Business Daily from THE HINDU group of publications
Thursday, Mar 22, 2007
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Business Daily from THE HINDU group of publications Thursday, Mar 22, 2007 ePaper |
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Marketing
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Strategy Herbalife plans new promotional strategy for nutritional products Madhumathi D.S.
The portfolio has plant-based pills and powders targeted at weight-watchers, people with lifestyle problems affecting heart, digestion and eyes, besides cosmetics.
Bangalore March 21 Herbalife is churning up strategies on distribution, promotion and pack size of its nutritional products. This, it hopes, will add punch to its expansion in the domestic market. Smaller packs with shakers and convenient single-use sachets for those on the move are in the offing, in addition to 500-g jars for 30-day-use. The direct sales company operating in the country since 1999 is lining up some additions and variants to the range of nine `inner care' or edible products. A couple of new flavours in energy drinks is to roll out first. Having launched its `Nouri-fusion' range of 14 `outer care' or cosmetics products last September, Herbalife plans to double its presence to 30 cities this year, starting with new offices in Delhi and Mumbai, Mr Shekhar Sethu, Managing Director, Herbalife International India P Ltd, told Business Line.
Important market
"We are looking at new product lines or small packs and lower price, may be sachets, to move into new cities ... India is a high-potential and important market in the region. We haven't tapped the full potential, though this is the right time (to grow) given the health and wellness boom," said Mr Sethu, without going into a timeline for the new packs. The portfolio has plant-based pills and powders targeted at weight-watchers, people with lifestyle problems affecting heart, digestion and eyes, besides cosmetics. The subsidiary of the $3-billion US company saw its domestic turnover grow 30 per cent in the past two years. Mr Sethu said the goal was to be in 50 centres by 2008; double the product offers and improve annual revenue growth to 50 per cent. A brand-building exercise is under way through campaigns in lifestyle magazines. Herbalife conducted a three-month study on 50 consumers through Apollo Hospitals, Chennai. "We are looking at sports endorsements. Globally, the company is associated with sport, as in the US with beach volleyball and triathlon. Here, we are yet to pick a sport," said Mr Sethu, who took over as country manager seven months ago.
Stress on health
The distribution line is being refocussed with a stress on health rather than slimming. The 25,000-strong distributor network is being re-oriented to have invitational sessions, small-circle and referral methods to draw new users. Currently, a single domestic manufacturer makes the products. In the future, Herbalife would be looking at multiple manufacturers, possibly separating tablets and capsules from powders, Mr Sethu said.
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