A Presentation on Himalaya Herbal Healthcare Products

PREPARED BY-

• Nida-e-zehra• Anam Khan

Product Characteristics

• 100% herbal with no ill effects • Symbolic to youth, makes skin radiant and fresh.• One roof solution for all beauty and cosmetic

problems • Helps protect skin cells from the drying effects of

the sun.• Apricot,Walnut and Neem scrubs enhance

creation of new skin cells and sloughing off of old.• Face Moisturising Lotio

• the products would not be so thick or highly moist because Sri Lanka weather has high humidity.

Product line

• Face Moisturizing Lotion • Intensive Face Moisturizing Lotion • Protective Sunscreen Lotion • Nourishing Body Lotion • Protecting Body Lotion• Intensive Moisturizing Body Lotion• Deep Cleansing Milk • Gentle Exfoliating Apricot Scrub • Gentle Exfoliating Walnut Scrub • Purifying Neem Scrub

Target Market

Young (18-29 years) and middle-aged (30-45 years) Sri Lankan population who demand for low and medium priced acne, moisturizing, and suncare products would be the target market for Himalaya Herbal Herbal Cosmetics in Sri Lanka.

This is because of the following reasons:• low priced moisturizing products section is less

competitive. • With 60% of population below 25 years of age there is

huge potential in the low priced acne products market.

CRITICAL ANALYSIS OF FOREIGN COUNTRY ENVIRONMENT

Geographical Environment

The island of Sri Lanka lies atop the Indian tectonic plate. It is positioned in the Indian Ocean, to the southwest of the Bay of Bengal.

The climate of Sri Lanka can be described as tropical and warm. Its position endows the country with a warm climate moderated by ocean winds and considerable moisture. The mean temperature ranges from about 17 °C

to a maximum of approximately 33 °C

Economical Factors

According to the International Monetary Fund, Sri Lanka has a yearly gross domestic output of US$64 billion as of 2012.[5] It has a GDP of US$158 billion in terms of purchasing power parity. It recorded a GDP growth of 8.2% in 2010 and it is estimated that GDP will grow by 9.5% in 2011, becoming one of the fastest growing economies of the world

he per capita income of Sri Lanka has doubled since 2005.[233]

During the same period, poverty has dropped from 15.2% to 7.6%, unemployment has dropped from 7.2%

The Global Competitiveness Reporthas listed Sri Lanka as a transitive economy, from factor-driven stage to efficiency-driven stage, ranking 52nd in the global competitiveness

Political Factors

Sri Lanka is the oldest democracy in South Asia. Current politics in Sri Lanka is a contest between two rival coalitions led by the centre-leftist andprogressivist United People's Freedom Alliance (UPFA). Sri Lanka is essentially a multi-party democracy with many smaller Buddhist, socialist and Tamil nationalist political parties. As of July 2011, the number of registered political parties in the country is 67.[166] Out of these, the Lanka Sama Samaja Party (LSSP), established in 1935 is the oldest.[167] UNP, established by D. S. Senanayake in 1946, was considered to be the largest single political party until recently.

Cultural factors

The culture of Sri Lanka dates back over 2500 years.[264] It is influenced primarily by Buddhismand Hinduism. The island is the home to two main traditional cultures: the Sinhalese and the Tamil. The country has a rich artistic tradition, embracing the fine arts, including music,dance, and visual arts. Sri Lankan lifestyle is reflected in the cuisine, festivals, and sports. South Indianinfluences are visible in many aspects. There is also some influences from colonization by the Dutch, the Portuguese and the British. Sri Lankan culture is best known abroad for its cricket, food, and cultural exports, like tea. Sri Lankan culture is diverse, as it varies from region to region.

Legal Factors

The Legal system of Sri Lanka is a highly complex mixture of several laws. The ethnic and religious diversity of the nation and the colonial history, which traced back to 1505 – 1948 are the major factors which had contributed to this complexity. Sri Lankan Legal system is influenced by English common law and Roman-Dutch owing to it’s colonial history. In addition, same is influenced by the ancient local system of laws of Sri Lanka - customary and personal laws such as Kandyan, Thesawalamai law and Muslim law due to the varied character of the nation.

Mode of entry

Himalaya Herbal has decided to extend its market to Sri Lanka by using exporting as an entry mode strategy. There are certain valid reasons behind selecting such a mode. Sri Lanka, with a booming economy and fashion-conscious youth market, is Asia-Pacific's lesser-hyped beauty market prospect. Furthermore, local production of brand and non-brand cosmetic products is dramatically low compared with the level of imported beauty products. With local production in Sri Lanka being low and market domination by imported products Himalaya Herbal has decided to enter the Sri Lanka cosmetics market through exporting.

Competitive Advantage

• Minimum risks and investment• Control over assets • Fast market entry • Can be used to maximize scale of operation • Low cost leadership: Since Himalaya Herbal

products are low and medium priced, low cost leadership can be achieved.Quality control in the hands of manufacturer

Conclusion

The exporting of products to Sri Lanka will give Himalaya Herbal an insight into the market where international brands like L’ Oreal, Olay, and Ponds etc have well established dominance. The FTA (Free Trade Agreement) if signed in to take effect will be of greatest advantage for Himalaya Herbal. It will have no barriers legally and politically to carry on trade with Sri Lanka. Thus Himalaya Herbal is looking for a successful business in Sri Lanka.