There is a new entrant in the small and crowded baby care market. Last month, the Bangalore-based Himalaya Drug Company launched its entire range of baby products. What distinguishes this event is that this is the first time an entire herbal-based range has been introduced for babies.

Himalaya's baby care range is aimed at children between six months and three to four years. The offering consists of moisturizing soap (75 gm, Rs 24), powder (100 gm, Rs 32), lotion (100 ml, Rs 68), shampoo (50 ml, Rs 72), oil (100 ml, Rs 74), cream (50 ml, Rs 51) and diaper rash cream (20 gm, Rs 30). Himalaya enters a market which is virtually owned- its share is more than two thirds - by Johnson & Johnson (J&J). Others in the game are Wipro, Emami and Dabur. Himalaya is targeting a turnover of Rs. 7.5 crore in the first 12 months which would give it a share of 5 per cent.

Banerji: confident of the product

Soumitro Banerji, Business Head of Himalaya's personal care division said at the launch, "Market surveys indicated a willingness among consumers to experience a brand of repute in the herbal category. Like our other products, we are sure that the Himalaya baby care range will win consumer confidence." Seven years of research have gone into the products.

The baby care market is remarkably small for a country India's size. That's because of a combination of factors. No company other than J&J has seriously entered it. And J&J's premium pricing and the lack of competition have stunted growth. Also, in most Indian homes, young mothers would rather adopt traditional potions and oils than use branded products for fear of chemicals. Himalaya's herbal base may tempt many of these women to try the products and thus expand the market.

The target audience for the range is SEC A. Himalaya believes that parents today are well read and informed and both parents play a significant role in bringing up a child. "Keeping this in mind, Himalaya has moved away from the conventional thought process and has very uniquely positioned its products on the lines of 'New Age Parenting'," adds Banerji. The company intends to emphasize that the products aren't just cosmetic; they have therapeutic benefits as well.

Himalaya has also launched an experimental push for new parents from November 14 up to March next year. The plan is to immediately target 10,000 parents through pediatric clinics, maternity homes and posters. The company is going to follow a two-pronged strategy. While it will go to parents directly, it will also reach out to doctors and pediatricians.

In the first phase (November 2004 to March 2005) of the product roll out, the company intends to introduce the range in over 8,000 retail outlets in 30 cities. These outlets will include 80 exclusive Himalaya Showrooms and over 500 Himalaya shop-in-shop outlets. It plans to introduce the range in the overseas markets next year.

The roll out is accompanied by below-the-line activities at the retail level. The company plans to use print and electronic media once the roll out is over. A multimedia campaign will follow in April next year. Himalaya has targeted a sales turnover of Rs. 400 crore in 2004-05 as compared to Rs 350 crore it did last year.