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The debut of a product from a major company is usually
accompanied by an extensive advertising campaign to ensure it receives
its share of the spotlight.
However, some companies with unique market positioning are finding ways
to rely on a more segmented marketing strategy that does not involve
advertising in magazines, on billboards, the radio, busses or the
television.
Himalaya, one of the world's largest herbal health care producers,
commenced operations in Indonesia last year and said it has never spent
large amounts of money advertising its products.
"Our marketing strength is not in advertising, but rather in our
research," Himalaya executive director Ravi Prasad told The Jakarta
Post last week.
"It takes us about ten years to develop a product from the time our
scientists start formulation to the time the product enters the
market," Ravi said.
"We conduct different types of tests to prove that the product is very
safe. Then we conduct clinical studies to prove the efficacy of the
product," he said.
Following the research and studies, the results are then published in
leading medical journals all over the world, Ravi said.
"So when a doctor in Indonesia finds a study on our products in an
international journal, he will read the report and think there must be
some seriousness to the product," Ravi said.
In its 75 years of existence, Himalaya has built a successful business
and a place in history through producing herbal products with
pharmaceutical-grade credentials, which has gained them endorsement
from over 250,000 practitioners, including medical doctors, in 73
countries.
Another brand recently entering the Indonesian market that made a
successful debut without extensive advertising campaigns was Spanish
fashion label Zara.
Zara has made it as a fashion icon in Indonesia through the power of
'word of mouth'.
Zara's secret lies not only in the design of its products, but also on
exclusivity combined with affordable prices compared to other top
fashion labels.
Due to high demand and limited stock, almost every Zara product made
sells out.
On average, only 1,200 pieces of each design are produced and
distributed to about 750 stores throughout the world.
Zara has been able to minimize its advertising spending and use it
instead to fine-tune its global network distribution system, which has
been studied in many business schools around the world.
Zara's founder, Amancio Ortega Gaona, was recently named the world's
eight wealthiest person by Forbes magazine, with a total wealth
estimated at US$24 billion.
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