Dabur Restructuring And Re Positioning

DABUR CASE STUDY MARKETING MANAGEMENT

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Dabur – The Brand Product Offerings Brand Equity-Analysis Brand Equity Why Restructuring? Branding strategy SWOT Analysis Marketing Mix

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PRESENT Dabur India is theSCENARIO 4th Largest FMCG Company in India Legacy of over 100 years Strategic Business Units in Health care, Personal care and Food products Dabur has a turnover of Rs.1899.57 crore with powerful brands like Dabur Amla, Dabur Chyawanprash, Real, Vatika and Hajmola Bottom Line Driven Company Product marketed in over 50 countries Leader in Herbal Digestives with 90% market share

DABUR -THE BRAND        

Established : 1884 Founder : Dr. S K Burman. Basic Motive : Manufacture of Ayurvedic Drugs Achieved : By setting up manufacturing units and setting up Research and Development Labs Expanded its product line in the mid 1900’s by launching Dabur Hair Oil and Chyawanprash Added Oral Care Products in the 1970’s Shifted base from Kolkata to New Delhi in 1972 Launched Hajmola tablet in 1978.

DABUR -THE BRAND (contd)  In 2004, restructured its portfolio and structured itself into three main SBU’s  Has 5 power brands under its portfolio  Entered new markets like the Juice segment, branded packaged soups segment  Developed its Oral Care Market  Increasing its geographical spread  Aims at doubling its revenue and profit by the end of 2009-2010

PRODUCT OFFERINGS  PERSONAL CARE SEGMENT :  Hair Care Oil and Shampoo (VATIKA)  Skin Care (FAIRENESS FACE PACK)  Oral Care (DABUR RED GEL AND TOOTHPASTE)  FOODS PRODUCT RANGE:  Juice ( REAL/ REAL ACTIV)  Dabur Honey  Hommade (Packaged Soups)

PRODUCT OFFERINGS (contd)  AYURVEDIC HEALTH PRODUCTS:  Digestive Segment (HAJMOLA)  Dabur Chyawanprash  Pudin Hara  AYURVEDIC DRUGS  PHARMACEUTICALS

BRAND EQUITY  The Brand Equity of Dabur can be judged by the model BRAND ASSET VALUATOR  Four Key components :  Differentiation  Relevance  Esteem  Knowledge  As Dabur is a well- established brand all the four components are high  HERBAL has been Dabur’s Brand equity since centuries

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HOW DABUR BUILD ITS BRAND EQUITY? Identities making up the brandChoice of its logo, symbol, slogan, packaging

 Marketing Activities  Associations of the brand

WHY RESTRUCTURING?

 Image : Ayurvedic Company  Association: 35 - plus age group  Problems :  Diversified into too many product ranges  Image  Association with a particular age group and hence losing on the other potential customers  Lower Sales and Profits

RESTRUCTURIN G  Cut down on all its low Contribution Brand  Positioned itself as an Herbal specialist in the FMCG sector  Set Higher Targets  Identified Growth Drivers  Filling up the gaps in Oral Care as well as Hair Care market  Set itself a new Brand Strategy  Entered new potential areas and targeted the youth as well school children

PROCESS

BRANDING STRATEGY  Changed its branding strategy by moving from the Umbrella Strategy to the Key brand Strategy  Categorized itself into five power brands  Dabur (HEALTHCARE)  Vatika (HAIR CARE)  Anmol (PERSONAL CARE)  Real ( JUICES)  Hajmola (DIGESTIVE SUPPLEMENTS)

BRANDING STRATEGY (contd) PRODUCT LINE EXTENSION

  In the JUICES range Dabur introduced :  Coolers (Low fruit Content)  Real ( High fruit pulp Content)  Real ACTIV (Health Conscious Youth)  Real Juniors (for the children below 6 years of age)  Real School pack.

WHY THESE STRATEGIES?  Line Extension Strategy was adopted by Dabur because:  It could attract different target audience  Could renew Interest and liking for the brand by introducing new variants  It could increase its market share  Diversify without much risk  Moved from its Core strategy and hence could give customers something better and different

POSITIONING  Dabur through its diversified brands has tapped various target segments like the :  Youth  Health Conscious People  School Children  Mothers  Existing Old age group

SWOT ANALYSIS  STRENGTHS:  Century Old Company  Established Brand  Ayurvedic/ herbal Product line  Leader in Herbal Digestives where the product has 90% of the market share  Innovativeness in Promotions  WEAKNESS:  Profitability is uneven across product line

SWOT ANALYSIS (contd)  OPPORTUNITIES:  Extend Vatika brand to new categories like Skin Care and body wash segments  Launch several OTC brands  Southern India Market  Exploring new geographical areas- local as well global  Oral Care Segment  Launching new Products like Hair oils, Herbal and Gel Toothpastes etc.

SWOT ANALYSIS (Contd)  THREATS:  Competition in the FMCG sector from well established names  Other fields of medicine- Allopathic and Homeopathic  Markets where Herbal products are not recognized

MARKETING MIX  PRODUCT:  Products have been divided into 5 power brands  Quality: High  Sizes: Available in different sizes  Design: Available in Tetra Pack, Bottles, Sachets

Sr. No 1.

Brand

Type

Dabur

2.

Vatika

3.

Anmol

4.

Real

Healthcare (Chyawanprash) Herbal Beauty Brand Personal Care Market Foods

5.

Hajmola

Digestives

MARKETING MIX (contd)  PRICE:  As, Dabur had different sub-categories it came out with variable pricing to reach each and every target segment  E.g. : One- litre bottle of Cooler (juice) was priced at Rs.50  Selective Price Reduction to increase Demand  Introduction of Smaller packs at Rs.5  Came out with Rs.1 sachet of Vatika Shampoo to increase market share  Cutting Price to stand out against competition.

MARKETING MIX (contd)  PLACE :  Dabur constantly kept on increasing its geographic spread to increase its sales revenues  Entered the South Indian Market  Expanding in the International Market  Presence in over 50 countries  Subsidiaries established in Nepal, Nigeria, Bangladesh and Pakistan  Focus areas : Asia Pacific, Afghanistan, Russia and other CIS countries

MARKETING MIX (contd)  PROMOTIONS :  Different brands have its own marketing and advertising team  Different brands had different promotions  Utilized the popularity of Indian films in the domestic and global markets to promote its brands  Undertook the most advertising campaign with Mr. Bachchan endorsing Dabur brands  Signed cricketer Virender Sehwag and his wife for selected Oral, Hair and Healthcare products

MARKETING MIX (contd)  Targeted the Institutional market which included hotels and airlines  Partnered with Institutional clients to provide value added services  Held various contests  Training sessions and workshops for food and beverage professionals  Tie-up with Discovery Channel

THANK YOU!!!!