Consumer Perception of Brand “himalaya”
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Consumer Perception of Brand “Himalaya”
*People were allowed to select more than one checkbox, so percentages may add up to more than 100%
Competitive Landscape
As shown below, we started with evaluation of the competitive landscape. The study of competitive landscape gave us an overview of the industry and helped us understand which player plays in which category and price points. Also the industry trends showcase toothpaste as a flourishing industry. Many reports also suggest growing trend among consumers for herbal products. Key findings from studying competitive landscape were
Lot of players in the gel based category
No herbal players in the sensitive tooth paste category
5 potential spaces where there are presently no players
This was followed with an in-depth segment analysis using a weighted score model explained subsequently.
Weighted Score Model
We have used two factors to find out which segment will be the most lucrative for Himalaya to invest further amongst whitening, gel and sensitive, these are
Market Segment Attractiveness
Organization Capabilities
We have gauged market attractiveness by using a weighted score model .The factors used in this model to gauge market segment attractiveness are
Market Size ( tonnes )
Growth rate ( tonnes )
Market size ( rupees)
Growth Rate ( rupees)
No. of competitors
No. of Herbal Competitors
Market Share of Competitors ( Herbal )
Substantial Cash flows( Mn )
These factors were given scores based on in depth secondary research of industry reports and academic journals. A score for each of the segments was arrived at, which helped assess the market segment attractiveness in an objective manner.
Given below are the values of the above factors.
Segments
Market Size ( tonnes )
Growth rate ( tonnes )
Market size ( rupees)
Growth Rate ( rupees)
No of competitors
No of herbal Competitors
Market Share of Competitors ( Herbal)
Substantial Cash flows( Mn)
Sensitive
1580.145
Whitening
-0.02
2287.26
20256
0.45%
35853.12
Given below are the weights assigned to these factors and calculation of the score
Factors
Market Size ( tonnes )
Growth rate ( tonnes )
Market size ( rupees)
Growth Rate ( rupees)
No of competitors
No of herbal Competitors
Market Share of Competitors ( Herbal)
Substantial Cash flows( Mn)*
Score
Weights
Sensitive
0.463418246
1.328389831
0.352581867
292.9469
Whitening
0.698459716
-0.142857143
0.688983051
0.076335878
0.510362278
97.97119
1.071428571
0.72519084
297.1696
*Substantial Cash Flows were calculated by calculating the average price of toothpaste in the category by other players and assuming a 3% market share to be the goal in the next year.
We have studied Himalaya Brand and found that it has strong capabilities in all three segments because of
Strong brand image and global presence
Strong distribution channels and international consignment delivery within 48 hrs
Quality through certifications and R&D
Ayurvedic expertise
Modern medical research methodology
Strategic Alignment
We have used the above two factors and made our decision using the adapted Shell Directional Policy matrix. As seen from the matrix below, Gel category should be the prime target owing to a huge market and favourable growth rate among other factors. Through our research we were able to gauge a general trend of willingness among consumers to pay higher for herbal products. Also, there is a growing concern for personal hygiene. We feel that if Himalaya leverages