Sample case study on corporate challenge: herbal destination, inc

Introduction

Overview of the Company
Herbal Destination Inc. is a company involved in manufacturing of herbal supplements and skincare products. The company is based in the U. S. utilizing the resources imported from India. It was founded in 2009 by Shaker and Bharathi. Ayurvedic herbs are the main resources for manufacturing the products. Herbs are refined using modern techniques and put into capsules. Skincare products are 99% natural helping reduce wrinkles and eye bags. The products manufactured by the Herbal Destination Inc. The company sells its products with the help of small and large retailers. Also, the products are sold with the help of the company’s website. The mission of the company is to manufacture, innovate, and market high quality herbal blends addressing principal elements of human health.

Main Products

The products combine ancient Ayurvedic wisdom with modern scientific knowledge. The assortment includes multi-herb supplements, memory supplements, natural sleep aid, blood sugar supplements, libido supplements, and natural skincare products. All supplements are GMO free. The design of the products is specific and standardized. The products can be consumed by vegans and vegetarians. The products manufactured by the company are made with strict adherence to tested formulas. GMS 315 Gluco Complex™ supports the normal level of sugar in a blood, pancreatic health, increases immunity. At the present time, six herbal supplements and two skincare products were chosen to be marketed. All products are certified and have proprietary formulas. The combination of the ingredients is a trade secret. All of the products are formulated to make an effect for all people having various health concerns.

Marketing Strategy

At the present time, Herbal Destination Inc. markets its products with the help of large retailers or resellers such as Whole Foods, Nature’s Bounty, Walgreens, and Natural Organics. However, this strategy appeared to be expensive since all these companies account for a large advertising budget for each product while sales volumes are not guaranteed. The company explores the strategy of differentiation taking into account the specialized nature of the product and a specific group of health conscious customers. The company advertised itself with the help of traditional forms of advertising that appeared to be ineffective.
The target market for the company is people aged 30 years and older who believe in alternative remedies and tend to buy from health food stores and specialty stores. The level of the products is high-end to premium. Currently, Herbal Destination Inc. uses social networks as a promotional tool. The company cooperates with e-retailers such as Swanson Vitamins, iHerb, Lucky Vitamin, 4allVitamins, Amazon. com, and Rakuten. Com.

SWOT Analysis

Strengths: Unique products, unique formulas, combination of old recipes and innovative technologies in the products.
Weaknesses: Undefined marketing strategy. Absence of a clear plan of action related distribution of the products. Public awareness of the products is low.
Opportunities: The major opportunity for the company is the desire of U. S. dwellers to embrace the holistic and natural style of life. Growing popularity of organic food and natural herbal supplements offers opportunities for revenue generating. There is an opportunity to sell the products with the help of direct marketing. There is an opportunity to reach a specific audience (vegans and vegetarians) to increase sales. There is an opportunity to merge with a large established marketer to develop direct sales force.
Threats: Competitors can invent a similar marketing strategy. Competitors can launch similar product at lower price.