DABUR CASE STUDY

MARKETING MANAGEMENT

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

Dabur India is the 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

PRESENT SCENARIO

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

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

DABUR -THE BRAND (contd)

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

HOW DABUR BUILD ITS

BRAND EQUITY? Identities making up the brand-

Choice 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 PROCESS 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

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

Brand Type

1. Dabur Healthcare

(Chyawanprash)

2. Vatika Herbal Beauty Brand

3. Anmol Personal Care Market

4. Real 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!!!!