Himalaya's CEO Ravi Prasad (right) with Dr S K Mitra (centre) and Soumitro Banerji at the launch of baby care products.

Are you the nervous new entrant into the tender world of parenting? Or, are you a soon-to-be one? Does the phrase baby care give you gooseflesh? Do you run to the neighbourhood store to get regular supply of baby care products? But, did you always wish you had more choice of brands?

Welcome the new kid on the block - Himalaya Drug Company. Pioneering in herbal health care and pharmaceutical products since 1930, Himalaya has now forayed into baby care market, offering baby soap, powder, oil, lotion, cream and diaper rash cream (first of its kind in the country). Himalaya is targeting a 5 per cent market share in the Rs. 150-crore baby healthcare segment where Johnson & Johnson is the leader with 70 per cent of the market pie, followed by Wipro having 10 per cent share. Dabur and Godrej offer limited range of baby products.

The new product line is likely to face stiff competition from Johnson & Johnson. One of the factors could be the element of sensitivity characteristic to the young and aware breed of parents. Parents who are loyal consumers of one brand. The mother of a newly-born, buys the brand well trusted over time. Nevertheless, Himalaya enjoys an edge over others for being synonymous to herbal. The new products are expected to constitute 10 per cent of the overall turnover of personal care segment, which should see sales worth Rs. 70 crore during the current fiscal.

Hundred per cent herbal ingredients, dermal safety studies and clinical trials have gone into the products, launched in November 2004. The products are a result of seven years of research and development including toxicity tests for baby skin. Designed essentially for higher and middle-income groups they are competitively priced: 100 ml of Himalaya Baby Lotion is priced at Rs. 68, 75 gm bar of Baby Soap costs Rs. 24, while 100 ml of Baby Oil costs Rs. 74 and 20 gms of Diaper Rash Cream Rs. 30. The baby care range has been launched in 20,000 outlets in 25 cities across the country.

But doesn't the company think their price structure will appeal only to the relatively affluent section of the market? "If we have to come out with products of quality, there has to be a price for it. Though, we try to keep our products competitively priced, our aim is to make sure our products are the best. Also our distribution system is not geared to cater to the larger populace," says Soumitro Banerji, Business Head, Personal Care Division, Himalaya Drug Company.

In 1999, Himalaya delved into the softer therapeutic head-to-toe needs of consumers with its personal care range under the name Ayurvedic Concepts, later changed to Himalaya Herbals. "Ayurvedic Concepts was just an Indian company operating in India. We wanted it to be a global brand. Ayurveda is not a good word in the US and Europe. So, to make it successful, a uniform brand name was required. Himalayas are associated with height and achievement, so our company name was apt," says he. The initial concerns of a company after launching a new range of products, are breakeven and turnover ratios. However, Himalaya's communication strategy with consumers is offbeat. "We are in the market not to be number one or two. Our confidence stems from the quality we give and from the fact that no other company offers herbal baby care products," he adds.

Learning to walk

The company has ventured into the baby care products market with non-aggressive marketing. The plans are set right to market the new range using ethical and OTC (over the counter) routes, the USP being therapeutic benefits rather than just cosmetic value. A two-phased promotional plan is in place for umbrella-brand strategy.

The first phase comprises below-the-line marketing, which means focus on relationship with parents and building target groups through maternity homes and paediatric clinics. The aim is to target 10,000 parents.

The second phase, starting May-June, will be threshold-level of promotion through television, radio and press. "We don't have mega bucks to spend on product promotion through television. The scope for advertising gets reduced due to short attention spans. All mass media taken together, our share of voice will be smaller. We would rather focus on below-the-line marketing," points out Mr. Banerji.

The company's strategy remains word of mouth and advertising at the point of retail. With no advertising done yet, the company claims to have gotten good responses for the new products. "Reports from our shop-in-shop outlets say there have been repeat purchases. We also get mails from customers who are happy with our products," says Mr. Banerji.

Himalaya looks at an overall growth of about 25 per cent in the current fiscal, with a 50 per cent growth in its domestic operations. A de-growth was seen last fiscal due to the switchover from Ayurvedic Concepts to Himalaya Herbals, said Banerji.

The herbal healthcare frontrunners boast of a strong presence in the Middle East, Malaysia and Singapore in the personal care products market, with UAE as biggest operations outside India. The company's global expansion plans for baby care products include Europe, Middle East and West Asia. Big plans surely for a baby who has just learned to walk.