A case study report (re-positioning of Himalaya Herbal soap in India)

1. HIMALAYA SOAP
Business Case Study
ISC Paris, December 17th 2016
Jean-Jacques GENDROT
Sanjay GODABANAHAL-PRASANNAKUMAR
Hoang NGUYEN
DiHuiZi WU
Yahuan WANG

2. Himalaya Soap – Business Case Study
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Content
I. Evaluate the launch of Himalaya Soap
1. Was the innovation strategy the best choice of growth strategy?
2. Evaluate the efficiency of the launch marketing actions
II. Based on your analysis, how would you reposition Himalaya Soap?
1. How would you plan the repositioned brand identity strategy?
Describe this positioning using: a positioning statement and a
perceptual map
2. Recommendations for two other actions to sustain the brand on the
long-term.

3. Himalaya Soap – Business Case Study
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I. Evaluate the launch of the Himalaya herbal soap:
Overview:
Himalaya Drug Company (HDC) is established in the year 1930 by Mr.
M. Manal. It pioneered the use of modern science to validate Ayurveda’s
secrets. By 2012, HDC expanded its operation in 82 countries. The
corporate mission demanded that Himalaya would establish itself as
developing safe, natural and innovative remedies, harnessing nature’s
wealth and promoting healthy living. However, when launching new
product of soaps, the current strategies for the company is not reach the
result what it supposed to be. Besides, other brands in this market are
developing and improving their products, which threating Himalaya
soap’s position.
In such a situation, the Himalaya brand of soap had to convey a
proposition that ran deeper than just an herbal identity and reposition
this soap so it could build a long-term brand identity. Goswami (the
brand manager) conducted customer perception survey that would
provide valuable insights into repositioning Himalaya soap.
1. Was the innovation strategy the best choice of growth strategy?
The current market situation of herbal soap in India remains very
competitive. Thus, there are more than 10 other brands compete with
Himalaya Soaps in the India soap market but the analysis focus on the
two primary competitors of Himalaya Soaps: Medimix and Lux due to
the same price range, technologies and branding strategies.
In order to evaluate whether the innovation strategy of Himalaya Soap
is the best choice of growth strategy or not, analysis about strengths,
weaknesses, opportunities as well as threats of Himalaya Soap should
be conducted:
Strengths:
• Has a variety of products to stress on different usages
• Natural ingredients in every soap's range
•
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•
• Nem & Tulasi, which are contained in Himalaya's Protecting
Neem & Turnmeric soap, had long been a part of the skin-care
regiments in the Indian culture
• Cutting edge technology to produce safe, natural and innovative
remedies
• Century-old company & strong brand image
• Strong presence across India via: store-based retailing
(chemists/pharmacies, supermarkets, hypermarkets and retail
outlets)
• Brand identity from the Himalaya which presented purity and
elevated ideals, source of natural herbs
• Quickly adapted with new products categories
Weaknesses:
• High costs of production leads to high price
• Lowest response from customer loyalty (Exhibit 6)
• Not aggressive in marketing which leads to low customer loyalty
• Brand position cluttered in advertising campaigns
Opportunities:
• Beauty and personal care segment grew by almost 100% over 5
years
• The soap market penetrated 98 per cent of households in India.
And experienced sales growth despite an increase in the prices of
raw materials.
• Natural ingredient products are being welcomed
• Untapped rural and online market
Threats:
• Competitors are aggressive
• Customer loyalties are easy to change
• Variety of competitors’ group in each product segment (personal
care and beauty) and market segments
• Saturation of urban segment
• Rural area expansion
• Increase in the price of raw materials and production costs
• Shifting customers’ loyalty
• New entrances and substitutes

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Comparing between the Strengths and the Weaknesses, we could
assume that Himalaya Soap has the power (in terms of product quality,
technology, distribution channels and brand image) to become the
market leader of soap market but they have not used the marketing as
the leverage for strengths to attack the market aggressively and
minimize/cover the weaknesses (price, brand image, customer loyalty
…).
Moreover, the threat of being eaten by the competitors is the picture
they should consider for the external factors while the position of the
brand is not strong enough (the direction of herbal aspect of Himalaya’s
soap will become generic while other competitors are proposing the
same aspect in the products) is inevitable.
In addition, regarding to the market opportunities in terms of growing
demand and new target expansion, there is a good chance to reposition
the brand’s strategy and shape the perceptions of customers to the new
direction.
Thus, the innovation strategy is the only choice to maintain the strong
position of Himalaya Soap.

6. Himalaya Soap – Business Case Study
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2. Evaluate the efficiency of the launch marketing actions.
Based on the survey results, the customers’ insights illustrated mostly
the brand’s situation as well as indicated that marketing plays a crucial
role in building the brand image.
TV Commercial – Mislead customer’s perception:
In the Response to importance of functional benefits by Himalaya Soap
users, more attention is paid to the Hygiene, Freshness and Natural
ingredients. However, in TV Commercial the three did not fully
demonstrated, only expressed Freshness feeling and the natural
ingredients. Comparing to Medimix and Lux, the highest response of
customers was for the Freshness, which was 3.91/5, while Natural
Ingredients and Hygiene came up behind the response of Medimix but
still higher than Lux. The fact is that in the TV commercial of Himalaya
Soap, the ad focused all the visual (with the models acting) on the
Freshness while the Nature Ingredients and Hygiene of the soap were
just presented in the voice-over, which is less affective than digital
illustration. This made the customers think that the brand wanted to
focus on the freshness not the ingredients and hygiene (which are the
strengths of the brand).
Response to brand image dimensions:
Response to brands by users: In the EXHIBIT 6, we can clearly recognize
that the difference between brands image dimensions.
The scores of Himalaya Soap are higher than Medimix and Lux:
Confidence, Sense of belonging, Packaging, Pride of ownership, Slogan
of the brand influence and the influence of celebrity endorsement.

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Likewise, Himalaya Soap users have a higher chance of choosing other
soap brands and are willing to try other soap brands which they have
never heard of. These are factors that can not be ignored and can pose
a threat to Himalaya Soap.
In the customer's expectations, the user is more hope that the brand's
advertising more creative to distinguish between other brands, through
advertising brings feature and usefulness to users. Similarly, I hope
soap can reflect India's culture and value.
According to the needs of users and the image of the brand,
Himalaya Soap need to repositioning the interpretation of product
uniqueness, functionality and price, which for the Himalaya Soap, these
are essential for Himalaya Soap users. And by adding local cultural
elements in ads, inspire customers to the brand's goodwill and loyalty.
II. Based on your analysis, how would you reposition Himalaya Soap?
1. How would you plan the repositioned brand identity strategy?
Describe this positioning using: a positioning statement and a
perceptual map
A thorough analysis of perceptions of three group of respondents, for
users of soaps in India the most important functional benefit is that
soaps are made with natural ingredients. This factor is due to the
cultural influence and customs where the use of natural herbs and
spices in your daily life prevails and
secondly it is also most important to
consumers that soaps provide hygienic
properties and germ prevention although
the price is not less important.

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Grounds that Himalaya Soap is strong at:
Ø Place: Distribution channels
Ø Product:
- Wide range of product usages
- Good reputation for nature ingredients (quality)
- Cutting edge technology
- Attractive packaging
Ø Promotion:
- Creative ads
- Showcase Indian culture
- Celebrity endorsement
Grounds that Himalaya Soap is not strong at:
Ø Price: high price due to high production cost and raw materials
Ø Promotion:
- Misleading ads
- Poor relationship management (low customer loyalty)
Thus, the position that Himalaya Soap should pursue in the future is to
maintain the current herbal products and innovate through improving
the communication/interaction with customers. The advertising will
not only creative but also highlight its main attributes and advantages
over competition, as being made with natural ingredients. In addition,
while maintaining the target who is paying attention to healthy, sense
of belonging and confident, Himalaya Soap should reach for household
customers in rural area by promoting brand identity with activities
while establishing/strengthening the distribution channels.

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Positioning statement:
“For healthy, sense of belonging, caring seeking consumers who
worry about the healthy of themselves and their love ones, Himalaya
Soap is the consultant with professional experience who provides
products that are full with healthy natural ingredients and embrace
the wealth of society as their success, making you feel you have made
a smart, responsible choice that demonstrate your will to have
healthier life and contribution to society”
Perpetual map:

10. Himalaya Soap – Business Case Study
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The strategies will include:
1.1 Growth through innovation:
Ø Communication:
- Conduct new marketing campaigns focus on: healthy, sense of
belonging, caring and consulting: trade promotions to increase
market coverage, brand ambassador program, workshops,
exhibition with other brands related to health care (medicine
company, natural ingredient producers …) to form a group of brands
to protect the market as well as create and develop long term
position in health care industry).
- Control over marketing materials: should be consulted with
professionals to avoid misleading content.
- Target new digital flat form (blogs, facebook, beauty forum
seeding) establishment to consult consumers about personal care,
beauty, instruction from both brand professionals and doctors … to
engage consumers with brands, let them speak for the brand and
control/influence their perception of the brand.
Type of influencer – Pro. Laetitia Mimoun

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Ø Cross selling: this would help to enhance the customers’ experience
with different product lines. Combining with other marketing
campaigns, this would encourage customers to try new products and
strengthen brand position in them.
1.2 Extension strategies: market extension
Maintaining the position of the brand in urban area while attacking
rural area with Corporate Social Responsibility activities:
- Building playgrounds
- Upgrade schools
- Health care workshops and competitions
Combining with product sampling and promotions at point of sale as
well as celebrity endorsement. In addition, develop and strengthen
distribution channels focusing on grocery stores and pharmacies. Most
dominantly, all the marketing materials focus on Indian culture so that
consumers can feel the friendly and oriented for the product.
By showing the commitment to the society and the activities to engage
the customers, Himalaya Soap can build up trust, relationship, improve
the satisfaction and strengthen brand loyalty in customers and brand
equity.
Relationship management – Pro. Laetitia Mimoun

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2. Recommendations for two other actions to sustain the brand on the
long-term.
In order for Himalaya Soap to develop long term they would:
- Maintain the strong ground within India and considering to go export with
the strengths of the brands (focuses on nature ingredients, technology and
labor cost) while considering the weakness and the barriers in foreign
countries.
- Develop new product line targeting kids to invest and build up brand
image for the next generation to serve. Using brand extension as an aid to
fully cover the position statement, which is bringing values to the
customers to care for their love ones.
Extension Strategies – Pro. Laetitia Mimoun
The End