A Presentation on Himalaya Herbal

Healthcare Products

Prepared by: Aiza

Product lineMoisturizing Lotions Face Moisturizing Lotion  Intensive Face Moisturizing Lotion  Protective Sunscreen Lotion 

Body Lotions Nourishing Body Lotion  Protecting Body Lotion Intensive Moisturizing Body Lotion Deep Cleansing Milk 

Exfoliating Scrubs Gentle Exfoliating Apricot Scrub  Gentle Exfoliating Walnut Scrub  Purifying Neem Scrub

Target MarketYoung (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 cosmetics products market.

CRITICAL ANALYSIS OF

FOREIGN COUNTRY (SRI

LANKA) 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 FactorsAccording to the International Monetary Fund, Sri Lanka has a yearly gross domestic output of US$64 billion as of 2012.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.The per capita income of Sri Lanka has doubled since 2005. During the same period, poverty has dropped from 15.2% to 7.6%, unemployment has dropped from 7.2% to 4.9%.The Global Competitiveness Report has listed Sri Lanka as a transitive economy, from factor-driven stage to efficiency-driven stage, ranking 52nd in the global competitiveness.

Political FactorsSri 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 and progressivist 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.Out of these, the Lanka Sama Samaja Party (LSSP), established in 1935 is the oldest.UNP, established by D. S. Senanayake in 1946, was considered to be the largest single political party until recently.

Cultural factorsThe culture of Sri Lanka dates back over 2500 years. It is influenced primarily by Buddhism and 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 Indian influences 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 FactorsThe 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 entryHimalaya 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 investmentControl 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

4 P’s of marketing in Sri Lanka

Product• The key to success is to find the product that really matter to customers.

From our findings the desired benefits of the Sri Lankan people are moisturizing, acne and suncare products. Therefore, Himalaya Herbal would like to focus on them. In moisturizing product, the products would not be so thick or highly moist because Sri Lanka weather has high humidity.

• In acne products, the company would focus on the acne products suitable for oily and combination skin. It is because oily skin is acne prone skin and 50 per cent of Sri Lankan women have those skin types.

• In suncare products, the SPF or sunscreen protection would be high because of the warm weather in Sri Lanka due to its location in tropical area and exposure to high degree of sunlight.

Price• The price for moisturizing and acne products would be low because

the low-price moisturizer products and low-price acne products are less competitive than in medium and high price. Moreover, for the two products the company would target the young consumers since they prefer low price and according to the cosmetic experts moisturizing and acne products are desired by the young.

• The price for suncare product can be low or medium since the competition is low in all ranges of price. The company can target young, middle or mature age.

Place• Himalaya Herbal Cosmetics will export to Sri Lanka through

Colombo as it serves most of the major sea ports and now has modern container loading facilities. This city reveals the nations dynamic future. Since it is the commercial hub of the nation

further expansion of business can be done easily.

Promotion• Himalaya Herbal cosmetic company would emphasize on gift

promotion since it is claimed to be most effective by the cosmetic experts. Additionally, as mentioned in the product part, skin care product would be highly effective as the users notice the visible improvement. It is because word of mouth is important in cosmetic product. With highly effective skin care product, the consumers will not only be satisfied with the product, but they will also “talk” about the products to their friends, colleagues and family and recommend them to use it. According to the research we have found out that colleague, friends and family members affects the Sri Lanka consumers‟ purchasing decision in skin care products. The advertising channels of the importer/distributor shall be used. It will solely be under his control but also aligning Himalaya’s strategy.

ConclusionThe 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.

Thank You…