Himalaya Drug Company has identified two agencies to handle the communication of its to-be-launched range of OTC products - Orchard Advertising and Contract, Bangalore. Confirming the development, Ravi Prasad, president and chief executive officer, Himalaya Drug Company, said, "The new range of products would hit the market around end-February, 2002. These products would be distinct from the Ayurvedic Concepts line and would be marketed by a separate division altogether." He refused to talk further about the new products, their advertising strategy or their marketing budget.
However, information available with agencyfaqs! indicates the new therapeutic range was put up for an agency pitch around two months ago. The agencies in the fray included O&M, FCB-Ulka, Rediffusion, MAA Bozell and, of course, Contract and Orchard. Neither the company nor the agencies in the running were prepared to talk about the exact nature of the pitch or why the decision could have gone in favour of Contract and Orchard. What is known, however, is that the ad budget for the Ayurvedic Concepts range for the current year is Rs 10 crore. And that the company is ready to prop its new line with "a well-orchestrated marketing plan backed with a substantial ad budget" which is comparable with the spends on Ayurvedic Concepts.
The news of the new agency line-up comes just after the company completed a repositioning exercise wherein it unified all its offerings under a single, global brand 'Himalaya'. This marked a significant step in the company's efforts to emerge as one of the world's leading herbal, healthcare brands. For the records, the herbal healthcare market worldwide is estimated at $50 billion.
And Himalaya plans to tap this market with its marketing joint ventures in 14 countries across the world, and is likely to add three more in the next 12 months. This covers markets in North and South America, Africa, Eastern Europe, the CIS and the East Asia. The company plans to set up an offshore manufacturing facility, probably in West Asia, very soon.
It is also expecting some landmark changes in the US laws, which currently allow Himalaya to sell its products only as dietary supplements. The company is expected to close this financial year with a turnover in the region of Rs 250 crore and plans to take it to Rs 500 crore in the next five years.
© 2001 agencyfaqs!