International environment of business by Kishan
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Transcript of International environment of business by Kishan
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