HIMALAYA DRUG COMPANYBRANDING AYURVEDA

BY :-Abhishek Tayal – 906

Arif Masud - 918 Narendra V - 942

I would like to see Himalaya as a trusted brand in every

household,symbolizing global leadership in herbal health care

… - Meeraj Manal

Chairman, Himalaya Drug

Company,2002

Brief History ..HDC

1930 - Group’s founder M Manal visits Burma, highly impressed to see the soothing effects of a herb ,Rauwolfia Serpentina on

restless elephants.1930 - Establishes HDC as a partnership concern. 1934 - HDC launches SERPENIA ,world’s first anti

hypertensive drug.1950 - Dr. Roshan M Captain joins HDC as R & D Head.1955 - Launches LIV-52, a hepatoprotective medicine,becomes one of the highest selling drugs.

1960 – Karstein, a German pharmaceutical consultant joins. Directs HDC’s attention to allopathic medical practitioners. Company increases its product portfolio . Introduces popular drugs like Bonnisan,Geriforte..

1975 – Establishes modern manufacturing facility at Bangalore,later becomes it’s headquarters.

1980 – Established strongly in the area of ‘Research Ayurveda’

Decides to enter personal care segment, but due to some findings puts plan on hold.

1995 – Company’s R & D center shifted to Bangalore. Develops an experimental herb firm,first of it’s kind.

1996 – US Food and Drug Administration permits herbal products,HDC seizes oppurtunity and launches a range of personal care products in the market under name ‘Himalaya’. Opens offices in Houston ,Texas.

1998 – Company launches its animal health product range for commercial livestock.

1999 – Launches personal care products under the name ‘Ayurvedic Concepts’.

2002 – HDC offers products in four segments :- medicinal supplements. Personal care products. Pure herbs. Animal health products.

Questions to be discussed……

- Comment on the HDC’s strategy of branding the ayurveda and diversified product portfolio?

- Evaluate the company’s ‘Dadima’ advertising campaign?

- Weigh the chances of HDC flourishing in the market after the entry of players like HLL and specialists like Shahnaz Hussain ?

Q:- Comment on the HDC’s strategy of branding the Ayurveda and a diversified product portfolio?

THE CHALLENGE FOR HDCAccording to the marketing research conducted

by HDC, most consumers perceived Ayurveda as an age-old branch of medicine, which was revered but not accepted as being reliable for treating ailments. Thus, the two major tasks for HDC in India were -

to establish an image for itself and promote the message that Ayurveda was as

modern and vibrant a science as any other.

APPROACH OF THE COMPANYA three-pronged strategy was adopted by HDC-It tried to create a perception that products

under the Ayurvedic Concepts range addressed the complete body.

The brand was promoted with a tagline, `Get on with your life

The product's positioning had to be conveyed strongly by a protagonist.So the concept of “Dadima” emerged.

THE RESULTS…..The strategy used by HDC responded very wellThe advertisement campaign proved to be a

great success as because the company was able to link the product directly with the customers.

The campaign became a great success and and the name AYURVEDA became a household name.

Due to this the company was able to open its stores.

And finally…

Due to its strong R&D, product development and marketing efforts, Ayurvedic Concepts was able to garner business worth Rs. 150 mn in 1999, Rs. 250 mn in 2000 and Rs. 400 mn in 2001.

BUTImmense popularity of Ayurvedic Concepts' as a

brand was posing a threat to the company's identity.

Medical practitioners as well as consumers were reportedly unaware about Himalaya being the mother brand of Ayurvedic Concepts.

So the brand name was changed to HIMALAYA

The case of diversified portfolio Rather than introducing new products, HDC decided

to consolidate its existing portfolio which included 39 products under hair, skin, oral and health care products and company decided to focus on shampoos and skin care products. BUT

In April 2001, HDC launched a new product portfolio under the `Pure Herbs' brand, classified under the `Fast Moving Health Goods' (FMHG) category.

The portfolio comprised a range of 12 pure herbs, as `soft health' products, with therapeutic claims sold as over-the-counter (OTC) products in packs of 60 capsules each and priced between Rs. 49 and Rs. 60.

ALSOBy 2002, HDC was offering products in four

segments— medicinal supplements, personal care products, pure herbs and animal health products.

In the financial year 2000-01, the company's revenues amounted to Rs. 2.5 bn and its operations were spread over 55 countries around the world .

Company sources expected revenues to reach Rs. 3 bn by 2002 and to Rs. 5 bn by 2004.

So according to our groupThe decision of diversified portfolio proved to be

beneficial for the company.As the company had to change its brand name

from “AYURVEDA” TO “HIMALAYA” introduction of new products under the new name was necessary.

Also HDC was facing competition from companies like HLL, DABUR, P&G, SHAHNAZ HUSSAIN, AYUR. So a diversified portfolio was a complete necessity.. And this proved to be successful…….

Q:- Evaluate the company’s ‘Dadima’ advertising campaign?

Our Answer…..

According to marketing research conducted by HDC,most consumers perceived Ayurveda as an age-old branch of medicine,which was revered but not accepted as being reliable for treating ailments.Two major tasks for HDC :-- Establish an image for itself.- Promote the message that Ayurveda was as modern and vibrant a science as any other.

-HDC required a campaign which would be able to destroy the commonly accepted notion of Ayurveda as something developed by sadhus.

Plan of Action……

- In 1999,HDC launches an advertising campaign for its range of personal care products branded Ayurvedic Concepts.- The Television Commercials for the brand featured an unusual brand ambassador.- Indians, who were used to advertisements featuring celebrities, young , good looking models watched in amusement an old “Grandmotherly” lady promoting the brand.

Continued…..

- It was decided that the protagonist would be Dadima( played by model Ava Mukherjee).

- “In our constitution,the Grandmother is still a very warm, loved ,trusted & resepected figure” - Soumitro Banerji, Executive vice president,

Consumer products ,HDC…..- “Dadima” – the brand ambassador broke the stereotype image associated with grandmothers.- Unlike the typical grandmothers, she was aware of the latest trends & happenings.

Continued…

- Moreover ,she conveyed her knowledge of age old health tips and HDC’s products in fluent English.- Thus, successful in presenting a contemporary image of Ayurveda.