achieves for the client. This system is more prevalent in the western countries.

Understanding Audience, Buying Behaviour, Segmentation and Positioning Audiencean audience is a group to whom an advertising message is communicated. The advertising message is communicated to two basic groups. The consumer market consists of households and individuals who buy products and services for their own consumption. Organisational markets consist of users who buy products and services for resale, or as raw material for their own products. The buyers buy for business or non-profit motives. These consist of businesses, government, non-government organisations (NGO). India has a very complex consumer audience. Culture, lifestyle, income, attitude of consumers are diverse throughout the length and breadth of the country. Advertisers describe consumer audiences through demographics.

Demographics categorises the consumer on the basis of age, gender, income, occupation, geographic and other variables. Who do people buy

Consumers

are

influenced

to

buy

due

to

psychological,

economic,

situational, social and cultural influences. All purchases are driven by needs. These needs create motives to acquire or own something that results in satisfaction. Psychologist Abraham Maslow has demonstrated that people satisfy five steps of needs from basic to the aesthetic. Maslow believes that people progress from the basic needs before moving on to the next level. These needs create motives and lead to desires. The buying behaviour of people is also related to their attitudes and lifestyles. Attitude is an evaluation of products, people, issues etc. an attitude can affect the sales of a product or service. A negative attitude towards a particular product or service can cause sales to stagnate. A positive attitude always compels sales. The advertiser has to keep in mind these factors while creating the advertising message.

5

Culture: culture is values, perception, beliefs and customs that are formed right from birth and are passed on from generation to generation. India has a number of cultural groups that share the same values and beliefs, from eating habits, to religious customs and traditions, that effects purchase behaviour. For e.g. South Indians prefer filter coffee, while north Indians consume less of coffee and more of tea. Social status: every society has a social classification. These classes are groups that have similar values, interests and lifestyles. They are status conscious which determines their buying decision. How do people buy? Buying is a process that involves perception, learning and decision making. An advertising message to be successful, the audience has to be exposed to it, pay attention and then interpret it. These steps form the perceptual barrier, through which advertisements have to pass. The decision making process involves six steps: 1. Recognition of a need: The buyer feels the need to buy a product or a service. The reasons could be to replenish supplies, a spontaneous need or to solve a problem. 2. Information collection and analysis: The buyer recognizes the need but does not have adequate information. The buyer starts searching for information for the product and analyses the information. 3. Evaluation: The buyer evaluates all the information that he has gathered regarding price, quality, functionality, reputation. 4. Selection: Here is the buyer makes his selection based on the evaluation of the information that he has gathered. 5. Purchasing: The buyer makes the actual purchase at the store. 6. Experiencing: The buyer actually consumers, or experiences the product or service and forms an opinion about the choice. The buying behaviour could be simple such as buying pens, toothpastes or

detergents. These purchases are low cost, low involvement, where the buyer does give too much thought or search to the purchase. The buying behaviour becomes a little more complex for products. Here the buyer is aware about the product category but does not know too much about the choices or features. Here the buying behaviour is limited problem solving. The buying behaviour becomes very complex for high involvement

expensive products or services such as buying a house or a car. The buyer will take time; consult and will not immediately arrive at a purchase decision. The advertiser has to take into consideration all these factors when deciding upon the advertising message.

7

NEED FOR THE STUDY

It is a matter of every day observation that hundreds of varieties of products are newly added to be sold in the markets. The arrival or existence of these goods must be made known to the consumers so that they can take interest in them; and if found suitable to their pockets and needs, they can buy and enjoy. That is why, the manufacturers and the dealers have to take steps for communicating the essential information regarding their goods to the consumes both actual and potential situated far and wide. As consumers behaviour is influenced by different determinants, there is a need to make a study to know the impact of advertising on consumer behaviour.

Perception

Perception is the process by which, an individual selects, organizes and interprets stimuli into a meaningful and coherent picture of the world.

Elements of Perception

Sensation The absolute threshold The differential threshold Subliminal perception

Sensory Receptors

The human organs (eyes, ears? nose, mouth, skin) that receive sensory inputs.

Absolute Threshold

The lowest level at which an individual can experience a sensation.

Sensory Adaptation

"Getting used to" certain sensations; becoming accommodated to a certain level of stimulation

Differential Threshold

The minimal difference that can be detected between two stimuli. Also known as the J.N.D (just noticeable difference).

Some Marketing Variables Influencing Consumer Perception

Nature of product Physical Attributes of Product Package Design Brand Name Advertisements & Commercials Position of Ad Editorial Environment

9

Consumer Perception and Branding

Brand equity is so valuable it appears on major marketers' balance sheets. A brand fulfills the real or perceived needs of customers. It isn't just a look, a difference or, though these can be elements. A brand is a personality to which customers are attracted. A brand strategy is a statement of the brand's sustainable competitive advantage, usually consisting of a demographic and psychographic description of the intended customers and the benefits they get from the brand. The brand strategy statement is developed within a competitive framework.

The purpose of branding is to achieve consumer perception that will deliver a sustainable competitive advantage.

OBJECTIVES OF THE STUDY:

This study is conducted with the following objectives To study the impact of advertisements on the consumer behaviour To study the impact of advertisements on the society To study how the purchase decision of consumers is influenced by advertisements. The study was conducted by using both the primary and secondary data. RESEARCH METHODOLOGY:

Research tools

The research plan calls for gathering primary data. Hence a questionnaire was prepared and administered personally. Information will also be gathered from the various companies involved in the Medical industry as to the past performances, present situations as well as future plans. This will show the transition taken place in the ayurvedic medicine industry.

1

Data Collection Methods and Techniques

Firstly, a study was undertaken to identify consumer perception of Himalaya. Here, questions like, what is your impression of Himalaya as a Brand, how do consumers perceive its products, what does the name Himalaya mean to you etc were asked. consumer perception. This study gives a picture on

With such data, one can figure out whether

consumers view Himalaya favorably or otherwise, how they view it, etc Any business will, at some point, have information needs and effective marketing requires constant monitoring of customers, competitors and environmental changes and trends. Hence, a survey shall be conducted in the twin cities in order to gather information on ayurvedic medicine. Once the above information is gathered and analyzed, the sub-objectives of this study can be answered. The sub-objectives forms the basis for taking decisions regarding the 4 P's of marketing which are price, product, promotion and packaging. These will therefore answer the major marketing decisions for a product. This will also ensure effective Brand Management. Sampling design

The sample size for the pilot study conducted in the Twin City was 150. The sample was selected on a random basis. For the study on finding out the customer's trends and competitive position, a questionnaire on a sample size of 150 shall be administered. This again is on a random basis.

Scope and Limitations of the Study:

The study was conducted in the twin cities with a sample size of 150. Hence, the data collected size is not a cannot be highly accurate, as the sample

thorough representation of that population.

Though Himalaya ayurvedic medicine is marketed throughout AP, this study is limited to the twin cities. Hence, a clear picture cannot be obtained. This study tries to measure impact of advertisement of Himalaya using a questionnaire administered on a sample size of 50. Customer decision

parameters on brand preference and brand loyalty differ vastly and hence a thorough and intrinsic study needs to be conducted to gather a clear picture. Due to restraints on time and cost, this study fails to achieve this.

3

CHAPTER-2

INDUSTRY PROFILE: Ayurvedic medicines are produced by several thousand companies in India, but most of them are quite small, including numerous neighborhood pharmacies that compound ingredients to make their own remedies. It is estimated that the total value of products from the entire Ayurvedic production in India is on the order of one billion dollars (U.S.). The industry has been dominated by less than a dozen major companies for decades, joined recently by a few others that have followed their lead, so that there are today 30 companies doing a million dollars or more per year in business to meet the growing demand for Ayurvedic medicine. The products of these companies are included within the broad category of "fast moving consumer goods" (FMCG; which mainly involves foods, beverages, toiletries, cigarettes, etc.). Most of the larger Ayurvedic medicine suppliers provide materials other than Ayurvedic internal medicines, particularly in the areas of foods and toiletries (soap, toothpaste, shampoo, etc.), where there may be some overlap with Ayurveda, such as having traditional herbal ingredients in the composition of toiletries. The key suppliers in Ayurveda are Dabur, Baidyanath, and Zandu, which together have about 85% of India's domestic market. These and a handful of other companies are mentioned repeatedly by various writers about the Ayurvedic business in India;

5

STATUS OF AYURVEDA IN INDIA The Indian government and non-government organizations have been collecting statistics on the Ayurvedic system in India and these data about the manpower and institutional aspects of Ayurveda have emerged: Number of registered medical practitioners: 366,812 Number of dispensaries: 22,100 Number of hospitals: 2,189 Number of hospital beds: 33,145 Number of teaching institutions (undergraduate): 187 Number of upgraded postgraduate departments: 51 Number of specialties in postgraduate medical training: 16 Number of pharmacies manufacturing Ayurvedic medicines: 8,400

In India, 60% of registered physicians are involved in non-allopathic systems of medicine. In addition to the nearly 400,000 Ayurvedic practitioners, there are over 170,000 homeopathic physicians; India has about 500,000 medical doctors (similar to the number in the U.S., but serving nearly 4 times as many people). Reliance on Ayurvedic medicine is heavy in certain regions of India, such as Kerala in the Southwest. Many Ayurvedic practitioners in small villages are not registered. A BRIEF DESCRIPTION IS PROVIDED FOR THEM, ARRANGED HERE FROM OLDEST TO NEWEST:

The Himalaya Drug Company was established in 1934 in Bangalore. It currently has a business level of about 500 million dollars and has a U.S. distribution division (Himalaya USA). It is known in the U.S. for the product Liv-52, marketed as a liver protector and therapy for liver diseases like viral hepatitis; the product was first marketed in India in 1955.

Dabur India Ltd. is India's largest Ayurvedic medicine supplier and the fourth largest producer of FMCG. It was established in 1884, though only a

fraction of that is involved with Ayurvedic medicine. Last year, about 15% of sales volume was pharmaceuticals, the remaining 85% were mostly non-medicine items such as foods and cosmetics. Dabur's Ayurvedic Specialities Division has over 260 medicines for treating a range of ailments and body conditions-from common cold to chronic paralysis. These materials constitute only 7% of Dabur's total revenue (thus, less than 50 million dollars). Dabur Chyawanprash (herbal honey) has a market share of 70% and chewable Hajmola Digestive Tablets has an 88%

7

share. Other major products are Dabur Amla Hair Oil, Vatika (Shampoo), and Lal Dant Manjan (Tooth Powder).

Sri Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short) was founded in 1917 in Calcutta, and specializes in Ayurvedic medicines, though it has recently expanded into the FMCG sector with cosmetic and hair care products; one of its international products is Shikakai (soap pod) Shampoo. Baidyanath has a sales volume of about 350 million dollars, but most of the product sales are in the cosmetic range. The company reports having over 700 Ayurvedic products, made at 10 manufacturing centers, with 1,600 employees. Included items are herbal teas, patent medicines, massage oils, and chyawanprash.

Zandu Pharmaceutical Works was incorporated in Bombay in 1919, named after an 18th-century Ayurvedic. The company focuses primarily on Ayurvedic products (in 1930, pharmaceuticals were added, but the pharmaceutical division was separated off about 30 years later). However, today Zandu has a chemicals division and cosmetics division. Its total sales volume is about 45 million dollars. One of its current projects is to develop a dopamine drug from a plant extract, applying for new drug status in the U.S.

Charak Pharmaceuticals was founded in 1947, and currently has three distribution centers in India; it produces liquids, tablets, and veterinary supplies. It has gained a large advantage with its new product Evanova, a preparation containing 33 herbs and minerals and non-hormonal active ingredients used as a menopause treatment alternative to HRT. Soya is one of the main ingredients in this product. The product also contains Ayurvedic herbs that act like selective

estrogen receptor modulators as well as asparagus root (shatavari), which reduces the frequency and intensity of hot flashes.

Vicco Laboratories was established in 1958. It mainly produces topical therapies based on Ayurveda and is best known internationally for its toothpaste product, Vajradanti, which has been marketed in the U.S. for more than 25 years.

The Emami Group, founded in 1974, provides a diverse range of products, doing 110 million dollars of business annually, though only a portion is involved with Ayurvedic products, through its Himani line; the company is mainly involved with toiletries and cosmetics, but also provides Chyawanprash and other health products.

Aimil

Pharmaceuticals

Ltd.,

incorporated

in

1984

and

engaged

in

manufacturing and sale of both generic and proprietary Ayurvedic medicines, with a business level of about 20 million dollars annually. Its wide range of Ayurvedic herbal formulations, covering most therapeutic segments, was honored by the Indian government's National Award for Quality Herbal Preparations and National Award for R & D in the year 2002. It is known for its proprietary formulas for hepatitis, diseases. diabetes, menstrual disorders, digestive disorders, and urinary

Several small companies that have grown rapidly in recent years envision themselves as primary players in the Ayurvedic market. As an example,

9

Viswakeerthy Ayurvedic Pharmacy promotes itself as one of the largest suppliers of Ayurvedic medicines in India. The SAARC (South Asia Association for Regional Cooperation) was formed in 1985; its member countries are India, Pakistan, Nepal, Bangladesh, Bhutan, Maldives, and Sri Lanka. These countries all have been influenced by Ayurvedic medicine. Trade in Ayurvedic medicines within the SAARC is mostly limited to raw materials that grow in one region (e.g., high mountains, northern climate) and are then exported to other regions (e.g., lowland southern areas). Because of the large number of very small factories that try to service the local communities, with products labeled with the local language, there is little opportunity for suppliers in one SAARC country to send finished products to another SAARC or even abroad. Entrepreneurs in these countries (mainly in India) seeking to break into the market for natural products have determined, rightly, that the demand for traditional style Ayurvedic medicines both inside and outside the region is limited, despite growth trends as high as 20% annually encountered in the late 1990s. They have aimed to bolster interest by carrying out scientific research into promising herbs and formulas that are based on Ayurveda but not necessarily reflecting traditional practices. Of necessity, such research eventually focuses on finding of active ingredients, and this has led to the development of isolates from plants that are sold as "nutriceuticals" (substances not registered as drugs, but used like nutritional and dietary supplements, sold over the counter in various formulations with specific health benefits portrayed for them). For these, there is a growing worldwide demand. The main suppliers of nutriceuticals are Japan,

China, and the U.S., but India stands to become a significant contributor.

As an example of development of Ayurvedic nutriceuticals, Sabinsa Corporation, a U.S. company with affiliates in India that represents the Indian tradition, though it also takes on similar projects involving herbs from other sources. The company was founded by Dr. Muhammed Majeed. He was born in Kerala, India; after graduating in Pharmacy from Kerala University, Majeed emigrated to the U.S. in 1974, where he continued his graduate studies and then worked at pharmaceutical companies for 15 years. Then, in 1988, he founded Sabinsa Corporation. Soon after, in 1991, Majeed set up a research and development group at Bangalore, India called Sami Labs Ltd. That facility now has over 500 employees.

In the twin cities, the major players in this category are Himalaya,Dabur Zandu. Himalaya has over the years gathered a favorable image in the minds of the consumers of providing good quality ayurvedic medicine. It has therefore over the years gathered an image of an 'Old and known brand i.e. this brand enjoys a good degree of brand preference. This has been confirmed with the help of a pilot study conducted in the twin cities. Zandu and Dabur, which are relatively new entrants, are now slowly eating into the market share of Himalaya.

1

COMPANY PROFILE

HIMALAYA HEALTH CARE PROFILE

The Himalaya Drug Company was founded in 1930 by Mr. M. Manal with a clear vision to bring Ayurveda to society in a contemporary form and to unravel the mystery behind the 5,000 year old system of medicine. This included referring to ancient ayurvedic texts, selecting indigenous herbs and subjecting the

formulations to modern pharmacological, toxicological and safety tests to create new drugs and therapies.

Eighty years ago, on a visit to Burma, Mr. Manal saw restless elephants being fed with a root to pacify them. The plant from which this was taken is Rauwolfia serpentina. Fascinated by the plant's effect on elephants, he had it scientifically evaluated. After extensive research, Serpina, the world's first antihypertensive 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 create pharmaceutical-grade ayurvedic products. As a confirmation that Himalaya is dedicated to providing the highest quality and consistency in herbal care, the Company was awarded an ISO 9001:2000 certification in 2003. 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 300,000 doctors around the globe and consumers in 67 countries rely on Himalaya for their health and personal care needs.

Mission

Establish Himalaya as a science-based, problem-solving, head-to-heel brand, harnessed from nature's wealth and characterized by trust and healthy lives.

Develop markets worldwide with an in-depth and long-term approach, maintaining at each step the highest ethical standards.

Respect, collaborate with and utilize the talents of each member of the Himalaya family and the local communities where Himalaya products are developed and/or consumed, to drive our seed-to-shelf policy and to rigorously adopt eco-friendly practices to support the environment we inhabit.

Ensure that each Himalaya employee strongly backs the Himalaya promise to exceed the expectations of the consumer, each time and every time. Nothing less is acceptable.

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 ideals.

3

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.

Location . . .

Starting off operations in Dehradun way back in the 1930s, the company later spread its wings to Mumbai and across the country. In 1975, 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.

Research & Development . . . each Himalaya product undergoes years of primary research and clinical trials before it reaches the market

Himalaya has a well-defined Research and Development policy. It states that no investment is too much when it comes to scientifically creating safe drugs and therapies. Himalaya's history is one of innovation through research. The company believes that the ideal healthcare system lies in the synergy between ayurveda and modern science. Himalaya's constant endeavor is to create innovative products that satisfy the health and personal care requirements of contemporary living.

Himalaya prides itself on being a completely research-oriented company. Indeed, it is this emphasis on R&D that allows Himalaya to produce safe, efficacious and consistent remedies using ayurvedic principles. The R&D department is focused on product development, quality control and standardization. All products are derived through rigorous research and produced in state-of-the art facilities. The products represent commitment to continuous investment in the best people, practices and technology. Himalaya does not support "Borrowed Science" or the practice of using published literature to substantiate efficacy claims. Each Himalaya product undergoes years of primary research and clinical trials before it reaches the market.

Products

Himalaya's products can broadly be categorized into three main ranges, viz:

Pharmaceutical Personal Care Animal Health

Pharmaceutical Range . . . health maintenance, eye, cardiac and skin care, immune booster and cough control

The medicinal range of products carry the Himalayan hallmark of researching ayurveda and capturing its benefits in formulations. Using modern research methodology and manufacturing practice, Himalaya has made available to people all over the world, an alternate method of treatment, which has no known side

5

effects. The medicinal range comprises over 35 products and is broadly classified into four categories viz: Children's Health Men's Health Women's Health General Health

Liv.52, Bonnisan, Himplasia, Menosan, Reosto, Tentex Royal

Prominent among Himalaya brands is Liv.52, a liver formulation, which is also the flagship brand of the company. Every one-third of a second, one unit of Liv.52 is bought somewhere in the world. It is ranked number one in the hepatoprotective lipotropic segment and number four among all pharmaceutical products in India. (ORG Marg, July 2003). Liv.52 celebrates fifty years in 2005. In 1972, continuing its tradition of introducing safe and natural remedies, Himalaya launched Bonnisan, a natural pediatric digestive tonic. A formulation based on years of research and clinical testing, the product found wide acceptance among doctors and mothers alike. The sweet tasting tonic became a trusted part of a baby's growing up. After extensive work on the formulations and related clinical research, Himalaya introduced Menosan, a herbal non-hormonal product for menopausal women, Reosto, a comprehensive therapy for osteoporosis and Himplasia, a unique

product for benign prostatic hyperplasia, a new dimension in BPH management. Some of the other well known products are Abana, Cystone, Gasex, Geriforte, Rumalaya, Diabecon, Mentat, Koflet, Himcolin, Septilin, Pilex, PureHands, etc

7

CHAPTER-3

DATA ANALYSIS AND INTERPRETATION

Analysis of pilot study on consumer perception of Himalaya as a Brand.

The pilot study was administered on a sample size of 50 respondents. The purpose of the Pilot study primarily was to gather information on the perception and attitude of consumers about Himalaya and also its strengths and weakness. a question wise analysis of the data collected follows.

9

1.Do you like the brand name Himalaya? Results(%)

Options

Yes

74

No

26

YES NO

Firstly, a question on whether consumers like the brand Himalaya was asked. Such a question would help in understanding if the brand plays an important role in deciding the choice of ayurvedic medicine. The data shows that a large number of the respondents like the brand name Himalaya while about 26% of the respondents do not like the brand name Himalaya.

2. Please rank the brands in terms of your choice (rank in order of preference) 5

Brand/ Rank Zandu Emami

1

2

3

4

17 29

33 15

0 6

0 0

0 0

Himalaya

4

2

21

23

0

Vicco

0

0

16

18

16 34

Dabur

0

0

7

9

1

A graphical representation is shown below:

Chart Showing Brand Preference in Rank 1 0% 8% 0% 34%

58%

A look at the second question wherein the respondents were asked to rank the various brands in the order of their preference shows that Emami ranked the highest in the first position followed by Zandu, Himalaya, and Dabur in that order.

That is to say that though in the current scenario Himalaya enjoys comfortable position consumers when given a multitude of choice, the brand name does play an important role. Himalaya being the oldest player has been the natural choice of many a consumers. But when big names like Emami and Zandu enter the market, which is but inevitable, consumers might shift their choice when the offering is similar.

3.

If you are associated with the Himalaya brand, for how long have you been

associated with the brand? No Of Respondents (%) 0 12 32 56

Years 1 year 2 - 5 years 6 10 years > 10 years60 50 40 30 20 10 0 1 year 2-5 years 6 10 years > 10 years Series1

The third question asks the respondent the number of years since he has been associated with the brand Himalaya. This would help us know the loyalty that Himalaya enjoys among consumers. About 28 respondents have been associated with this brand for more than 10 years. About 16 respondents have been with the brand between 6 10 years. About 6 of them have been with it for about 2 5 years. This shows that Himalaya has been enjoying a considerable amount of Brand preference and loyalty, which is infact, a good sign.

3

4. How do yon rate the quality of "Himalaya" products? % of respondents 0 48 44 8

Options Poor Average Good Very good60 50 40 30 20 10 0 Poor Average Good Very good

Series1

The next question asks consumers to rate the quality of Himalaya products. The data collected shows that about 24 respondents think that Himalaya ayvedic medicines under the average quality and 22 of them think it is good. Only 4 respondents were of the opinion that Himalaya's products are of a high quality.

5 Is Himalaya seen as a (please tick your Preference) % of respondents 0 0 4 94

Options YOUNG BRAND DYNAMIC BRAND TRUST WORTHY OLD AND KNOWN100 80 60 40 20 0 YOUNG BRAND DYNAMIC BRAND TRUST WORTHY OLD AND KNOWN

Here the options provided were 'young brand', 'dynamic brand1, 'full of life1, 'old and known brand' and 'trustworthy brand'. When consumers were asked to rate how they view Himalaya as a brand, a majority of them, i.e. about 94% respondents see Himalaya as a 'Old and a known brand' and about 6% respondents see it as a 'Trustworthy' brand.

5

6. What is your opinion about Himalaya's packaging?. % of respondents 26% 26% 42%

Options Should be improved Is good as it now Is at par with competitors Is boring50% 40% 30% 20% 10% 0% Is good as it now Should be improved Is at par with competitors Is boring

6%

Series1

A question on how consumers view Himalaya's packaging was also included. About 13 respondents were of the opinion that Himalaya's packaging should me improved. 15 of them held a view that it was good as it is now, about 21 of them felt that the packaging was on par with the competitors and 3 respondents were of the opinion that Himalaya's packaging was dull and boring.

Analysis of the questionnaire for gathering; information on consumer preferences of ayurvedic medicine The above questionnaire has been framed to cover important questions on the 5 P's of marketing namely Product, Price, Place, Promotion and Packaging. In this section an anlysis of each question would be done. Firstly a graphical representation of the income levels of the sample size and is shown below.

1. What is your monthly household income? Percentage of Respondents 11 28 37 24

Monthly Household Income 5,000 8,000 8,000 12,000 12,000 15,000 More than 15,000

5,000 8,000 8,000 12,000 12,000 15,000 More than 15,000

7

2. Are you satisfied with the present package of ayurvedic medicine? Result 43% 57%

Options Yes No

60% 50% 40% 30% 20% 10% 0% Yes No Series1

This survey shows that about 215 respondents satisfied with the packaging where as about 285 respondents are dissatisfied.

3. Do you check the date of manufacturing and other printed matter on the package of your ayurvedic medicine?

A question on whether the respondents check the date of manufacture and other primed matter on the pack was also included in the survey as packaging is one medium where a lot of information, could be communicated to the consumer. Here, a majority of the respondents, roughly about 93% of them mentioned that they don't check the package for any printed information. This question was also included as a few respondents complained that the ayurvedic medicine breaks sometimes. This is because middlemen often sell unsold packs even though it is explicitly mentioned on the pack about the expiry. This basically happens because consumers don't check the pack for the date of manufacture.

9

Price

Price is another important T' of the marketing mix, which shall determine the success or failure of a product. We have seen many instances of products failing due to poor pricing mechanism. However, in the medical industry, the results from the data collected shows that price doesn't play an important role. As ayurvedic medicine and its products form a major part of the Indian medicals, consumers are more concerned about She safety and quality of the ayurvedic medicine they buy than the price,

Product

Now coming to another important T' of the marketing mix, product, this is that stage where the most important differentiation can take place. A good marketing effort is one, which finds out the needs and^ wants of the consumers and develops a product, which delivers these in the most efficient way.

4. Do you buy packaged ayurvedic medicine? Results (%) 81 19

Options Yes No

100 80 60 40 20 0 Yes No Series1

Next, a question on whether people buy packaged ayurvedic medicine from a local ayurvedic medicine vendor was included in the survey so as to find out the percentage of market available. The percentage of respondents buying ayurvedic medicine from local ayurvedic medicine vendors would depict the growth possibility.

In the population however, more than 50% of the ayurvedic medicine requirements are met by the unorganized sector proving to be the major competitor to the organized sector. There are a variety of reasons for people preferring this ayurvedic medicine, the foremost being purity.

1

5. If 'Yes', which is brand you prefer?

Brand

% of Market Share

Himalaya 53 26

Vicco

Dabur

18

Others

3

A Graphical representation is shown below.

Percentage of Market Share3% 26% 53% 18%

A person buying ayurvedic medicine was asked his choice of brand. An analysis of this question would give me the relative positions of various players in this industry i.e., the market leaders and followers. This would enable me to

know the immediate competitors of Himalaya and their market share. The survey shows that Himalaya is the market leader followed by Vicco, Dabur and others.

Promotion

1. Have you noticed the advertising in the media for Himalaya ayurvedic medicine? % Of Respondents

Options

Yes

62

No

38

80 60 40 20 0 Yes No Series1

To a question on whether the respondents have been exposed to the advertising in the media, roughly about 31 of them responded affirmatively while about 19 of them responded in the negative.

3

Q2. What did you understand from the advertising?

Options % of respondents

Good for Strength 20

Good for children 10

Good for growth 6

Dont know 64

70 60 50 40 30 20 10 0NG TH N O W TH IL DR E NO W

Series1

RE

G R

ST

CH

Though in the previous question it can be seen that the exposure has been quite high. The respondents have not a clear picture about the contents of the

DO

N' T

K

ads. This is made clear from the above question where about 32 respondents were not sure of the content of the ad. About 10 respondents were of the opinion that Himalaya ayurvedic medicine was good for strength. 5 of them thought it was good for children and 3 of them thought it was good for growth. All the 18 respondents who had an opinion about the content of the ads made a guess and were not quite sure of their answer.

5

CHAPTER-4

FINDINGS OF THE STUDY

7

From the data collected in. the pilot study, the following observations can be made.

1. Firstly, it can be observed that Himalaya's core strength lies in the fact that consumers perceive it to be an old and a known brand. Consumers have come to believe that Himalaya provides standard products. Hence, in the absence of major players, Himalaya shall enjoy a comfortable position. But this is not 10 say that this perception of Himalaya shall prove to be beneficial in the long run. Ayurvedic medicine being a major part of the Indian Medical Market, consumers perception about it should run in the lines of it being a trustworthy brand or a brand which connotes quality and safety.

2. The major drawback that Himalaya suffers is the attitude of its management staff who believe that since Himalaya is doing quite well in the present situation there is no necessity for any kind of promotional activities. The staff perceives that since Himalaya is currently operating to its full capacity no efforts need to be done to sustain this. Focus is more on the present than on the threats in the future. To quote Himalaya's General manager Marketing, " Every one needs to make profits. So let all the players make some". This kind of a Let live' attitude doesn't work in the business world.

3. From the analysis of the pilot study it can be seen that when major players like Emami. Zandu enter the market, consumers perceive these brands above Himalaya. That is to say that when these players come up with their pouch ayurvedic medicine, which is likely to happen anytime,

Himalaya's consumers might shift to these brands when the offering is similar,

due to the perception among consumers that Zandu and Emami are known to provide quality, healthy and safe products.

4. The data collected shows that Himalaya enjoys a considerable amount of brand preference and loyalty, which is infact a good sign.

5. Though Himalaya has a wide product mix, the awareness levels about these products is quite low. Himalaya herbal product has a reasonable awareness level, but even in this segment the local players are doing better. So is the case with the beauty segment, where local players like magic are doing

considerably well todays market by products of ayurvedic medicine. Though these products are produced and marketed by Himalaya, they are not well known. Hence, enough awareness has to be created regarding these products.

From the analysis of the questionnaire designed for gathering information on the consumer preferences of ayurvedic medicine, the following observations can be made.

Consumers consider that the major problem with the current packaging is that it is not easy to use i.e., consumers find that the package is very cumbersome 10 use. Another problem cited by the consumers is that it is not pilfer free.

An analysis of the data collected shows that price is not a major deciding factor in the purchase of ayurvedic medicine.

Most of the consumers of Himalaya ayurvedic medicine are of the opinion that its quality is not up to the mark.

Himalaya is the market leader followed by Vicco and Dabur. But the major

9

competitor for Himalaya is the unorganized sector, which caters to more than 50 % of the ayurvedic medicine requirements.

From the data collected it can be seen that purity is the predominant factor which makes consumers buy ayurvedic medicine from doodhwahs. This is followed by curd setting quality, taste. Freshness, thickness, and creaminess and finally credit terms in that order. This is in contrast to the requirements of consumers who buy packaged ayurvedic medicine who prefer characteristics such as freshness, thickness, creaminess, curd setting quality, purity , taste and packaging in that order.

CONCLUSIONS

AND RECOMMENDATIONS

1

1. Firstly, since it has now become clear that effective brand management is a must, Himalaya could try and develop a brand personality, a brand property, which are the basic decisions in brand management.

2. It should have a clear positioning strategy instilled in the minds of the consumers. It has been observed that though Himalaya's

advertisements have a high exposure, its contents arc not clear.

3. Indian consumers are increasingly becoming health conscious. Hence, Himalaya could engage in some improvement in the product. Ayurvedic medicine should essentially be rich in quality.

4. Several areas of the Himalaya need to be strengthened by the induction of state-of-the-art technologies in order to survive the intensely competitive environment of the new millennium.

5. The weakness that Himalaya suffers from is the laid back attitude of its management staff. This should be overcome.

6. Himalaya enjoys quite a degree of brand preference and loyally. Us imago of an old and a known' brand should be strengthened and consumers should be made to perceive Himalaya as a brand which connotes healthy and safety as these arc the two basic factors that consumers would want in a food item.

7. Several other products under the brand name "Himalaya" should be popularized, as their awareness levels are very low - focal players ere

better off.

8. Western products have gained popularity in the Indian market during the last few years due to changing lifestyles. In the metro* these products have a growth rate of about 15%. Hence, efforts have to be directed towards increasing market share of these products of Himalaya.

3

QUESTIONNAIRE

Do you like the brand name Himalaya? A.YES B. NO

Please rank the brands in terms of your choice (rank in order of preference) 1 2 3 4 5

Brand/ Rank Zandu Emami

Himalaya

Vicco

Dabur

If you are associated with the Himalaya brand, for how long have you been associated with the brand? 1 year 2 - 5 years 6 10 years > 10 years

How do yon rate the quality of "Himalaya" products?

5

Poor Average Good Very good

Is Himalaya seen as a (please tick your Preference) YOUNG BRAND DYNAMIC BRAND TRUST WORTHY OLD AND KNOWN

What is your opinion about Himalaya's packaging?. Should improved Is good as it now Is at par be

with competitors Is boring What is your monthly household income? 5,000 8,000 8,000 12,000 12,000 15,000 More than 15,000

Are you satisfied with the present package of ayurvedic medicine? Yes No

Do you check the date of manufacturing and other printed matter on the package of your ayurvedic medicine?

Do you buy packaged ayurvedic medicine? Yes No

If 'Yes', which is brand you prefer?

7

Himalaya

Vicco

Dabur

Others

Have you noticed the advertising in the media for Himalaya ayurvedic medicine? Yes

No

BIBLIOGRAPHY

1. Philip

kotler,

principles

of

marketing,

eastern

economy

edition,

millennium edition.

2. Y.L.R.

Moorthi.,

Brand

management-

The

Indian

context,

Vikas

publication, 1999 edition.

3. www.himalaya.com

4. www.henrystewart.com/journals/bm

5. www.ebrandmanagement.com

6. www.icfaipress.org/aprilana/needofhour1.htm

9