Branding Himalaya

Assignment 3: Case Himalaya

1. Evaluate the launch of the Himalaya herbal soap:

1. Was the innovation strategy the best choice of growth strategy?

When “the beauty and personal care market started to acknowledge the benefits of non-synthetic chemical ingredients”, the market was still opened for new entrants, in fact the soap market penetrates 98% of the Indian households, with a growth of the personal care market of almost 100%.

In this evolving and competitive market, Himalaya identified gaps thanks to perceptual maps. These gaps concerned brands offering a high number of natural ingredients for a high price and brands selling highly moisturizing products with a relatively high fragrance.

The best strategy to take advantage of this growth was to fill these gaps by introducing a new line of products to position the brand in these gaps.

This strategy was thought after customer perception surveys in order to fit to the customers’ expectations.

1. Evaluate the efficiency of the launch of marketing actions

The marketing actions didn’t exactly perform. The TV commercial conveys a brand positioning as middle priced with a high number of natural ingredients, highly moisturizing and with a middle fragrance. Whereas consumers of Himalaya indicated that the most important functional benefit was freshness.

On the other hand we can see in exhibit 6 that Himalaya soap users responded strongly to brand image dimensions, they score better than Medimix and Lux on confidence, sense of belonging, packaging, pride of ownership, slogan’s influence and endorsement’s influence but they are also the most likely to switch brand. Also, we can see that the customers touched by the campaign, are customers with a versatile way of consumption. In fact they said that they used to try soaps that they have not heard about before. Consequently this kind of consumer not seem to be really loyal toward the brand.
Finally Himalaya customers expect creative commercials communicating about the features and usefulness showcasing Indian culture and values. That's why Himalaya have to change its positioning strategy.

1. Based on your analysis, how would you reposition Himalaya soap?

1. How would you plan the repositioned brand identity strategy? Describe this new positioning statement and a perceptual map

We would plan to reposition the brand as a premium, exclusive brand, heir of a 5000-year-old system of medicine, offering natural ingredients and bringing freshness.

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1. Offer recommendations for two other marketing actions to sustain the brand on the long-term?

In order to combine all the expectations of Himalaya soap users in terms of brand communication, Himalaya should execute creative ads, communicating about features and usefulness with an Indian celebrity endorsement and an impactant slogan in order to be remembered at the purchase’s moment. In fact we can see on exhibit 6 that an important part of the interviewed mentioned that they are influenced by the notoriety of the brand.

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