Branding Initiatives of Himalayan Drug Company | Marketing Management Case Studies

Details

Case Code : CLMM012
Publication date : 2005
Subject : Marketing Management
Industry : Pharmaceuticals
Length : 04 Pages
Price : Rs. 100

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Key words:

Himalaya Drug Company (HDC), Market Research, Branding Strategy, Ayurveda, Ayurvedic Concepts, 'Dadima', Cable and Satellite Households, Advertising Strategies, Direct-to-Consumer Communication, Distribution Channel, Exclusive Outlets, Unilever, Procter & Gamble, L'Oreal, Mother Brand, Packaging, Re-branding, Brand Ambassador

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

The caselet explains the strategy of the Himalaya Drug Company (HDC) to brand its products under "Ayurvedic Concepts" in 1999. It describes the promotional and retailing strategy followed by the company to market its new brand. Finally, the caselet examines the reasons behind HDC's decision to bring all its brands under an umbrella brand 'Himalaya'.

Issues:

   » Marketing in pharma and healthcare industry
   » Brand building in marketing management
   » Role of retail strategy in marketing management
   » Pros and cons of umbrella branding

Introduction

The Himalaya Drug Company (HDC) is a leading Indian herbal health care company. In the financial year 2000-01, the company's revenues amounted to Rs 2.5bn and its operations were spread over 55 countries around the world.

The Company offers products in four segments - medicinal supplements, personal care products, pure herbs and animal health products. In 1999, HDC decided to refocus its branding strategy.

According to market research conducted by it, most consumers perceived Ayurveda as an age-old branch of medicine, which was revered but not accepted as being reliable for treating ailments...

Questions for Discussion:

1. In present times wherein companies are rushing towards celebrity and 'youth-centric' endorsements for their products, Ayurvedic Concepts' 'Dadima' took the Indian advertising world by surprise. Discuss the role of 'Dadima' in the success of Ayurvedic Concepts.

2. Ayurvedic Concepts was acclaimed as one of the significant marketing successes in the Indian consumer market. In view of the above statement, discuss the rationale behind the company's decision to bring all its brands under the umbrella brand 'Himalaya'. Do you agree with the company's decision? Justify.