mba ibm-himalaya-soap

HIMALAYASOAPBusinessCaseStudy

ISCParis,December17th2016

Jean-JacquesGENDROT

SanjayGODABANAHAL-PRASANNAKUMAR

HoangNGUYEN

DiHuiZiWU

YahuanWANG

HimalayaSoap–BusinessCaseStudy

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Content

I. EvaluatethelaunchofHimalayaSoap

1. Wastheinnovationstrategythebestchoiceofgrowthstrategy?

2. Evaluatetheefficiencyofthelaunchmarketingactions

II. Basedonyouranalysis,howwouldyourepositionHimalayaSoap?1. Howwouldyouplantherepositionedbrandidentitystrategy?

Describethispositioningusing:apositioningstatementandaperceptualmap

2. Recommendationsfortwootheractionstosustainthebrandonthe

long-term.


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I. EvaluatethelaunchoftheHimalayaherbalsoap:

Overview:

HimalayaDrugCompany(HDC)isestablishedintheyear1930byMr.M.Manal.ItpioneeredtheuseofmodernsciencetovalidateAyurveda’ssecrets. By 2012, HDC expanded its operation in 82 countries. Thecorporatemission demanded thatHimalayawould establish itself asdevelopingsafe,naturalandinnovativeremedies,harnessingnature’swealth and promoting healthy living. However,when launching newproductofsoaps,thecurrentstrategiesforthecompanyisnotreachtheresultwhatitsupposedtobe.Besides,otherbrandsinthismarketaredeveloping and improving their products, which threating Himalayasoap’sposition.

In such a situation, the Himalaya brand of soap had to convey apropositionthatrandeeperthanjustanherbalidentityandrepositionthis soap so it could build a long-termbrand identity. Goswami (thebrand manager) conducted customer perception survey that wouldprovidevaluableinsightsintorepositioningHimalayasoap.

1. Wastheinnovationstrategythebestchoiceofgrowthstrategy?The current market situation of herbal soap in India remains verycompetitive.Thus,therearemorethan10otherbrandscompetewithHimalayaSoapsintheIndiasoapmarketbuttheanalysisfocusonthetwoprimarycompetitorsofHimalayaSoaps:MedimixandLuxduetothesamepricerange,technologiesandbrandingstrategies.InordertoevaluatewhethertheinnovationstrategyofHimalayaSoapis thebestchoiceofgrowthstrategyornot,analysisaboutstrengths,weaknesses,opportunitiesaswellasthreatsofHimalayaSoapshouldbeconducted:Strengths:

• Hasavarietyofproductstostressondifferentusages• Naturalingredientsineverysoap'srange• •


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• • Nem&Tulasi,whicharecontainedinHimalaya'sProtecting

Neem&Turnmericsoap,hadlongbeenapartoftheskin-careregimentsintheIndianculture

• Cuttingedgetechnologytoproducesafe,naturalandinnovativeremedies

• Century-oldcompany&strongbrandimage• StrongpresenceacrossIndiavia:store-basedretailing

(chemists/pharmacies,supermarkets,hypermarketsandretailoutlets)

• BrandidentityfromtheHimalayawhichpresentedpurityandelevatedideals,sourceofnaturalherbs

• QuicklyadaptedwithnewproductscategoriesWeaknesses:

• Highcostsofproductionleadstohighprice• Lowestresponsefromcustomerloyalty(Exhibit6)• Notaggressiveinmarketingwhichleadstolowcustomerloyalty• Brandpositionclutteredinadvertisingcampaigns

Opportunities:• Beautyandpersonalcaresegmentgrewbyalmost100%over5

years• Thesoapmarketpenetrated98percentofhouseholdsinIndia.

Andexperiencedsalesgrowthdespiteanincreaseinthepricesofrawmaterials.

• Naturalingredientproductsarebeingwelcomed• UntappedruralandonlinemarketThreats:

• Competitorsareaggressive• Customerloyaltiesareeasytochange• Varietyofcompetitors’groupineachproductsegment(personal

careandbeauty)andmarketsegments• Saturationofurbansegment• Ruralareaexpansion• Increaseinthepriceofrawmaterialsandproductioncosts• Shiftingcustomers’loyalty• Newentrancesandsubstitutes


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Comparing between the Strengths and theWeaknesses, we couldassumethatHimalayaSoaphasthepower(intermsofproductquality,technology, distribution channels and brand image) to become themarketleaderofsoapmarketbuttheyhavenotusedthemarketingasthe leverage for strengths to attack the market aggressively andminimize/covertheweaknesses(price,brandimage,customerloyalty…).Moreover,thethreatofbeingeatenbythecompetitorsisthepicturetheyshouldconsiderfortheexternalfactorswhilethepositionofthebrandisnotstrongenough(thedirectionofherbalaspectofHimalaya’ssoapwill become genericwhile other competitors are proposing thesameaspectintheproducts)isinevitable.Inaddition,regardingtothemarketopportunitiesintermsofgrowingdemandandnewtargetexpansion,thereisagoodchancetorepositionthebrand’sstrategyandshapetheperceptionsofcustomerstothenewdirection.

Thus,theinnovationstrategyistheonlychoicetomaintainthestrongpositionofHimalayaSoap.


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2. Evaluatetheefficiencyofthelaunchmarketingactions.

Basedonthesurveyresults,thecustomers’insightsillustratedmostlythebrand’ssituationaswellasindicatedthatmarketingplaysacrucialroleinbuildingthebrandimage.

TVCommercial–Misleadcustomer’sperception:

IntheResponsetoimportanceoffunctionalbenefitsbyHimalayaSoapusers, more attention is paid to the Hygiene, Freshness and Naturalingredients. However, in TV Commercial the three did not fullydemonstrated, only expressed Freshness feeling and the naturalingredients. Comparing toMedimix and Lux, the highest response ofcustomers was for the Freshness, which was 3.91/5, while NaturalIngredientsandHygienecameupbehindtheresponseofMedimixbutstillhigherthanLux.ThefactisthatintheTVcommercialofHimalayaSoap, the ad focused all the visual (with the models acting) on theFreshnesswhiletheNatureIngredientsandHygieneofthesoapwerejust presented in the voice-over, which is less affective than digitalillustration.Thismade thecustomers think that thebrandwanted tofocusonthefreshnessnottheingredientsandhygiene(whicharethestrengthsofthebrand).

Responsetobrandimagedimensions:

Responsetobrandsbyusers:IntheEXHIBIT6,wecanclearlyrecognizethatthedifferencebetweenbrandsimagedimensions.The scores of Himalaya Soap are higher than Medimix and Lux:Confidence,Senseofbelonging,Packaging,Prideofownership,Sloganofthebrandinfluenceandtheinfluenceofcelebrityendorsement.


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Likewise,HimalayaSoapusershaveahigherchanceofchoosingothersoapbrandsandarewillingtotryothersoapbrandswhichtheyhaveneverheardof.ThesearefactorsthatcannotbeignoredandcanposeathreattoHimalayaSoap.Inthecustomer'sexpectations,theuserismorehopethatthebrand'sadvertisingmorecreativetodistinguishbetweenotherbrands,throughadvertising brings feature and usefulness to users. Similarly, I hopesoapcanreflectIndia'scultureandvalue.Accordingtotheneedsofusersandtheimageofthebrand,Himalaya Soap need to repositioning the interpretation of productuniqueness,functionalityandprice,whichfortheHimalayaSoap,theseare essential for Himalaya Soap users. And by adding local culturalelementsinads,inspirecustomerstothebrand'sgoodwillandloyalty.

II. Basedonyouranalysis,howwouldyourepositionHimalayaSoap?

1. How would you plan the repositioned brand identity strategy?Describe this positioning using: a positioning statement and a

perceptualmap

Athoroughanalysisofperceptionsofthreegroupofrespondents,forusers of soaps in India themost important functional benefit is thatsoaps are made with natural ingredients. This factor is due to thecultural influence and customs where the use of natural herbs andspices in your daily life prevails andsecondly it is also most important toconsumers that soaps provide hygienicproperties andgermpreventionalthoughthepriceisnotlessimportant.


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GroundsthatHimalayaSoapisstrongat:

Ø Place:DistributionchannelsØ Product:- Widerangeofproductusages- Goodreputationfornatureingredients(quality)- Cuttingedgetechnology- Attractivepackaging

Ø Promotion:- Creativeads- ShowcaseIndianculture- Celebrityendorsement

GroundsthatHimalayaSoapisnotstrongat:

Ø Price:highpriceduetohighproductioncostandrawmaterialsØ Promotion:- Misleadingads- Poorrelationshipmanagement(lowcustomerloyalty)

Thus,thepositionthatHimalayaSoapshouldpursueinthefutureistomaintainthecurrentherbalproductsandinnovatethroughimprovingthe communication/interaction with customers. The advertising willnotonlycreativebutalsohighlightitsmainattributesandadvantagesovercompetition,asbeingmadewithnaturalingredients.Inaddition,whilemaintainingthetargetwhoispayingattentiontohealthy,senseofbelongingandconfident,HimalayaSoapshouldreachforhouseholdcustomers in rural area by promoting brand identity with activitieswhileestablishing/strengtheningthedistributionchannels.


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Positioningstatement:“For healthy, sense of belonging, caring seeking consumers who

worryaboutthehealthyofthemselvesandtheirloveones,Himalaya

Soap is the consultantwith professional experiencewhoprovides

productsthatarefullwithhealthynaturalingredientsandembrace

thewealthofsocietyastheirsuccess,makingyoufeelyouhavemade

a smart, responsible choice that demonstrate your will to have

healthierlifeandcontributiontosociety”

Perpetualmap:


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Thestrategieswillinclude:

1.1 Growththroughinnovation:Ø Communication:

- Conduct newmarketing campaigns focus on: healthy, sense ofbelonging, caring and consulting: trade promotions to increasemarket coverage, brand ambassador program, workshops,exhibition with other brands related to health care (medicinecompany,naturalingredientproducers…)toformagroupofbrandsto protect the market as well as create and develop long termpositioninhealthcareindustry).

- Control over marketing materials: should be consulted withprofessionalstoavoidmisleadingcontent.

- Target new digital flat form (blogs, facebook, beauty forumseeding)establishment toconsultconsumersaboutpersonalcare,beauty,instructionfrombothbrandprofessionalsanddoctors…toengage consumerswithbrands, let themspeak for thebrandandcontrol/influencetheirperceptionofthebrand.

Typeofinfluencer–Pro.LaetitiaMimoun


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Ø Cross selling: thiswouldhelp toenhance the customers’ experiencewith different product lines. Combining with other marketingcampaigns, thiswouldencouragecustomers to trynewproductsandstrengthenbrandpositioninthem.

1.2 Extensionstrategies:marketextensionMaintaining the position of the brand in urban area while attackingruralareawithCorporateSocialResponsibilityactivities:- Buildingplaygrounds- Upgradeschools- Healthcareworkshopsandcompetitions

Combiningwithproductsamplingandpromotionsatpointofsaleaswell as celebrity endorsement. In addition, develop and strengthendistributionchannelsfocusingongrocerystoresandpharmacies.Mostdominantly,allthemarketingmaterialsfocusonIndianculturesothatconsumerscanfeelthefriendlyandorientedfortheproduct.

Byshowingthecommitmenttothesocietyandtheactivitiestoengagethecustomers,HimalayaSoapcanbuilduptrust,relationship,improvethesatisfactionandstrengthenbrandloyaltyincustomersandbrandequity.

Relationshipmanagement–Pro.LaetitiaMimoun


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2. Recommendationsfortwootheractionstosustainthebrandonthelong-term.

InorderforHimalayaSoaptodeveloplongtermtheywould:

- MaintainthestronggroundwithinIndiaandconsideringtogoexportwiththestrengthsofthebrands(focusesonnatureingredients,technologyandlabor cost)while considering theweakness and the barriers in foreigncountries.

- Develop new product line targeting kids to invest and build up brandimageforthenextgenerationtoserve.Usingbrandextensionasanaidtofully cover the position statement, which is bringing values to thecustomerstocarefortheirloveones.

ExtensionStrategies–Pro.LaetitiaMimoun

TheEnd

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