Himalaya is a privately-held herbal healthcare company established in India in 1930. It has 260 products sold in 82 countries, with a focus on men's health, women's health, child care, hair care, and skin care. While it has a robust financial condition with 35% growth over five years and revenue of 1000 crore INR, it aims to expand into the UK market. To do so, it will localize its strategy and educate local populations, targeting mainstream consumers through niche marketing of its nourishing, revitalizing, and gentle skin care products to women aged 25-35. It faces challenges from regulations and competition but recommendations include an integrated marketing plan, small free trial stores, strategic alliances,

1. International Business Environment
By: Kishan S Patel

2. Aim & Objective:
To analyse Himalaya’s main strengths and
weaknesses for the purpose of promoting
business in the UK market and also to
design an effective foreign market strategy.

3. Overview
The Himalaya Drug Company is a privately-held herbal healthcare
company
Established in 1930
The company has 260 products in pharmaceutical and consumer care
portfolios
Its products are sold in 82 countries
Himalaya deals with the products related men’s health, women’s
health, child care, hair care and skin care.

4. Financial Condition
…can be discussed in term of:
• Growth rate
• Turnover
Turnover
• Source of revenue 1000 crore INR =
£ 1.2 b
Growth rate
Source of revenue
35% in the past five
Personal Care
years
Products
Robust
Financial
Condition

5. TECHNOLOGY KNOW-HOW AND
EXPERTISE KNOWLEDGE
• Every international market is important
• Localisation and customisation of the strategy
• Targeting the mainstream consumers
• Investments in educating the local populations
• Partners with some of the top distributors and retailers
• History of innovation through research a constant
development in innovative products

6. International Experiences
“For every international market we have localised and customised our strategy. We do not
operate as an Indian Ayurvedic company catering to ethnic communities residing overseas.
We have consciously targeted the mainstream consumer and made investments in educating
the local population about Ayurvedic products”.

7. Home GOVERNMENT INDUSTRY POLICY
Himalaya is an established industry in India, well-
known for its:
• Quality
• Brand name
• Impressive innovations in packaging
• Product delivery

8. INDUSTRY COMPETITIVE ENVIRONMENT
The Body Shop, L ‘Occitane
Ltd,
Lush Retail Ltd.
MARKET PENETRATION STRATEGY
First enter the UK market with a
low price and later on go ahead
to reach a position as close to
that of the Body Shop

9. PRODUCT/SERVICE
• Himalaya Nourishing Skin cream: Protects the
skin from pollution and dry weather.
• Himalaya Revitalizing skin cream: Contains
vitalizers which moisturize and nourish the facial
skin. It is also beneficial for preventing ageing
process.
• Himalaya Gentle Face wash Cream: Helps in
cooling of and cleansing the skin deeply

10. Target Market
Niche marketing approach
 Focus on women aged 25-35 years
 Mainly upper-class and middle
class.

11. Economic Potential
• 20% growth in the total amount spent on
health and beauty products over the five
years
• Result of the UK’s ageing population as well
as the rising consciousness towards their
well-being

12. UK-India relationship
• UK and India are among the top investors in each other’s
economies
• India is the 3rd largest investor in the UK
• UK -India Bilateral trade grew by 20% bringing the total to
£13 b
• UK attracted 97 new projects from India generating 6,096
jobs
7000
6000
2005
• Partners in the G20 2006 5000
2007 4000
2008
3000
2009
2010 2000
2011 1000
0
Import

13. Host country
Advantages: Disadvantages
• 46% of investors are loyal to • Industrial competitiveness
the UK , attracting repeat • Economic uncertainty
business • Regulations:
• Technology & - Traditional Herbal Medicinal
infrastructure, stable Products Directive (THMPD)
economic environment and - Food Supplement Directive
quality of life, culture and (FSD)
language -key attributes that - Pharmaceutical Legislative
make the UK attractive for Review
business

14. Corporate Social Responsibility
Health,community,education and environment

15. Challenges
• Political : Products (safety) regulations
• Economic: Recession in UK
• Socio-cultural: Health and environmental factors
• Technological: Technological changes

16. Non-equity entry mode
 Direct exports
 Sales Representatives
 Importing Distributors

17. Direct exporting
• Sales representatives • Flexibility
• Importing distributors • Greater sales
• Better control

18.  ECLECTIC THEORY (Dunning):
 Network Theory

19. Recommendations
• Integrated marketing communication plan
• Small free trial stores
• Strategic alliance
• Social networking

20. Bibliography
• Anon., 2002. himalaya health care. [Online]
Available at:
http://www.himalayahealthcare.com%2Fabouthimalaya%2Fcprofile.htm&h=aA
QHm1Abo
• Anon., 2006. himalaya direct. [Online]
Available at:
• Anon., 2008. Market research. [Online]
Available at: http://www.marketresearch.com%2FOrganic-Monitor-Ltd-
v2701%2FConsumer-Insights-Natural-Organic-Personal-
1806905%2F&h=XAQHma6yC
• Anon., 2007. himalaya heath care. [Online]
Available at: http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3151377/
• Anon., 2011. Beauty Retailing. [Online]
Available at:
http://www.thehindubusinessline.com/companies/article2384526.ece
• chamikutty, p., 2010. Economic times. [Online]
Available at: http://www.articles.economictimes.indiatimes.com%2F2010-12-
22%2Fnews%2F27599639_1_personal-care-ayurvedic-concepts-rebranding-
exercise&h=5AQGqlQ3C

21. •Dutta, H. & Parmesh, R., 2010. Ncbi. [Online]
Available at: http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3151377/
•.Datta, J., 2012. The Hindu Business Line. [Online]
Available at:
•http://www.thehindubusinessline.com%2Fcompanies%2Farticle2384526.ece&h=G
AQFB-DDH
•

22. THANK YOU