International Business Environment

By: Kishan S Patel

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.

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.

Financial Condition

…can be discussed in term of:

• Growth rate

• Turnover

• Source of revenue

Robust Financial Condition

Growth rate

35% in the past five years

Turnover

1000 crore INR = £ 1.2 b

Source of revenue

Personal Care Products

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

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”.

Home GOVERNMENT INDUSTRY POLICY

Himalaya is an established industry in India, well-known for its:

• Quality

• Brand name

• Impressive innovations in packaging

• Product delivery

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

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

Target Market

Niche marketing approach

Focus on women aged 25-35 years

Mainly upper-class and middle class.

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

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

• Partners in the G20

Import

2005200620072008200920102011

Axis

Title

7000

6000

5000

4000

3000

2000

1000

0

Host country

Advantages:

• 46% of investors are loyal to

the UK , attracting repeat

business

• Technology & infrastructure,

stable economic

environment and quality of

life, culture and language -

key attributes that make the

UK attractive for business

Disadvantages

• Industrial competitiveness

• Economic uncertainty

• Regulations:

- Traditional Herbal Medicinal

Products Directive (THMPD)

- Food Supplement Directive

(FSD)

- Pharmaceutical Legislative

Review

Corporate Social Responsibility

Health,community,education and environment

Challenges

• Political : Products (safety) regulations

• Economic: Recession in UK

• Socio-cultural: Health and environmental

factors

• Technological: Technological changes

Non-equity entry mode

Direct exports

Sales Representatives

Importing Distributors

Direct exporting

• Sales representatives

• Importing distributors

• Better control

• Flexibility

• Greater sales

ECLECTIC THEORY (Dunning):

Network Theory

Recommendations

• Integrated marketing communication plan

• Small free trial stores

• Strategic alliance

• Social networking

Bibliography

• Anon., 2002. himalaya health care. [Online] Available at: http://www.himalayahealthcare.com%2Fabouthimalaya%2Fcprofile.htm&h=aAQHm1Abo

• 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

•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=GAQFB-DDH

•

THANK YOU