Marketing Plan for a Herbal Company - Himalaya Herbals.

Only available on StudyMode
  • Download(s): 544
  • Published: April 18, 2004
Read full document
Text Preview
Executive Summary

The purpose of this document is to analyse the situation of Himalaya Herbals of Oregon and provide forecasts for future market and product innovations. We have developed organisational goals and objectives which stem from their "back to basics" philosophies'. After evaluating the strengths, weaknesses, opportunities and threats, we found that competition was the single biggest threat to Himalaya Herbals's success both nationally and internationally. We concluded that Himalaya Herbals must undertake an intensive advertising campaign to promote brand awareness, gain a greater market share, propel the image of its products, and elevate itself towards a more sophisticated level. Followed up by a number of control procedures and marketing research this would ensure the desired image and sales are achieved.

Situational Analysis

Internal Analysis

Himalaya Herbals is one of Australia's leading skincare and cosmetics retailers. The corporate culture is one that reflects commitment to the environment and has been described as being "in harmony with ideologies and environmental issues of the 1900's."

Current objectives include establishing the company as a determinant force in the Natural Beauty industry, providing environmentally-friendly, products, sensibly packaged from recycled materials and free from animal testing.

Stated future aims are to achieve further growth of:

56 National stores to 70

23 concept bars to 45

70 international outlets to 150-200

Finance is limited in Australia. Capital is currently injected from franchise operations. It is important to finance from Australia so that the company continues its Australian owned and made uniqueness.

External Analysis

Customers of Himalaya Herbals span the 12-60 age bracket. From this, three main market segments exist:

Women aged between 20-27 years

Women between 12-20 years. The mature male segment

Economic Environment

The present economic conditions are promising, they are characterised by:

Low interest rates: increase the discretionary income consumers and their ability to buy "non necessity" products.

Consumer confidence is strong due to the strong economy, therefore, consumers will be more inclined to purchase.

The exchange rate may effect overseas ventures, positively in the USA where the economy is strong, and negatively in Asia, where the economy has collapsed.

Himalaya Herbals should monitor the international economy to ensure products are affordable and the price remains competitive to other competitors in the host nation.

Social & Cultural Environment

Demographic changes which may impact Himalaya Herbals are:

The aging population

The increased incidence of women in the workforce

Lifestyles are changing towards more "empty nesters" and couples having kids later for dual career couples.

The male perception of cosmetics is changing. Males are more inclined to use cosmetics (up to 40% of pop.).

Increased recognition of the benefits of natural therapy (Appendix 1)

Australians are becoming more culturally diverse, influencing product preferences.

Attitudes have changed. Some sectors of the community refuse to buy products harmful to the environment or animals and increased importance is placed on buying from socially conscious organisations.

The importance of buying locally made products has increased. Australian's identify with Himalaya Herbals's "outback qualities".

Ecological/Natural environment

Himalaya Herbals uses all natural ingredients

Seasonal or climatic factors may impact Himalaya Herbals through raw material shortage. (hence shortage of plant extract through drought).

The knowledge gained from late 1980's about Ozone. Layer depletion, forest depletion, and sustaining resources.

The list of Himalaya Herbals's chief competitors are as follows:

Largest competitor Body Shop 45%

Second largest competitor Red Earth 35%

Third largest...
tracking img