It
has been two years since Bangalore-based Himalaya Drug Company changed
its marketing gameplan by bringing in all its products under the "Himalaya"
brand. Deccan Herald's Dilip Maitra spoke to the company's
Chief Executive Officer & President Ravi Prasad to find
out how the initiative is working.
DH: It has been two years since you
brought all your different product categories under "Himalaya".
How is umbrella branding concept working?
Ravi Prasad: The product categories medicinal range, personal
care, pure herbs and animal health were all brought under "Himalaya"
brand because we wanted to create a one stop-shop for herbal health
care. The name Himalaya has much in common with the mountain range
from which it draws its name.
For centuries, Himalayas have been the icon
of aspiration and man's quest to unlock nature's secrets. The fact
that Himalayas are the source of many herbs that are used in our
products makes the brand name even more appropriate. Since the Himalaya
brand carries with it a promise of good health and well-being, re-branding
has helped dissolve artificial borders in the consumers' mind between
various product categories.
The company benefited immensely; our sales
went up 25 percent to Rs. 300 crore last year, there is a shift
in our consumer profile as more and more younger people are now
buying Himalaya products.
DH: Do consumers look at Himalaya
differently?
RP: Sure, there is a change in perception. When we talk about
Ayurveda people generally think that herbal products are old, slow
acting and ineffective. But in Himalaya we have pioneered the use
of modern science to rediscover and validate ayurveda.
We employ cutting-edge research to create
highly effective fast-acting products that are safe and natural.
And this has changed the perception of Himalaya as a modern and
contemporary producer of herbal healthcare products.
DH: You have nearly 140 products all
together but only about 25 to 30 products promoted actively. The
logic?
RP: The problem is retail outlets like pharmaceutical shops
have limited shelf space and cannot store all our products. So,
we promote more important ones that contribute to the bulk of our
turnover.
DH: Do you have a retail strategy
to promote all products?
RP: Early this year we realized that to make our entire range
of products available to consumers we need to adopt a different
strategy.
Thus, we launched exclusive Himalaya stores,
most of them franchised, in all big cities. Till now we have 31
such stores, 4 in Bangalore, that keeps the entire range. But we
are finding that this process is slow and not effective enough to
spread out. So we have decided to launch Shop-in-Shop (S&S)
stores in large and prominent shopping complexes like Food World,
Shoppers Stop, Life Style, etc. This will ensure reaching out to
the target audience in large numbers.
These shops will be manned by our trained
sales people. By end March 2004, we expect to have at least 50 S&S
and then by end of the next year the target is to reach 100.
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