Case Study on Cosmetics

“Himalaya” & “ L’Oreal”

J.SRIDHAR

RANJU K RAVINDRAN

Himalaya

Company over view

•Established in the year 1930 by Mr. M. Manal

•Vision was to bring Ayurveda to society in a contemporary form and to unravel the mystery behind the 5,000 year old system of medicine.

•Since its inception, the company has focused on developing safe, natural and innovative remedies

•The Company was awarded an ISO 9001:2000 certification in 2003

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.

History of the Himalaya Drug Company (HDC) now known as “HIMALAYA”

Global Presence 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 ideals. 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 colour represents proximity to nature

•The orange is evocative of warmth, vibrancy and commitment to caring

Branding Ayurveda

2 Major tasks for HDC

• Create a Brand Image for itself

• Concept Selling – Promote Ayurveda as modern & Vibrant as any other science

3 pronged strategy adopted by HDC

• Presented Ayurveda as a contemporary medicine backed by huge R&D

• Tagline – “Get on with your life” depicting the products’ ability in helping people cope with pressures of modern life

• Brand Ambassador – “Dadima” identifying with the products personality of traditional yet modern and well informed

Role of “Dadima” in success of Ayurvedic Concepts

•Acts as a differentiating factor in the ad industry

•Successfully broke the pre-notion that grandmas are people of old school of thought

•Company conveyed the message to the mass that Ayurveda is no longer an old day concept rather it is up & running at par with modern medicines.

Issues in the Case

•Usage of an unconventional mascot in the form of

“Dadima” in the advertisements.

•Redesigning the logo and creation of “Himalaya” umbrella brand in 2001.

earlier known as Himalaya Drug Company (HDC)

PR Campaign -

“ Ayurvedic Concepts Lovable Grandma”

“ Himalaya – Babies of the month”

•Later decided to shift focus from doctors to consumers (OTC)

- Considering the increasing trend for self prescription among Indian consumers

Unified Brand - Himalaya

MEMORABLE TRANSFERABLE

MEANINGFUL ADAPTABLE

LIKEABLE PROTECTABLE

Products

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

•Pharmaceutical

•Personal Care

•Animal Health

Personal Care Products & Packaging:

Packaging:

Baby care Products:

Baby care products:

SWOT Analysis

Strength Weakness

Strong brand image & global presence Not fully integrated with mainstream markets

Himalaya is recognized world over as a pioneer in Ayurvedic and Herbal products

Low level of entrepreneurial aggressiveness

SWOT Analysis

Opportunity Threat

World over natural and traditional approaches to products are being welcomed

Risk of New Entrants and Substitute products

Growing adaptability to Innovative Products

Shifting consumer loyalties

Untapped rural market Manufacturing costs & processing costs are high

Brand Awareness Pyramid

Top of Mind Recall

Brand Recall (Unaided Recall using Category Cue)

Brand Recognition(Aided Recall using Brand Cue)

Unaware of Brand

Cost / Time / Effort Required

Brand Loyalty PyramidCommitted

Buyer

Satisfied Buyer with Switching Costs

Satisfied / Habitual Buyer No Reason to Change

Switchers / Price Buyer

Indifferent ; No Brand Loyalty

Likes the Brand Considers it a Friend

Competitors:

L’OREAL•Worlds largest cosmetics & Beauty company

•Founded in 1909 by Eugene Schueller

•First success on the Hair pigmentation market

•One cosmetic company in the world to own more than one brand franchisee.

•3 researchers in 1920, More than 2900 in 2013

•More than 60,850 employees all around the world

•Turnover: 22.46 Billion euros in 2012 with a profit of 2.868 billion euros

LOGO

The word L’OREAL means, ‘Of or pertaining to the lore; said of certain feathers of birds, scales of reptiles, etc.’

L’Oreal logo is very simple. L’Oreal is dedicated to serving all expressions of beauty and well being. A logo is very important for any business. L’Oreal logo is representing their business for men and women high performance cosmetics all over the world.

Branding:

• L’Oreal’s famous slogan was “Because I’m worth it”.

• L’Oreal slogan has been later replaced by “Because you’re worth it”.

• An L’Oreal kid is the hair and body product for kids, made by L’Oreal.

• L’Oreal kids’ slogan is “Because we’re worth it too”.

•

L’Oreal has spokespersons both men and women from all the countries where its present.

L’ Oreal spokeswomen from India are:

•Aishwarya Rai Bachchan

•Sonam Kapoor

•Freida Pinto

Brand strategy

•Maybeline’s success proved L’Oreal’s philosophy by embracing two different cultures ( French &America)

•L’Oreal acquired different unknown brands and gave a facelift, repacked and marketed them aggressively.

•Promoted brands according to their national culture.

•Maintained image with the help of research centers in Paris and New York.

•Attained 493 patents registered on the company name in 2001

Companies owned by L’OREAL:

External Communication & Brand image

•External Communication is taking place through promotions, Public relation, Press and Interactive communication.

•Activities: Events, Sponsoring, Proposals for international marketing campaigns, Buzz..

•Importance of a luxury brand image.

PR campaign: Managing customers with care

•A strong customer-responsive culture

•Creation of special clubs ( VIP Club, Privilege Club)

Managing Diversity : Diversity is a priority

Focus on Ethic and Culture at L’OREAL

•A strong culture

•Ethical Principles

•Reflecting diversity

Products

•Hair color

•Skin care

•Hair care

•Fragrances

•Color cosmetics

SWOT

•STRENGTH: Environmentally friendly, safe and healthy working conditions

•WEAKNESS: Transition to the produce is too long since there are too many brands under it. Higher advertisement and promotion costs.

•OPPORTUNITIES: Multi-purpose products, Double effect eye-make up remover also works as massage tool

•THREATS: No organic products, products are not branded as they contain organic ingredients

BRANDING STRATEGY IN INDIA

•L’Oreal is targeting ‘Masstige’ Segment In India With Dual Pricing Strategy

•Each product is available at a lower price range with cheaper package and in small sachets

•Expanding distribution networks

•Conducting competitions like Color trophy, quest to nation’s best hair dresser

Competitors

Thank You