himalaya

Promotional Effectiveness of Himalaya

PROMOTIONAL EFFECTIVENESS OF HIMALAYADRUG COMPANYA DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OFTHE REQUIREMENTS FOR THE AWARD OF MBA DEGREE OFBANGALORE UNIVERSITY.Submitted ByMr. SENTHIL BHARATHYReg.No-03XQCM6091UNDER THE GUIDANCE OFProf. S. RAMGOPALFACULTYINTERNAL GUIDEM.P.BIRLA INSTITUTE OF MANAGEMENTASSOCIATE BHARTIYA VIDYA BHAVAN.BANGALORE-560001M.P.Birla Institute of Management 1

Promotional Effectiveness of Himalaya2003-2004

DeclarationI hereby declare that the projectwork embodied in the dissertation entitled“PROMOTIONAL EFFECTIVENESS OF HIMALAYA DRUG COMPANY“, has beencarried out by me under the guidance and supervision of Prof. S RAMGOPAL, AdjunctProfessor, M.P.Birla Institute Of Management , Bangalore.I also declare that this dissertation has not been submitted to any University / Institutionfor the award of any Degree / Diploma.Reg no: 03XQCM6091Place : BangaloreDate :SENTHIL BHARATHYM.P.Birla Institute of Management 2


CertificationI hereby certify that the project work embodied in this dissertation entitled“PROM OTIONAL EFFECTIVENESS OF HIMALAYA DRUG COMPANY“ has beencompleted by Mr. SENTHIL BHARATHY under the guidance of Prof. S Ramgopal,Adjunct Professor, M.P.Birla Institute of Management, Bangalore (Internal Guide) andMr. K. Ganesan of HIMALAYA DRUG COMPANY, Bangalore (External Guide)Place: BangaloreDate:Dr.Nagesh MalavalliM.P.Birla Institute of Management 3


AcknowledgementI would like to take this opportunity to thank Mr. K.Ganesan Retail Country Manager,HIMALAYA DRUG COMPANY, for guiding me throughout my Project.This has been a wonderful experience and my interactions with him have provedincredibly helpful. Thank you sir, for giving such a patient hearing to all my questions.Heartfelt thanks to Prof. S Ramgopal and Dr. N.S. Malavalli, Principal M.P.BirlaInstitute of Management for giving me an opportunity to undertake this study.Place: BangaloreDate:SENTHIL BHARATHYM.P.Birla Institute of Management 4


Guides CertificateI hereby certify that the project work entitled ‘PROMOTIONAL EFFECTIVENESS OFHIMALAYA DRUG COMPANY“ has been undertaken and completed by Mr. SENTHILBHARATHY under my guidance and supervision.I also certify that to the least of my knowledge, he has fulfilled all therequirements under the covenant governing the submission of project to the BangaloreUniversity for the award of MBA degree.Place: BangaloreDate:Prof. S RamgopalM.P.Birla Institute of Management 5

Promotional Effectiveness of HimalayaLIST OF CONTENTChapter Number1.2.3.4.5.6.7.8.TopicsExecutive SummaryIntroductionResearch DesignData Analysis and InterpretationFindingsRecommendationsBibliographyAnnexurePage No13151844485153M.P.Birla Institute of Management 6

Promotional Effectiveness of HimalayaLIST OF CHARTSerialNumber1.1.11.21.32.2.12.23.3.13.23.345.6.7.8.9.

TopicCONSUMER PERCEPTIONQualityPackageImageAWARENESS ABOUT THE COMPANY AND ITSPRODUCTSIn MumbaiRest of the western zonePERFORMANCE OF THE SALES EXECUTIVESIn MumbaiRest of the western zoneOverallCONSUMER MINDSETLEISURE TIME SPENDING PATERRNSALES PROMOTIONONSUMER UNAWARENESSMEDICAL PRACTITIONER PROMOTIONCONSUMER PRODUCT PREFERENCE

Page no1920212224262830323436384042M.P.Birla Institute of Management 7


CHAPTER - 1EXECUTIVE SUMMARYM.P.Birla Institute of Management 8

Promotional Effectiveness of HimalayaEXECUTIVE SUMMARYThe research on Promotional effectiveness of the Himalaya Drug Companies conductedin the Western Zone has brought many things into light. The intense study has broughtout the actual level of performance promotional activities carried out by the HimalayaDrug company. During the study, I am able to identify the problems and challenges facedby the company due to improper promotional activities. The study has provided theinformation and suggestions to improve the performances of the company.

M.P.Birla Institute of Management 9


CHAPTER - 2COMPANY PROFILEM.P.Birla Institute of Management 10

Promotional Effectiveness of HimalayaHistory:The Himalaya Drug Company was founded in 1930 by Mr. Manal with a clearvision to bring Ayurveda to the society in a contemporary form and to unravel themystery behind the 5,000 years old system of medicine. This included referring to ancientayurvedic texts, selection indigenous herbs and subjecting the formulations to modernpharmacological, toxicological and safety tests to create new drugs and therapies.Seventy three years ago, on a visit to Burma, Mr. Manal saw restless elephantsbeing fed with a root to pacify them. The plant form which this was taken is Rauwolfiaserpentine. Fascinated by the plant’s effect on elephants, he had it scientificallyevaluated. After extensive research, Serpina, the world’s first anti-hypertensive drug, waslaunched 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’ssecrets. Cutting edge technology is employed to cerate pharmaceutical grade ayurvedicproducts. Since its inception, the company has focused on developing safe, natural andinnovative remedies that will help people lead richer, healthier lives. Today, Himalayaproducts have been endorsed by over 250,000 doctors around the globe and consumers inover 60 countries rely on Himalaya for their health and personal care needs.M.P.Birla Institute of Management 11

Promotional Effectiveness of HimalayaMISSIONWe will satisfy each customer’s health needs through well -researched, effective and saferemedies harnessed from nature’s wealthWe will consider the world our market, and make international quality standards ourobsessionWe will maintain customer-friendly prices and proudly participate in securing India’srightful place in the global economy, all through the total commitment of each member ofthe Himalaya family.M.P.Birla Institute of Management 12

Promotional Effectiveness of HimalayaBRAND IDENTITY:…. the promise of health, well-being and a prescription for good livingThe Himalaya brand has much in common with the mountain range from which itdraws its name. For centuries, the Himalayas have been an icon of aspiration, of man’squest to unlock nature’s secrets. They represent purity and lofty id eal. The fact that theHimalayas are the source of many of the herbs that are used in our products makes ourbrand name all the more appropriate.The Himalaya logo is a visual definition of its brand identity. The leaf that formsthe crossbar of the letter H evokes the company’s focus on herbal healthcare. The tealgreen represents proximity to nature, while the orange is evocative of warmth, vibrancyand commitment to caring. The Himalaya brand carries with it the promise of good healthand well-being.M.P.Birla Institute of Management 13

Promotional Effectiveness of HimalayaLOCATION:Himalaya Manufacturing Plant:Starting off operation(s) in Dehradun way back in the 1930s, the company set upan advanced manufacturing facility in Makali, Bangalore, India, which today houses thecorporate headquarters. In 1991, the company relocated its R&D facility to Bangalore.The manufacturing facility at Makali has the largest tablet-coating unit in the country.Over one crore tablets are punched every day.MILESTONE1930193419501955196419651975199119961998199920002001200320042005Mr.Manal found The Himalaya Drug CompanyLaunch the world first Anti-hypertensive drug, SerpinaDr.Rosan M Captain joins the company and spearheads research and development.Liv.52, a hepatoprotective, is launched and goes on to become one of the world’s top -selling drugs.Mr.Meraj A Manal, the founder’s son, join the company.Mr. Karstein, a German pharmaceutical consultant, directs the company’s focus towards allopathic medical practitioners.An advanced manufacturing facility is set up in Bangalore. The facility grows to become the corporate headquarters.The company’s R&D center moves to Bangalore. Research and development becomes a very important aspect of the company’s focus.The company opens its US office at Houston, Texas.The animal health product range for commercial livestock is launched.Himalaya herbal launches its personal healthcare products in India.The company launches a special range for pets called Companion Care range.The company adopts a new unified brand identity.Consumer Health Division formed.Mr. Nabeel Manal, the third generation Manal, becomes Vice Chairman.Himalaya celebrates Seventy-Five years.M.P.Birla Institute of Management 14


PRODUCT PROFILEM.P.Birla Institute of Management 15

Promotional Effectiveness of HimalayaPHARMACUETICALCHILD HEALTH:Bonnisan KofletMentatSeptilinLiv.52WOMEN EALTH:ClaringEvecareLukolV-GelMen’s Health:RwenalkaReostoStyplonMenosanSpemanHimcolin GelTentex RoyalConfidoTentex ForteHimplasiaM.P.Birla Institute of Management 16


GENERAL HEALTH:AbanaHimcocidLiv.52Rulalaya ForteClarinaHimcaspazCystoneDiarexRumalaya SeptalinGasexGerifortePurimRenalkaDiakofReostoKofletSerpinaPure HandsDiabeconMentatRumalaya GelOphthacarePilexHwrbolaxM.P.Birla Institute of Management 17


PERSONAL CARESkin Care:Gentle Refreshing TonerFairness CreamLip BalmFace Pack¾Purifying Mud Pack¾Refreshing Fruit PackFacial Cleaner¾Deep Cleansing Milk¾Gentle Exfoliating Walnut ScrubMoisturizers¾ Moisturizing LotionFace¾Intensive Face Moisturizing Lotion¾Protective Sunscreen Lotion¾Soothing Body Lotion for Normal Skin¾Soothing Body Lotion for Dry SkinSkin Nutrient¾Anti-Wrinkle Cream¾Nourishing Skin Cream¾Revitalizing night CreamOral Care:Dental CreamM.P.Birla Institute of Management 18


Hair Care:Protein ConditionerRevitalizing Hair OilProtein ShampooDandruff Control ¾Anti-Dandruff Shampoo ¾Anti- Dandruff Hair OilHealth Care:Daily Health CapsuleCold BalmFoot Care CreamAntiseptic CreamAyurslim CapsulePain Relief¾ BalmPain¾ Massage OilPain¾Muscle & Joint RubPimple Control¾Acne –n – Pimple Cream¾Blood Purifier Capsule & SyrupM.P.Birla Institute of Management 19


CONSUMER HEALTHForest HoneyChavanaprashaThroat DropShahicoolGripe WaterPure Herbs:AmalakiBaelGuduchiKapikachhuMandukaparniNeemShatavariSunthiTriphalaVrishamlaArjunaBarhmiHaridraKarelaManjishathaPunarnavaShigruTagaraTulasiYashti-MadhuAshvagandaGokshuraHaritakiLasunaMeshashringiShallakiShudhha GugguluTrikatuVasakaM.P.Birla Institute of Management 20


ANIMAL HEALTHAppetonic VetInflamin VetSpemen VetAppetonic Forte VetLiv.52 vetSpemen Forte VetPOULTRYSpemen VetSpemen Forte VetLiv.52 ProtecGeriforte VetTentex VetNefrotec VetAqua cultureGeriforte AquaLiv.52 ProtecPETSAnxocareErina EPCanisepNefrotecErina PlusM.P.Birla Institute of Management 21


CHAPTER - 3RESEARCH DESIGNM.P.Birla Institute of Management 22

Promotional Effectiveness of HimalayaPROBLEM STATEMENT To study the company’s expect ed achievement by the present methods ofPromotional activities.On the basis of this problem statement, the following specific objectives havebeen crystallized.OBJECTIVE OF THE RESEARCHTo find the actual Promotional effectiveness and to improve the performance ofHimalaya drug company.RESEARCH DESIGNThe research aim is to find out the company’s promotional effectiveness,utilization, reachability, Efficiency of message to customers delivered by the Company.The customer amazement through products and the awareness about the company isbased on survey through questionnaire with partly open ended and partly close-endedquestions and through direct observation.TYPE OF RESEARCHObservational ResearchFresh data can be gathered by observing the relevant factors and settings. Thisexploratory research might yield some useful hypotheses that show the customers feelabout the promotion and the awareness it creates.Survey ResearchSurveys are best suited for descriptive research. Companies take up surveys tolearn about people’s knowledge, beliefs, preferences, and satisfaction. Th e surveyexercise includes the questionnaire (See annexure) to know the customers, the locationstudy and the company’s image.M.P.Birla Institute of Management 23

Promotional Effectiveness of HimalayaSAMPLE SIZEThe chosen size of the sample for research is 1400 customers. Since, in westernZone, Himalaya have fourteen outlets, decided to allocate 100 samples to each outlet.SAMPLE DESCRIPTIONThe sample is chosen from different customers who had visited Himalaya outletsduring different times of the day, at the rate of 100 customers from each of the fourteenoutlets in the western zone.INSTRUMENTATION TECHNIQUESThe questionnaire technique is used for the survey and the reasons for using thisapproach are;It covers wide areaIt is not an expensive affairOriginal data could be obtainedIt is free from all biasEasy to tabulate and understandCOLLECTION OF DATAData has been collected from both primary and secondary sources. Primary data iscollected by the questionnaires and personal observation. Secondary data is collected bythe company brochures, books, internet, magazines, etc,LIMITATIONThe data is collected only at the Western ZoneTime constraintResults are purely based on primary informationThe analysis and interpretation is made under the assumption that data areaccurateM.P.Birla Institute of Management 24


CHAPTER – 4DATA ANALYSISANDINTERPRETATIONM.P.Birla Institute of Management 25

Promotional Effectiveness of HimalayaCONSUMER PERCEPTION1.1. QualityLow1%Moderate 35%Extremely High 5%High59%Analysis:The chart shows almost 99% of the customers feel, Quality of Himalaya productsis extremely good. This is the greatest advantage for Himalaya. This shows it is easyto introduce new products to the customers.would be very loyal customers. The 64% representing ‘extremely high’ & ‘high’ column should be retain as they¾ 35% customer’s feels that quality is moderate and company should focus to that¾ 1% of customers feel that product quality is low have accepted that they are¾allergic to few herbs, and some feels that herbal product give results very slowly.to find out the needs of the customers.M.P.Birla Institute of Management 26

Promotional Effectiveness of HimalayaCONSUMER PERCEPTION1.2. PackagingExtremely High 7%Low17%High43%Moderate 33%Analysis:The study showed that 53% of the purchases are made on impulse and packinghas truly influenced the impulse behaviorThe ‘extremely high’ and ‘high’ rated category customer have reasoned thatcompany products. Packing helped them in self-service by enabling them to differentiate the¾ Customers are ready to pay a little more for the smaller pack which is slightly¾higher than the economy pack for the convenience of carrying. Example: Perk They have liked the new packing as it gives a feeling of standard quality products.¾This will help in building the company and brand imagechocolate are now available at Rs2/- which has more profitability.M.P.Birla Institute of Management 27

Promotional Effectiveness of HimalayaCONSUMER PERCEPTION1.3. ImageExtremely High 18%Moderate 20%High62%Analysis:The graph represents that the company has positioned itself very strongly in theminds of customer. None of the customers have rated the image as low which adds to the credit¾ The categories representing ‘high’ and ‘extremely high’ are totally 80% which is¾very good to the company. This is supported by the Customer Brand Loyaltygraph. The company should continue to provide the same level of delight to retain 20% representing moderate are the customers who have been newly introduce or¾would like to still try the other products of the company to see the effectiveness ofherbal products.this position.basket of the company.M.P.Birla Institute of Management 28

Promotional Effectiveness of Himalaya2.1. AWARNESS ABOUT THE COMPANY AND ITS PRODUCTSIN MUMBAIData given below shows the means through which customers were introduced to thecompany products i.e. how the customers got to know about Himalaya products? LocationAndheri (E)BorivilliBycullaCollabaDomivilliGoragaon*Kandivali*Koparkarine*Thane Code ADH BOR BYC COL DOMGOR*KAN*KOPA* THAAdvertisements Word of mouth 6327 4643 5028 5331 5736 5519 5536 5527 4313Other Means 10 11 22 16 9 26 9 30 60706050403020100ADHBORBYCCOLDOM GOR* KAN* KOPA* THAOther MeansAdvertisment

Word of mouthM.P.Birla Institute of Management 29

Promotional Effectiveness of HimalayaAnalysis: The graph shows that majority of the Mumbai customers are aware about the¾company through Advertisements. This shows that advertisements have a verygood impact on the crowd. Thane outlet differs from rest of the outlets. Since it is located in a very good area,¾the outlet is bringing about very good awareness about the company. This provesthat outlet itself can be an excellent means of advertising. Buzz marketing i.e., ‘Word of mouth’ marketing rank second in the list of mode¾of promotion. This shows Buzz marketing is one of the effective ways ofpromoting the brand.M.P.Birla Institute of Management 30

Promotional Effectiveness of Himalaya2.2. AWARNESS ABOUT THE COMPANY AND ITS PRODUCTS IN REST OF THE WESTERN ZONEData given below shows the means through which customers were introduced to thecompany products i.e. how the customers got to know about Himalaya products LocationAhmedabadArungabadNasikPuneSurat CodeAHMDARUNG Nasik Pune SURAdvertisement 51 38 56 21 23Word of mouth 39 47 61 36 50Other Means 10 15 7 43 27706050403020100AHMDARUNG*AdvertismentNasikWord of mouthPune*SUR*Other MeansM.P.Birla Institute of Management 31

Promotional Effectiveness of HimalayaAnalysis: The graph represents that the customers got to know about Himalaya almost¾equally by way of means. The comparison of these two charts shows that in Mumbai, the advertisements¾made a great impact where as in rest of the western zone, Word of Mouth andother means are also equally effective. The general behavioral patterns of people in Western Zone, is very different from¾the Mumbai people, because of standard of living, cultural difference, etc.,M.P.Birla Institute of Management 32

Promotional Effectiveness of Himalaya3.1. PERFORMANCE OF SALES EXECUTIVESIN MUMBAI OUTLETSStatistics of customers getting the required information from the ExecutivesLocationAndheri (E)BorivilliBycullaCollabaDomivilliGoragaonKandivaliKoparkarineThaneCodeADHBORBYCCOLDOMGORKANKOPATHAYes276556614614241817Occasionally16116121449613No521818233662060Unable to Comment531744

03010706050403020100ADHBORYesBYCCOLDOM GOR* KAN* KOPA* THANoUnable to CommentOccaionallyM.P.Birla Institute of Management 33

Promotional Effectiveness of HimalayaAnalysis: This graph shows 3 or 4 outlets like Borivilli, Byculla and Collaba, Sales¾Executives have good product Knowledge due to their innate interest andenthusiasm. Incase of Andheri (E), Sales executive are good in product knowledge but they¾lack motivation. Sales executive are de-motivated due to very few impatientcustomer. Poor product knowledge of the sales executive in Thane outlet leads to customer¾dissatisfaction.M.P.Birla Institute of Management 34

Promotional Effectiveness of Himalaya3.2. PERFORMANCE OF SALES EXECUTIVEIN REST OF THE WESTERN ZONEStatistics of customers getting the required information from the Executives.This includes introducing the customers to the new products and prompting.Unable toLocationAhmedabadArungabadNasikPuneSuratCodeAHMDARUNGNasikPuneSURYes283166716Occasionally1031443No539312Comment20200706050403020100AHMDYesARUNG*OccasionallyNasikNoPune*SUR*Unable to CommentM.P.Birla Institute of Management 35

Promotional Effectiveness of HimalayaAnalysis: This graph shows sales executive are having considerable product knowledge,¾prompting the customers and introducing them to new products. They can managethe local prospect, but still there is lot of scope for improvement. The customers have rated the performance of the franchisees considering¾franchisees as sales executive that is one of the reasons for the high performancerating. At¾ Ahemdabad: Out of 100 customers, 58 of them told that sales executive are nothaving Product knowledge. This shows Ahmedabad sales executives should worktowards improving their product knowledge.M.P.Birla Institute of Management 36

Promotional Effectiveness of Himalaya3.3. PERFORMANCE OF SALES EXECUTIVESStatistics of customers getting the required information from the ExecutivesThis includes introducing the customers to the new products and prompting.Totalsample*1000Yes476Occasionally125No283Unable to Comment501000 900 800 700 600 500 400 300 200 100 0 Totalsample*YesOccasionallyNoUnable toCommentM.P.Birla Institute of Management 37

Promotional Effectiveness of HimalayaAnalysis: The graph depicts that the Sales executives are not having sufficient product¾knowledge, not introducing the customers to the new products or prompting them,and giving them sufficient information. Out of 1000 samples, 283 customers are not happy with the sales executives’¾product knowledge and the new products information. In one of the researchfindings, it is founded that every unsatisfied customer will adversely influenceminimum of six other customers by negative word of Mouth.M.P.Birla Institute of Management 38

Promotional Effectiveness of Himalaya4. CUSTOMERS MINDSETTrustworthyModern AyurvedaNo Side effectHigh Class Product15%60%15%10%60%15%15%10%TrustworthyModern No Side High Class Ayurveda effectProductM.P.Birla Institute of Management 39

Promotional Effectiveness of HimalayaAnalysis: The Graph shows that sixty percent of the customers /consumer perceive that the¾brand Himalaya is Modern Ayurveda, when compared to other parameters like‘Trustworthy’ , ‘no side effects’ , ‘high class products’ . Trustworthy and No side effect shares equal percentage in the chart of 15%.¾ Final, High class product parameter scores only 10% among the consumer and¾customer. The graph shows that Modern Ayurveda predominantly higher than the other¾parameters.M.P.Birla Institute of Management 40

Promotional Effectiveness of Himalaya5. LEISURE TIME SPENDING PATTERNMagazine164TV623Radio56Family465Newspaper9292, 7%164, 12%465, 33%623, 44%56, 4%MagazineTVRadioFamilyNewspaperM.P.Birla Institute of Management 41

Promotional Effectiveness of HimalayaAnalysis: Out¾ of 1400 samples, 623 prospect customer watch television during there leisure Out of 1400 samples, 465 prospect customer spend there leisure time with there¾ Nearly 77 percentage of the customer comes under two things that are Television¾ Rest like radio, magazine, newspaper are put together 33% percent.¾and family.family.time, that is 44 percent.M.P.Birla Institute of Management 42

Promotional Effectiveness of Himalaya6. SALES PROMOTIONTotal Sample1400Free Sample326Tester119Tester119Free Sample3261400Total SampleM.P.Birla Institute of Management 43

Promotional Effectiveness of HimalayaAnalysis: Exclusive outlet of Himalaya is one of the company’s distribution channels, so the¾ Out of 1400 customer, only 119 customers are aware or used the tester facility¾ Only 326 of total sample collected were given the free samples of the product.¾to tap new customers for the company or to other product of Himalaya.from Exclusive outlet of Himalaya.tester and free samples given there plays a major role for promotion. These are the most important way of sales promotion, but it is not used properly¾M.P.Birla Institute of Management 44

Promotional Effectiveness of Himalaya7. CUSTOMER UNAWARENESSNot EffectiveNot SeenTV245192Magazine 169 5121692451920200512MagazineTV400600Not Seen800Not EffectiveM.P.Birla Institute of Management 45

Promotional Effectiveness of HimalayaAnalysis: Customers are unaware about the product through advertisement because of two¾ In¾ case of Magazine, not seen column is higher than not effective column that is, It’s¾ equally bad that both Not seen and Not effective are filled in case ofTelevision advertisement 192 & 242 respectively.Not seen – 169, Not effective – 512.main reason, they are Not seen the advertisement and Not effective advertisement.M.P.Birla Institute of Management 46

Promotional Effectiveness of Himalaya8. MEDICAL PRACTITIONER PROMOTIONMedical PractitionerYesNo15512No12155M.P.Birla Institute of Management 47Yes

Promotional Effectiveness of HimalayaAnalysis: More than half of the sales are through medical products for the company, so it’s¾very important that company should concentrate on Medical Rep as vital channel The response for this analysis is purely from the customer who use medicine¾ Out¾ 167 customers who use medical product of Himalaya, 155 customers is cameto know about Himalaya through Medical practitioner.category.member for its product.M.P.Birla Institute of Management 48

Promotional Effectiveness of Himalaya9. CATEGORYWISE CONSUMER PREFERENCEPersonal Care295Cosmetics342Toiletries139Medicine8239008007006005004003002001000Personal Cosmetics Toiletries Care295342139823MedicineM.P.Birla Institute of Management 49

Promotional Effectiveness of HimalayaAnalysis: Company product portfolio or product line can be divided into four category i.e.,¾ Out of these four categories, Medicine is highest selling category having more¾ The next highest in the list is Cosmetics, but that is half of Medicine category.¾than 60% of the total sales.Personal care, Medicine, Toiletries, Cosmetics.M.P.Birla Institute of Management 50


CHAPTER – 5FINDINGSM.P.Birla Institute of Management 51

Promotional Effectiveness of HimalayaFindings of the studyIn the study of the promotional effectiveness observations were made and somewere common to the all companies. They areAwareness:1) In Mumbai, Advertisement made a greater impact when compared to other modeof communication.2) In rest of the western zone, all the mean of awareness creation as worked outequally and effectively.Advertisement:3) More than 65% percentage of the respondents is unaware of the Himalayaadvertisement that is basically, advertisements are not attractive or not telecastedat proper time and media.Consumer Preference:4) Himalaya has four product categories i.e., Personal care, Medicine, Toiletries,Cosmetics, among these four categories, Medicine is highest selling categoryhaving more than 60% of the total sales.5) Leisure Time – In case of urban cities customer spend more of their leisure timewith their friend and in case of sub urban and towns they spend their time inwatching television.Promotion:6) Sales promotion – Tester and Free sample are the most important way of salespromotion, but it is not used properly to tap new customers for the company or topull exiting customer of Himalaya to other products of Himalaya. The purpose ofproviding the tester facility at the outlet by the company is to provide the touchand feel of the products and to raise the need. For all this the testers should find aproper place. The customers should be made known that they can try salesexecutives should draw the customer interest towards the testers. The testersshould be neatly displayed with required content. Exclusive outlet of Himalaya isM.P.Birla Institute of Management 52

Promotional Effectiveness of Himalayaone of the company’s distribution channels, so the tester and free samples giventhere plays a major role for promotion.7) Medical Practitioner - More than half of the sales are through medical categoryfor the company, so it’s very important that company should concentrate onMedical Rep as vital channel member for its product.Consumer Perception:8) Quality – Quality of Himalaya products are rated higher than any other criteria forconsumer perception. Few customer are not satisfied with the product, and theycan be divided into two part, the first part is because the product is not suitingthere body or allergic to that particular herb. The other part is not made for thatsegment of the customer.9) Image/Brand - Brand name of Himalaya stand very high among the existingcustomer of Himalaya. Other parameters like quality, package, product line,goodwill etc, helped the brand to create high brand value.10) Position - More than 60% of the respondent are positioned Himalaya has ModernAyurveda when compared with No side effects, Trustworthy, High class products.11) Package – Customer affluence as the customers are ready to pay a little more forthe smaller pack which is slightly higher than the economy pack for theconvenience of carrying.12) Price – Price of the Himalaya product are relatively high when compared tocompetitors price.Exclusive Outlets:13) The product catalogues and the other material to guide customer and give productinformation are not promptly distributed recognizing the need. Only at the requestof the customers for such information they are served.14) The outlets are facing problems due to different offers at the medical stores andshopping malls on Himalaya products. Better offers in these places the customersare loosing hope on the exclusive outlets. Like an anniversary offer of 10% off onpurchase of non purchase products at the outlet while in medical stores side by theoutlet offers Rs.60worth of free goods on purchase of Rs.240 worth of HimalayaM.P.Birla Institute of Management 53

Promotional Effectiveness of Himalayaproducts which is almost 25% off. In Big Bazaar the 1+1 shampoo free but it isnot available in the outlet.The executives are having product knowledge but are not able to deliver it in a waythe customer can understand. They are confused by the questions and land up givingwrong and vague answers. Thus they are not able to recommend appropriate products.15) The sales executives are making no efforts to sell health and wellness tocustomers. They do not probe into customers wants to find out what they actualare looking for and suggest most appropriate product.16) Offers announced by the company on the products are not followed. Like the 1+1Hair oil free offer on the old pack, at some outlet the hair oil is given free onpurchase of a shampoo while in another outlet they are sold individually while inanother outlet the offer is given only for sometime even though the old pack of oilis not completed. This does not give a good image to the customers buying atdifferent outlets.17) Product Knowledge - Only with sufficient product knowledge the sales executivescan give proper guidance to customers. The sales executives must be able to givethe information in a way the customer can understand.18) Telephone orders - The telephone orders can be accepted only if the calls areattended. If the lines are always busy the customers will never try to avail thisservice. The orders should be properly noted for prompt delivery of service andproducts.19) Home delivery - The telephone orders received should be processed as soon aspossible without any mistakes as to product, quantity or place.M.P.Birla Institute of Management 54


CHAPTER – 6RECOMMENDATIONSM.P.Birla Institute of Management 55

Promotional Effectiveness of HimalayaRecommendationsPromotion Channel:Company should follow a different way of advertising media and channel. Sincecustomer is spending most for their leisure time with their family and television,company should continue with BUZZ marketing and start advertising aggressively ontelevision and magazine.Positioning:Company should try to use its strength, and position the company inconsumers’/ customer’ mind. Company should reinforce the image of the company that“ Himalaya as Modern Ayurveda” through advertisements. And that how at presentcustomers is perceived about Himalaya.Effectiveness:Print media Advertisements of Himalaya are not very attractive to the customer.Company should organize to create very attractive advertisements and try to pullcustomer attention either by Television or by Print. Himalaya can rope in goodadvertisement agency .Promotion:Medical products:Since more than sixty percent of the revenue come from Medicines, companyshould concentrate on Medical Representative and the ways of promotion throughMedical Practitioner.Rapport with the Doctors:The company needs to maintain a constant liaison with Ayurvedic doctors. As thecustomers base their trust on the doctor’s suggestions first the company needs to KEEPthe doctors UPDATED ABOUT the wide range of Himalaya products and their wideM.P.Birla Institute of Management 56

Promotional Effectiveness of Himalayaavailability across the globe. The doctors can prescribe HIMALAYA MEDICINESALSO TO NRI patients AS the products ARE available in other countries as well.OTC Products:Growth of the company depends on the FMCG product so they should focus onproduct category like Cosmetics, Toiletries. Company advertisements should focus moreof these products.Exclusive Outlet:Product Display:The displaying of the products in the shelves should be done with more care. Useof shelf talkers (Shelf Labels) to correctly guide the customer is necessary.Thecompany should provide the same adequately as soon a possible. It is stronglyrecommended that the company adopts "Visual Merchandising” to enhance thevisibility of the products which in turn enhance the brand association.Executives training needs:The training needs to be revised to train the executive to be able to deliver theinformation about the products to the customers in way customers can understand and notjust using the same wordings or jargons, which are there in the "Guide To Good Living".Training should also focus on improving the executives knowledge of the nearestcompetitive products so that they can justify the Quality and Price of Himalaya productscompared to others. The executives should be trained to use computer soft ware to givequick service and handle the credit card.Offers uniformly offered:The company should strictly ask the outlets to follow the offers announced by thecompany. Being an exclusive outlet there is a need to offer the offers on productsuniformly to gain the trust of the customers purchasing at different outlet.Flexible sales promotion:The sales promotional activities give the desired effect only when they areflexible. While the company is focusing on upper middle class and upper class, offers likefree lunch box on purchase of honey is not suitable. Thus the offers should be madeM.P.Birla Institute of Management 57

Promotional Effectiveness of Himalayaflexible giving an equal amount of price discount on rejecting the gift. Company shouldalso provide a discount at the outlets on bulk purchases.

CHAPTER – 7BILIOGRAPHYM.P.Birla Institute of Management 58

Promotional Effectiveness of HimalayaBibliography:Books: Marketing Management by Philip H Kotler9 Consumer Behavior by Schiffman9 Service Marketing by Valarie A Zeithaml & Mary Joe Bitnar9 Logistic & SCM by Martin Christopher9 Principle of marketing by Philip H Kotler9 Advertising Management by Rajive Batra9Magazines: American Marketing Association Journal9 Retail Image9 Indian Journal of Marketing Published by ICFAI9Website: www.marketingterms.com9 www.exchangeindia.com9 www.marketpower.com9 www.indiainfoonline.com9 www.marketingstrategy.com9M.P.Birla Institute of Management 59


CHAPTER – 8ANNEXUREM.P.Birla Institute of Management 60

Promotional Effectiveness of HimalayaName:Area:

+,0$/$<$&$5(5(6($5&+

Occupation:1. Why did you choose HIMALAYA Products?Health ConsciousQuality productsFor Trial2. Which product categories of HIMALAYA are you using?Personal careCosmeticsToiletriesMedicine3. How did you come to know about HIMALAYA?AdFriendsRelativesif Others (please specify)____4. How do you ‘feel’ about the products of HIMALAYA, which you have used?Product name: _________________ Product name: ___________________Comment:Continue_________________ Comment:Discontinue___________________DiscontinueYesNoContinue5. Does any medical practitioner prescribe HIMALAYA product?6. Is the salesman prompting you to try other products of HIMALAYA?YesNoOccasionally7. How do you spend your leisure time?NewspaperMagazineTVRadioFamily8. What time usually in a day, do you watch Television?M.P.Birla Institute of Management 61

Promotional Effectiveness of Himalaya7 – 9am9 – 12am12 –6pm6 –9NightParameterQualityPackageAvailabilityPriceImageExtremely LowLowModerateHighExtremely HighPlease tick the appropriate block9. How do you feel about the ‘promotional’ of HIMALAYA product in terms of frequency, impact, logo, appeal, theme and reach?ExcellentQuite goodAveragePoor10. What do feel about HIMALAYA products? ________________________________________________________________11. Are you aware of the services provided by HIMALAYA?Home DeliveryTestersFree Samples12. Which other products do you want from HIMALAYA? _____________________13. Your comments / opinion for improving the HIMALAYA products.M.P.Birla Institute of Management 62

7+$1.<28 +$9( 1,&($'$<Promotional Effectiveness of Himalaya

M.P.Birla Institute of Management 63

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