Consumer Perception of Brand "himalaya"

Consumer Perception of Brand "Himalaya"

*People were allowed to select more than one checkbox, so percentages may add up to more than 100%

Competitive Landscape

As shown below, we started with evaluation of the competitive landscape. The study of competitive landscape gave us an overview of the industry and helped us understand which player plays in which category and price points. Also the industry trends showcase toothpaste as a flourishing industry. Many reports also suggest growing trend among consumers for herbal products. Key findings from studying competitive landscape were

1. Lot of players in the gel based category

2. No herbal players in the sensitive tooth paste category

3. 5 potential spaces where there are presently no players

This was followed with an in-depth segment analysis using a weighted score model explained subsequently.

Weighted Score Model

We have used two factors to find out which segment will be the most lucrative for Himalaya to invest further amongst whitening, gel and sensitive, these are

1. Market Segment Attractiveness

2. Organization Capabilities

We have gauged market attractiveness by using a weighted score model .The factors used in this model to gauge market segment attractiveness are

a) Market Size ( tonnes )

b) Growth rate ( tonnes )

c) Market size ( rupees)

d) Growth Rate ( rupees)

e) No. of competitors

f) No. of Herbal Competitors

g) Market Share of Competitors ( Herbal )

h) Substantial Cash flows( Mn )

These factors were given scores based on in depth secondary research of industry reports and academic journals. A score for each of the segments was arrived at, which helped assess the market segment attractiveness in an objective manner.

Given below are the values of the above factors.

Segments Market Size ( tonnes ) Growth rate ( tonnes ) Market size ( rupees) Growth Rate ( rupees) No of competitors No of herbal Competitors Market Share of Competitors ( Herbal) Substantial Cash flows( Mn)

Sensitive 1043 1.4 1045 2.62 5 0 0 1580.145

Whitening 1572 -0.02 542 0.02 5 1 33% 2287.26

Gel 20256 0.15 7080 0.19 16 2 0.45% 35853.12

Given below are the weights assigned to these factors and calculation of the score

Factors Market Size ( tonnes ) Growth rate ( tonnes ) Market size ( rupees) Growth Rate ( rupees) No of competitors No of herbal Competitors Market Share of Competitors ( Herbal) Substantial Cash flows( Mn)* Score

Weights 9 10 9 10 5 7 5 8

Sensitive 0.463418246 10 1.328389831 10 4 7 5 0.352581867 292.9469

Whitening 0.698459716 -0.142857143 0.688983051 0.076335878 4 6 4 0.510362278 97.97119

Gel 9 1.071428571 9 0.72519084 1 5 3 8 297.1696

*Substantial Cash Flows were calculated by calculating the average price of toothpaste in the category by other players and assuming a 3% market share to be the goal in the next year.

We have studied Himalaya Brand and found that it has strong capabilities in all three segments because of

* Strong brand image and global presence

* Strong distribution channels and international consignment delivery within 48 hrs

* Quality through certifications and R&D

* Ayurvedic expertise

* Modern medical research methodology

Strategic Alignment

We have used the above two factors and made our decision using the adapted Shell Directional Policy matrix. As seen from the matrix below, Gel category should be the prime target owing to a huge market and favourable growth rate among other factors. Through our research we were able to gauge a general trend of willingness among consumers to pay higher for herbal products. Also, there is a growing concern for personal hygiene. We feel that if Himalaya leverages