HIMALAYA HERBAL CASE STUDY

Presented By :Group 8Sahil GuptaVaibhav AggarwalHimanshu SangarJai ChowdharyNupur BagdiPratik Parakh

What are the major findings about the involvement levels of consumers in the oral care category that can be understood from the participants’ responses regarding their habits and practices with respect to the category?

High Involvement

High Involvement category requires customers to be involved in extensive buying behavior, which is characterized by 3 aspects, namely:

•Risk Reduction.

•Enhancement of Self-Image.

•Greater Degree of Gratification in having achieved an optimal choice after examining the various alternatives in that category.

Freshness Herbal Oral Health Niche

Frequency of Brushing(Twice)

Low(5) Low(3) Moderate(11) High(17)

Frequency of visit to Dentist

High(5) Low(1) Moderate(3) High(4)

Oral Health Problems

Moderate(21)

High23) Moderate(20) Moderate(20)

Change toothpaste on dentist’s recommendations

Moderate(2) Low(0) High(3) Low(1)

How many respondents (in percentage) exhibit high and low/medium involvement with regard to the oral care category, and express high/low cognitive and affective associations with regard to each of the brands ? How are the involvement levels associated with each of the brands?

Q2.a)

Segment High-Involvement Consumers

Moderate-Low-Involvement Consumers

Freshness 28% 72%

Herbal 40% 60%

Overall Oral Care 32% 68%

Niche: Problem Solving 64% 36%

Total Category 41% 59%

Cognitive Beliefs by segment Affective beliefs by segment

Segment Strong cognitive belief consumers

Low cognitive belief consumers

Segment Strong Affective belief consumer

Low Affective belief consumer

Freshness 64% 36% Freshness 60% 40%

Herbal 64% 36% Herbal 44% 56%

Overall Oral Care

56% 44% Overall Oral Care

36% 64%

Niche 92% 8% Niche 72% 28%

Since in Niche Segment 92% of the respondents have strong cognitive beliefs therefore they have a high involvement level, as cognitive beliefs require a greater amount of thinking process.

How does low category involvement affect brand attitude? Explain the inconsistency in those instances where brand attitude overwhelms category involvement.

Low Category Involvement– Under Low category involvement consumers are not

concerned with the functional benefits of the brand.

– As written in exhibit 6,the percentage of customers which have both strong cognitive and affective beliefs are greatly influenced by the advertisements.

– Advertisements plays a major role because if the advertisement is not communicate properly then the consumers can develop a difference brand attitude.

Freshness(Toothpaste)

Freshness(Brand) Oral Care(Toothpaste)

Oral Care(Brand)

Fresh Breath 3.14 3.51 3.29 3.38Great Flavor and taste

3.42 3.54 3.35 3.26

Fights Cavities 3.51 3.57 3.48 3.42

Germ Fighting 3.32 3.45 3.23 3.35

Healthy Gums 3.42 3.38 3.38 3.26

Tooth decay 3.48 3.42 3.26 3.29

Oral Health Problems

3.35 3.48 3.26 3.35

Healthy teeth 3.45 3.57 3.42 3.42

Tooth Ache 3.38 3.26 3.42 3.38

Natural Ingredients

3.54 3.32 3.45 3.11

Whitens Teeth 3.42 3.32 3.29 2.98

Dentist Recommended

3.35 3.2 3.35 2.86

Dazling Smile 3.48 3.29 3.4 3.32

Confidence 3.23 3.26 3.2 3.38

How many consumers expressed consistency between the strength of their cognitive beliefs and the strength of their affective beliefs associated with their respective brand choices? How can any inconsistencies in the same be explained?

Consumers expressing consistency

• 46% of the total respondents had a consistently strong belief for both the cognitive as well as the affective aspects of the brand.

• 24% of the total respondents had neither strong cognitive beliefs nor strong affective beliefs.

Inconsistencies

• 7% of the consumers have Weak cognitive and strong affective beliefs which means that they have relatively low involvement of the consumer as the consumer is not looking for the functional benefits of the product but is rather moved by the emotions displayed in the advertisement.

• 23% of the consumers have strong cognitive and weak affective beliefs given in the exhibit 2 which means that that the consumers are focused more on their functional benefits and rather than the emotional benefits.

Taking into account the category-level and segment-level analyses, what kind of implications are relevant at the segment level (for each segment)? How do consumer beliefs relate to the positioning of brands in each segment?

FMCG

Household Care Personal Care Food & Beverages

Category level analysis

• In 2010, FMCG Sector was valued at $18 Billion.• In 2015 it is likely to grow to $33 Billion.• Average Spent by a consumer on personal care (Oral,

Hair, Skin care) is 8% of his personal income.• Reasons for the growth of personal care segment - Discretionary spending - greater attention to personal hygiene - proliferation of new media channels

• Consumers gave more importance to hair and skin care rather than oral care

- 28% brushed twice a day- 68% never visited a dentist- 87% do not consider visiting a dentist as a preventive

measure• According to WHO, 98% of the indians suffer from

oral health problems.

Segment level analysis

Attitude: High involvement in niche segment

High Involvement in niche segment

The product in Freshness segment is very well able to connect with the consumers in both Cognitive and affective beliefs as it is well above 64% & 60%

The product in herbal segment is not able to connect with the customers demand as it is wellBelow 64% and 44%

Product in Niche segment has been able to connect well with the customers as it has Outperformed 92% and 72%

What kind of recommendations would you provide for the Himalaya brand after taking into consideration the responses to questions 1-5?

Recommendations

• Need to enter into niche/ problem solving segment

• For the herbal segment, make an emotional connect with the consumers

• Within a given category, product variant for economy tier

• High affective belief of 60% in freshness category as compared to a low

44% in the herbal category-company can en-cash on adding a freshness

element in the niche segment.• Market products through dermatologists• Stress on functional and emotional benefits• Advertise (like colgate and HUL)

What should the positioning dimensions of Himalaya be, and how can it be differentiated? How can Himalaya create an attitude towards its ads/brand to convey its differentiated proposition?

Positioning Dimension

• The company should position itself as a toothpaste fore specific oral care needs.

• It should be seen separately from a basic care product.

• It should convey an image of an “advanced care” product in the minds of a consumer.

• The added element of freshness can be a differentiating factor from other products in this category.

Thank You